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Corporate Social Responsibility. Monograph

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“Preparation of reporting in the sphere of sustainable development
helps organizations to set oneself goals, to evaluate the results and to manage by transformations, aimed at trying to make their activities more sustainable. The report in the sphere of sustainable growth discloses information on the impact of the organization (both positive and negative) on the environment, society and economy. The preparation of such report does abstract themes by palpable and existential, thereby facilitating the analysis and monitoring of the impact of changes in the sphere of sustainable development on activity and the strategy of an organization”.[7]
GRI4 identifies the numerous rank of reporting indicators of sustainable development of an organization, broken down into categories
economical
ecological
social.
Characteristics of the economic components of sustainable
development requires an analysis of the organization’s impact on the
economic status of interested parties and on economic systems at local,
regional and global levels. These categories “Economic” illustrate the
movement of capital between the different interested parties, as well as the main economic impacts of an organization on all society.
Facts about the environmental dimension of sustainable development are characterized by the impact of an organization on animate and inanimate nature of a system, including land, air, water and ecosystems. The environmental category comprises the impacts associated with resource consumption and produced waste. It also covers the impact related to biodiversity, transport, products and services, as well as the environmental compliance and ecological costs.
Facts about social categories of sustainable development characterize the impact of an organization on social problems in the frame of which it operates. Social category includes the following sub-categories:
practice of labour relations and decent work;
human rights;
society;
responsibility for products.
Data reporting in sub-categories “practice of labour relations and decent work” is presented in aspects:
employment
relations between employees and senior managers
workplace health and safety
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training and education
diversity and equal opportunities
equal payment for women and men
assessment of the practice of labor relations suppliers
the mechanisms for bringing complaints against the practice of labor relations.
Aspects are presented through the system of indexes. So the aspect
“employment” is required to discover and a percent of new hired
employees and staff turnover on a disaggregated basis by an age group, gender identity and a region (index G4-LA1) through total number .
The index G4-LA2 shows information about employee benefits of an organization, working on terms of full employment:
- life insurance;
- health care;
- compensation for disability / invalidity;
- maternity leave / paternity;
- provision of pensions;
- empowering by the company's shares.
The aspect “Health and safety in the workplace” is revealed through
such indicators as data about the types of injuries, the coefficient of injuries (CT), the coefficient of occupational diseases (COD), the coefficient of lost days (CLD), the coefficient of absence from work (CAW), as well as the number of work-related accidents with a fatal outcome for all staff (i.e. all employees, including freelancers) on a disaggregated basis by regions and gender identity, and others.
Now information about the activity of an enterprise is accumulated and processed in corporate informational systems of an organization. Corporate informational systems are the collection of various hardware and software platforms, universal and specialized applications of different developers integrated in Unified Information System.
The main task of CIS consists in support of functioning and business development, increase in profits of a company at the expense of the most effective usage of all company recourses and improvement of quality of taken managerial decisions.
Integrated applications contained in the CIS, comprehensively supports the main aspects of the management of the companies:
- Planning of resources for the production of goods and services;
- Operational management of the implementation of plans;
- Analysis of economic performance;
- Various types of accounting.
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GRI facts of the sub-category “practice of labour relations” concern to the organization activity in the sphere of labour protection, personal records, pay assessment and personal management. Data of this type are kept and processed in the corporate informational system of organization with the aid of software related to HRM classes (Human Resource Management) and EHSMS (Environmental Health and Safety Management System).
Informational systems of the EHSMS class are used for the information collection and processing about ecological indexes of an enterprise activity (contaminants, green house gas emission, flows and etc.), about measures and factors in labour protection and industrial security.
Software programs of the HRM class are means of information support of personnel management and payroll preparation and formation of regulatory reporting for labour and human resources.
In recent years a separate class of information systems is formed and used in such sphere of personal management as talent management. Concept (talent management) consists of continuous searching of the staff talents and using them in the best way. The idea of talent management includes in the purposeful development of an employee, in the search and disclosure of his potential.
Talent Management System (TMS) is an integrated software product that provides automated tools for solving problems in four key areas: recruitment, performance management, training and development, as well as the formation of competences.
