Going green is a mantra that has gripped many corporates in all sectors of the economy. Furthermore, corporate citizenship has taken companies by storm. This has resulted in many companies implementing Corporate Social Responsibility (CSR) Programmes. An assortment of CSR programmes are being implemented by different organisations with varying levels of success.
Enterprises can implement activities that are in response to their stakeholder needs. True CSR is done with the desire to enhance stakeholder value. It is now common for organisations to develop Stakeholder Engagement Plans as well as CSR Strategies. As more and more companies take CSR seriously, we have to set the precedence for future CSR Programmes to meet global best practice.
Social and environmental concerns are also addressed in CSR projects of companies including human rights, preventing child labour and investing in community projects. Infrastructure development in local communities and enabling inclusion in supply chains are all forms of CSR. Some organisations have built schools for local communities or financed income generating projects for local women. Other CSR projects can focus on vulnerable groups such as orphaned and vulnerable children, women groups and youths. By empowering these groups it is possible to uplift communities and enhance their livelihoods.
Tree planting activities and environmental reclamation projects are also shinning beacons of CSR. Other sustainability initiatives are necessary in order to achieve sustainable development.
In its different forms, Corporate Social Responsibility is a type of self-regulation for businesses and it goes beyond meeting the requirements of laws.
There are many cognitions why CSR is implemented by different organisations. Some companies implement CSR from a purely ethical dimension. In some circumstances CSR is implemented based on the need to attain business profitability.
However, in recent years there is also a realisation that some organisations are misusing CSR and misrepresenting facts about their CSR work. This includes but not limited to exaggeration of environmental initiatives. This new wave of corporate mischief is called “Greenwashing”. This malpractice involves providing false information regarding the company’s sustainability performance. Stakeholders are increasingly wary and able to scrutinise sustainability information provided.
CSR has also transformed from merely being a philanthropic driven initiative anchored entirely on donations to society. What if some donations are not in line with the priorities of the society? Donations, community contributions and any activity to uplift a community should be done with the indulgence of the community in order for it to be sustainable.
Getting into Corporate Social Responsibility merely as a marketing tool does not work. In the long run, companies that are genuine in their pursuit of CSR can get the maximum value from it.
In order for CSR to work, a buy-in at the Board and Executive Level is necessary. In addition, a formal CSR Strategy or Plan is essential to ensure that the programmes are organised. Moreover, a Stakeholder Engagement Plan is necessary in order to determine the needs and expectations of the stakeholders. The leading organisations across the world have developed CSR to a stage where there are able to appoint CSR Managers or CSR Executives. The increased recognition of CSR at corporate level also means that it is perceived well within the business hierarchy.
Reducing pollution, empowering local communities, incorporating local suppliers, better relations with employees, upholding human rights in the workplace and community engagement are all noble actions towards sustainable development.
If done in a sincere a genuine manner, CSR can improve the approval rating of an organisation and improve its moral standing with its key stakeholders. Holistically, CSR can drive business competitiveness and shareholder value. Interesting topics are emerging in the field of CSR including the need to promote human rights at work as well as eliminating modern slavery.
Firms which ignore CSR or lie
bout their sustainability performance, stand the risk of being shamed in their own countries. Media attention on environmental injustices has heightened in the last decade to the extent that public exposure is destroying top brands.
Non-Governmental Organisations (NGOs) and Civil Society Organisations (CSOs) are piling pressure on firms to uphold good corporate citizenship. Understanding the power and influence of these non-state actors brings a clear understanding of reality to corporates who may be ignoring CSR. The NGOs and CSOs push for specific “causes” or ethical movements which can drive investors and customers away if corporates ignore them.
Investors are also beginning to request companies to demonstrate good corporate citizenship in different parts of the world. The lack of CSR plans has resulted in some companies failing to get investments. A new calibre of shareholders is emerging which is demanding accountability to stakeholders.
