CSR, ISO 26000, ESG Report, GRI, CGEM CSR Label … you are probably confused about all these notions. Let us, therefore, shed some light on them.

CSR means Corporate Social Responsibility; the concept refers to the contribution made by the corporation to sustainable development (i.e., its capacity to reconcile between economic profitability and a positive impact on the society and on the environment).

Originally there was this idea that emerged in the 1990’s according to which a company is accountable not only to its shareholders and owners but also to its stakeholders: staff members, clients, suppliers, neighbours … We certainly remember the scandal which tarnished the brand image of the giant sports’ shoe manufacturer, Nike, when it was found out that the multinational employed children in the various workshops of its subcontractors. Equally memorable is the case of Lactalis, a French food-processing company which had commercialized batches of powder-milk that was salmonella-contaminated. These cases, as well as countless others have impelled people to demand greater company transparency towards the general public. Accordingly, companies should no longer be focussed solely on the search for short-term financial profit, but it should also care for the impacts that its activities have on well-being, health, and respect for natural ecosystems. Presently, the company is confronted with a whole range of “societal” stakes and issues. Examples include: the working conditions of employees; gender diversity; care for disabled persons; energy efficiency, waste recycling; actions against global warming; impact on health; and so forth. To these may be added other aspects related to governance, transparency, loyalty of practices, and relations with the suppliers.

But what is the difference between CSR and the ISO 26000 standard? While the ISO 9001 standard seeks to achieve customer satisfaction by means of the adoption of an organized management system is known to most businesses, the ISO 26000 standard is much less known to many of them. Elaborated in 2010 by some hundred countries, the standard is not a certification of conformity standard, but rather a practices guide. Thus, it is more accurate to think of an evaluation of corporate practices against the ISO 26000 referential than actual certification. 

In Europe, the adoption in 2014 of the directive on extra-financial reporting stipulated the publication of non-financial information in the business reports drawn up by certain companies, for the first time. France transposed this directive into its national law in 2017. Soon after, the law on due diligence and care saw the day. It stipulates that, from then on, companies headquartered in France should publish a due diligence plan designed to prevent risks to the environment, human rights’ abuses, and corruption, not only in their own businesses but also in those of their foreign suppliers and subcontractors. This law obviously impacts Moroccan companies in key outsourcing areas (such as textiles, aeronautics, and so forth) which work on behalf of foreign principals.

In Morocco, it was the Employers’ Confederation which took the initiative in 2006 and published the Corporate Social Responsibility Charter. Consisting of 9 focal points that are broken down into 35 objectives, the document takes up the main guidelines of the ISO 26000 norm. In 2010, CGEM (or, the Employers’ Confederation) created the CGM CSR Label, which is the first Moroccan instrument to recognize the commitment of any company to sustainable development. Today, a hundred companies are labelled, of which only one third are small and medium-sized companies even though the latter account for 80% of the Moroccan economic fabric. 

In 2016, the organization by Morocco of the COP 22 put sustainable development question to the fore and by raising the awareness of the general public in this regard, the conference spurred CSR initiatives. 

More recently, in 2019, AMMC (the Moroccan Capital Markets Authority) required all companies that are listed on the Casablanca Bourse to publish SEG (Social Environment and Governance) reports which feature their actions and achievements in the area of social and environmental impacts.

In spite of this fairly advanced normative nature, the dissemination of CSR in Morocco remains heterogeneous. It is adopted essentially by major companies, usually multinational subsidiaries which implement the policies of their parent companies, or large Moroccan groups, which are well represented in the banking sector. As far as small and medium sized companies are concerned, the question of transparency and lack of means constitute hurdles to the implementation of CSR, save in companies which are led by managers who are particularly sensitive to social and environmental issues. Besides, companies perceive CSR as an imported international stake which they must undergo. This is particularly the case of small and medium sized companies operating in the textile sector which consider that they are compelled to comply with the ICS (International Compliance and Sustainability) label that is required by their French principals, though they often lack the technical and financial means needed for the strategic and operational transformation mandated by the said standard. It should be noted also that many companies undertake actions such as waste recycling or photovoltaic panel-generated energy, without being recognized for such efforts by the label.   

