Communities
The Communities section focuses on evaluating a company’s approach to managing its impact on local communities to minimize risk and create value. This section asks questions about how the company manages, prevents, stops and remediates the impacts of its value chain operations on local communities, including consultation programs and initiatives. Questions also explore philanthropic activities including partnerships, donations and support of NGOs and community groups.
Helpful Resources
- OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector (OECD, 2017)
- United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP, 2017)
Important disclaimer:
Please note that there are no applicabilities in the questionnaire, this means that even if a user answers “no” to a question, the follow up questions will still apply to the user and result in a point loss. In particular, if you answered “no/none” to the questions in this section asking if targets have been formally set and approved for a specific impact and/or topic area, the N/A answer option is not available for the related questions asking whether annual milestone targets have been met and whether those have been publicly reported, and you must answer “no”.
About this question
This question asks whether your company is implementing an effective process to monitor its impacts on communities along its value chain. Community rights here refers to the rights of individuals or groups of people who live or work in a place or community that is impacted by your company’s activities.
The activities and infrastructure associated with a company’s business can have significant social, cultural, environmental, and economic impacts on local communities, both positive and negative. Persons or groups affected may live and work geographically very close to your company’s site or they may by impacted by its activities, whilst living at a great distance. Identifying which community stakeholders are vulnerable to negative impacts from your business requires a systematic process of monitoring and stakeholder engagement.
Examples of impacts could include bringing jobs and economic growth to a region with low employment; but also competing with existing businesses by opening a large store; increasing road traffic to the detriment of air quality and safety; affecting people by increasing pollution, waste, land and water use through industrial processes, buildings, or transport. Please note, this section asks whether community rights are considered at different levels of the value chain but it is not asking about impacts on supply chain workers in relation to their working conditions. Workers and their families may also be community stakeholders, but we are not asking here about workplace human rights issues.
- Select one or more of the value chain levels, if you can demonstrate that your company has identified specific communities that may be impacted by its value chain operations at that level, and has put a monitoring process in place, which may include quantitative data (e.g., employment levels in a town, traffic or pollution levels near a work site) and qualitative data (e.g., stakeholder interviews, engagement with local groups, consultants, feedback from planning applications).
- Select none if there is no monitoring of community rights in communities affected by your company’s value chain activities
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.MQ.b (For: Brand, Brand and Retailer)
Reference ID: scm.MQ.r (For: Retailer)
Evidence
Either
- Link to published outputs of value chain mapping process against local community impacts (i.e., factory/facility list indicating which tiers are mapped, published on company website)
and
- Published or non-published documentation explaining the status of value chain mapping against the rights of local communities i.e., which tiers are completely mapped (e.g., ESG report, ethical trade report, update on corporate website)
or
- Internal outputs of value chain mapping process (i.e., factory/facility list indicating which tiers are mapped)
and
- Published or non-published documentation explaining the status of value chain mapping in the context of local communities, i.e which tiers are completely mapped (e.g., ESG report, ethical trade report, update on corporate website)
and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board meeting papers)
Topic areas
Community rights
About this question
Targets and indicators are critical to effective practices within a company. This question establishes if your company has set targets to address any of the community impacts related to its operations. To drive effective progress, targets should be specific, measurable, achievable, realistic and time bound. Targets should be approved by the company’s senior management, and relevant employees should be accountable for the monitoring and achievement of KPIs.
- Answer yes if you can demonstrate that your company has set formal targets to address community impacts
- Answer no if there are no formal targets in place to address community impacts arising from your company’s operations
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.Mg
Evidence
Either
- Evidence could include a link to published targets, annual reports, or the provision of board minutes or internal strategic papers
or
- Internal strategy or program documentation indicating targets
and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, Board papers)
Topic areas
Community rights
About this question
This question evaluates whether your company is adopting a systematic approach to the monitoring of social impact related to its community’s contributions.
Companies can make a positive social impact through their corporate contributions. To ensure that corporate giving is an effective tool for change, it should be carried out strategically, with targets, monitoring and the correct expertise, in the same way as a company manages its other business activities.
