GoodCorporation Standard Accreditation

Independent Assessment of Corporate Social Responsibility Programs

Oct 21, 2009

GoodCorporation undertakes audits of business practices to assess the extent and effectiveness of corporate social responsibility programs.

Corporate social responsibility reports take many forms and in many cases are self-assessed reviews of projects undertaken. GoodCorporation provides an independent assessment service of business practices to determine whether responsible management is taking place. Since inception in 2001, GoodCorporation has undertaken approximately 250 assessments in 41 countries.

Responsible Management Framework

The GoodCorporation Standard sets out seven key areas that make up the responsible management framework:

An associated framework, The GoodCorporation Framework on Bribery and Corruption provides organisations with assistance in ensuring that business practices avoid corruption and bribery.

GoodCorporation’s Assessment Process

The assessment process reviews the performance of the organisation in each of the seven key areas. The assessment takes the form of an audit with a GoodCorporation verifier reviewing policy documentation and interviewing stakeholders. Specifically, the assessment process looks to ensure that policies exist, systems are in place to implement the policy, stakeholders agree that the policy is fair and records show that the policy works.

For each section of the GoodCorporation Standard, the verifier awards a grade which represents the performance of the organisation against that criteria. Grades used by GoodCorporation are:

At the completion of the assessment, the GoodCorporation verifier provides a written report to the organisation and advises the overall result of the accreditation process. If the organisation has passed the accreditation process it is entitled to use the GoodCorporation logo. In order to pass accreditation, an organisation must not have any fail grades recorded.

Assessing Human Resources Performance

The first section of the GoodCorporation Standard comprises 17 individual criteria relating to employment conditions and human rights. In order to pass a GoodCorporation assessment, organisations are required to have documented and implemented policies and procedures in relation to:-

Corporate Social Responsibility and Customers

Section 2 of the GoodCorporation Standard reviews the policies and procedures relating to customer interactions. 12 specific criteria are assessed under this section; including:

Assessment of Relationships with Suppliers and Contractors

Twelve individual criteria are assessed in relation to the selection and ongoing relationship with suppliers and contractors. Similarly to the requirements for employees and customers; the suppliers and contractors criteria includes assessment of policies and procedures relating to:

Community Engagement and Impact Assessment

Communities in which organisations operate can experience both negative and positive impacts as a result of the business operations. Section 4 of the GoodCorporation Standard addresses the impact of the organisation on the community, via seven specific criteria. In order to pass this section of the assessment process, an organisation must have policies and procedures in place which contribute to community improvement and respect local customs and cultures.

Environmental Impact of Business Operations

An assessment of the policies and procedures relating to environmental impacts of business operations is undertaken as part of the GoodCorporation review. Five specific criteria covering identification, monitoring and reducing environmental impacts are audited.

Communication and Accountability to Shareholders or Members

A review of the management practices relating to shareholder (or equivalent for non-profit groups) communication, financially accountability and risk management practices comprises section 6 of the GoodCorporation Standard. It is expected that organisations will internally review corporate governance practices and release information to shareholders in timely fashion, including assessments of material risk.

Management Commitment to Responsible Management Framework

Finally the GoodCorporation audit will review the commitment of senior management to the principles set out in the responsible management framework. Specific criteria assessed under this category include documentation that responsibility for performance lies with senior management, the existence of whistleblower hotlines and other confidential communication practices for the reporting of breaches and a process for the education of employees in relation to responsibilities.

A GoodCorporation accreditation assessment provides an opportunity for an organisation to have independent verification of the performance of corporate social responsibility initiatives and assesses the performance of organisations against a responsible management framework.

The copyright of the article GoodCorporation Standard Accreditation in Ethical Business Management is owned by Tracey Lloyd. Permission to republish GoodCorporation Standard Accreditation in print or online must be granted by the author in writing.