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    Contents

    The CSR Academy: Here to help you andyour organisationThe CSR Academys mission is to help you and yourorganisation develop and integrate CSR learning andskills through this, the first dedicated CSR CompetencyFramework for managers. Check out our websitewww.csracademy.org.uk for more information,including details of the Academys structure andprogramme partners.

    Use of the CSR Competency Framework is completelyfree, but organisations are asked to register theirdetails through the website www.csracademy.org.uk.

    The CSR Academy has a programme of activity tohelp organisations use the Framework also foundon our website.

    For more information about CSR training anddevelopment opportunities in the UK, check out thewebsites interactive directories on further educationopportunities. Whether your company wants

    accredited training courses in CSR or you as anindividual manager wish to undertake furtherprofessional development, the directories havebeen designed to help.

    01 Introduction

    02 A leap forward inmanaging CSR

    03 Making the CompetencyFramework work for you

    04 Attainment levels

    05 Characteristic One:Understanding society

    06 Characteristic Two:Building capacity

    07 Characteristic Three:Questioning businessas usual

    08 Characteristic Four:Stakeholder relations

    09 Characteristic Five:Strategic view

    10 Characteristic Six:Harnessing diversity

    11 Some frequently askedquestions

    12 Acknowledgements

    13 Contact details

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    A changing business cultureBusiness operates today in a new market place. Morethan ever before, stakeholders demand that businessfunctions in a responsible way. While pressures tomake profits are unremitting, stakeholders expectever-increasing standards of accountability andtransparency. Business responsibility and itsrelationship to the community in which it operatesand seeks to serve - is more important than ever.

    Companies of all sizes are increasingly aware of this new market place and recognise the growingsignificance of reputational risk. Many companies areconvinced they benefit from encouraging responsiblebusiness practice. Far from just responding toconsumer pressures, these companies are drivingforward an enhanced way of doing business. Thisapproach has become known as corporate socialresponsibility (CSR)*.

    For some companies CSR is not a new concept,but others are unsure of the changes taking place.

    What can a company do in response to this changingbusiness culture? How can managers bring CSR intotheir daily actions?

    The Department of Trade and Industry is committedto achieving a leap forward in business understandingof and engagement in CSR and has supported theestablishment of the CSR Academy to help achieve this.

    *You might also have heard this approach described as businesssustainability, corporate responsibility or corporate citizenship.

    Developing CSR competenciesFor the Academy, CSR is about the management of acompanys impact on its stakeholders, the environmentand the community in which it operates. It is morethan just the amount of money donated to charitablecauses. It is about the integrity with which a companygoverns itself, how it fulfils its mission, the values ithas and what it wants to stand for, how it engages withits stakeholders, and how it measures its impacts andpublicly reports its activities.

    All of this has a direct impact on how managementmakes decisions. It means that managers must takeinto account an increasing range and complexity of factors relating to the financial, environmental andsocial implications of business operations. In orderto achieve this, CSR becomes concerned with thecompetencies managers need to operate in thischanging business environment.

    To help the situation, the CSR Academy has developedthe first ever CSR Competency Framework for

    managers, designed to help you integrate CSR intodecision-making and operations, and achieve that leapforward in understanding. Responsible business isprogressively becoming the way business is done inthe UK. This Framework will help managers in yourorganisation with CSR, enabling your company to beat the forefront of these changes not left behind.

    01

    Introduction Today, corporate social responsibility goes far beyondthe old philanthropy of the past donating money togood causes at the end of the financial year and isinstead an all year round responsibility that companiesaccept for the environment around them, for the bestworking practices, for their engagement in their localcommunities and for their recognition that brand namesdepend not only on quality, price and uniqueness buton how, cumulatively, they interact with companies workforce, community and environment. Now we needto move towards a challenging measure of corporateresponsibility, where we judge results not just by theinput but by its outcomes: the difference we make tothe world in which we live, and the contribution wemake to poverty reduction. The Rt Hon Gordon BrownMP, Chancellor of the Exchequer

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    This document presents the first dedicated CSRCompetency Framework for managers. It aims tohelp your business in the following ways:

    Focusing activityAt the centre of the Framework is a set of core CSRcharacteristics, designed to focus management activity.Some of the characteristics are not new and arealready being applied in companies. By bringing themtogether, the Framework focuses on the personal

    qualities, attitudes and mindsets which managers needto learn and which in turn will drive improvements inbusiness performance. Through this focused activity,organisations themselves will develop the knowledgebase, the skills set and the right attitudes and reflexesto be an effective and responsible business.