Some companies make ‘ad hoc’ donations to charities without a social impact strategy or framework, and without measuring the social impact of a donation. They may record simply ‘amount donated’. This may be beneficial for individual charities on an informal basis, or for employee engagement but is not considered a strategic approach. Some companies work in partnership with charities or community groups and/or make contributions in line with a stated corporate social purpose and defined social impact goals. This is an example of a strategic approach.
It is important to implement a process to evaluate whether contributions are having their intended social impact, to ensure that the contribution is effective, that the program is delivering its stated goals, that the wider community is benefiting, and that there are no unintended consequences of your contributions.
- Answer yes if you can demonstrate that your company’s approach to corporate giving is strategic and you can provide evidence that programs are measured and monitored effectively, informed by appropriate levels of social impact expertise
- Answer no if your company makes no community contributions or if it makes contributions that are not supported by appropriate targets, monitoring and social impact expertise
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.Mw
Evidence
Provide
- Documents demonstrating how data is monitored and collected and recorded over time and
- How impact is measured (through qualitative or quantitative measures)
- Evidence of oversight by senior leadership (e.g., ESG Committee minutes, Board papers)
Optional supplementary evidence:
- Link to any third-party documents that show how community contributions are monitored (e.g., Reports from beneficiaries – annual status reporting etc…)
- Link to any third-party documents that show how community contributions are measured (from NGO’s or Independent Benchmarking to show impact)
Topic areas
Community contributions
About this question
Targets and indicators are critical to effective practices within a company. Setting targets in the area of community contributions indicates that corporate giving is taken seriously by your company and managed strategically.
This question asks for evidence of targets related to your company’s community contributions. To drive effective progress, targets should be specific, measurable, achievable, realistic and time bound. Targets should be approved by the company’s senior management, and relevant employees should be accountable for the monitoring and achievement of KPIs.
- Answer yes – financial donations if you can demonstrate that your company has set targets in relation to financial donations as part of its community contributions or social impact strategy. Note that ‘financial donations’ should only include charitable donations made from the company itself, not targets for employee or customer fundraising or payroll giving. It may include bursaries or donations to a corporate foundation
- Answer yes – non-financial donations if you can demonstrate that your company has set targets in relation to making non-financial donations as part of its community contributions or social impact strategy, and that these targets have been approved by senior leadership. This can include the donation of products, materials, space, technology, support for employee fundraising or payroll giving, donation of employee time and expertise through volunteering
- Answer no if there are no formal targets in place related to financial or non-financial donations to charities, community groups or social impact initiatives
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.NA
Evidence
Either
- Link to published targets (e.g., ESG strategy or report, corporate website, Annual Report and Accounts)
or
- Internal strategy or program documentation indicating targets (e.g., Corporate Giving Strategy) and
- Evidence of oversight by board/senior leadership (e.g ESG Committee minutes, Board papers)
Optional supplementary evidence:
- Link to any partnership agreements
Note: Financial donations’ should only include charitable donations made from the company itself, not targets for employee or customer fundraising or payroll giving. Bursaries or donations/non-financial donation to a corporate foundation can be included
Topic areas
Community contributions
About this question
This question seeks evidence that your company’s community rights goals are supported by a strategy to deliver them. The program or strategy should include: formal accountability defined, specific initiatives that are planned with defined timelines to achieve target and a dedicated budget.
- Answer yes if you can demonstrate that your company has a community rights strategy and implementation program in place to address community rights impacts
- Answer no if there is no strategy in place to address community impacts arising from your company’s operations
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.NQ
Evidence
Either
- Link to published strategy or implementation program
or
- Internal strategy or implementation program documentation
and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, Board papers)
Optional supplementary evidence:
- Examples/screenshots of evidence of program implementation (e.g.,Community Human Rights due diligence, community mapping, impact assessments, reports from Community liaison and consultation programs, grievance mechanisms for community members, specific community project reports)
Note: Evidence can be in the form of reports, internal plans and/or other relevant documentation
Topic areas
Community contributions
About this question
Stakeholder engagement is a critical element of a community rights strategy, and demonstrates good corporate governance. Community stakeholders are people, or groups of people, who live and work in an area impacted by your company’s activities. Persons or groups affected may live and work geographically very close to your company’s sites, or they may be impacted by its activities, whilst living at a distance. Identifying which community stakeholders are vulnerable to negative impacts from your business requires a systematic process of identification, analysis, planning and implementation of engagement activities.
