Unit 10.1 Basic content and structure of a social report on NFIR

Unit 10.1 Basic contentandstructureof a socialreport on NFIR Unit 10.1 Basis content and structure of a social report on NFIR

Content • Purposeof a socialreportassessment • Key questionsforassessing a NFIR • Basic structureof a socialreport Unit 10.1 Basis content and structure of a social report on NFIR

Introduction In order to define the content and a basic structure of any analysis report, it is important to considere these questions first: • What is the purpose of the anaysis report? • What are the key questions / issues to consider when assessing a NFIR? Unit 10.1 Basis content and structure of a social report on NFIR

Purpose of a social report First of all, a social report constitutes an instrument for social dialogue and positive proposals Assessment of the complience with commitments assumed by the company with regard to Corporate Social Responsibility Expression and definition of workers’ representative’s opinions, to eventually point out serious omissions or best practice Identification of recommendations and conclusions (also specific requests to the company) Unit 10.1 Basis content and structure of a social report on NFIR

Purpose of a social report When starting a report assessment, it is important to focus on some key concepts. A basic idea is to include information about relevant topics for workers’ prepresentatives, e.g.: employment (workforce, turnover, restructuring, etc.) salary inequality training prolongation of working hours and time control occupational health and sfety well-being at company level Unit 10.1 Basis content and structure of a social report on NFIR

Key questions / issues Does NFIR manage toidentifytheimpact(s) ofcompanyactivities on society? Stakeholder identificationandengagement Materiality Consistency Focus on KPI Due diligenceapproach in NFIR Value chainapproach in NFIR Unit 10.1 Basis content and structure of a social report on NFIR

1. Does NFIR manage to identify the impact(s) of company activities on society? • Identification of company activities’ and decisions’ IMPACTS and the EXTENT and MEANING of them? - YES, NOT, partially + explainwhy. Analysis of NFIR from the perspective of society in general, taking into account its needs and expectations as a whole and assessing how the company integrates the social, environmental and ethics concerns of the society in its management and performance with regard to: • creation of shared value for all (POSITIVE IMPACTS) • identification, prevention and mitigation its possible adverse consequences Unit 10.1 Basis content and structure of a social report on NFIR

2. Stakeholder identification and engagement The concept of stakeholders can to a certain extent distort the information provided by companies in their reports, with the result that impacts on society - in general- are not well reflected because of focusing too much on certain stakeholders (i.e. shareholders or investors). • For this reason stakeholders must be clearly identifiedand the NFIR should respond to the needs and expectations of its stakeholders. • Key questionsare: • Howhasthecompanyidentifieditsstakeholders/ theirrepresentativesandtheirneedsandexpectation? • Howdoesthestakeholderparticipationsystemwork? Unit 10.1 Basis content and structure of a social report on NFIR

3. Materiality Define those issues on which company must report (define what is “important” for company in terms of CSR) The two key elements mentioned above (impact on society and on stakeholders) determine, to a large extent, the information that should be contained in the NFIR. It is important to understand materiality as the relevant topics for a company’s sustainability, by not limiting it only to the global sustainability. • Analyst have to assess if materiality is balanced between these two aspects (company´s sustainability and global sustainability). Unit 10.1 Basis content and structure of a social report on NFIR

4. Consistency Does the company report on what is determined as material? Analyst have to asses what is considered material by the company (especially according to stakeholders needs and expectations) and if the reporting is consistent in itself This can be assessed in two directions: • If NFIR defines policies, objectives, procedures and management practices to eliminate / control the negative impacts associated to its materiality; • If NFIR provides information on the performance and results of management material issues Unit 10.1 Basis content and structure of a social report on NFIR

5. Focus on KPI How does the report address Key performance indicators (KPI)? KPI have to allow to understand the evolution, results, situation and impacts of company’s activities. KPI may have a wide margin of interpretation due to the regulatory framework ambiguity: analyst should take this into account by pointing it out and looking for more concretenessin related documents. Unit 10.1 Basis content and structure of a social report on NFIR

6. Due diligence approache in NFIR Due diligence responds to the criteria of evaluating a decision before taking it, taking into account the possible impacts and the consequences of carrying it out. In the context of CSR, due diligence is related to the processes implemented in a company to identify the social, environmental and economic impacts of its decisions and activities in order to avoid, reduce or eliminate these impacts, especially those associated to the supply and subcontracting chain. Unit 10.1 Basis content and structure of a social report on NFIR

7. Value chain approach in NFIR Value chain approach in NFIR allows to assess how far the company assumes its responsibility. In fact, impacts on society can be derived from the direct performance of company activities, its products or its services, but they can also be associated with products, services or relationships with its suppliers, contractors, buyers, consumers, etc. Recognition of and reporting about value chain in NFIR is a clear proof of due diligence and transparency from companies. A good example would be if the company provided an outline or drawing of its value chain. Unit 10.1 Basis content and structure of a social report on NFIR

Basic structureof a socialreport According to the issues developed above, thebasicstructure of a socialreportcouldbe: Introduction Methodology description: the operative guidelines of report production Description of company profile (See Cenofia Analysis Tool) Description of Report profile (See CENOFIA Analysis Tool) Analysis of contents (see above) Unit 10.1 Basis content and structure of a social report on NFIR

Conclusion It is important to remember that NFIR analysis is not intended to only evaluate whether the NFIR complies with the GRI standard. Therefore, the social report should be based on: ageneralanalysisofthekeyquestions / issues  units 9.1 MaterialityandCompletenessand9.2 Consistency) resultsandconclusionsderivedfromthe CENOFIA Analysis Tool CENOFIA‘s 31 KPIs Unit 10.1 Basis content and structure of a social report on NFIR

The European Commission support for the production of this publication does not constitute an endorsement of the contents, which reflects the views only of the authors, and the Commission cannot be held responsible for any use, which may be made of the information contained therein. Unit 10.1 Basis content and structure of a social report on NFIR

Unit 10.1 Basic content and structure of a social report on NFIR