    Embedding CSR CSR is not just for specialists or large-scale companies all business leaders and managers of tomorrow mustunderstand why they are engaged in CSR. TheFramework seeks to embed this set of characteristics

    into the education, training and development of managers and staff. The Framework is a tool forassessing performance in all business functions. Itseeks to develop a manager attitude that appreciatesthe importance of CSR and that through this, CSRbecomes a common currency that can be used by allin day-to-day management.

    A tool for all organisationsThe Competency Framework seeks to address theneeds of decision-makers in all companies. It seeksto help general managers in small and medium sizeenterprises as well as functional managers who havesome responsibility for CSR issues. It aims to makeCSR an integral part of business practice, regardlessof the organisations size or its type of market.Although aimed at the business community, it ishoped that organisations of all types will find value

    in the Competency Framework.

    A leap forward for your businessFor many organisations CSR has traditionally beensomething of an add-on. General managers may havehad some experience in CSR, but may not have beenexposed to the wider demands or opportunities that itplaces on an organisation. By being taken up by allmanagers, the Framework will stimulate and providenew thinking that will permeate the whole organisation.At the same time, this will benefit individual managersin their professional development. In time, the

    Framework will make a positive contribution to businesssuccess, building competitive advantage throughimproving the internal and external relationships of a business, its reputation and capacity to innovate.

    02

    A leap forward inmanaging CSR

    The Government aims to transform CSR from beingseen as an add-on to being a core part of businesspractice for more and more organisations. It is nota luxury that only large companies can afford, butsomething that firms of all sizes can participate in for their own benefit as well as for the benefit of others. The Framework is essential, providing themeans so that CSR will be a valued asset in the lifeof every company and of every community. StephenTimms MP, Minister for Energy, e-commerce and PostalServices

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    The Framework has been designed to be aflexible tool, meeting the needs of companiesand organisations of all shapes and sizes.

    Some may wish to take the Framework as it is anduse it in their performance review process. Some maywish to incorporate elements of the Framework intoexisting competency models, introducing a CSR wayof thinking to their companys forward planningmechanisms. Others may consider its most effective

    use is as a self-development tool for particulartargeted managers.

    How it is used is ultimately down to the individualcompany or organisation, but we hope the Frameworkwill help you begin, or progress, your role in themovement towards responsible business.

    Put simply The Framework consists of a set of sixcore characteristics that describe the way all managersneed to act in order to integrate responsible businessdecision-making.

    CharacteristicsUnderstanding society Understanding the role of eachplayer in society government, business, trade unions,non-governmental organisations and civil society.

    Building capacity Building capacity and externalpartnerships and creating strategic networksand alliances.

    Questioning business as usual Being open to newideas, challenging others to adopt new ways of thinkingand questioning business as usual.

    Stakeholder relations Identifying stakeholders,building relations with internal and externalstakeholders, engaging in consultation andbalancing demands.

    Strategic view Taking a strategic view of the

    business environment.

    Harnessing diversity Respecting diversity andadjusting your approach to different situations.

    The Framework is designed for application across thefull spectrum of business functions: Operations Planning Supply Chain Finance Human resources

    Marketing

    It sets out different levels of attainment for eachcharacteristic, together with detailed behaviourpatterns and case study examples. It was developedafter research with more than 400 individuals andorganisations active in CSR.

