Friday, 11 July 2014

SHOULD BUSINESSES GO BEYOND JUST DOING GOOD TO ACTING RESPONSIBLY? (PART 1)


Yesterday we had the rare privilege of interviewing, the "Queen" of CSR (Corporate Social Responsibility) in Nigeria and this provided clarity on why businesses need to act responsibly. We are pleased to announce that we have a guest contributor, Oluwadamilola Famakinwa, an entrepreneur with a passion for CSR (please see full profile below), who would be enlightening us on being responsible in business. Enjoy

Businesses do not function in a vacuum, they exist and function within an environment that is linked to communities and societies. The structures they occupy are built on land gotten from the society, the people they employ are from the society, the goods and services they offer are at different costs to the people in the society and in fact the pollution that occurs through their functioning affects the environment and wider society. So no matter where a business lays its head, it is closely linked and in fact dependent on the environment and society at large.

So, with the wider society not keeping its voice quiet and always being quick to lend its voice against any unfairness or ills done to it, businesses need to tread carefully and avoid stepping on toes. Businesses may say “but most of what we get from the society we are paying for them” but the society, like Oliver Twist, will say: “Oh! You don’t say, what about the pollution you create, shall I begin to name, air, noise, crowd, etc”. In order not to get into this back and forth with justifications and arguments, businesses in their own best interest should within their inner caucus set-up a structure that addresses its relationship and behavior with all its stakeholders within the wider society. The worst thing businesses can do, is to create a good impression of responsible behavior on the outside but the inside is neglected or overlooked, forgetting that the people on the inside are also part of the outside.

Internal Stakeholders are Employees, Board of Directors and Shareholders. External Stakeholders are Suppliers, Customers/Clients, Competitors, Communities, Regulatory bodies and government.

The whole concept of CSR, Corporate Social Responsibility seeks to address this idea of setting up a structure to guide the businesses relationships and behaviour with all its stakeholders. However, this term CSR has been misunderstood. The first thing that pops in the mind of anyone who hears CSR is build schools, paint schools, provide pipe-borne water to communities in need but CSR is much more than this. CSR is not just an external concept but first of all an internal concept.

Let’s use Wikipedia’s definition of CSR,
“CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, competitors, shareholders and all other members of the public sphere who may also be considered stakeholders”.

From this definition, it’s important to observe that CSR is a process i.e. it is always ongoing. Then it speaks of responsibility towards both internal and external stakeholders. So any business considering CSR, must integrate it to affect all the internal and external stakeholders.

Now that the definition has begun to set our thoughts on a clear line of what CSR really is, the next question is “Is CSR just about drafting a policy to guide responsible behavior to all stakeholders”? We will find out in the second part of this article.

                                                                                                                                      ...to be continued

Oluwadamilola Famakinwa is an Entrepreneur who strongly believes in Cross-sector partnerships i.e partnerships across the private, public and third sector towards solving social issues. He is passionate about the Education in the Public Sector and its impact on the wider community. He is in an intimate love relationship with Jesus and that is his main secret to everything in his Life.

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