Nigerian CSR industry worth N50B in direct investment - Onuk

Mrs. Ini-Abasi Laura Onuk, a corporate social responsibility and sustainability analyst spoke with Senior Correspondent, Goddie Ofose on the impact of CSR on businesses, the worth of the industry and different between CSR and corporate philanthropy as being brandish as CSR by several organisations. She also pointed out the roles of non-governmental organisations, government and corporate organisation in executing CSR projects and programmes. 

Let’s get to meet you madam

Ini Onuk is the Lead Consultant/Chief Executive Officer of ThistlePraxis Consulting Limited (TPC). I am 2008 Draper Hills Fellow on Democracy and Development at Stanford University California and an alumna of the Harvard Business School Executive Education Program. I hold a degree in International Relations and Diplomacy and a Masters degree in Management. A facilitator/management trainer, I’m also an international consultant on Gender, Peace-building, Peace and Security & Governance.

Prior to setting up ThistlePraxis Consulting Limited, I have served as the Executive Secretary of Women in Management and Business (WIMBIZ), and the Executive Director, Defence for

Children International – Nigeria Section, an international, independent, non-governmental organization upon my return to Nigeria and currently sits on its Board as a Trustee.

Leading impact and needs assessment projects for civil society organisations within West Africa and beyond, I’ve completed a training module on “Children and Armed Conflicts in West Africa”, in collaboration with the West Africa Civil Society Institute (WACSI) situated in Ghana which has became a major reference material on similar issues across the continent. As a former consultant with the Women, Gender and Development Directorate of the African Union and the African Centre for Gender & Development within the UN Economic Commission for Africa (UNECA), I have been instrumental in developing several management and development tools that build the capacity of ordinary Africans.

I refer to myself as a multi-talented team player, management consultant, researcher, lecturer and trainer; I still consult on issues of business development, corporate governance, organizational development, leadership, mentoring, corporate social responsibility and serves

as a Volunteer Trainer with Fate Foundation. Owing to my well-rounded experiences, sit on Boards of various organisations and currently serve as the Vice Chairperson, Social Enterprise and Reporting Awards, SERAs.

What is your assessment of corporate social responsibility and sustainability industry in Nigeria in the outgoing year?

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. 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. 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.

Which area of the economy would you say organisations have focused on in 2011 and why?

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, 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 need 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.

There is so much confusion on what CSR really means to business and brands, is it another business or marketing tool or platform where more money are being siphoned by organisations' employees or what?

Again, Goddie; 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, which is how you do business. It must not be related to only when the business makes profit.

How does it (CSR) impact businesses?

Corporate Social Responsibility impacts businesses in a number of ways. Some of which 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.

Organisations are now preaching holistic CSR approach, is there any company in Nigeria practicing this? But what does holistic CSR approach mean?

Holistic CSR is interplay between a well defined corporate social responsibility framework and change management. It means the integration of social responsibility and corporate practices. A holistic approach must include the three cores which are social, economic and environmental sustainability. By merely greening your supply chain or providing better packaging of your brand and services, you have not met the requirements of a holistic CSR program. It’s a good start, but to truly make a difference, the business core needs to be sustainable.

What are the roles of NGOs, government and corporate bodies in executing CSR projects and programmes?

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.

CSR and PR, what does the former starts and later ends?

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 that are under development, or highlight ongoing/historical CSR efforts.

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.

Distinguish between CSR and corporate giving

The difference between CSR and Corporate is that while Corporate giving consists of mainly donations and charity, CSR involves a more involved approach of ongoing community involvement. Corporate philanthropy is often a component of a corporation’s broader social

responsibility and includes cash gifts, product donations and employee volunteerism. So in fact, Corporate Philanthropy is one component of CSR

Does lack of adequate legislation hinder the propagation of CSR in Nigeria?

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.

As an expert, do you think allocation of a particular percentage of company's profit to CSR would solve the problem?

It is not about the amount and will never be about the amount so 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 practise 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 organisation 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.

Throw stones: which companies involve in CSR and which is not?

I am afraid I cannot as this would entail proper comparisons – sector by sector – and then additional details on their business models and initiatives to explain why what they practise is not CSR.

What is the estimate of the industry in its ideal state in Nigeria?

The industry is pretty large in monetary investments/expenditure – but from our last estimation and research, we 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.

What should we look forward to in 2012 particularly in CSR industry?

I would expect to see more improved strategic policies where they exist and the drafting and institutionalizing of new ones for many other organisations. A direct result of this development would be more professional execution and reporting of CSR activities, an increase in detailed and proper sustainability reports and of course, case studies of more organisations who have grown their businesses and increased their bottom lines as a result of becoming truly socially responsible.

ThistlePraxis Consulting will continue to foster discussions amongst key players in the industry in Nigeria and beyond, through the AR-CSR™ scheduled to hold in June 2012. We will invest in training more media professionals to enhance reportage and also facilitate high-level policy engagements through public/private policy dialogues via  Sustainable Conversations™ - our Thought Leadership Breakfast Series – as well as other projects in the pipeline.

*** Published in Daily Independent Newspaper on 21^st Jan. 2012