How stakeholders ‘activities impact CSR

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- to their unique role.

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 the society as a whole, while maximising the creation of shared value for the owners of the business, its employees, shareholders and stakeholders.

Indeed, 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.

And yet, despite the positivity and optimism that CSR bring 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 they 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, therefore, 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.

According to analysts, “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 CSR 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 CSR, is a function of determination and commitment, especially among developing nations, such as Nigeria.

The pattern of investment in CSR by brand owners from immediately post independence Nigeria, had been selective based on urbanisation and satellite allocation, economic viability, social impact and population.

That notwithstanding, experts are of the view that, the method of resource allocation for CRS 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, CSR increases as a result of direct consequence of population explosion and growth in economic activities.

Speaking to Daily Times on this issue, a brands’ management consultant, Adewale Okoya 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.”

He said,“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 governments) investment decision/policy on CSR must be carefully considered for the common good of all, in the face of scarce resources.”

The Founder/CEO at TruContact, Dr. Ken Egbas , 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 rationale 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.

“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 to 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.”