The term Corporate Responsibility (CR) is used to refer to the ways in which companies treat their employees, customers and suppliers, the environment and community.

The aim of CR policies is to adopt best practice in the way in which the company relates to these stakeholder groups and society at large.

To be effective, CR policies must be devised and implemented with the same rigour with which a company develops its core business and financial strategy. They must therefore flow from the company’s core business ethos.





Value of CR
Adopting well-thought through, robust policies in CR helps companies to:

• Meet responsibilities to stakeholders
• Improve business performance by adopting best practice
• Meet regulatory and legislative requirements
• Manage impact on society
• Improve reputation
• Increase relevance to consumers
• Meet Government expectations

Importance of CR
CR is high on the international business agenda, with Governments, corporates, shareholders and NGOs engaged in a fierce debate about a company’s wider responsibilities and the extent to which these should be met by voluntary or regulatory action.

New codes and standards, including the UN’s Global Compact, the Global Reporting Initiative and, in the UK, Business in the Community’s Corporate Responsibility Index are being adopted by an ever increasing number of leading companies across the sectors.

In the UK, the 2006 Companies Act implements the EU Accounts Modernisation Directive and provides for the statutory reporting of non-financial information. For the first time, from October 2007 the Directors of quoted companies must produce a business review which covers information about the company’s impact on the environment, its employment policies and relevant social and community issues. Also for the first time, they have a statutory responsibility to have regard to stakeholder interests in taking business decisions.