This question asks whether your company is implementing an effective process to identify and engage with communities affected by its operations.
- Answer yes if you can demonstrate that your company has a documented program in place to identify and engage with community stakeholders affected by its value chain activities
- Answer no if there is no stakeholder engagement in place, or if there is no evidence available of a strategic approach to engaging with community stakeholders
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.Ng
Evidence
Either
- Published documents providing evidence of an engagement program in place across the value chain with community rights holders (e.g., Trade Union, NGO’s, community leaders, community groups)
or
- Link or screenshots demonstrating engagement mechanisms used for stakeholder/community rights holder consultations (e.g surveys, grievance mechanism platform)
and
- Internal documents describing the process and outcomes of consultation – verified by senior leader
Optional supplementary evidence:
- Screenshot of documents or other materials demonstrating examples of liaison with community rights holders
Topic areas
Community contributions
About this question
Community stakeholders are people, or groups of people, who live and work in an area impacted by your company’s activities. Persons or groups living and working geographically close to your company’s direct operations may be the most straightforward to identify and engage (e.g., Tier 0, Retail, Head office, distribution and logistics operations). These communities are likely to form the basis of a company’s initial steps in community rights. However, it is more challenging for a company to be able to identify communities impacted by its indirect activities, for example in value chain tiers 2, 3 and 4, or those impacted by disposal of products at end of life.
This question provides an opportunity for all companies to indicate the depth of their program.
- Select one or more value chain stages where you can provide evidence that your company’s community rights program is identifying and engaging with stakeholders or their representatives
- Select none if you cannot provide any evidence of community stakeholder engagement across your value chain
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.Nw.b (For: Brand, Brand and Retailer)
Reference ID: scm.Nw.r (For: Retailer)
Evidence
Either
- Documentation outlining the program with detail on each value chain tier implemented (Board paper, HR documentation/strategy, public document)
or
- Evidence of value chain community rights issues identification
and
- Evidence of implementation of programs within different Value Chain tiers (e.g., Internal documents, program implementation materials etc…)
Topic areas
Community contributions
About this question
This question asks whether the implementation of your company’s community rights strategy has met its own targets during the most recent reporting period.
- Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
- Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
- Answer no if less than 50% of your company annual milestone targets have been fully met
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.OA
Evidence
Either
- Link to published report or update demonstrating progress against targets and milestones (e.g., ESG report, Annual Report and Accounts, progress update on corporate website, DEI report)
or
- Internal progress report with evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, Board papers)
or
- Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization
Topic areas
Community contributions
About this question
This question seeks evidence that your company’s community contributions goals are supported by a strategy to deliver them. The program or strategy should include: formal accountability defined, specific initiatives that are planned with defined timelines to achieve target and a dedicated budget.
- Answer yes if you can demonstrate that your company has a contributions strategy and implementation program in place to achieve its social impact goals
- Answer no if community contributions are not made, or if there is no community contributions strategy in place
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.OQ
Evidence
Either
- Link to published strategy and implementation program which evidences the strategy behind community contributions and the effect of contributions made
or
- Internal strategy or implementation program documentation which evidences the strategy behind community contributions and the effect of contributions made
and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, Board papers)
Note: Stand-alone donations will not contribute as evidence
Topic areas
Community contributions
About this question
There are various approaches for a company to make community contributions to create a positive impact. This question provides an opportunity to indicate the breadth of your company’s strategic giving. We have separated donations made by employees (e.g., payroll giving, fundraising, etc.) from charitable donations made by the company, and those generated as part of a marketing campaign.
