MANAGEMENT OF CORPORATE SOCIAL RESPONSIBILITY

PLAN 1. The institute of the civilized business: the essence and functions 2. The standards of CSR management (Q-RES, VMS, SIGMA и АА 1000) 3. Common elements of CSR management

Social economic environment is the space of interaction of power, business and society. It lets to increase the control over sophisticated social, ecological, economic systems and their functioning efficiency, saving at the same time the natural environment

Modern social economic environment functions according to the rules set by the state. It has forced character since it is formed by the institutes working within a certain legislation

It is necessary to create contemporary methods to manage the system of interconnection between the state, business and society. They are supposed to be flexible and adaptable depending on the subjects defining functioning the social economic environment.

There are 4 main standards accepted in the European union 1. Q-RES project 2. VMS (Value Management System) project 3. SIGMA project (London) 4. Accountability concept AA 1000

Q-RES project defines the management system for the program “The quality of social and ethic corporate responsibility ” issued by the university LIUC (Italy). The relations between the corporation and the target of CSR (the state or stakeholders) are to be built in accordance with the social contract strategy, considering the principles of efficiency and justice

VMS (Value Management System) project is developed by Economic Ethics Center (Germany). This is the system of principles of stable development

SIGMA project (London) helps the organization to integrate the stable development in its management principles

Accountability concept AA 1000 developed by social and ethic accountability (London) is based on three basic principles:  importance,  completeness,  responsibility.

These standards presuppose that CSR is the fiduciary obligation of the organization to other members of socially responsible process and is demonstrated through interconnection between all participants of the process

There are 4 bases of the standards 1. Values and principles of CSR 2. The process of CSR management is the organizational process integrating values, principles of CSR as well as corporate strategy, its policy and general management principles 3. CSR management instruments helping to participate in the process of CSR 4. Verification is the procedures of internal audit aimed at creditworthiness increase

CSR values and principles A number of economic, social and ethic criteria, defining the vision and mission of the organization, serving the basis for decision making, and shared by all members of the organization

CSR management process The general organizational process based on the model of quality management systems «Plan- Do-Check-Act» aimed at incorporating of values and principles of CSR, management instruments and other internal business processes

Elements of CSR management  CSR awareness increase  corporate values and principles development  CSR process members (stakeholders) defining  business development considering the principles of socially responsible behavior  CSR norms and principles development  CSR norms and principles implementation in routine decision-making process  CSR policies and audit procedures development  creating organizational structures aimed at implementation of CSR  Internal control and audit mechanisms development  Assessment and accountability of CSR performance  Every step review considering the norms and principles of CSR

CSR management instruments Organizational processes (e.g. training in ethics), regulations (guidelines), standard methods (life cycles evaluation) aimed at developing highly specialized policies corresponding the values and principles of CSR management, the process of CSR management and decision-making in solving social, ethic, economical and ecological problems

Verification Internal assessment of specific principles and standards, the quality of reports and systems, processes and competences containing general information and supporting the accountability of execution. Verification contains communication of the results to stakeholders

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