Corporate social responsibility (CSR) has become one of the standard business practices all over the world. For companies committed to CSR it means kudos and an enhanced overall reputation – a powerful statement of what they stand for in an often cynical business world.
The establishment of a CSR strategy (sometimes referred to as a sustainability strategy) is a crucial component of a company’s competiveness and something that should be led by the firm itself. This means having policies and procedures in place which integrate social, environmental, ethical, human rights or consumer concerns into business operations and core strategy – all in close collaboration with stakeholders.
For companies, the overall aim is to achieve a positive impact on society as a whole while maximising the creation of shared value for the owners of the business, its employees, shareholders and stakeholders. Not so long ago, the European Commission defined CSR as “the responsibility of enterprises for their impacts on society”, a succinct and distinct summation for sure.
A 2015 study by the Kenexa High Performance Institute in London (a division of Kenexa, a global provider of business solutions for human resources) found that organisations that had a genuine commitment to CSR substantially outperformed those that did not, with an average return on assets nineteen times higher. Additionally, the study showed that CSR-orientated companies had a higher level of employee engagement and provided a markedly better standard of customer service.
And yet, despite the positivity and optimism that CSR brings to the corporate table, companies do not always accept their responsibilities in this area in good heart, with a fair number admitting to having adopted CSR mainly as a marketing gimmick. In some cases, firms may have been coerced into adopting CSR and did so with insufficient enthusiasm and vigour, leaving many of them to ponder what they could and should have done differently.
For those considering CSR as a strategic option the question to ask may very well be this: is the CSR payoff always worth the outlay? CSR policies need to be considered as a core and inseparable component of the overall service or product offering.
Analysts believe that, every company’s situation is unique, with many different models in existence which can help organisations to achieve their CSR aims. In turn, this preponderance of choice has led to many companies recognising that they are defined by what they do, not just what they give. “Companies are not solely providing a financial contribution but are increasingly unlocking their intellectual assets and the power of their people to achieve a positive impact. For these analysts, ultimately, coherency comes from clear purpose, programmes of work which are authentic to and valued in the business and an acceptance that it is critical to business performance.”
To this end, the extent of corporate social responsibility and investment in societal growth and development is open to individual interpretation. Records have consistently shown inadequacy in this regards, and to that extent, the general perception has been negative. Understandably however, resource allocation to corporate social responsibility is a function of determination and commitment, especially among developing nations such as Nigeria. The pattern of investment in corporate social responsibility by brand owners from immediately post independence Nigeria has been selective based on urbanization and satellite allocation, economic viability, social impact and population.
That notwithstanding, experts are of the view that, the method of resource allocation for corporate social responsibility as a component of societal development became evident that for meaningful impact, emphasis should shift from a mere contribution towards national growth and development to sustainability. It is worthy of note that, Corporate social responsibility increase as a result of direct consequence of population explosion and growth in economic activities.
In line with their mandate however, brand owners can be credited with good measure of remarkable success in the area of corporate social responsibility in the years under review. Such success could be seen in how some of the brands in Nigeria has been supporting the Nigerian youths by way of empowering them in area of entertainment.
While corporate organissation and individual will continue to receive accolade from Nigerian both at home an in Diaspora, it is also important to articulate some of the critical issues that must be addressed been essentials in complement of corporate bodies/individual efforts at ensuring sustainability of corporate social responsibility and the success recorded so far.
Speaking to Economic Confidential on this issue, a brands management consultant, Bernard Okhakume said; “companies must set their goals at optimizing their collective investment on CSR. Constant in international economic rating of nations is the extent of economic growth and development based on resource allocation. For comparative advantage, therefore, brand owners should begin to consult experts on corporate social responsibility into sector with great potential to propel their overall economic growth and development. Companies must be pragmatic in this regards carefully articulating investment policies and decisions, based on comparatively better reward potentials.”
