Consult beneficiaries before corporate social responsibility
Many consumers consider more than quality of goods and services when choosing a brand. Many are prioritising corporate social responsibility (CSR), and holding corporations accountable for effecting social change with their business beliefs, practices and profits.
In fact, some will even turn their back on their favourite companies if they believe they are not taking a stand for societal and environmental issues. If you can remember some years back, local consumers attempted to shun buying sugar from one of the local firms for having interests in forest land on Kampala-Jinja road.
Corporate responsibility is basically a way for firms to take obligation for the social and environmental impacts of their business operations. A vigorous CSR package is an opening for companies to prove their good corporate citizenship and shield the company from outsized risk by looking at the whole social and environmental sphere that surrounds the company.
To exemplify how critical CSR has become, a 2017 study by Cone Communications found that more than 60 percent of Americans hope businesses will drive social and environmental change in the absence of government regulation.
Most consumers surveyed (87 per cent) said they would buy a product because a company supported an issue they care about. More importantly, a huge 76 per cent will refuse to buy from a company if they learn that it supports an issue contrary to their own beliefs.
“CSR creates a filter for the actions of a company,” said Wendy Burk, CEO of Cadence Travel.
“It keeps organisations accountable and ethical.”
Firms operating in Uganda should take a lesson from this study and make CSR a must if their brands are to shine.
As consumers become more enlightened, it is going to be difficult for a company to succeed in business without CSR. But consumers are not the only ones who are drawn to businesses that give back.
Susan Cooney, head of global diversity, equity and inclusion at Symantec, said a company’s CSR strategy is a big factor in where today’s top talent chooses to work.
“The next generation of employees is seeking out employers that are focused on the triple bottom line: People, Planet and Revenue,” said Cooney. “Coming out of the recession, corporate revenue has been getting stronger. Companies are encouraged to put that increased profit into programmes that give back.”
I foresee this international employment trend being adopted locally soon or later meaning that firms that do not prioritise CSR are likely to miss out on quality labour force. Here are some of the most effective ways to practice CSR I recommend that can make your brands grow:
Of recent, environmental effort is one main focus of corporates. Businesses irrespective of size have a large carbon footprint. Every steps they take to cut those footprints are measured both good for the company and society.
Some businesses can also exercise social responsibility by donating cash, goods or services to social causes. Bigger corporations have a tendency to have a lot of resources that can help charities and local community programmes. By ensuring good labour practices of treating employees fairly and ethically, companies can also show their corporate social responsibility.
Attending volunteer events speaks a lot about a firm’s sincerity. By doing good deeds without expecting anything in return, companies can express their anxiety for specific matters and care for certain societies. Undertaking social responsible initiatives is truly a win-win condition. Not only will your company call to socially conscious consumers and employees, but you will also make a real difference in the world.
How can we plan and spend our contributions in CSR more efficiently? For example, at China Railway Seventh Group (CRSG), Uganda, where I work, we used to donate scholastic materials, among other items to schools, we donate food and daily necessities to communities, we spent hundreds of millions of shillings on CSR. However, we later realised that at times, we would give out items to communities that they do not appreciate.
Lesson learned is that if you want to help the community better, first be a part of the community. Before you commit your company to CSR, always consult the beneficiaries so that you can fit into their expectations. I wish fellow corporates a well-planned year of CSR.
Mr Hai is the public relations officer,
China Railway Seventh Group, Uganda.
