Corporate social responsibility, more than charity work
Published:Friday | February 25, 2011 | 12:00 AM
Don Wehby, Guest Writer
All companies have obligations to the society and environment in which they operate that go beyond simply following the law.
Business for Social Responsibility, a world leader in corporate social responsibility research and consulting, defines corporate social responsibility, or CSR, as "operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business ... a comprehensive set of policies, practices and programmes that are integrated throughout business operations and business decision-making processes."
In May 2010, the International Standards Organisation launched its ISO 26000 Guidance on Social Responsibility, which state that CSR is comprised of seven core subjects: human rights, labour practices, the environment, fair operating practices, consumer issues, and community involvement and development.
However, a the Jamaica Employers' Federation report - Corporate Social Responsibility in Jamaica, 2007 - found that many Jamaican companies equate CSR solely with philanthropy or charitable giving.
We must change this mindset.
FIVE CRITICAL ELEMENTS
I would like to highlight five elements that I find particularly critical for operating responsibly in the Jamaican environment.
Ethical dealings: Business activities are inherently based on integrity and trust. When these two break down, we have a society characterised by lawlessness and distrust, leading to lower levels of business transactions and stagnant economic growth. This is the case in Jamaica today, but a foreign example of a company that engaged in philanthropy but not ethics is Enron, who made charitable donations while committing accounting fraud that destroyed the lives of hundreds of employees.
Non-harmful products and processes: The commitment to produce goods that do not harm consumers, using the safest possible processes for employees, was once thought of as important only for companies in the manufacturing industry. In the light of the global financial crisis, however, we see that all businesses - including financial firms - have a responsibility to ensure that its products do not harm.
Community development: Companies have a special responsibility to the communities surrounding their operations. It is a point of pride for GraceKennedy that the Grace & Staff Foundation is heavily involved with the education of underprivileged youth in four depressed communities in Kingston and St Catherine. It is our hope that the leadership structure of these communities will change over time as the youth become more educated.
National development: In addition to community development, companies also have a responsibility to national development. This can be achieved through encouraging employees to sit on boards of public companies, making contributions to NGOs, partnering with other companies to achieve national goals, and a number of other measures. Jamaican telecoms companies - Digicel and Lime - have made noteworthy contributions to nation building.
Environmental sustainability: The level of industrial activity naturally increases as an economy grows. Given the global threats to our environment, companies must ensure that they grow with as minimal an impact on the environment as possible, and that they adhere to all environmental laws.
MARRY SOCIAL, BUSINESS GOALS
A strong CSR policy is one that integrates all these social objectives with business goals, with the understanding that social improve-ments eventually rebound to the benefit of the company in the long run.
Brigette Levy, a local CSR expert and author of the JEF report, gives these guidelines for developing a strong CSR policy:
1. Set vision and guidelines at the top, then release to business units - The CSR policy and guidelines should be set in the board room to ensure that they are ingrained in the very DNA of the organisation. The guidelines should then be released to individual business units who adapt them to their specific needs. For example, while GraceKennedy as a corporation focuses on education, its subsidiary Western Union focuses on encouraging diaspora involvement.
2. Make strategic trade-offs: We can't do everything - GraceKennedy has chosen to focus on education, while LIME focuses on technological advancement. What area of our society will your company choose to improve?
3. Committed funding annually - FirstCaribbean has raised the bar by committing one per cent of pre-