What is CSR Risk Management?
Customers, governments and civil society organisations expect companies to do business with respect for people and planet. Internationally this is laid down in the OECD Guidelines for Multinational Enterprises. Companies are required to identify, prevent and reduce CSR risks in their supply chain, both upstream and downstream. This is also called 'due diligence' or 'CSR risk management'.
How to implement CSR risk management
The CSR risk management roadmap consists of eight steps:
1. Check CSR policies & grievance mechanisms
2. Map your supply chain
3. Identify risks and perform a risk assessment
4. Prioritise risks
5. Take action and collaborate with supply chain partners to address risks
6. Integrate the approach in business processes
7. Monitor progress and evaluate
8. Communicate about policies, activities and progress