Corporate Social Responsibility – Is it the CFOs Mandate?

In business today, we are hearing a lot about Corporate Social Responsibility (CSR). CSR includes all aspects of being a good corporate citizen, which is a pretty wide mandate.


What is the CFOs role with CSR?

Corporate Social Responsibility is a vision from the top. This vision should be set by the board and the CEO, with input from important stakeholders, including employees and shareholders. CSR Vision may not be the CFOs role, but reporting about CSR issues seems to be falling on to the CFOs desk.

Examples of CSR issues falling on the CFOs desk include:

Securities Regulations – With the CFO being responsible for shareholder communication, Securities Regulators are continuing to add disclosure requirements. The most recent example in Canada is CSA Staff Notice 51-333 on Environmental Reporting (See Ernst & Young’s recent Financial Reporting Alert)

Financial Statement Impact – CSR issues, specifically environmental issues, have a Financial Statement impact and needs to ensure these risks are properly recorded and disclosed in the financial statements.

Good Governance – Being a good corporate citizen requires appropriate governance. As CFO, you have been dealing with Sarbanes Oxley reporting for the past years. CFO Certification is a product of CSR.

Is CSR the CFOs mandate?

No, but it does add to the work load. As a leader in your organization, it is important that you take a leading role in CSR issues. The challenge that many CFOs face in this area is that they do not really understand what the issues are.

Education is the key.

As CFO, being aware and intelligent on CSR issues will help your company and your career. I highly recommend that you add CSR to your continuing education portfolio. A great example of this is the CICA Conference on Environmental, Social and Governance Issues, being held in Toronto on December 6 – 7, 2010.

Add your voice to the CSR conversation.

As a leader in your company, do not shy away from CSR issues. Listen, attend meetings and share your input. CSR affects you. Contribute to the conversation.