H-CSR-M: Hopkins CSR/Sustainability Model

Rapid CSR/Sustainability Reporting with H-CSR-M

Introduction

The H-CSR-M is a fully owned product of MHCi and its subsidiary CSRFi. It is based upon Michael Hopkins’ work on a CSR (Corporate Social Responsibility) conceptual model that Michael has been using, and steadily improving, over the past 20 years to assess the CSR/Sustainability of companies and institutions.  More recently, he equates CSR to Sustainability now that both include the issue of materiality in their definitions (see below).

The CSR reporting model offers:

1. Clear CSR Definition
2. A Conceptual Model stemming from the definition
3. Key Performance Indicators based upon the model and aligned with GRI indicators
4. A 15 point strategy of implementation

In addition, Michael through his company MHCi/CSRFi offers those who accept to do the H-CSR-M certification (contact us on mjdhopkins@yahoo.com) four additional components:

1. A Practical Example
2. CSR Rating of your company or insititution
3. Online Training
4. CSR/Sustainability Certification

Dr Michael Hopkins’ last twenty years of investigation, experience, analysis and teaching have been included in his latest book – ‘CSR and Sustainability – From the Margins to the Mainstream: A Text Book (Greenleaf, UK, January, 2016).  Available free for Review in .pdf form via author on mjdhopkins@yahoo.com

Brief Background

The Hopkins’ model itself is based upon the work of many authors albeit adapted to MHCi’s view of CSR shaped by 20 years of applying the main H-CSR-M concept in academia and business. Three main academic influences, as will be seen, were the work of Archie Carroll and his famous pyramid that we have adapted. Donna Wood and her model of Corporate Social Performance and the work of Ed Freeman on stakeholder dialogue. Our own model puts all these aforementioned contributions together, adapting them and applying them in practice. The model is a perfect way to assess the CSR of an institution or private company that can be accomplished very quickly.

The Hopkins CSR Model in Summary

So what is the model? The basic framework of the model is illustrated in Figure 1 below and is composed essentially of CSR Definition, CSR Principle Processes and Products, CSR Measurement and CSR Strategy.

Figure 1: Hopkins CSR Model Pyramid

CSR/Sustainability (CSR for short) is a systems approach to managing a company i.e. all important aspects of a company (or institution be it public or an NGO) are subject to review under the searchlight of CSR/Sustainability. The systems model looks at the social responsibility of all key stakeholders of an institution or company i.e. all aspects of a company or institution that contribute to its business or efficient operation are considered. We also insist that the business case for private companies’ use of CSR MUST be maintained i.e. profits must be targeted (or efficiency in the case of a non-private institution). Further, the model is not against profits per se, but HOW profits are made i.e. they must be made in a socially responsible manner.

Thus the CSR systems model we describe consists of four main components – the CSR definition, which is the core of the model and from which the other components and detail emerge; a process to describe the main components of the model which are its principles, processes and products .

Our model definition leads to a set of components, indicators and measures which allow the measurement of CSR with the Key Performance Indicators that allow one to assess progress and impact. The fourth main component is a 15 point strategy for any company or institution to follow. Like any model, the four points can be taken in the order I propose but its actual use will be used iteratively to ensure the best practical implementation.

The four elements of the Hopkins CSR Model

I shall look briefly at each element of the model next. Fuller details are given in our proprietory software available on request at enquiries@yahoo.com

The four elements of the H-CSR-M are briefly:

I. The Definition of CSR/Sustainability

Briefly: CSR means Treating Key Stakeholders Responsibly

1. Corporate Social Responsibility/Sustainability (CSR) is a process that is concerned with treating the key stakeholders of a company or institution ethically or in a resonsible manner. Éthically or Responsible  means treating the key stakeholders, and being treated by them, in a manner deemed acceptable according to international norms.
2. Social includes economic, financial and environmental responsibility. Stakeholders exist both within a firm or institution and outside. It includes at least an organization’s leaders, staff, shareholders and suppliers as well as the consumers and users of their public goods and services.  It may also include Media, Government and the wider society.
3. The wider aim of social responsibility is to create higher and higher standards of sustainable living, while preserving the profitability of the corporation or the integrity of the institution, for peoples both within and outside these entities.  The key is how profits are made, not the pursuit of profits at any cost.
4. CSR is a process to achieve sustainable development in societies.  Both CSR and Sustainability address multi-stakeholders and their materiality.  Thus CSR and Sustainability are interchangeable concepts.
5. Corporate means any body private, public or NGO [our definition applies neatly outside the traditional private corporate sphere]
6. There must be a business case for working with stakeholders.  These include the wider society and, as such, being a responsible company or institutions means working in partnership with society and being part of its long-term development.  Longer term analysis of relevant Big Issues are key to prevent collapse and are the responsibility of institutions and all their key stakeholders.

Original Source: Michael Hopkins: A Planetary Bargain: Corporate Social Responsibility Comes of Age (Macmillan, 1998; updated and re-printed by Earthscan, 2003) and also re-printed in Michael Hopkins: CSR/Sustainability – From the Margins to the Mainstream‘A Text Book’ Greenleaf, UK, 2016). Clause 6 with thanks to Siemens and also Bob Munro for edits. Updated by Michael Hopkins July 18 2019.

