The CSR Assessment should show the main risks and opportunities and give a thorough analysis of the following: How well is the company’s strategy in responding to emerging opportunities and issues? Where is the company strong and weak in regards to CSR? These are important information which can be used as a selling point to stakeholders.
Most companies conduct these assessments at the request of their clients or stakeholders. When your top management do not have an accurate overview of your corporate social responsibility status and progress. It would be difficult and unlikely for them to make important decisions for the future. Intelligence gathered from the assessment can protect a firm from making an ineffective and uncalculated CSR approach or heading in an unsustainable direction with their business. An assessment will also help identify CSR loopholes and potential opportunities which will improve the decision making process and also as a reminder of legal obligations in business practices.
A basic assessment process is outlined below:
This is not the only way to do an assessment; rather it is one way a firm can review the full range of its operations through a CSR lens. A number of organizations, such as EcoVadis have developed tools and CSR rating methodology to help companies perform a CSR assessment on themselves or on their suppliers. Below is a brief explanation of the EcoVadis methodology.
EcoVadis CSR Assessment and Rating methodology: The objective of the EcoVadis CSR rating methodology is to assess the quality of a company’s CSR management system-through its policies, implementation measures and results. The process captures and analyzes information and distills it into a scorecard with a Rating on a 0 to 100 scale. The rating methodology is based on seven founding principles: