Business in society Making a positive and responsible contribution A ...

Benchmark against selected external codes and standardsGovernment-mandated or other external codes are unlikely to be a viable alternative tovoluntary business principles developed by the company itself, although these may havesignificant value as external benchmarks. Some companies choose to express public support forone or more of these external codes. It is for an individual company or industry sector to decidewhat the most useful benchmark codes are and to develop their own understanding of howbusiness principles relate to external codes and guidelines, and to societal expectations.Support for external codes can be time-consuming, since they may imply additionalcommitments. Companies should be selective, bearing in mind their own needs. ICC can provideguidance on the implications of supporting some of the existing international code offerings.Set up internal monitoringCorporate policies and their implementation need to be kept under constant review to keepabreast of developments in technology and scientific understanding, customer needs and widersocietal expectations. It is for the company to assess its social performance through internalconsultation and periodic review by management. Equally, it is the company’s responsibility tocheck that its business principles are being acted upon. The extent and manner of externalreporting of performance is, of course, for the company to decide. Given the wide differencesbetween industries and individual companies, the contents of such reports are bound to vary.Several international initiatives are being undertaken to develop a common yardstick forvoluntary reporting of the economic, environmental and social impact of company activity.An example is the work being done by the Global Reporting Initiative, which is supported bythe UN and other international organizations, to agree on a set of common core indicators.They would enable investors and other stakeholders to make global comparisons. Companiesshould retain the flexibility to adapt such voluntary indicators to their particular circumstances.A key way for companies to create confidence and trust in their commitment to responsiblebusiness conduct is to provide timely and reliable information on their financial, environmentaland social performance and to communicate this to their stakeholders. Markets all over theworld provide examples of companies who enjoy sustained public goodwill and respect bydoing this successfully.