ERP & Social Responsibility | Socially Responsible ERP

ERP & Social Responsibility | Socially Responsible ERP
ERP & Social Responsibility
Tracking Corporate Social Responsibility with ERP Software

In 2010, the International Organisation for Standardization (ISO) introduced an international standard that outlines regulations for corporate social responsibility. Among the issues of focus are: human rights, labour relations, the environment, and corruption.

Good ERP software should be able to track applicants, even before they are hired, and continue documenting compliance for future evaluation. Furthermore, the ERP system should have risk management functionality that identifies risks and manages the creation of risk mitigation plans.

For labour and human rights, ERP software should document employee age in order to comply with child labour laws and also document labour management practices by keeping record of the training and skill set of each employee from the time they are hired.

Regarding the environment, ERP software should include a built-in module for environmental footprint management. It should be able to capture data over the life cycle of a product, tracking its impact on the environment. Corruption prevention in ERP software should provide vendor evaluation that requires segregation of duties, preventing any single person from approving a vendor, reducing the likelihood of partnering with corrupt suppliers. ERP software will not do everything to solve CSR issues, but with necessary documentation and tracking systems, it can make the HR job of complying with CSR standards much easier and more efficient. With these new standards in mind, now is a good time to compare ERP software on the market and make an informed decision.

Manufacturers are increasingly turning to IT to help manage their corporate social responsibility (CSR) programs. Organisations have identified a need to integrate and automate their CSR processes and information. Organisations are getting limited value from their ERP systems to help them manage their CSR programs, and are looking to their ERP vendors for solutions.

An internal control system based on a pre-existing ERP framework can centralize the information you need to manage CSR activities within any functional area (finance, HR, supply chain management, manufacturing) and across your enterprise. Four areas to focus on ERP & Social Responsibility:

  1. Documentation. A central repository of all governance, risk management and compliance related documents that is accessible to auditors and managers, and where documents can be updated as close to real time as possible.
  2. Testing. Tracking testing activities, including what was tested, when and by whom, results and remedial actions when testing failed.
  3. User interface. To communicate all key information to the appropriate audiences through an intuitive, secure, role-based, user-defined portal.
  4. Monitoring. Enabling organizations to manage key events/transactions within their ERP and other business applications and present any significant or material events to the appropriate audience.

Summary of ERP & Social Responsibility

Customer and regulatory requirements often steer sustainability initiatives. There is an increasing number of companies noticing that they frequently result in decreased operating costs and increased revenues. Also, the ethical aspect is becoming more critical as the end customer wants to be able to resonate with a brand or company about what they’re using and how.

ERP systems can support the sustainability strategy positively in many ways.

  • By providing the right organisational environment in which to adopt a sustainability strategy
  • Supply measuring and monitoring tools to capture consumption data. Also, exploding material and overhead costs and dashboards to publish and share this data for all to use
  • Giving specific sustainability-focused tools to reduce adverse impact. Asset Management, Product Lifecycle Management or Supply Chain Optimisation modules, for example.

Product development is driving this way as ERP vendors see sustainability as a significant trend for organisations. There are schemes in place to help businesses be accountable for their carbon footprint – Carbon Trust or Enworks, for example. However, these tend to ignore the role of ERP systems in both supporting and measuring reductions & ROIs achieved.

At YglWorld Consulting, we actively implement on how the system will enhance our clients’ sustainability agenda.

How YGL BeyondERP can help SMEs in manufacturing industry to adopt and implement Industry 4.0?

We Help Manage Industry 4.0 Implementation via ERP System

With YGL, you’ll be working with the most experienced professionals in the ERP industry. Whether you need short-term support or resources for a long term engagements, our ERP Consultants have the expertise to help you implement and integrate the ERP system requirement for Industry 4.0. With a core team of functional and technical ERP consultants that are both skilled and certified, we can quickly implement a robust ERP System to maximize the value of your investment.

YGL BeyondERP system applications allows you to enable a seamless workflow from your finance to warehouse and right down to your production efficiency by providing you the essential management dashboard which allows you to have a clear visibility.

As an industry leader in ERP system Implementation, we can be sure that each YGL consultants have the highest qualifications. We provide a wide range of ERP System Integrations with experience ranging from IOT(Internet of Things) right down to Data analytics  on OEE (Overall Equipment Effectiveness), supporting all functional modules to complete project management for your project needs. All of our consultants are fully vetted for the project they’re submitted for, which means you’re only reviewing the most qualified consultants who do what you need done.

We Can Help to implement ERP System Integration under Industry 4.0

We look forward to hearing from you. Contact us today so that we can help you with our YGL BeyondERP which is strategy Industry 4.0 ready implementation needs heading towards Industry 4.0.

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10450 Penang Island

YglWorld KL
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Jalan Pinang 50450
Kuala Lumpur

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