THE THREE
PILLARS OF CSR
These three pillars of CSR cover specific themes and
practices that together create a responsible
corporate culture and – most importantly – make a
positive impact every day.
The aim of a responsible company is to create
economic sustainability, while behaving in an
environmentally and socially responsible way. A CSR
policy’s legitimacy and, above all, progress rely on
these fundamental principles.
The three pillars are economic,
social and environmental. A
company’s sustainable
development strategy focuses on
these three key topics and action
plans are created based on them.
What are the At first glance, these three
pillars may appear different,
three pillars of but they actually contain many
CSR ? interlinked concepts.
Social responsibility
The law
The social pillar is primarily based on complying with legislation
regarding human rights, working conditions and non-
discrimination. Access to a working environment that respects
laws considered basic in the West is the first stone to building this
pillar.
Employees
The second stone of the pillar is to go further and incorporate
concepts that help to create a stress-free workspace conducive
to employee development, such as well-being, diversity and
inclusion, health, training, professional development and safety.
Social responsibility
Community
The third stone builds the pillar beyond the company’s boundaries
and takes into account external stakeholders such as customers,
the company’s direct community, and any indirect communities
that may be affected by the company’s choices, i.e., through its
supply chain. To address this, new practices such as satisfaction
surveys, partnerships with public authorities or supplier analysis
can be integrated into a company’s daily operations.
Social responsibility
Community
The third stone builds the pillar beyond the company’s boundaries
and takes into account external stakeholders such as customers,
the company’s direct community, and any indirect communities
that may be affected by the company’s choices, i.e., through its
supply chain. To address this, new practices such as satisfaction
surveys, partnerships with public authorities or supplier analysis
can be integrated into a company’s daily operations.
Data
To ensure improvement of its socially responsible practices, the
company will need to compile data, analyse and report on it, and
create KPIs for setting progress targets.
Social responsibility
Benefits
The world is changing… all stakeholders are better informed and
now embrace social and environmental standards in their daily
work and lives. Several studies have already demonstrated the
benefits of having corporate social values, including employee
retention and attraction, productivity and innovation, and a
positive corporate image.
Environmental responsibility
As the name suggests, the environmental aspect of a CSR strategy covers
ecological issues and the impact that the company has on the
environment. Faced with the climate emergency, companies often choose
to concentrate on this pillar first.
The environment
Much like the social pillar, this pillar encompasses a set of concepts and
practices both inside and outside the company. Companies wishing to
reduce their negative impact on the environment and integrate
responsible behaviour need to take into account concepts like greenhouse
gas emissions, circularity, renewable energies and responsible
procurement. These various issues are part of a responsible approach to
the environment and must be addressed in order to reduce a product’s
impact as best possible.
Environmental responsibility
360° thinking
To ensure a comprehensive approach, these points for attention should be
analysed under the company’s different ‘scopes’, i.e., in relation to the
company’s daily operations, facilities, products and/or services. For
example, setting up a recycling programme in the office building is not
enough to be considered a responsible company. A 360° approach is
needed to reduce the overall environmental footprint.
Data Measurement
In order to create a robust environmental management system, it is
important to measure its impact, but also to collect, analyse and report the
data. This will help the company have a clear view of the situation. It will
also facilitate the set up of KPIs that will make it easier to create reduction
targets.
Environmental responsibility
Budget optimisation
Contrary to common believes, adopting an environmental policy also
helps a company to optimise its budget. It can be done thanks to
practices such as recycling and improved resource management.
Time is of the essence
Following the latest IPCC report published early 2022, we see – once
again – the urgent need to change how we do things. Companies need
to be aware of their impact and learn how to change their business
operations to minimise the negative effects they may have on the
environment.
ECONOMIC RESPONSIBILITY
The economic pillar is not about making profit at any cost. Rather,
it’s about focusing on business sustainability and ensuring that it
is built on solid foundations to create resilience. In the wake of the
recent pandemic and global challenges, business resilience has
become key to dealing with adversity.