The crucial question, however, hinges on the benefits of the CRS approach for companies. For some, it is simply a marketing tool, obeying the logic of “green washing,” which is designed to prop up an image, without any sincere and concrete commitment behind it. For other people, however, CSR offers companies a growth opportunity, allowing them to differentiate themselves from their competitors; it enables them to use resources (such as energy and water) more efficiently; it allows them to prevent risk, and, in fine, to optimize their operational performance. The implementation of a CSR process also has the added advantage of federating and motivating staff around a meaningful project, in addition to attracting the best talents. 

How can the label be obtained? The process followed to obtain CGEM’s CSR label is voluntary. A company intent on CRS labelling must get a third consultancy firm to follow it through. More explicitly, the firm undertakes an evaluation of practices in relation to pre-defined criteria. An evaluation report is thereafter submitted to a competent commission which decides on the award of the label in return for the realization of an action plan. The label is valid for a 3 year period renewable via a renewal audit. But the process also entails the implementation of a middle-course follow-up tool which gauges the actual embedding of the action plan. 

Whether it is mere social washing or a genuine performance tool in the service of a company and the future of our planet, CSR continue to be a centre of attention, leaving no one indifferent. Let us hope that this concept will be better adapted to our Kingdom to make of it a genuine lever of sustainable socio-economic progress.

Lexicon:

Sustainable Development: development which meets the requirements of the present without compromising the capacity of future generations to meet theirs.

Dialogue with the main stakeholders: activity undertaken to create dialogue opportunities between the organization and one or several stakeholders (staff, clients, suppliers, neighbours …) for the purpose of clarifying the decisions taken by the organization. 

Extra-financial Reporting: extra-financial reporting is defined as the process whereby a company communicates social, environmental, societal, and governance-related information to the general public. By so doing, the company enhances the transparency of its business, defines its characteristics, and its organization.

Materiality Analysis: materiality analysis, which is represented by a matrix, takes into account the expectations of the stakeholders (staff, clients, suppliers, partners, …), as well as the main stakes of a company. Matching these two focal points makes it possible to identify priority stakes for a company in the area of CSR and to define its strategy. The materiality matrix is a decision-taking tool and an element which may readily be shared with the stakeholders so that they may understand the company’s CSR strategy.

Green Washing: for a company, Green washing (or, Eco-blanchiment in French) consists in gearing its marketing and communication towards ecological positioning. This is often the case of large multinationals which excessively pollute nature and the environment as a result of their activities. To brighten their brand image, these multinationals expend resources in communication in order to wash or to clean their image, hence the term “green washing.” 

Social or Societal?

The word “societal” became widespread in the 1970’s; it is an English word which means something “connected with society and the way it is organized.” It is necessary to refer to the use intended which seems quite explicit:

• Social remains the main word qualifying anything connected with society as an organized body or to refer to the relations between persons and groups amongst themselves;
• In media, societal is especially used in connection with all that is related to customs, institutions, and rules prevalent in the said society: death penalty is a subject that is typically societal; societal debates have remained in the background during the presidential campaign. In this, it can be differentiated from economic, international, technical or social topics. The latter pertain to the working world, covering themes such as unemployment, living standards, retirement, etc.

It has partly replaced the term “of society,” which we used much more frequently previously (the problem of society was a great classic of political and intellectual life in the years, 1980-2000). 

GRI (Global Reporting Initiative)

The Global Reporting Initiative (GRI, for short) is an international initiative to which companies, NGO’s, consultancy firms, and universities contribute in order to develop a framework and rules intended for companies that really care about sustainable development. Launched by an American NGO in 1997, its objective is to elaborate and disseminate guidelines to help companies draw up reports on the economic, social, and environmental dimensions of their businesses, products, and services. The GRI is supported by the United States. In France, it is the ORS which works on the actual company implementation of the GRI referential.