Tuesday 17 January 2012

CSR still practised as charity activity – Onuk

Contrary to general opinion and belief that Corporate Social Responsibility (CSR) practice is fast taking shape in Nigeria, one of the advocates and experts in the emerging industry, Mrs. Ini Onuk, Chief Executive Officer/Lead Consultant, ThistlePraxis Consulting however, said a lot did not happen in 2011 apart from increase in the apostles of the ‘CSR gospel’.
Assessing the CSR and sustainability industry in Nigeria in 2011, the sustainability expert said, “Generally, we didn’t see a lot that was different in 2011 aside an increase in the apostles of the ‘CSR Gospel’;  more organisations claiming to be socially responsible as well as many other professionals, consultants and advocates in an emerging industry. This, for me, showed that the concept is fast gaining grounds even though acceptance and compliance are still afar off,” adding that  “What I would record were highlights are a major attempt to elevate the discourse of CSR across the African continent through the AR-CSR™ (Africa CEO Roundtable & Conference on CSR), the launch of a journal on sustainability in Africa (CSR Files™) and a focus on CSR at the biggest Public-Private Platform in Nigeria – the NESG Summit 17 with the launch of a compendium on CSR activities.
She said, in addition, some regulars took place – the SERA Awards and pockets of trainings here and there including one that ThistlePraxis organised, the ECSRRMP towards the end of the year. The UN HDI Report didn’t favour Nigeria and many other Sub-Saharan countries, so I will say it was a good year but better still needs to be done about CSR and Sustainability.”
Speaking on the areas on organisations focused on in 2011 and why, Mrs. Onuk stated that education, economic empowerment/poverty alleviation got the better of organizations’ budget on CSR. “I would say education, economic empowerment/poverty alleviation stood out as focus areas. We also saw a number of community interventions focused on provision of water and other social amenities through corporate social investments in many parts of the country. However, she said “I cannot answer ‘why’, as I do not consult for these organisations, but I can attempt to espouse their intentions. These are gaping needs that needs to be met and since CSR is still mostly practised as an ad-hoc and charity activity, those initiatives featured a lot in the news.”
Onuk, who also tried to differentiate between CSR and corporate philanthropy, said “I will point out that sadly, CSR remains an ad-hoc and somewhat external activity to many organisations. This is why we are not developing the practice and implementing the tactics as we should in Nigeria and many other parts of Africa. For as long as the executives, relevant public officials and civil society groups do not understand or fail to embrace the many dimensions of CSR; core philanthropic/charity activities and projects will dominate. For CSR to make sense, it must be part of your business strategy that is how you do business. It must not be related to only when the business makes profit.”
On how the practice impact businesses, the apostle of the holistic CSR approach stated that Corporate Social Responsibility impacts businesses in a number of ways. Some of which are she said are increasing their bottom line, employee motivation and productivity, brand experience and direct reach to intended targets, sustainability inputs to ensure survival and longetivity of the business entity amongst many other benefits. “And these are not abstracts; they have been tested, trusted and proven over and over again. A well thought-out CSR initiative will help cut costs, make the program more effective and through positive feedback, will result in gains in all sectors. Acknowledging and addressing all the key impacts of your business will bring credibility and reduce “green washing”. This in turn increases brand value and economic gains, thus reinforcing the positive cycle.”
On regulating the CSR industry, Onuk told Daily Independent that whilst she is an advocate for regulation, she does not think a law is what the industry needs. “Whilst I am an advocate for regulation, I do not think a law is what we need. I believe a National Agenda that seeks to regulate the CSR activities and claims of organizations would best suit the Nigerian environment because there’s a lack of trust between the government and the people. Therefore, if an agenda is put in place, it should serve as a guide for Foreign Direct Investments (FDIs) and existing corporations in Nigeria to ensure that certain standards are adhered to and nothing below a particular, stipulated quality would be acceptable in Nigeria. Organisations who do not comply will not be permitted to operate.”
On a particular percentage regulation should allocate to the implementation of the industry, she said it is not about the amount and will never be about the amount so as much as the policy that guides the amount invested. A company can allocate a sizeable amount of her profits ‘to CSR’ but not achieve any impact or even practice CSR as should be done. We always concentrate on the amount doled out and forget the process, the strategy and the expected impact that drives the intention. Before an organization goes out to the media to recant their investments in billions of naira, I would want to ask what policy drives this investment in the first place and also, what differentiates their investment from corporate philanthropy.
Again, I will caution the use of the word ‘execution’ and this is because, execution is the third part of the process. There is the drafting, integrating into business models and operations before execution surfaces. Government as always provides the enabling environment through sustainable policies and focus as a regulatory arm of the chain. I believe the NGOs are the implementing partners for philanthropy and social investment collaborations. As for the corporate entities, I would advise they should be responsible for driving the economic agenda by becoming a pressure group for change – and holding the government accountable to policy thrust in the face of her abandoned responsibilities.
Differentiating CSR and Public Relations, ThistlePraxis Consulting boss added, companies, who do not understand that CSR is about business sustainability and integrity as much as it is about social programs, often make the mistake of making CSR a marketing or PR program/problem. By doing so, they essentially “green-wash” their company. In my opinion, PR should lightly handle CSR initiatives until the CSR program has momentum and there is something to actually celebrate and brag about. Celebrating decency and expected behaviour is not good PR on CSR. It is artificial and could cause more harm than good. PR should let the public know that there is a CSR program, that there will be a report, and what some of the programs are under development, or highlight ongoing/historical CSR efforts.
However, she said “CSR is about smart business practices. It is about constant improvement and integrity. PR is about reporting on the events as they occur or showcasing a history of events and trending. The danger is when the showcasing precedes the actual work.”
Onuk however put the industry estimate at N50billion. She said the industry is pretty large in monetary investments/expenditure – but from our last estimation and research, should be close to about N50 Billion in direct investment on CSR. Some sources say it is about twice that amount. However, the ROI on these investments are almost non-existent in real terms of business and social impacts if we are to develop indicators to measure them. The industry may not be termed an industry as the parameters that define a profession and industry are yet to be established or put in place in Nigeria.
*** Published in Daily Independent  Newspaper on Tuesday, January 17th, 2012.

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