Star In The Middle Of The Palm

Not everything that can be counted counts, not everything that counts can be counted

This event, commonly attributed to Einstein, as reflected very graphic issues facing responsible practices within companies, especially when those who insist on measurable benefits in the short term, give preference to the alternative quoted, anonymously, that " can only manage what you can measure . " According to these, if we can not measure, we can not manage and then it is best to do nothing that is not measurable.



body perishes we find a dilemma. On the one hand the high priority given in the management of the measurable business to the tangible, and secondly the difficulty many responsible practices to demonstrate measurable benefits. Unfortunately at the cost not So the problem there are tangible in the short term. But the benefits are often long term and often intangible. Not to mention the intangible costs avoided by making good forecasts. There is thus great pressure on those who promote responsible practices can be measured. Do not just use a lot of pretty words and promises. The argument that must be done because it is right is not sustainable.


To convince the skeptics and to initiate or continue programs of corporate responsibility often have to appeal to the business case ( business case) that these practices have benefits, whether in the form of improvements in income, reductions or reduced costs risk. For many advocates of these practices would suffice to say that the benefits are intangible and long term, but the skeptics want to see tangible and in the short term. Both are right. Unfortunately many times those who control the decisions are in favor of the latest version, any costs are incurred if and only if concurrent yield measurable benefits, especially if their bonuses are tied to profits in the short term. Some purists to take the book version, which requires that the results of the practices are reflected in the financial statements, and not just the cost. For them, the benefits can not be measured does not count.


To promote responsible practices have to extend the measurable field and look for patterns of quantification, but often do not amount to express in monetary terms. And much of the problem is that the measure is also costly, but the investment in measurement can be profitable if they can demonstrate benefits.


And the recent crisis has made it even more necessary. The crisis clearly see the costs of responsible practices and put them to compete, within budget, with other investments and expenses of more tangible benefits.


Many times, to justify, say some employee benefits, such as combining work and family (Eg to work from home some days), or putting a cafe in the workplace, increase labor productivity. But they show only what we say, maybe with an example of circumstantial. This may be enough for us to approve a pilot program, but not to a permanent program. For this we will demonstrate increased productivity. So it is important that these pilot schemes are accompanied by information and data collection to enable us to measure the impact not only how they used or how much it cost.


This is a very common error in CSR: ignore the impact measurement. When you want to measure it that the program had not incorporated the measurement system and any special study ex post is very expensive and fail to demonstrate the business case. Have been developed, especially in recent times, methods for the quantification of what are considered intangible, although not specifically developed for corporate responsibility issues, can be used. This can be quantified via surveys, special studies in pilot cases, compared with other companies, among other methodologies.


Obviously there are many responsible practices with tangible benefits and that its measurement is relatively simple, such as savings resource consumption (water, electricity, packaging, recycling, etc..), which do not require special technology.


But I think the wisdom of Einstein is imposed. There are many things that can be measured, but do not have and others have, but unfortunately can not be measured. But we must make the effort.



HAPPY HOLIDAYS AND NEW YEAR ALL THE MORE WE RESPONSIBLE

Star Wars The Clone Wars Henta

How the company invests in CSR?

Can you answer a question like this?


Some think so. In the book: "The English multinational and 'business responsibility' in Latin America", published by Peace with Dignity and the Observatory Multinational in Latin America, OMA, in 2009, says, on page 184 "... on average have only English transnational social responsibility for 1.2% of its profits" And this is expressed in the context of alleged this investment is made to mask the deteriorating quality of employment and violations of fundamental rights. When I first read gave no importance, I assumed that everyone who read it would realize that there was a contradiction in the statement can not be quantified or investment or spending on CSR, properly understood. This quote was widely reproduced by the media, including recently, but with the added difficulty of changing the word "intended" to "invest". It's a quote sexy. But I think it is time to clarify the confusion. Unfortunately


have the bad habit of repeating without analyzing what lies behind the "news." There is nothing more attractive to repeat positions a company in a ranking, to say that this or that won this award, this or that was expelled from the index. There is nothing more attractive than a good gossip, I said in the article "In that resemble the CSR Rankings and gossip about infidelity? (May 2009 www.cumpetere.blogspot.com).


If you look a little information accompanying statement will realize that what companies report is the "spending on social action, or what companies have invested or spent on activities of philanthropy and community support. It's what companies can bring in money. Is this CSR? Is it just part of CSR? Can companies account for their investments in CSR?


do not mean to defend corporations that are part of that statistic, but there is no way to know their investments in CSR do not know how big or little, do not know the authors and I believe that neither neither do companies themselves. How much would a reasonable figure "investment CSR? I have no idea. I know what they are responsible and irresponsible practice, and that companies should have many of the first and few or none of the latter.


I apologize to those who already know, because I just have to repeat what you hear in any meeting dealing with CSR, the more fundamental concept: CSR is a way of managing, the responsibility must permeate all the actions of the company, part of everyday activities, not just some special activities. Some activities have measurable costs and benefits that can be posted and therefore reporting in dollars, euros or the currency that is. Some have measurable costs, such as action social impacts or benefits but the company is not measurable. But the vast majority of responsible actions have costs and benefits are not measurable, or at least not with current accounting systems.


When through training or a better work environment increases the value of human capital, accounting not collect it. Human capital is the Balance Sheet. Maybe they counted the cost of training, but the benefits are not counted. Maybe it increases productivity and someday the profit and loss is whole, but there will be no attribution of benefit expenditure. Companies "accounted for the costs of the days of volunteering as an investment CSR? Maybe some do, but most are business expenses, not investment. Is it a countable cost to have independent directors? And have a code of ethics? Perhaps the functioning of the Ethics Committee itself is countable, but not the effect that its operation is the responsibility of the company.


Separate accounting "between the protection of the environment is being done to comply with the law and that is going further? What about the payment of "business facilitation" companies are making investments or expenses attributable to the anti-CSR?


Some will say that a good company should measure responsible practices. Totally agree, measure and report the results of their responsible practices. From there to be able to say how much it cost or how much was spent is a long way. We expect companies to report their carbon emissions, the environmental impact of waste, recycling of paper or ethnic and gender diversity. But do not confuse CSR indicators of investment and expenditure accounts in CSR.


This is not to say that there is to be measured. On the contrary, we must make every possible effort. If you measure is easier to promote and manage, but "Not everything that can be measured account, and not everything that counts can be measured" is the title the next article. But to pretend that everything is measurable or measurable only must do is myopic.


Can you answer the question: How much companies invest in CSR? There is an inherent contradiction in the question. Or not talking about investment (but some costs) or are not talking about CSR