Corporate Social Responsibility – It’s Not Always About The Money

NELSON ASHIPALANOBLESSE oblige is a French term that refers to the idea that someone with power and influence should use their social position to help other people.

This is the closest one could ever come to defining corporate social responsibility. Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable — to itself, its stakeholders, and the public. At its heart, CSR works with the notion that businesses cannot be successful when the society around them fails. When multinational companies move resources out of the country, it usually leaves behind some form of footprint, and so moral philosophers ask that corporations give back to societies that have allowed them to prosper.

There are two ways a company can do CSR.

One involves corporations providing funding and resources for worthwhile social causes, such as donating money or employee time to charities. Most companies, also in Namibia, opt for this as a way of philanthropy. However, CSR is more than just donating money, or printing double-sided flyers to save trees. It’s about contributing to the health and welfare of society, operating transparently and ethically.

Another type of CSR involves putting together a real plan to produce products or provide services that are in the best interests of society. This may include activities such as using safe materials in design and manufacturing, corporate environmental initiatives, and other measures such as job creation and economic development.

This type of philanthropy is known to have a long-lasting effect on society. The main intention is to care for the community in some way that goes beyond just hiring and giving out money. It aims to support public value outcomes for the community and its inhabitants. A sound, robust CSR framework and organisational mindset can genuinely help organisations deliver public value outcomes by focussing on how their services can make a difference in the community. This might happen indirectly, where an organisation’s services enable others to contribute to the community, or directly through the organisation’s own activities, such as volunteerism. It creates a lifelong investment within the community, as it in more ways than the other improves the livelihoods of the inhabitants within the area of investment. Seeing mining companies constructing staff houses for their staff or employees volunteering to clean the area does not only benefit community members; it lessens dependence on state coffers. This type of philanthropy has also allowed for active participation from small industry players. A local brick manufacturer may decide to take on a skills transfer initiative to train local community members in brick production and construction, a close to zero initiative that will probably just require company time.

By investing in the community, the business encourages loyalty from employees, whilst benefiting from an improved support system. Corporate philanthropy also serves as a way of representing a company’s commitment to society, demonstrating that they value the community beyond simply providing a workforce or source of revenue.

In the end, CSR is measured in terms of businesses improving conditions for their employees, shareholders, communities, and environment. Done correctly, CSR can be a great catalyst for development.

* Nelson Ashipala (CPRP) is a communications practitioner.