Nigeria is one of a number of countries experimenting with regulating Corporate Social Responsibility (CSR) to address sustainable development issues and enable inclusive economic growth.
Corporate social responsibility (CSR) is a concept that has been evolving since the 1950s; by 2015, it has evolved into an integral mindset, a strategy by which firms may promote and attain business and societal growth and development. CSR is a strong business strategy and a determining factor in stakeholder perceptions and ultimate decision making.
CSR as it is known can be defined as the communal responsibility of a corporate organization towards its host community(ies) and in some other way, the society in which it does/carries out business. It is also a company’s way of giving back to the society/host communities which it benefits from, which is also mutual/synergic/symbiotic partnership. It is done through welfare projects, such as provision of portable drinking water, good/quality health care facilities, rural electrification, low-cost housing, education, upgrading/ provision of school facilities, beautification of streets/highways and provision of employment opportunities for the educated/skilled or through technical/vocational skills and Skills Acquisition and Entrepreneurship Development (SAED), among others.
As firms and society are acknowledged as equal parts of a symbiotic relationship, the effective engagement in CSR enables businesses to tackle and alleviate social issues, such as poverty, hunger, lack of healthcare, the environment’s destitution, and warrant empowerment and education, amongst others, whilst tending to core objectives and strategies.
The success of an organization depends on the extent to which the organisation is capable of managing its relationship with key groups, such as financial and stakeholders, but also customers, employees, and even communities or societies.
Stakeholders must be considered in the decision-making process of the organisation. CSR is a concept that includes many different activities and actions which businesses have to involve themselves in for the purpose growth sustainability and growth of businesses. Businesses that voluntarily participates in local community development, such as providing the community with donations, assisting them with projects and sharing some of its profit with the community, helps to increase the business profitability in the long-run.
Importance Of CSR
Businesses that voluntarily participates in local community development, such as providing the community with donations, assisting them with projects and sharing some of its profit with the community, helps to increase the business profitability in the long-run.
Being a voluntary contribution of the company, its importance cannot be overemphasised. These are few of the notable importance of CSR are:
Being a socially responsible company can bolster a company’s image and build its brand.
Social responsibility empowers employees to leverage the corporate resources at their disposal to do good. In other words, CSR programs can boost employee morale and lead to greater productivity in the workforce.
Improved Public Image Of The Corporation
This is crucial, as consumers assess your public image when deciding whether to buy from you. For each of the development project executed by a corporation, especially within the local communities, the society will in turn appreciate same by patronising your product or business. It is a symbiotic relationship, a give and take.
Brand Awareness And Recognition
If you are committed to ethical practices, this news will spread. More people will therefore hear about your brand, which creates an increased brand awareness.
Cost Reduction
Many simple changes in favour of sustainability, such as using less packaging, will help to decrease your production costs.
An advantage over competitors; by embracing CSR, you stand out from competitors in your industry. You establish yourself as a company committed to going one step further by considering social and environmental factors.
It also reduces the burden on the government to provide some of the amenities already funded.
In most cases, it creates chances for the corporation to enjoy certain benefits and privileges by way of incentives from the government. This can be in terms of tax waiver for a certain period of time, waiver of import or export duties, among other numerable benefits.
In all, we can say that the same thing charity does to a politician is what CSR does to a corporation. CSR is the means through which corporations appreciate the people for patronising them.
For example, Dangote Cement Plc is well known for its commitment in the Corporate Social Responsibility initiatives for its host communities.
Its Ibese plant has taken its social performance initiative a notch higher with the launch of multi-million Naira Corporate Social Responsibility (CSR) projects for its host communities.
The Dangote Cement Ibese Plant director, Mr. Azad Nawabuddin, described the event as a demonstration of the company’s commitment to continuous improvement of the relationship between Ibese Plant and its host communities.
He stated that it has been a milestone in over 10 years of existence of Ibese plant, with the cardinal objective of celebrating and appreciating our primary stakeholders for granting us the social license to operate in a sustainable manner, while also taking stock of our imprints within the calendar year.