If HRM systems focus on transactional processes primarily and personnel administration and include such opportunities as payroll accounting, time management, and others, so TMS systems are designed for achievement of long-term goals of a company through human capital. Thus the TMS system can be used both authomously as well and in package with other products.
The next factors are included in the number of functional modules of TMS systems:
performance management of staff management needs management by compensation talent acquisition / recruiting management by training management by career development planning for success.
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The functionality survey of EHSMS/HRM/TMS informational systems
The growth tendency of companies presenting the accounts on CSR and sustainable development has not gone unnoticed of the leading global producers of software. Today, many companies - software developers offer a wide range of solutions in the sphere of reporting for sustainable growth. The market growth of specialized software products began about 2005, most of the existing solutions (75%) were released after 2008. World leaders such as SAP or Oracle America dominate on the market of specialized software for the management of sustainable development.
The KPMG international consulting company identifies three stages of automatization development of the reporting system in the sphere of sustainable development:
- use of office software
- use of specialized software
- use of integrated solutions in the sphere of sustainability reporting
[8].
Software programs of the EHSMS class (Environmental Health and Safety Management System; Environment protection, health and safety) are pertained to the specialized solutions in sustainability management. These programs are designed for input and data storage, forming in departments of labour protection and, in services preparing environmental reporting. These data are not directly used in the management of the company as well as in the systems of the ERP class (Enterprise Resource Planning; Enterprise Resource Planning) which are the main information systems of planning and management. ERP systems are used for formation of management and financial analytics and reporting. These sophisticated software systems, consisting of a variety of subsystems (sales management, purchasing, production, human resources and others.). The information from these subsystems can be used for the formation of the indicators system of sustainable development. EHMS and ERP integration gives the opportunity to obtain the maximum number of indicators for including in the sustainability report.
An example of such integration may be products of the SAP company combining the SAP ERP flagship product of the company and solutions of SAP Health and Safety Management (SAP S / 4HANA), Incident Management (SAP S / 4HANA), SAP Environment Management and others. KPMG gives the highest grade to SAP solutions in correlation “functionality –integration” in the sphere of sustainable development.
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The German company SAP (Systems, Applications and Products in Data Processing) is the global leader in the sphere of business software solutions, production, as well as in the sphere of municipal and regional management. More than 183 thousand companies use SAP solutions and technologies around the world. The staff of the company is 55 thousand people more than 50 countries of the world. At present, three-quarters of the companies -participants of the Forbes 500 list use SAP solutions. SAP software is used by 85% of the companies whose brands are included in the number 100 of the most expensive companies in the world.
HRM- systems are assigned for workforce management but their functionality is wider than in the automation systems of skilled operations. Products of this class allow working both with quantitative as well as qualitative indexes of the staff. Their main task is to attract and to keep valuable specialists for a company.
The HRM system is the complex automated system of workforce management. HRM systems possess the wide functionality in the comparison with traditional systems of automation of personal records and pay assessment. Besides accounting (personal records, staff schedule, document flow, recording of working time and vacations, pensionary and military recording and etc.) and calculating (salary, taxes, premiums and subtractions and etc.) of cycles, processing quantitative indexes, similar systems include the HR cycle which is destined for the work with qualitative indexes of the staff.
It is acceptable today to denote three levels of automation of company workforce management:
- automation of pay assessment
- automation of personal records
- automation of workforce management
The SAP HCM (Human Capital Management) solution can serve as an example in the sphere of HRM systems for workforce management and human capital assets. It is the most fully functional and reliable HRM system for optimization of personal processes. It allows to unite all business-processes of personal services within the one information space, which are directed on attraction of staff recruitment, their keeping and motivating, the dispatch of strategic aims to every employee and obtaining the effective management accounts in all directions of HR.
The functionality of this solution includes:
- optimization of workforce management and pay assessment
- solutions for talent management
- recording of working time
- staff planning and analytics
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SAP HCM allows to keep an analytics about the staff and planning of human recourses, including a quantitative and qualitative staff structure, planning of future expenses on various scripts and budgeting.
To provide the development of workforce capacity starting from recruitment of valuable specialists (incl. usage of web-interfaces), their keeping and developing in a company and finishing by usage of various motivation schemes and by career building with the aim of formation of the candidates pool.