    03

    Making the CompetencyFramework work for you

    UK businesses are already making a huge impact inmany areas, such as raising employment standards,better stakeholder engagement and improving theenvironment. There remains much to be done,especially in embedding CSR practices into businessmanagement, or put another way, making it part andparcel of everything we do. The CSR Framework aimsto do this, providing a very practical tool for impactingthe business mainstream, filling a gap and adding realvalue. The aspiration is that it will play a key part inCSR becoming integral to the way we do business inthe UK and thence around the world. Clive Mather,Chairman of Shell UK, Chairman DTI CSR SkillsSteering Group

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    The Framework sets out five levels of attainment for eachcharacteristic, depending on the depth of knowledgerequired and the management function. These rangefrom basic awareness through to leadership.

    Each characteristic has a set of unique skills andcompetencies appropriate to that particular characteristic.These are called behaviour patterns and they vary inintensity according to the attainment level required(these behaviour patterns are explained on pages07-12). This built-in series of attainment levels enablesmanagers to fit the Framework to their own particularresponsibilities and needs but importantly, it alsoprovides them with the behaviour patterns to strive forin order to achieve improvements in CSR competency.

    Making the leap from awareness toleadershipAwareness A broad appreciation of the core CSRcharacteristics and how they might impinge onbusiness decision-making.

    Understanding A basic knowledge of some of theissues, with the competence to apply this to specificactivities.

    Application The ability to supplement this basicknowledge of the issues with the competence to applyit to specific activities.

    Integration An in-depth understanding of the issuesand an expertise in embedding CSR into the businessdecision-making process.

    Leadership The ability to help managers across theorganisation operate in a way that fully integrates CSRin the decision-making process.

    > Awareness > Understanding > Application > Integration > Leadership

    04

    Attainment levels

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    What does this mean in practice?You understand how your business operates in the broader context and youknow the social and environmental impact that your business has onsociety. You recognise that your business is an important player in societyand you seek to make as positive an impact as possible.

    The table below sets out the behaviour patterns required to achieve eachlevel of attainment for Understanding society.

    Attainment Level Behaviour Patterns

    > Awareness The manager is aware of the role of the differentplayers in society and the contribution made bytheir own business.

    > Understanding The manager recognises the trends in social andenvironmental issues and how they impact onbusiness performance.

    > Application The manager is actively involved in furtheringa genuine concern for social and environmentalissues in the business.

    > Integration The manager is responsible for managementdecisions that measure and report on the socialand environmental impact of the business.

    > Leadership The manager develops business strategies thatare in accordance and beyond the legislativerequirements and CSR standards.

    How might this be applied to a core business function?Example: Applying the characteristic of Understanding societyto Marketing Your marketing campaigns need to be both ambitious andresponsible, incorporating social and environmental factors. Your newproduct development needs to consider what impact products will haveon the environment and society in general.

    Case StudiesTesco Tesco actively offersemployment opportunities to staff who have been out of work forseveral years, lone parents, olderpeople made redundant and youngunemployed people. For the firstnine stores operating this newscheme, 2,000 of the 3,000 new

    jobs created were employed

    through the jobs guarantee forthe unemployed.

    Union Coffee Roasters UnionCoffee Roasters is a small companythat seeks out growers of finecoffees. All suppliers must adhereto the international and nationallaws regarding the condition of workers and have sustainableagricultural practices in place.In return, Union Coffee Roasters

    purchases the coffee at anenhanced sustainable premium.

    05

    Characteristic One:Understanding society

    Understanding the role of eachplayer in society government,business, trade unions, non-governmental organisationsand civil society

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    What does this mean in practice?You are building the capacity of others to help manage your businesseffectively. Your suppliers understand your approach to the environmentand your employees can apply social and environmental concerns in theirday-to-day roles.

    The table below sets out the behaviour patterns required to achieve eachlevel of attainment for Building capacity.

    Attainment Levels Behaviour Patterns

    > Awareness The manager is aware that the business needsto work in partnership with others both internallyand externally.

    > Understanding The manager conveys ideas and informationclearly and in a manner that encourages workingin partnership.

    > Application The manager is actively involved in cross functionalgroups with peers, subordinates and seniors.