- Select formal corporate partnership if you have documented agreements with one or more charities
- Select financial donations from company if your company has donated money either directly to charities/community groups or to its own corporate foundation. This should exclude any funds donated by employees, or customers. It can include donations made by your company to ‘match’ employee or customer donations
- Select product donations from company if you have donated samples or clothing to charities or community groups. This can include donating products for fundraising by charities
- Select cause-related marketing donations if you have collaborated commercially with a charity to raise awareness/funds for a particular cause or issue
- Select other donations from company if you support community organizations and/or charities by providing business resources such as premises, meeting space, event space, technology
- Select employee fundraising initiatives/challenges if you have a program to enable employee giving and engagement at work. This could be by organizing, funding or supporting challenge events, fundraising galas, sales, competitions or other fundraising activity connected with the workplace
- Select employee charity donations through payroll if you have established a process by which employees can donate a portion of their salary to charities of their choice directly from their salary
- Select donations of employee time/expertise if you have a structured approach to enabling employees to volunteer skills or time to charities and community groups
- Select none if you cannot provide any evidence of the corporate contributions described above
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.MTA
Evidence
Provide
- Financial donations – A list of funds given in the assessed period. This should exclude any funds donated by employees, or customers. It can include donations made by your company to ‘match’ employee or customer donations
- Product donations – Document outlining quantities (quantities or cost (COGS) of donated samples or clothing to charities or community groups. This can include donating products for fundraising by charities
- Cause-related marketing donations – Evidence of funds donated (Certificates etc.)
- Other donations – Evidence of business resources donated including associated fiscal donation (the fiscal cost of the donation) such as premises, meeting space, event space, technology
- Employee fundraising initiatives/challenges – Summary of programs (e.g., Funding or supporting challenge events, fundraising galas, sales, competitions or other fundraising activity connected with the workplace)
- Employee charity donations – Evidence of payroll giving approach including fiscal result (donations received by organizations as a result), % employees participating, any match funding provided by employer
- Donations of employee time/expertise – Evidence of program including % employees participating, fiscal equivalent values of time donated, organizations involved etc…
Note: For these initiatives, evidence must include evidence with board level approval (either a public document or internal document with evidence of board approval).
Topic areas
Community contributions
About this question
Companies can encourage wider community engagement via employee leave specifically for volunteering. This question demonstrates how your company supports and enables employees by helping them to fulfill civic roles such as governance in charities and non-profit organizations. Whilst jury service is required in many countries, in practice it is often discouraged by managers, especially for junior employees.
- Answer yes if you can provide evidence that your company actively supports its employees undertaking civic duties and voluntary governance roles
- Answer partial yes if you can provide evidence that your company provides support and paid leave for employees carrying out civic duties (e.g., jury service)
- Answer no if you cannot provide evidence that employees are supported in fulfilling civic duties
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.MTE
Evidence
Provide
- Policy outlining active support for voluntary roles and volunteering
and
- Documentation/program outlining active support of volunteering, employees who participated in the reporting period and approval at board level (e.g., Board paper, HR documentation/strategy, public document)
Optional Supplementary evidence:
- Records of voluntary roles and volunteering
- Internal newsletters or Intranet information about the option for paid-time off for these roles
Note: Answer yes if you can provide a policy and evidence of active support, answer partial yes if you can only provide a policy or more basic outline information and answer no if you cannot provide evidence or a policy
Topic areas
Community contributions
About this question
This question asks whether your company has successfully implemented its community contribution strategy during the reporting period.
- Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
- Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
- Answer no if less than 50% of your company annual milestone targets have been fully met
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.MTI
Evidence
Either
- Link to published report or update demonstrating progress against targets and milestones (e.g., ESG report, Annual Report and Accounts, progress update on corporate website, DEI report etc..)
or
- Internal progress report with oversight by senior management (e.g., Board ESG Committee papers)
or
- Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization
Topic areas
Community contributions
About this question
The discussion of community-related issues is often not disclosed. Yet, preparing accurate, relevant and timely information and reporting it publicly is an example of transparency, which is widely recognized as a core principle of good governance.