To perform administrative functions such as payroll accounting, recording of working time, management of compensation packages and formation of all required applications.
The hosted option of SAP Success Factors is available in 37 languages of the world and it allows to consolidate main processes of workforce management and pay assessment. The solution also supports strategies of staff planning which are oriented on talent development owing to the embedded system of reports and analytics functions.
SAP is presented as the software product SAP (Talent Management and Succession Planning) in the sphere of talent management which is the SAP HCM sub-system. This is a complex solution for talent management: career building, revealing high–potential specialists of a company and also formation of a staff reserves and reduction of human resource risks of an organization.
SAP Talent Management and Succession Planning present effective instruments for:
- Definitions of key posts and needs in the staff reserve;
- Career management of staff and succession planning;
- Formation of the company talent pool;
- Formation of a map of the personnel potential;
- Selection, evaluation and approval of candidates to the staff
reserve;
- Training of reservists with the help of development plans.
The other leading producer in the EHSMS and HRM systems is the American company Oracle America, Inc.
The Oracle Corporation is the biggest supplier of corporate software in the world. Having turnover more than 10 billion US dollars, the company suggests the complete package of technologies for building the IT­infrastructure and management of a modern enterprise. The corporation presents its own products and services in the sphere of consulting, training and technical support more than in 145 countries of the world.
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Oracle has the solution (Oracle Environment, Health & Safety Management System) in the sphere of health, safety and security management and industrial security. The product is assigned for providing safety and ecologically pure work environment and for the control of observation of real laws, rules and other requirements. Enterprise applications, procedures and plans can be changed for including of concrete local demands and circumstances on separate objects.
Oracle EHSMS uses the process of permanent perfecting, which consists of Plan-Check-Act methodology, an address of environment, workplace hygiene and safety. This includes:
- politics of an organization in the EHSMS sphere
- planning
- monitoring operations and remedial actions
The complex of these interconnecting arrangements is presented as the system, which focuses on prophylaxis and permanent perfecting to take software product, contains the base of normative requirements in the sphere of environment and labour protection. With the help of the information system specialists of ecological departments, departments of labour protection and industrial security analyze information relating to ecological problems and also risks for health and safety and their potential impact on the work place, specialists, consumers and contractors. Besides Oracle EHMS has got functionality directed to reduction, reusability and processing of environmental resources taken by an organization.
Oracle workforce management supports all standard actions of human resources: recruitment, hire, relocation, removal. All functions of recording of working time and the pay assessment are realized in this system. Besides the system allows really to rule by using of labour force with the help of the conception “Talent management”, which includes such functions as definition of job relevance, formation of the personal reserve, planning of career building, complex planning and realization in various forms, including the distant form of training and staff development, carrying out different kinds of estimation and employee appraisal, taking into account aims of a company, with the opportunity to cascade aims of a company on the aims of employees, staff motivation, relation of achieved results to payment and promotion, revealing of personal preferences and etc.
All fullness of accumulated information in the transaction system can be used then in an analytical decision. Obtaining of the analytic report in every question of staff management for providing of the flexible and rapid
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analysis of indexes in different cut sets and by different periods is the absolute advantage of suggested solution. The Oracle BI Apps solution contains ready reports, nautical ways in the system, notifications, the opportunity to fall into details of transaction system and besides it, the instrument of creating some optional reports by the hands of an interactive user. It is very important that technological opportunities of an analytical decision open new perspectives of staff management. For example, in the suggested solution it can absolutely combine parameters in one report. For instance, ORACLE workforce management can be combined by a staff number and staff turnover and vacancies. The main sources of recruitment can be seen at once. For example, one of the new hired candidates has not passed a probation period, or one who has showed poor results in the first evaluation. Or one of recruiters who has the longest periods of closure of vacancies and a large percentage of lost good candidates, why candidates for the position reject the proposal made by a company.
EHSMS/HRM Russian information systems
Until recently software products of the EHSMS class offered by the major players of the Russian software market did not exist. In June 2015 a leading Russian developer of accounting software and enterprise
management, the company “1C” announced a line of software products “1C: Enterprise 8. Operational safety” [6].
The Russian firm “1C” was founded in 1991 and it specializes on developing, distribution, releasing and supporting computer programs of
business and domestic assignment. Programs “1C Enterprise” and also
products for home computers and education environment are the most
famous among own working out of the “1C” firm.
