What are Corporate Social Responsibility (CSR)/ Non-Financial Management Information (NFMI)?

CSR data / NFMI is wide and varied and can be industry-specific. Typically, it can include:

Employee headcount

Data about the diversity of employees

R&D spend

Social investment data

Sales volume data

Market position data

Customer numbers

Supply chain data

Compliance and ethics data

Environmental performance data

Why is CSR data/NFMI important?

Global companies have vast economic powers across many countries. Public leaders and opinion formers within the countries in which global companies operate determine whether a company is socially responsible by looking not at companies' market performance, but at their corporate responsibility attributes:

Do they demonstrate responsible behaviour? What is the environmental and safety performance of the company?

How is the company governed? How does the company prove that is operating in an ethical fashion?

How does the company integrate into the societies in which it operates? Does the company employ local people, and does it spend with local suppliers and contractors?

Companies need to report on CSR data in a controlled manner, as it can create a risk to reputation or regulatory issues when disclosed incorrectly. Additionally, inaccurate NFMI may create the risk of inappropriate decisions being made when used internally.

What does Harlaw do?

We will:

Identify the CSR data / NFMI inventory.

Create challenge around the inventory - is all the data required?

Review current controls / integrity associated with the production of the data.

Review required controls / integrity (reputation vs. quality).

Challenge the data collection processes to de-tune or strengthen controls, to create a fit-for-purpose data collection process.

Document the process and identify clear definitions.

Work with external auditors to walk them through the documented processes - the auditors review the processes and then sample the actual data.

Develop a fit-for-purpose process for one-off proof points that do not recur year on year.

Benefits

Reduce the costs associated with both data collection and report production.

Reduce external assurance / audit fee.

Mitigate reputational risk associated with disclosing uncontrolled CSR.

Gain clarity on data production processes, roles and responsibilities.

Want to know more? Contact us