CSR: The role of good governance, policy reform, sustainable development
Corporate social responsibility (CSR) does not benefit the company’s relationship with its employees and consumers alone, but it is also an important element in corporate strategy.
However, CSR theory has ignored the implications of differences in government. Most studies on CSR in Nigeria is typically characterized as being individualistic.
The governing philosophy promotes individual freedom and choices; therefore, the government’s involvement in social issues, community and corporate behavior is minimal.
To this end, this view contrasts with many other types of government philosophies, particularly those that take more of a totalitarian viewpoint.
Experts are of the view that, totalitarianism often has very negative connotations; however, its formal definition describes it as single-party regime which centralizes its power and exerts control over its citizenry in order to promote a particular ideology.
For these experts, the more control a government exerts, the more likely that CSR behaviors become compulsory by corporations, so that the opportunity to gain competitive advantage is minimized.
Issues of community governance may address inconsistencies seen in previous CSR cross- culture research.
Reacting to this issue, a public affairs commentator, Olalekan Olaiya said; “A good governance lens offers a powerful impetus for promoting reforms in policies and programs for sustainable development.
These include open and transparent opportunities for poor and disadvantaged citizens to access information and secure their rights over land, forest and energy resources, and to encourage governments to adopt policies that are more friendly to people and the environment.
The massive injection of public funding for mitigation and adaptation and the complex political processes that underpin climate change negotiations can benefit from governance perspectives to shed light on the power, interests and resources at stake in order to bring about better outcomes.”
According to him, “good governance is both a means and an end. Governance is both a goal in itself that fosters a climate of respect for universal rights and promotes political and social inclusion for disadvantaged citizens, especially women, youth and children.
It also provides the political and institutional context for realizing major sustainable development outcomes, including poverty reduction, inclusive growth, protecting natural resources and tackling inequality.”
Also speaking, a brand management consultant, Gbenga Omolaja told Daily times that; “Governments that are accountable and responsive to their citizens, transparent in their reporting on the use of public resources and in decision making, and that create opportunities for participation in policy and service delivery.
According to him, Good governance stems from a set of favorable political conditions in which people have the right to vote, exercise oversight and seek redress from politicians and officials.
The real test of good governance is when citizens feel secure and trust governments to conduct public affairs in the best interests of society as a whole rather than for the privileged few.”
He also pointed out that, whenever there is good governance in a state, corporate organisation that operate within the said state tend to adhere strictly to norms and convention of doing business which corporate social responsibility is not an exception.
For him, participation can involve consultation in the development of policies and decision-making, elections and other democratic processes.
Participation gives governments access to important information about the needs and priorities of individuals, communities and private businesses. Governments that involve the public, will be in a better position to make good decisions, and decisions will enjoy more support once taken.
While there may not be direct links between democracy and every aspect of good governance, clearly accountability, transparency and participation are reinforced by democracy, and themselves are factors in support of democratic quality.
Also speaking on this issue, Barrister Leonard Zadon, a legal practitioner and a constitutional Lawyer said; “transparency is an important aspect of good governance, and transparent decision making is critical for the private sector to make sound decisions and investments.”
According to him, “accountability and the rule of law require openness and good information so higher levels of administration, external reviewers and the general public can verify performance and compliance to law.”
“Governments have access to a vast amount of important information. Dissemination of this information through transparency and open information systems can provide specific information that firms and individuals need to have to be able to make good decisions. Capital markets depend for example on information openness.” He noted
While explaining about the relations between different aspects of governance, he stated that; there are complex relations between the different aspects of good governance.
In many ways some factors can be seen as preconditions of others (e.g. technical and managerial competence is one precondition of organisational capacity, and organisational capacity is one precondition of maintaining the rule of law).
But there are also important effects in the other direction (e.g. organisational capacity reinforces technical and managerial competence, accountability reinforces the rule of law).
