Corporate social responsibility, does it work?

By Kim Polley

What is in it for businesses and why should they invest in improving the environment and alleviating poverty? Companies in the private sector say they just want to do “the right thing” and “give something back” to the community. The sceptics on the other hand believe businesses are using these investments as another form of marketing or public-relations exercise to improve their corporate branding and image. They say companies only care about the media coverage they receive for their “good will” and are not really interested in the sustainability of the projects or whether they actually make a positive impact on the community or environment

There is some truth in both opinions … and there is room for improvement in how we all perceive corporate social responsibility (CSR). Cynicism often prevents the private sector and society from achieving a win-win scenario. CSR should not just be seen as charitable giving by companies, neither should it be seen as purely a marketing and PR tool. If businesses change how they view CSR and how the population at large views their motivation behind the initiatives, they will have taken the first step to ensuring the community development projects funded by companies are sustainable and have a truly positive impact.

So, now the key question. What does this change in perception look like and how can it happen? Most importantly, CSR needs to be seen as something that benefits the company’s financial bottom line, going beyond marketing and PR. Yes, that’s right; companies should invest in CSR in order to make more money, while at the same time helping poorer people generate wealth. If businesses just want to give money to charity without expecting anything in return, then they should be encouraged to do so through a company’s foundation, but companies are in the business of making money and should focus on this in the implementation of CSR too.

Doing anything other than this will fuel the public’s scepticism. If companies can make money while simultaneously alleviating poverty through education, provision of basic amenities and increasing their access to markets and capital, everyone is a winner! This means investing in projects that create a positive impact on the community as well as making business operations more efficient and more sustainable in the long term.

Kim Polley is the director of africapractice