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Calling on organisations to take corporate responsibility seriously, a new guide encourages employers to look beyond statutory obligations.It also outlines how businesses should report on corporate responsibility.

Produced by the Chartered Management Institute (CMI), the guide argues that corporate responsibility is now more important than the more widely recognised term, ‘corporate social responsibility’ (CSR). 

It suggests that community and environmental concerns are critical, but suggests that focusing on these issues in a ‘social’ context relegates them to little more than a ‘bolt-on’ to business operations.

Reminding directors about their legal obligation to produce a business review that addresses the needs of internal and external stakeholders, the guide focuses on key reasons for adopting formal corporate responsibility policies. 

Reputation management focuses on demonstrating commitment to the workplace, community, marketplace and environment to enhance the brand name, something that 55 per cent of managers believe is regularly under threat.

The recruitment and retention section of the guide is a reminder that over 80 per cent of managers view ‘organisational culture and values’ as a strong motivational driver. Communicating these can help attract and retain the best talent.

Just 16 per cent believe innovation is a challenge for organisations, but environmental and social concerns are often blamed for restricting new activities. 

The guide highlights how effective corporate responsibility can harness innovation. To capitalise on the benefits of corporate responsibility, the guide offers organisations advice on how to develop an effective corporate responsibility policy.

Areas to consider include identifying the key risks and opportunities for your organisation, engaging with stakeholders throughout the process, setting performance indicators so activity can be measured, and regularly revisiting the policy to ensure it is driving business goals.

Jo Causon, director of marketing and corporate affairs at the Chartered Management Institute, said that evidence existed to suggest that the majority of UK organisations were struggling to recruit and retain enough talented people.

Causon added that in the current economic climate the same could be said for securing the customer base. 

“In such tough market conditions, organisations would do well to realise that adopting a responsible and accountable approach to their actions holds real business benefits, making them appealing to staff and stakeholders, alike,” Causon concluded.

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Related links 

• Chartered Management Institute
• Corporate responsibility guidelines