Corporate Social Responsibility (a.k.a., CSR) is the ‘buzzword’ de jour in business both at home and abroad. It’s a triple bottom line which shows not only how well your company is doing, but how much good it is doing; and CSR as a concept is becoming increasingly important.
At home it’s often not difficult to choose some programme or project - be it social or environmental – which is directly relevant to your business, and to invest in it. However, in another country it is often more difficult to choose what to focus on, and how to go about making sure that your CSR activities actually have a positive impact, and don’t just look good on paper. The key to success is in the planning, management and commitment to sustaining the CSR activity you select.
Depending on where you are in the world and the scale of your overseas business, you will have a variety of options open to you. I often recall a friend of mine who was managing a large multi-national in a very poor country. He received a call from his head office in London asking how he went about identifying and prioritising appropriate CSR activities, his immediate reply was: “I just look outside my window and see problems everywhere.” Of course, he also had a decent budget for CSR and a manager dedicated to identifying projects and following them through, meaning that his company had an excellent reputation locally for its social programmes.
If you are not that lucky, and have a small company, CSR is still an important aspect of your contribution as a business, but you need to be more careful how you spend your money, so that you can be sure it goes where you want it to. In many developing countries in particular, you will be under pressure, both morally and perhaps politically, to “do something.” What you choose to do is very much up to you, and I would suggest you invest some time in researching your options and planning the outcomes you would hope to see, both in terms of impacts of the activity, and in terms of returns to you for the money invested, but here are some ideas.
Firstly I would suggest choosing a corporate social responsibility area that is close to your heart, something which is of direct interest to you and your colleagues, or is relevant to your company. This way you can be sure that you will be motivated to follow through, and what you do will be meaningful to you. Perhaps members of your staff already volunteer at an orphanage, and you can bring in the company behind their work, or perhaps your company uses natural resources and you can put something back with an environmental programme.
Secondly, you have the option of direct implementation or of giving the funds to others. This will depend on the type of activity you choose, but many companies choose to partner with local Non-Governmental Organisations (NGOs) which have a track record in the field. If you choose this option you have every right to ask for detailed information from the NGO about their operating procedures and costs. As a guideline, NGOs should spend less than 20% of their resources on operating costs, the rest being spent directly on activities. Also if you choose this option, you should be clear at the outset what you expect in return, be it photos of the activity you have sponsored, or a report back, or the opportunity for you and your staff to participate. If possible, base your spending and your expectations on a simple contract which clearly shows who is to do what.
Another option, if the amount you have available to spend is small and the problem you want to tackle is a large one, is to work together with other companies. This can be done in an informal way, or through a business association which can pool your resources and manage them for you, reporting back and keeping you informed.
Bear in mind too that in many places, local leaders will have their own ideas about what are priorities in terms of social responsibility. You have the option of choosing to invest in a project favoured locally, for example by the President or Governor’s wife, or of choosing what you determine the priority to be. Both have their advantages, but you should certainly be aware of the political implications of sponsoring different types of CSR activity.
Lastly - bear in mind that, wherever you are and however many problems there may seem to be which urgently need your CSR investment, every little helps and a well-managed and sustained CSR programme has the possibility to directly improve conditions.
Private Sector Development & Management Consultant
Mozambique
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