“that lead us to the convergence point of all stakeholders- corporate bodies/inviduals, government and the larger society are indebted to ensuring the sustainability of corporate social responsibility. The larger society must adopt the right attitude towards ensuring that the investment of brands owners into CSR yields the desired result. On the part of government, (federal, states and local government) investment decision/policy on corporate social reasonability must be carefully considered for the common good of all, in the face of scarce resources.
Dr. Ken Egbas, founder/CEO at TruContact is clear on what a CSR programme, or a sustainability strategy, should accomplish. His words;“It comprises re-evaluating how the company thinks about its impact, engaging stakeholders beyond shareholders and coming up with a plan to improve the impact of the business on society and seize business opportunities and make cost savings as a result,.” Continuing, he pointed out that, “This would involve a lot of planning and engagement with employees, managers, suppliers, NGOs, perhaps academics and others, to figure out where and how this is best done.”
While explaining the rational behind the SERAS award, he disclosed that, we live in a global, information age, where nothing can remain hidden for long. Consumers are becoming more sophisticated, more critical and more demanding of corporate organizations. They choose to make their purchases from firms that are perceived to be more client-friendly and client focused; firms that show that they care and who are more environmentally friendly and are seen to give back to society. Even children these days, call to question the veracity or authenticity of some advertorials that they encounter in the mass media; even when these advertorials have children as their core target audience. His word; “we really sat down and discussed what strategies would increase public awareness about PR as a legitimate discipline? The first idea we had was to publish a biennial or quarterly online journal or magazine that would explore the depth, texture and dimensions of public relations in Nigeria. This sounded really good at the onset but as we further deliberated on this, digging deeper into the advantages and disadvantages, we realized that this type of publication would largely appeal to those in corporate practice. What strategies would be all-inclusive, we pondered? What strategies would enable us involve the people, communities, NGOs, government and other stakeholders? We went back to the drawing board. Here, we would need to acknowledge the impact of friends of TruContact CSR Nigeria who brainstormed with us looking for that functional idea.”
Explaining further, he said; “when we emerged from this round of brainstorming, it was obvious that we would need to expand the concept beyond just publishing an online report. This marked the birth of the SERAS award ceremony as we know it today – where participating organizations showcase their work around corporate social responsibility (CSR) and Sustainability to society and society in turn assesses and rates the performance of participating firms. Thus, both corporate organizations and stakeholders together set the agenda and plot the way forward for mutually beneficial future encounters.”
“this thinking gave birth to the glamorous and grand SERAS ceremony. Though the actual ceremony takes place for about four hours on a single night, the countdown to the D-day spans many months of activities and preparation. The highlights of these activities include the call for entries, submission of entries by participating organizations, the field trips to cited CSR projects, voting by the general public and the meetings of the judges who make the final decisions about the winners.” He noted
For Ken Egba, The report component now fits in nicely as a way to draw public attention to PR, Sustainability and corporate social responsibility practice in Nigeria in a format that firms and their stakeholders can access long after the award ceremony closes. The report also provides the platform for documenting the best practices that we encounter yearly during our field trips around Nigeria to capture the very essence of corporate – stakeholder engagements; in as far as these engagements enrich and improve the lives and wellbeing of the peoples of Nigeria and simultaneously impact on the bottom-line of organizations perceived as good and responsible corporate citizens.
In another development, a Brands and Marketing analyst, Samauel Ajayi told Economic Confidential that; “companies often develop a CSR agenda not because of an altruistic desire to assist in curing the ills of society, but for reasons more akin to a box ticking exercise. Whatever the consensus, some organisations either implement their CSR programme with a distinct lack of heart or resist adopting a CSR policy altogether.”
According to him, if a resistance to CSR policies does exist, it usually stems from the notion of allowing external stakeholders to directly influence corporate policies and strategies, an idea that is largely antithetical to the basic mindset under which many, if not most, corporations operate. An honest adoption of CSR often requires a serious reformulation of corporate purpose and decision-making structures.