This question asks you to confirm if you have reported your progress in Community Rights publicly.
- Answer yes if you can provide evidence that your company has reported publicly on its targets and progress in Community Rights
- Answer no if targets and progress have not been reported, or if there is no targets and/or progress to report in Community Rights
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.MTM
Evidence
Either
- Link to most recent published report (e.g., ESG report, Annual Report and Accounts)
or
- Third-party report on your targets (e.g., by a consultancy, NGO partner) or progress published on your company’s website
Optional supplementary evidence:
- Newsletters or other public communications about your programs and progress (not including internal newsletters)
Topic areas
Community rights, transparency
About this question
Providing transparency by reporting on philanthropic activities such as volunteering or donations is considered best-practice. This question asks you to confirm if you have reported your progress in Community Contributions and social impact publicly.
- Answer yes if you can provide evidence that your company has reported publicly on its targets and progress in Community Contributions/social impact
- Answer no if targets and progress have not been reported, or if there is no targets and/or progress to report in Community Contributions
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.MTQ
Evidence
Either
- Link to most recent published report (e.g., ESG report, Annual Report and Accounts)
or
- Third-party report on your targets (e.g., by a consultancy, NGO partner) or progress published on your company’s website
Optional supplementary evidence:
- Newsletters or other public communications about your programs and progress (not including internal newsletters)
Topic areas
Community contributions, transparency
About this question
Community stakeholders are people, or groups of people, who live and work in an area impacted by your company’s activities. Persons or groups affected may live and work geographically very close to your company’s sites, or they may be impacted by its activities, whilst living at a distance. Engaging with stakeholders is a core element of good governance.
This question provides an opportunity to demonstrate active stakeholder engagement in the communities affected by your company’s business activities.
- Answer yes if you can provide evidence that your company engaged with stakeholders as part of the development and implementation of its Community Rights strategy or programs
- Answer no if you have no evidence of community stakeholder engagement, or if stakeholder engagement has not formed part of your strategy
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.MTU
Reference ID: scm.MTU
Evidence
Either
- Consultation/Engagement activity with community stakeholders (e.g., Trade Union, NGO, expert consultancy or other third-party engaged to carry out stakeholder engagement work)
or
- Link or screenshot demonstrating mechanisms used for stakeholder consultation (e.g consultations, surveys, grievance mechanism platform)
and
- Internal documents describing process and outcomes of consultation – verified by senior leader
Optional supplementary evidence:
- Screenshot of documents or other materials demonstrating examples of community stakeholder feedback
Topic areas
Community rights, stakeholder engagement
About this question
Working collaboratively with other businesses, civil society or governmental groups is an effective way to drive progress in complex issues. Examples could include working with a group of local businesses, schools or parents to address issues that affect a small town where your company has a presence, or collaborating with industry peers on the impacts of raw materials sourcing in your supply chain.
This question provides an opportunity to demonstrate that your company takes a collaborative approach by working with other businesses, civil society and stakeholders.
- Answer yes if you can provide evidence that your company has participated in collaborative initiatives to address Community Rights challenges
- Answer no if you have no evidence of collaborative work, if there is no community rights strategy, or if collaboration has not formed part of your strategy
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: scm.MTY
Evidence
Either
- Link to membership/signatory page or annual report published on the website of the relevant multi-stakeholder initiative(s), indicating the topics addressed and your company’s logo/name plus signatory/membership level during the reporting period
or
- Membership/signatory agreement/s including company’s name and level of commitment to addressing community rights impacts
and
- Document or link to information indicating how the topic is addressed by the multi-stakeholder initiative(s)
Optional supplementary evidence:
- Examples of your company’s involvement in the initiative(s)
- Feedback from an NGO on your company’s contribution to the initiative(s)
Topic areas
Community rights, stakeholder engagement