The company
The economic focus is on behaviours at company level, such as
compliance with legislation, risk management, transparency and
good governance. These behaviours help to gain the trust of the
company’s stakeholders as they demonstrate a responsible
corporate culture. Many practices stem from these behaviours,
leading to tangible action such as sustainability reports,
stakeholder maps and/or certification.
ECONOMIC RESPONSIBILITY
The company’s surroundings
A company’s economic responsibility also includes supporting the
local economy. For example, a policy of local sourcing enables the
responsible company to support its surrounding community. With
strong roots in its geographical area, the company becomes a
community player and can thus actively create a positive impact.
As mentioned above, a responsible supply chain continues to
create a positive impact beyond the direct community through
the company’s economic performance.
https://www.abeautifulgreen.com/en/services/esr-label/
Several frames of reference are available – the United Nations’
17 Sustainable Development Goals are the most well-known.
And, if your final objective is to get certified or be awarded a
label, we recommend using the reference framework
proposed by the certifying body/label organisation.
One example is ESR in Luxembourg, which stands for Entreprise
Socialement Responsable, or Socially Responsible Enterprise in
English. An ESR Guide was prepared together with the main
CSR contributors in Luxembourg to help companies in their
quest for obtaining the ESR label. It is proposed by the
certifying body INDR and seeks to promote CSR among
national companies so that they contribute to sustainable
development.
THE ROLE OF STAKEHOLDERS IN
CSR STRATEGY
Who are the stakeholders?
Stakeholders are all the physical or legal entities
that interact with a company and its business. This
ranges from internal employees to customers,
business partners, public authorities and
suppliers.
Different stakeholders have different relationships with
the company:
Active economic stakeholders (suppliers, business
partners, customers, employees)
Observers and/or influencers (non-profit
organisations, trade unions, lobbies, government)
Beneficiaries or victims, depending on the
positive/negative and direct/indirect effects of the
company’s activities (local communities, etc.)
Who are the internal stakeholders?
All those who interact directly with the company:
shareholders;
executives/managers;
employees;
trade unions.
Who are the external stakeholders?
These include:
NGOS;
governments;
customers;
local communities;
business partners;
suppliers.
Why are stakeholders important?
Corporate social responsibility grants stakeholders a far more
important role than before. They have become an essential
component of the strategy.
Better Brand Operational costs
A responsible company’s ‘impact culture’ is built
Recognition savingson the balance
between its economic, environmental and social concerns. CSR
teams are tasked with protecting this balance and setting impact
Better financial
improvement targets. Another of their tasks is to ensure
Positive Business
Reputation performance
transparency and an inclusive approach to stakeholders. A
company’s prosperity depends partly on creating shared added
Increased sales and Easier access
value sincecustomer
withoutloyalty its stakeholders, a company cannot continue
to capital
to develop and evolve.
Co-building a CSR strategy with the
help of stakeholders
The stakeholder map
As already mentioned, the first phase of a CSR strategy
Better Brand
Recognition
Operational costs
savings
is to identify the company’s internal and external
stakeholders. Take a moment to brainstorm and list the
Positive Business Better financial
different stakeholders who interact with your company.
Reputation performance
You can go a step further and rank your stakeholders in
order to understand the influence each has on your
Increased sales and
customer loyalty
Easier access
to capital
business.
Co-building a CSR strategy with the
help of stakeholders
The materiality matrix
Once stakeholders have been identified, it is useful to
Better Brand
Recognition
Operational costs
savings
understand their expectations of how the company
manages its impact. The aim of this process is to rank
Positive Business Better financial
the company’s social, environmental and economic
Reputation performance
commitments. By comparing the expectations of your
stakeholders with those of the company, you can
Increased sales and
customer loyalty
Easier access
to capital
establish the guidelines for your CSR strategy.
Communication and transparency
The process does not end there, of course! The collaborative process is
ongoing and the company must be transparent about its strategy and
the actions it decides to take.
It must learn to communicate honestly and be open to feedback and
dialogue. Beyond the idea of stakeholder accountability, the company
should seek to provide a space for co-creation that builds sustainable
business relationships.
Sustainable reports, newsletters, social networks and meetings are
some of the ways you can communicate about a company’s actions.