The system “1C Enterprise” is widespread in Russia, Ukraine,
Kazakhstan, Belorussia and is used successfully by organizations of many countries of the world. Russian Federation Government Prize in the sphere of science and technology was awarded to the development staff ­specialists of the “1C: Enterprise” programs by Government resolution of Russia from 21 March, 2002 for creation and implementation of the program system in an economic sector.
Four separated solutions are issued within the general line of program products “1С: Process safety”:
- 1C: Process safety. Environmental protection;
- 1C: Process safety. Labour protection;
- 1C: Process safety. Industrial security;
- 1C: Process safety. Fire safety.
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For complex tasks automation of industrial security at enterprises,
when using several solutions of a ruler “1C: Industrial security”
simultaneously, the opportunity of interchange data between them is foreseen.
The program product “1C: “Enterprise 8. Industrial security. Environmental protection” is meant for tasks automation of environmental
protection and ecological safety at enterprises of various branches.
Storage and processing of much accountable information, formation of final documents and analytical documentation, validity control of approval documents, timeliness control of taking measures about supporting
of ecological safety at an enterprise is foreseen in “1C: Enterprise 8. Process safety. Environment protection”. The above mentioned factors
reduce labour intensity in the comparison with manual information processing.
The software product “1C: Process safety. Labour protection” is
assigned for tasks automation of labour protection. The solution provides automation of the accounting processes, planning, control and formation of the analytical reporting about labour protection in accordance with legislative requirements of Russian Federation, branch and corporate specific.
Main functional opportunities of the software product:
• work with data of accidents at production:
• planning, input and results storage of special evaluation of working
conditions;
planning and control of passing the medical inspection by the staff;
•planning and control of time period for doing affairs: about
elimination of requirements breaches of norms and specifications,
about results of accidents investigation, traumatism and occupational
deceases, external and internal checks about the state of labour
protection, notification of participants of processes about status of
events implementation;
• accounting of given orders-accesses for conducting operations of
the increased risk;
• planning and control of learning activity of the staff in the sphere of
labour protection (training, instructions, practical study, assessments
of knowledge).
The software product “1C: Enterprise8. Process safety. Industrial security” is assigned for tasks automation of industrial security at
enterprises of different branches.
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Industrial security of dangerous industrial facilities is the state of protection of vital interests of personality and society from emergencies at dangerous industrial facilities and circumstances of pointed accidents. Hazardous production facilities are the subject to registration in the national register in the order established by the Government of Russian Federation (116- FL “About industrial security of hazardous production facilities”).
Main functional opportunities:
• accounting of dangerous industrial facilities, technical devices,
buildings and constructions;
• planning and control of carrying out the basic work;
• accounting of emergencies data and accidents at hazardous
production facilities;
• accounting of accidents at hazardous production facilities;
formation of basic and analytical documentation;
• planning and control of learning activity of the staff in the sphere of
industrial security (instructions, practical study, assessments of knowledge).
The software product “1C: Enterprise 8. Process safety. Fire safety”
is meant for processes automation about organization of fire safety at an enterprise taking into account the federal law, with the opportunity of automated formation of basic financial reporting.
The solution provides reduction of labour intensity and reducing time periods of data processing for accounting of protection facilities and fire equipment; increasing the level of information reliability on fire safety in an enterprise; processing and formation of information on fire safety in the regime of real time; the formation of regulated documentation on fire safety and accounting documentation.
Thus, the line of software products "1C: Process safety" is the integrated EHS system covering most of the indicators of sustainable development of an enterprise.
Now the ERP system “1С:ERP 2 Enterprise management “is a flagship product of the firm “1C”. Possessing the analogous SAP ERP
functionality, ERP is incomparably cheaper and consequently more accessible for middle size Russian companies.
The software products “1C: Process safety” and “1С:ERP 2 Enterprise management” were worked out on the technological platform “1С:Enterprise 8” that provide their integration. Data export is realized from these solutions: “1С:ERP Enterprise management 2.0” and “1C: salary and workforce management” – actual information about the staff
(personal story, personal records), about the organization structure (information about organizations and their structural subdivisions).
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