    > Integration The manager is responsible for managementprocedures that encourage participation andinvolvement by team members through beingopen and approachable.

    > Leadership The manager develops business strategies thattake a multi-functional perspective on strategicimplementation issues.

    How might this be applied to a core business function?Example: Applying the characteristic of Building capacity toOperations You need to have systems in place for assessing the social andenvironmental impact of suppliers. You should be empowering staff, boostingliteracy and numeracy skills and building the capacity of your workforce.

    Case StudiesWaterstones, MacmillanDistribution and SecuricorOmega Express The aim was todesign a reusable box to replacecardboard cartons used to transferbooks to Waterstones. Thissuccessful initiative has reducedthe need for 21,720 cardboardboxes, saved 15 tonnes of waste,

    reduced infill packaging, reduceddamaged stock, and increasedthe speed of handling goods.

    KPMG and Brighton PrimarySchool The partnership betweenan accountant from KPMG anda head teacher from a Brightonprimary school has been aninvaluable exercise, producingprofessional benefits on both sides.The partnership, based on respect,

    integrity and trust, has providedassistance with issues thatincluded succession planningand volunteer leadership.

    06

    Characteristic Two:Building capacity

    Building internal and externalpartnerships and creatingstrategic networks and alliances

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    What does this mean in practice?You are continually questioning your business in relation to a moresustainable future and being open to improving peoples quality of life andthe environment. Acting as an advocate, you engage with bodies outsidethe business who share this concern for the future.

    The table below sets out the behaviour patterns required to achieve eachlevel of attainment for Questioning business as usual.

    Attainment Levels Behaviour Patterns

    > Awareness The manager is aware of the business need to beopen to new ideas.

    > Understanding The manager recognises the need to move awayfrom familiar ways of working and towardsharnessing innovation.

    > Application The manager can demonstrate an enquiring mind,encourages new ideas and translates the ideasinto action.

    > Integration The manager is responsible for challenging othersto deal with uncertain situations comfortably.

    > Leadership The manager shows leadership style that canadapt to suit the situation, and inspire, influenceand motivate others to perform.

    How might this be applied to a core business function?Example: Applying the characteristic of Questioning business asusual to Strategic Management You should be measuring the businessimpact, not just financially, but over a range of social and environmentalconcerns. You should be assessing reputational risk, shifting the thinkingfrom financial loss to business integrity.

    Case StudiesShell UK Shell UK installed anew lighting system to increasecustomer and staff sense of security on petrol forecourts.Automated sensors measure lightconditions and relay to anautomatic switch off and on atoptimum times. Nationwide, thisinitiative led to environmental

    savings of an estimated 10,000tonnes of CO 2 a year and a 12%saving in related electricity costs.

    Perfecta Perfecta supplies qualityingredients to the food industryand is based in an area of fullemployment. In order to attractand retain good staff, managersconsulted employees before drawingup a package of work life balanceinitiatives. By enabling staff to work

    hours and days around their otherresponsibilities, the number of available packers doubled.

    07

    Characteristic Three:Questioning business as usual

    Being open to new ideas,challenging others to adoptnew ways of thinking andquestioning business as usual

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    What does this mean in practice?Your stakeholders are those who have an impact on, or are impacted by,your business. Your business understands the opportunities and risks theypresent and works with them through consultation, taking their viewsinto account.

    The table below sets out the behaviour patterns required to achieve eachlevel of attainment for Stakeholder relations.

    Attainment Levels Behaviour Patterns

    > Awareness The manager is aware that the business needsto maintain good relations with a wide variety of stakeholders.

    > Understanding The manager recognises the key stakeholdersof the business and responds accordingly.

    > Application The manager is actively involved in buildingrelations and consulting with stakeholderrepresentatives.

    > Integration The manager is responsible for managementdecisions that systematically take into accountthe impact on stakeholders.

    > Leadership The manager helps develop a business strategythat balances the potentially competing demandsof stakeholder groups.