This definition is a bit of a mouthful so if I meet you in the street I want you to at least recite the essential part, and you won’t go far wrong in using and applying it, which is:

CSR is about treating key stakeholders responsibly

A good definition essentially defines the conceptual model from which all the elements can easily evolve. I de-construct the above definition in great detail in my text book, but I am confident in the above statement for a number of reasons.

First it evolved from the great US thinkers in the 20th Century. Second both the EU and ISO26000 just about use the main thrust of the definition. Third, it covers just about every element of what we want to say. Perhaps the key element, and the link to sustainability, is to add the definition of sustainable development which is:

Note on Sustainable development. Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs as defined by the UN sponsored report on Our Common Future chaired by Gro Brundtland. See: http://www.un-documents.net/our-common-future.pdf accessed April 2 2015.

Thus CSR, as defined above, aims to achieve sustainable development as its goal.

II. The 3-P Model

The basic elements of the H-CSR-M conceptual model are threefold:
• Principles of social responsibility
• Processes of social responsiveness
• Products (or outcomes) of social responsibility

Principles of social responsibility

Legitimacy
Public responsibility
Managerial discretion

Processes of social responsibility

Environmental scanning
Stakeholder management
Issues management

Products (Outsomes)

Internal stakeholder effects
External stakeholder effects
External institutional effects

I call this the 3-P model for the measurement of CSR…more details are available via enquiries@mhcinternational.com .

III. Measurement

The CSP model, I now call part of the Hopkins CSR model, is used as a basis to develop a set of suggested indicators to measure corporate social responsibility profiles. As I have already noted there are three “layers” of the model and nine essential elements of measurement. The indicators suggested have been constructed within these elements and thereby offers a clear conceptual model from which ways to measure and compare outcomes in each element and collectively, impact outcomes of the total system.  Our approach leads to fewer indicators than normally found in frameworks, such as GRI for instance. We have however made a huge effort to align our key indicators to the GRI indicators set – again, more details are available: contact us via enquiries@mhcinternational.com .

IV. CSR Strategy

What happens when these ideas are transformed into a strategic framework to enhance the competitive advantage of a company while preserving the values of CSR?

Instigating a CSR programme simply on a “nice-to-do” or “wishful thinking” basis just won’t wash in today’s “goldfish bowl” business environment. CSR is not just the right thing to do; it has to be the right thing to do for your company or organization. Hence the first step is to identify and pin down the key business or organizational goals. Having done so, the purpose of a strategic CSR programme in terms of how it will align with and hopefully advance these goals can be clearly stated. Hopefully this will be self-evident to those who will have to sign off on the programme. As such, the aims and objectives of any CSR programme have to be aligned with the corporate or organizational goals and also be congruent with the corporate or organizational values. If not, they will simply bounce off and it will be back to square one!

The H-CSR-M has such a strategy that has been applied in over 50 companies around the world. Based on the aforementioned experiences this strategy has been converted into 15 key steps in creating a corporate CSR strategy. Again, more details are available if you contact us via enquiries@mhcinternational.com .

5. Your Application

CSRFi offers to assess your company under the H-CSR-M and provide analysis of your CSR/Sustainability and offer Certification as follows:

1. Small sized Business or Institution (less than 50 employees). Web document based analysis.
2. Medium sized Business or Institution (51-500 employees). Web document based analysis.
3. Large sized Business or Institution (501+ employees). Web document based analysis.
4. Personal visit including coaching, training of staff and visit: One of the above plus visit expenses

Contact: Dr. Michael Hopkins enquiries@mhcinternational.com

Notes:

After a presentation of the book at one of Michael’s CSR Meetups in Geneva [3], he emphasised the conceptual CSR model he had been using.  One of the audience insisted that it should be called the ‘Hopkins CSR Model (H-CSR-M)’ since that way it would form a focus for future CSR efforts.  At first Michael did not want to call the model after himself, especially as he says that he stood on the ‘shoulders of giants’ in the model’s development[2].  But, as you see, he was convinced and now uses the H-CSR-M Model.[see also [5] below]

Michael therefore uses the phrase ‘conceptual model’ to describe CSR.  He also explains that CSR is a systems model to look at the social responsibility of all key stakeholders of an institution or company i.e. all aspects of a company or institution that contribute to its business or efficient operation are considered.  He also insists that the business case for private companies’ use of CSR MUST be maintained i.e. profits must be targeted (or efficiency in the case of a non-private institution).  Further, the model is not against profits per se, but HOW profits are made i.e. they must be made in a socially responsible manner.

[1] What we might call today..stakeholder engagement

[2] Major influences of Michael’s ideas have been the early academic pioneers of CSR in the USA – Archie Carroll, Donna Wood, Ed Freeman, Pat Werhane, Mitchell; then practitioners such as Anita Roddick, Adrian Payne, Simone de Colle, Al Straughan; UK Business Strategy guru Abby Ghobadian and last but not least my graduate students such as Nadine Hawa, Ms. Biernat, Jacques Bogh, Chris Cordey and Maga Ramasamy.

[3] Presentation Geneva, Sept 15 2015 and suggested by Ms. Biernat to call the model the ‘Hopkins CSR Model’

[4] A line of thought in the management field which stresses the interactive nature and interdependence of external and internal factors in an organization. A systems approach is commonly used to evaluate market elements which affect the profitability of a business. http://www.businessdictionary.com/definition/system-approach.html#ixzz3nP05aekR accessed Oct 2 2018

[5] Based upon Prof. Donna Woods work and the adaptation of which Michael calls the Hopkins-Wood model in his CSR text book.