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a business demonstrates its independence and its understanding of the strategic dimension of corporate social responsibility, as well as its creativity in developing and applying practical approaches.

23.3 Consulting services

In their attempts to address the various demands and developments concerning corporate citizenship, firms are turning to consulting companies for assistance. In a rapidly expanding and wide-ranging field, consultants are assisting companies to develop corporate visions and strategies for their citizenship efforts, guiding them in introducing management systems to support the visions, and helping them prepare for certification under various schemes. The participants in this field and the firms involved range from global consultancies, such as PricewaterhouseCoopers and Ernst & Young, to individuals operating locally. Given its recent emergence, the field of consulting in corporate citizenship is relatively undeveloped.

The scope for consulting projects in the corporate citizenship arena is vast. It is an area in which, by definition, a consulting project focuses not on a function, initiative, product line or business unit, but the sum total of the business. To become a good corporate citizen often means a complete retooling

– a comprehensive organizational change initiative – and this may be more than any consultant and client can hope to accomplish. Even the process of deciding how to approach the issue is tricky to say the least. Some look to create highlevel planning systems; others believe a reporting or auditing process will drive performance; others approach the work from a communications angle; still others offer services around programming and specific initiatives. Specific programmes can range from establishing a volunteer programme, to creating procedures to ensure ethical global sourcing. Box 23.2 outlines a typology of corporate citizenship consulting which demonstrates the considerable breadth of the field.

There is an emerging consensus among business leaders around the process elements involved in corporate responsibility. There is growing agreement that it should be managed in an integrative, strategic fashion, with commitment of leadership who specify goals, assign roles, and ensure cross-functional integration, effective and efficient resource allocation, and appropriate management and communication systems. At the same time, there is a convergence of views that the corporate citizenship strategic management process should create systems for transparency, accountability, stakeholder dialogue and engagement, and measurement/verification.

Thus, while there are many directions for consulting in corporate social responsibility, in the absence of a clear definition of need, clients will do well to start with a strategic planning process that sorts through critical questions, identifies priorities, reveals critical relationships, provides concrete decisions, and specifies actions.

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Consulting on the social role and responsibility of business

Box 23.2 Typology of corporate citizenship consulting

Strategy consulting. Senior executives are beginning to ask how they can design a strategy for their business that will embrace the vision and purpose of corporate citizenship, prioritize goals and objectives, specify the allocation of resources, define management roles and responsibilities, and measure outcomes. Once the strategy is defined, the firm may need consultants to support its implementation, monitor progress, and help measure results. Particular elements that support strategic “fact-based management” may require consultant support as well. These may include data collection activities, such as stakeholder surveys and internal staff interviews, and additional analyses. This arena of consulting may be the most wide open. Companies are employing the services of the “Big Five” consultants, major business strategy consultants (such as McKinsey), public relations firms, marketing research firms, NGOs, non-profit business organizations, smaller specialized consulting firms and individuals.

Community involvement. Demand for consultants to support corporate community involvement strategies and projects has increased steadily over the past decade. In part, this is because the Anglo-American approach centres its citizenship activities around community involvement. A promising trend is that more companies are looking to design holistic strategies that create trust-based relationships with, and promote the well-being of, community stakeholders as one determinant of business success. This serves as a powerful opening to broader conceptions of corporate citizenship. One exciting derivative of this work is an orientation away from corporate giving to the formation of cross-sector partnerships. These convene representatives of business, government and the voluntary sector to address problems of mutual concern, with the goal of creating mutual advantage. However, there remains plenty of work for consultants who focus on providing support for corporate giving programmes, cause-related marketing, and community-based events.

Environmental performance. This is a relatively mature consulting field. There are numerous firms and individuals that work with companies to support improved environmental management from both strategic and technical angles. A relatively new development, however, is consulting around sustainable environmental and community development. This type of consulting often engages in large-scale, holistic community and environmental planning. Consultants facilitate processes that convene representatives of key stakeholder groups who work together with corporate peers to define environmental performance plans, community involvement, and communication processes. More ambitious initiatives will expand the scope to look beyond the company’s impact on sustainable development, to initiatives in which the consultant helps position the business as a leader of community-wide sustainable development initiatives.

Reputation management. The field of reputation management is growing, and while it overlaps with corporate citizenship, it is also distinct. As with corporate citizenship, there are a number of competing definitions and niche speciality areas. Some focus solely on corporate citizenship, and some not at all. The author’s own

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preference is for a holistic approach that connects the variety of factors defining reputation (such as brand, product performance, customer satisfaction, employee satisfaction, corporate citizenship, and others). Certain of the “Big Five” firms, such as PricewaterhouseCoopers, have reputation management programmes. Several large public relations firms such as Sedgwick also provide such services, along with boutiques such as Walker Information and ProbusBNW.

Performance system consulting. As noted earlier, a variety of corporate citizenship performance systems are being developed (International Labour Standards, SA8000, GRI, ISO 14000, Standards of Excellence). As companies begin to “sign on” or endorse certain principles, they are seeking consultants who can help them to implement systems and meet reporting criteria.

Social auditing and reporting. Social auditing and reporting is another subfield of corporate citizenship with its own competing definitions and approaches. Typically, social reports communicate the range and scope of a company’s citizenship activities, and provide a vehicle for an open discussion of shortcomings. Social reports require a rigorous process of development, but generally do not employ research methods to determine the consequences of corporate behaviour on stakeholders. However, social reports do require companies to conduct an accurate accounting of the full scope of resources they provide to corporate citizenship activities. Consultants in this arena also attempt to report on environmental, health and safety records in plain terms, and to discuss openly any controversies in which their client may be involved. Shell, Ford Motor, and Dow Chemical are companies that have received praise for the level of candour they have shown in their social reports. Groups like Sustainability have been leaders in consulting on social reports. Other consultancies take slightly different approaches. The Corporate Citizenship Company concentrates on accurately accounting for the total contribution a business provides to the community. In the United States, a variety of large and small communications firms support reports that are public relations vehicles to signal that their client cares for its communities. Other firms work with consultants to produce environmental, health and safety reports in compliance with government regulations.

A social audit, in contrast, is more ambitious, and tries to provide an accurate account of the positive and negative impacts a company has had on its stakeholders. Like its financial counterpart, social audits are verified by credible third parties. Social audit consultants often use strict methodologies. Some, like Simon Zadek and AccountAbility, use qualitative research methods such as stakeholder attitude surveys. Others work to design an accounting model that quantifies impact and provides a social balance sheet. Certain audits are focused on specific issues; for example, PricewaterhouseCoopers and Ernst & Young have designed processes to audit the labour practices of subcontractors operating in developing countries. However, few efforts have been successful in arenas beyond the environment.

Social auditing and reporting is done much more often in Europe, and various countries outside of the United States. However, more firms within the United States are beginning to explore these approaches.

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