    How might this be applied to a core business function?Example: Applying the characteristic of Stakeholder relations toCommunications You should communicate fully with stakeholders on aregular basis, deepening relationships across and outside the business.You should engage in two-way conversation with staff via trade unionsand/or elected representatives.

    Case StudiesCo-operative Bank Co-operativeBank engages its customers infully-fledged campaign programmesdemonstrating the banks stanceon a range of important issues.The bank dedicates resources torunning hard-hitting campaignsand making donations linked tocustomer spending.

    Fusion Personnel (FruitPacking) A large proportion of Fusions workforce do not speakEnglish as their first language,which had led to certain problems.Management developed a trainingprogramme Dynamic Skills whichdelivers basic literacy, numeracyand language skills. The businesshas gained through staff retention,increased productivity, better

    quality of work and improvedcustomer relations.

    08

    Characteristic Four:Stakeholder relations

    Identifying stakeholders,building relations with internaland external stakeholders,engaging in consultation andbalancing demands

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    What does this mean in practice?You ensure that social and environmental concerns are included in theoverall business strategy so that CSR becomes business as usual.This leadership comes from the top and results in everyone in yourbusiness including an awareness of social and environmental impactsin their day-to-day role.

    The table below sets out the behaviour patterns required to achieve eachlevel of attainment for Strategic view.

    Attainment Levels Behaviour Patterns

    > Awareness The manager is aware that the business needsto have a strategic vision.

    > Understanding The manager understands the business, thecustomers and markets, the way the businessoperates, its structure, its culture and the wayit all relates to CSR.

    > Application The manager is actively involved in engagingbusiness strategy with employees and stakeholders.

    > Integration The manager is responsible for managementdecisions that integrate CSR into business strategy.

    > Leadership The manager acts as a champion of CSR withthe ability to communicate effectively howCSR contributes to the delivery of theorganisations strategy.

    How might this be applied to a core business function?Example: Applying the characteristic of Strategic view to FinanceYou should be managing finance for the long term and understand thesocial and environmental costs and benefits from business operations.You should be considering these social and environmental costs alongsidethe financial aspects. This will help decision-making.

    Case StudiesScottish Power A 20millionprogramme to fell trees threateningpower lines, carried out in co-operation with local communities,won hearts and minds and limitedthe severity of storm damage andresulting harm to the companyscredibility from the 2003 storms.

    Happy Computers HappyComputers specialises in computertraining and actively involves itsstaff in the strategic vision and corevalues of the company. Creatinga company that motivates andempowers staff, ensuring a worklife balance, is a key priority.Limiting adverse environmentalimpacts has ensured the companycontinues to grow.

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    Characteristic Five:Strategic view

    Taking a strategic view of thebusiness environment

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    What does this mean in practice?You respect that people are different, and harness this diversity and reflectit in fair and transparent employment practices. A promotion of the health,well-being and views of your staff will result in everybody in the businessfeeling valued.

    The table below sets out the behaviour patterns required to achieve eachlevel of attainment for Harnessing diversity.

    Attainment Levels Behaviour Patterns

    > Awareness The manager is aware of the importance of respecting diversity.

    > Understanding The manager understands the business needs toadjust its approach, language and views to suitdifferent influencing situations, cultures and sectors.

    > Application The manager is actively involved in creating aworkplace that is seen to be fair, and a supplierbase which is culturally and racially diverse.

    > Integration The manager is responsible for developing staff to their full potential, providing feedback onperformance, setting work objectives andmonitoring progress.

    > Leadership The manager develops business strategies thatvalues employees and customers regardless of gender, race, disability, age, sexual orientationor belief.

    How might this be applied to a core business function?Example: Applying the characteristic of Harnessing diversity toHuman Resources You should be undertaking equality audits, aware of the link between your employed workforce and your community. Yourworkplace practice procedures and your promotion and developmentmodels should prioritise diversity.

    Case StudiesLloyds TSB DisabilityProgramme Lloyds TSB developeda specific strategy to eliminate anyform of discrimination faced bydisabled people across theorganisation. The change has ledto more business from disabledcustomers, and has widened thechoice and availability of jobs for

    people with disabilities.

