Corporate Social Responsibility Policy Template for England and Wales

A Corporate Social Responsibility Policy outlines how a company will make a positive impact on society and the environment alongside its business operations. It sets clear commitments for ethical business practices, sustainability goals, community engagement, and fair treatment of employees - going beyond the minimum legal requirements set by UK company law.

These policies help organizations demonstrate compliance with the Companies Act 2006 section 172, which requires directors to consider broader stakeholder interests. They typically cover areas like carbon reduction targets, charitable partnerships, supply chain ethics, and employee wellbeing programs. Good CSR policies also include specific metrics to measure success and regular reporting requirements.

A Corporate Social Responsibility Policy becomes essential when your company needs to demonstrate its commitment to sustainable and ethical business practices to investors, customers, or regulators. It's particularly valuable during funding rounds, tender processes, or when expanding operations where stakeholders demand clear evidence of environmental and social governance.

Many UK companies implement these policies before bidding on public contracts, launching ESG-focused initiatives, or seeking B Corp certification. The policy also helps protect against reputational risks and shows compliance with Companies Act obligations, especially when facing increased scrutiny from shareholders or media about your organization's social impact.

• Basic CSR Policy: Covers fundamental commitments to environmental sustainability, community engagement, and ethical business practices - suitable for small to medium enterprises.
• Comprehensive CSR Framework: Detailed policy with specific KPIs, reporting structures, and governance mechanisms - typically used by listed companies and large corporations.
• Industry-Specific CSR Policy: Tailored to sector challenges, like manufacturing focusing on supply chain ethics or tech companies emphasizing data privacy and digital inclusion.
• Integrated ESG Policy: Combines Corporate Social Responsibility with broader Environmental, Social, and Governance commitments - popular among investment-seeking companies.

• Board of Directors: Ultimately responsible for approving and overseeing the Corporate Social Responsibility Policy, ensuring it aligns with company strategy and legal obligations.
• CSR Managers: Draft, implement, and monitor the policy, coordinating with different departments to achieve sustainability and social impact goals.
• Legal Teams: Review policy content to ensure compliance with UK company law and ESG reporting requirements.
• Department Heads: Implement specific aspects of the policy within their areas, from HR to procurement.
• External Stakeholders: Including investors, customers, and local communities who rely on the policy to understand company commitments.

• Current Impact Assessment: Review your company's existing environmental footprint, community engagement, and workplace practices.
• Stakeholder Input: Gather feedback from employees, investors, and community partners about CSR priorities.
• Industry Benchmarking: Research CSR policies of similar UK companies and sector-specific best practices.
• Resource Mapping: Identify available budget, staff, and systems needed to implement CSR initiatives.
• Compliance Check: Review Companies Act requirements and ESG reporting standards that apply to your business.
• Measurable Targets: Define specific, achievable goals and KPIs for each CSR commitment.

• Policy Statement: Clear declaration of the company's CSR commitments and alignment with Companies Act section 172 duties.
• Scope and Application: Definition of which business activities and entities the policy covers.
• Environmental Commitments: Specific targets for reducing environmental impact and carbon emissions.
• Social Impact Objectives: Measurable goals for community engagement and charitable activities.
• Governance Structure: Roles and responsibilities for policy implementation and oversight.
• Reporting Framework: Methods and frequency of CSR performance measurement and disclosure.
• Review Process: Timeline and procedure for regular policy updates and amendments.

A Corporate Social Responsibility Policy is often confused with a Compliance and Ethics Policy, but they serve distinct purposes in UK business operations. While both address organizational behavior, their scope and focus differ significantly.

• Primary Focus: CSR policies concentrate on voluntary commitments to social and environmental initiatives beyond legal requirements, while Compliance and Ethics policies focus on meeting regulatory obligations and preventing misconduct.
• Stakeholder Scope: CSR policies primarily target external stakeholders like communities and environmental groups, whereas Compliance and Ethics policies mainly guide internal staff conduct.
• Reporting Requirements: CSR policies often include voluntary ESG reporting frameworks, while Compliance and Ethics policies typically address mandatory regulatory reporting.
• Legal Standing: CSR commitments are generally aspirational, though they can create reputational obligations. Compliance and Ethics policies directly link to legal requirements and can form part of employment terms.