Topic 2 Materiality Analysis

STEP 5: DEVELOPING A STRATEGIC APPROACH FOR CSR USING MATERIALITY ANALYSIS

Having recognized the priorities and identified the stakeholders, the next step is to build a strategic approach for CSR.

Companies will include in this strategic approach actions related to:

RESPONSIBILITY TOWARDS ENVIRONMENT

RESPONSIBILITY TOWARDS SOCIETY

RESPONSIBILITY IN THE WORKPLACE

RESPONSIBILITY IN THE  MARKETPLACE

In order to decide the specific actions, companies usually carry out a Materiality Analysis.

MATERIALITY ANALYSIS

  • A materiality analysis is a method to identify and prioritize the issues that are most important to an organization and its stakeholders.
  • “Material” are “those topics that have a direct or indirect impact on an organization’s ability to create, preserve or erode economic, environmental and social value for itself, its stakeholders and society at large”.
  • Materiality means analyzing which issues are the most important of being addressed by businesses. After identifying potential sustainability issues thought to be directly relevant to an organization’s value chain, these issues are analyzed using 2 different lenses: 1) what’s the potential of each issue to positively or negatively impact organizational growth, cost, or trust and 2) how important is each issue to stakeholders.
  • The ultimate result is a visual representation of which issues should be prioritized according to their importance to the company’s success and stakeholders’ expectations (that can directly affect the first).
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