    Listawood A family businessmanufacturing a range of promotional products which offersa flexible, family f riendly workingculture with no distinction in payrates between full and part-timeworkers. This culture has promoteda situation where two-thirds of thecompanys staff of 180 are women,and two-thirds of its top earners

    are women.

    10

    Characteristic Six:Harnessing diversity

    Respecting diversity andadjusting your approach todifferent situations

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    CSR is all very well, but isnt it more forlarge companies?Recent research suggests that small and medium sizeenterprises (SMEs) in the UK make social contributionsof up to 3 billion each year. This is estimated to beten times that made by larger corporations. TheFramework seeks to enhance the valuable work thatSMEs are already doing by helping them improve theirown performance, further benefiting the communitiesin which they operate.

    How much will it cost my company?To use the Framework your company needs to registerwith the CSR Academy. The Framework is then free touse in whatever way best suits the organisation. Somecompanies may wish to adopt the Framework as it is,while others will take parts and incorporate them intoexisting competency models. All the Academy wantsfrom you is feedback to know how the Frameworkhas helped so we can make continuous improvementsand produce further tools.

    Isnt it just more forms and bits of paper?The Framework had been designed to be a simple butfocused assessment tool to help businesses, especiallysmaller companies engage with CSR. It is designed tobe part of a continuing performance assessment processwithin the business. The characteristics and attainmentlevels are a signposting of where the business wants tobe. It is not any sort of regulatory imposition.

    When we have used it, what happens next?

    The Framework is intended to be a practical and helpfulbusiness tool for use by managers within the companyon a continuing basis. If used effectively it will lead toimprovements and change, and to a growing awarenessof the impact that a business is having within thecommunity. To find out more about the developmentof responsible business within the UK, please visit theGovernments CSR website www.csr.gov.uk and theCSR Academy website www.csracademy.org.uk.

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    Some frequently asked questions

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    The CSR Competency Framework has been developedfor the Department of Trade and Industry (DTI), whichacknowledges the contribution of the following in theproduction of this document.

    The Competency Framework is based on researchcommissioned by the DTI and the CorporateResponsibility Group entitled Changing ManagerMindsets, a report on the development of professionalskills for the practice of corporate social responsibility.

    The report was assisted by research and analysis fromAshridge Consultants and from AccountAbility. Inaddition, over 400 individuals with experience inCSR contributed to the process.

    Following the reports publication, DTI established aCSR Skills Steering Group to develop the CSRCompetency Framework and recommend the role andform of a CSR Academy. DTI acknowledges thecontribution of the following in this process:

    Acknowledgements Clive MatherShell UK (Chairman)Peter BatesonChurch Lukas

    Bryan CressCBI

    Peter DaviesBusiness in theCommunity

    Charlotte DixonSouth East of EnglandDevelopment Agency,SEEDA

    Stephanie DraperForum for the Future

    Mike EmmottCIPD

    Michael HastingsBBC

    Stephen HillRoyal Holloway,University of London

    Will HuttonWork Foundation

    Gaynor KenyonScottish Power

    Peter LacyEuropean Academy of Business In Society

    Jerry MarstonWhitbread plc and

    Corporate ResponsibilityGroup

    David RobinsonCommunity Links

    Peter RosenBovince

    Andrew SentanceBritish Airways

    Janet WilliamsonTUC

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    Contact DetailsCSR Academy, Bay 426151 Buckingham Palace RdLondon SW1W 9SSUnited KingdomTelephone: +44 (0) 207 215 4174/4194Email: [email protected]: www.csracademy.org.uk

    Crown Copyright Department of Trade and IndustryPlease register at www.csracademy.org.ukto stay in touch with us.First edition 2004

    Printed in the UK on recycled paper with a minimum HMSO score of 75.DTI/Pub 7394/0.5k/06/04/NP. URN 04/1306

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    Contact DetailsURN 04/1306