The Changing Face of Corporate Social Responsibility

By Raphael Ndakala Atanda

Corporate Social Responsibility (CSR) is a commitment by an organization to ethical and sustainable practices. In this regard, it is a business model in which an organization integrates social and environmental concerns into its operations and interactions with stakeholders. Traditionally, the business of business was business. Today, business is not just about making profits but also positively contributing to the society and environment.

CSR enables a company to be socially accountable to itself, its stakeholders and the public at large. It ensures that a business is responsible to the community around it since business has a greater duty to society beyond providing jobs and making profits. Business are encouraged to do good and better the world.

Companies prioritise four types of corporate social responsibility – environmental responsibility, ethical responsibility, philanthropic responsibility and economic responsibility. By setting specific goals related to ethics, sustainability and social impact, businesses make a difference that improves social order. When companies design strategies that drive corporate governance, it equals obtaining a license to operate in society.

A number of benefits accrue for companies that embrace corporate social responsibility. They are associated with a stronger brand image, recognition and reputation. Given this public trust, they are able to attract customers, employees and investors which comes with accelerated capital growth. Such companies, apart from attracting and retaining top talent, they have increased employee engagement that leads to increased employee satisfaction.

Socially responsible companies experience improved customer loyalty and sales, which leads to good performance and increased revenues and profitability. By building relationships, they build value and see operational cost savings. By supporting local communities, CSR helps companies mitigate risks, attract good publicity and have increased market share.

CSR gives an organization competitive advantage through, as said earlier, customer loyalty, positive public perception and media coverage. Today, customers only support organizations with a strong stand on social, environmental and ethical issues. Environmental sustainability comes fast – reduction of carbon foot-print and protection of natural resources.

This said, corporate social responsibility is changing from a philanthropic after-thought to a core business strategy. Businesses are today focussing on long-term partnerships, sustainable social impact, skilled volunteering, environmental sustainability practices, transparency and stakeholder engagement. CSR in not just charitable giving but a strategic social investment that creates long-term value and competitive advantage, aligning CSR initiatives with strategic goals in what WorkRise Network describes as building engagement by leveraging proven models.

To achieve CSR objectives, long-term partnerships and collaboration with other stakeholders, including non-profit organizations, voluntary organizations and businesses ensure that organizations leverage on the expertise and resources of these partners, thereby creating greater impact. CSR is in fact driven by demands from customers and employees and the community at large who demand responsible practices by businesses.

CSR ensures that businesses operate ethically, fight corruption, respect human rights, design and implement non-discriminatory policies, report on the progress of their CSR initiatives, effectively engage their stakeholders including employees, customers and investors, soliciting feedback and addressing their concerns. Today, CSR initiatives focus on local initiates (local communities, specific needs) that create a positive impact for communities in which the company operates.

Lastly, CSR’s impact must be measured, ensuring that they deliver value. It is not just an obligation, or just a good to do, but CSR should be embedded in the operations of the business, every aspect of it.

“In Kenya, CSR is steadily moving from charity and philanthropy and is now strategically aligned to business goals. It is not just for enhancing the company image but it now aligns with the increasing importance of stakeholder engagement. CSR is not just a one-off, but a more sustained approach with initiatives designed to promote long term sustainability and transformation, including measuring the social investment impact. Most organizations consider education, economic empowerment, health, environment and infrastructure as their key areas of focus”, said Mr Vijay Gidoomal, Group CEO of Car & General (Kenya) plc.

He added, “At C&G, we are working to improve communities in which we operate. Our CSR initiatives promote employee engagement by ensuring that they have opportunities to serve in key priority areas of education, health, environment and road safety. We partner with other organizations that align with our priority areas and that are present in areas that we operate.”

Raphael Atanda works at Car & General (Kenya) Plc as Head of Communications

raphael.atanda@cargen.com