Emerging markets: How transparency, others, can aid corporate social responsibility

…Coys warned that internal emails ‘ill one day become public knowledge
…business should not be about private greed, but public good

The concepts of Corporate Social Responsibility, (CSR), Business Ethics and Corporate Governance – as practiced in Nigeria and in other West African countries, like Ghana, Liberia, remain a major source of concern to stakeholders.

The way that businesses in emerging markets cope with these challenges – both effectively and ineffectively – revealed many of the “new dynamics of management. Hence, analysts are of the view that, CSR abuses and business ethics transgressions in Nigeria and beyond may be more widespread and more tolerated; if measures are not put in place to properly check mate the activities of CSR.

For these analysts, the situation is impossible to quantify, especially within local regulatory frameworks; and where there are few active and independent journalists.

The Daily Times’ findings revealed that, corruption, abuse of human rights, a lack of data protection, financial fraud, copyright piracy, low levels of transparency and high levels of anonymity, workplace discrimination, oppressive economic colonization, an absence of fair competition, poor levels of corporate governance, no respect for intellectual property, the perpetration of monopolies and the tolerance of leaders of dubious accountability and respectability among others, are the reasons for lack of transparency in CSR .

Addressing this issue, an expert in marketing communication field, Bernard Okhakume told The Daily Times that, “while, corruption may be seen as one of the most important issues, and may be a way of life in countries with low salaries, but powerful officials – and greedy business people, human rights abuse is an ongoing issue, and is seen as especially negative by individuals and group. Financial scandals and fraud have been sending shock waves throughout Nigeria and beyond, with billions of dollars simply going missing.

“Copyright piracy is not unknown in Nigeria, but the scale can be alarming, together with the issue of transparency and ease of doing business in entering several emerging economies, often related to governance. Prospects of equal opportunities for members of different races are important issues when it comes to transparency in CSR,” he said.

According to him, “Economic dominance by some Western countries – and China – in many emerging countries is seen as an example of the economic colonization of one country by another, raising several CSR issues, including protection or the matter of unfairly excluding competition.

“The concept of corporate governance used to be a preserve of the West, but is gradually impacting developing countries, especially those trying to attract foreign investment, and is, especially concerned with ensuring independent management control. Intellectual property is another concern, and so are state-endorsed monopolies.”

He added, “Greater transparency is an unstoppable force. It is the product of growing demands from everybody with an interest in any corporation – its stakeholder web – and of rapid technological change, above all the spread of the Internet, that makes it far easier for firms to supply information, and harder for them to keep secrets.”

He said that, “Firms now know that their internal e-mails may one day become public knowledge, for instance, and many big companies must co-exist with independent websites where employees can meet anonymously to air their grievances. With greater transparency comes greater accountability and better corporate behaviour. Rather than engage in futile resistance to it, firms should actively embrace transparency and rethink their values and generally get in better shape.”

Also speaking on this issue, a public affairs analyst, Pwano Maxwell said; “We have companies that are breaking the mold and are moving beyond CSR to social innovation. These companies are the vanguard of the new paradigm.

They view community needs as opportunities to develop ideas and demonstrate business technologies, to find and serve new markets, and to solve longstanding business problems. The government must as matter of desperate policy enact laws to support such companies for transparency to prevail.”

He said, “In terms of power and influence, you can forget about the church, forget politics. There is no more powerful institution in society than business…

The business of business should not be about money, it should be about responsibility. It should be about public good, not private greed. Business has a responsibility beyond its basic responsibility to its shareholders; a responsibility to a broader constituency that includes its key stakeholders: customers, employee, Non –Governmental Organisations, government – the people of the communities in which it operates.”