adminJoseline Sithole
The Corporate Social Responsibility (CSR) Awards are upon us.
The Manicaland Provincial Corporate Social Responsibility Awards, ceremony took place on September 13, 2019 at Holiday Inn Mutare. The national awards will take place sometime later this year.
This year, an added awards category was included for companies who had significantly contributed to Cyclone Idai efforts. Some of the recipients were Zuva Garages, Willoton Group, Mega Market, Yarnfield Bananas, to name just a few. This line up of award recipients, which consisted mainly of large companies, got me thinking. How involved are MSMEs in Corporate Social Responsibility initiatives in the country?
A deep dive survey among MSMEs in the Mutare Central Business (CBD), revealed that legendary humorous side that “Samanyikas” (People from Manicaland Province of Zimbabwe) are renowned for. Brand Manicaland gave it all they have got, and they did not disappoint! The survey explored two questions: Have you ever heard of CSR and if so give us activities of CSR initiatives you have been involved in?
One vendor exclaimed: “Ah that animal called CSR I have not heard of that one before, but if it brings me some US dollars I would really like to know it.”
Another fruit vendor had a rather interesting observation though she had no idea what CSR was: “We are the CSR ourselves,” she declared amid many cheers and laughter.
A majority of MSMEs who were not aware of the concept humbly asked for an explanation. Upon hearing the definition, this group of MSMEs suddenly experienced what I call “a light bulb moment” and knew exactly what should be done about this “CSR business”. (A light bulb moment is when sudden realisation of issues come upon you in an instant).”
“In that case, Joseline like everybody else, should practice CSR because everyone has to do this Ubuntu thing to each other,” another simply said.
“The definition is Corporate Social Responsibility meaning it’s for corporates not for us,” he said and after much deeper thought, he added:
“In actual fact, these corporates should practise their CSR on us MSMEs.”
I left this group with a strong warning not to name their children CSR. ( I would suggest that MSMEs explore Old Mutual’s Follow the money Initiative which is a brilliant programme that teaches one to manage their finances based on the behaviours of Africa’s big five animals).
Though it was a fun afternoon, I could not hide my consternation at the number of MSMEs who had no idea what CSR was.
However, Willard Razawo, the executive director for CSR Network, points out that, MSMEs are increasingly being involved in CSR issues. He mentioned a certain award winning cleaning company that has been actively cleaning the Fourth Street area.
In addition, a sizable number of awards for CSR excellence were conferred to Manicaland MSMEs. It also emerged that, some MSMEs have been “unconsciously” practising CSR albeit at a micro level. Amos Mwayi, a photographic printer based at Meikles Park in Mutare, says he is always contributing to the development of the Mutare local junior football league. His young team is called City Vellows.
So what is this “animal” called CSR?
David Mukonowatsauka, writing for the Institute of Chartered Accountants of Zimbabwe (ICAZ) noted that there have been 37 different definitions of CSR between 1980 and 2003.
Professor Thomas Kimeli, a professor of Corporate Social Responsibility and Sustainability at the School of Business at Moi University weighs in, and observes that in Africa “CSR is largely misunderstood, misused and abused concept”. He argues that operationalisation and conceptualisation are largely diverse.
According to Professor Kimeli, CSR is interchangeably referred to as corporate ethics, corporate citizenship, sustainability, stewardship, triple bottom line, corporate governance, social and environmental obligations, corporate social investment and responsible business.
However, despite this seemingly endless confusion in definitions, I like the simplicity of Renita Rampesad and Chris Turner’s definition in their article “Examining the Practice of Corporate Social Responsibility in Sub Saharan Africa” According to these authors, “CSR is primarily a business response to social and environmental challenges.”
Ellen Johnson Sirleaf, former president of Liberia noted that: “A company’s primary objective is to make profits but they must also direct a share of their profit and some of the wealth into the communities in which they operate”.
I would strongly recommend that all MSMEs familiarise themselves with the Monrovia Principles, a set of guidelines that govern CSR operationalisation in Africa.
CSR initiatives are making significant strides towards the attainment of Millennium Development Goals (MDGs). The world’s first comprehensive study on global corporate on CSR spend shows that, the 2013 Fortune Global 500 companies spend US$20 billion per year on CSR.
The report identifies 218 companies as having education related contributions amounting to US$2,6 billion. According to BIZ community a leading South African Business Online Publication, in 2018, South Africa companies mainly listed on the Johannesburg Stock Exchange (JSE) spend R9,7 billion on CSR.
In Zimbabwe, large corporates are also contributing significantly to CSR issues. A perusal of some of the big corporates’ websites reveal that CSR is being taken seriously.
Though overall spend on CSR is sketchy, a perusal of big company websites revealed a strong bias towards sponsoring educational initiatives.
Sponsorship on health, environmental issues is also a firm favourite.
Particular research on SME CSR initiatives is also still quite sketchy, though SMEs are increasingly being involved in CSR initiatives.
Largely SMEs contribution to CSR are hampered by limited budgets and limited personnel to implement the programmes. According to Maxwell Jera, a photographer, at Meikles Park, “When we have more profits, it would be a good thing to do.”
Why should SMEs engrain in their operations? The Old Mutual CSR Report (2014) points out that “CSR may make greater business sense than advertising since it represents the human side of business and is therefore more likely to appeal to customers.”
Niall Fitzerald, Former CEO, Unilever noted that “Corporate Social Responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it — because it is good for our business.”
In a 2014 survey, Nielsen a global leading research company leader revealed that 55 percent of online customers would loyally buy from companies that were committed to social enterprise.
In addition, CSR was proven to have improved employee loyalty. According to a “2016 Workforce Purpose Index” workers were more likely to be loyal to companies who were involved in CSR initiatives as they thought they were making a difference.
Heightened brand image is also an important offshoot for companies involved in CSR initiatives.
Though MSMEs have limited budgets, it might be prudent to explore some simple CSR initiatives that they can be involved in.
For starters, MSMEs can get involved in the Presidential Clean-up campaign that is conducted very month. MSMEs can sponsor sports trophies or an achievement trophy at their local schools.
They can also give bursaries to gifted disadvantaged children. Marathons are also a good place to start as MSMEs can sponsor gifted sports personalities who cannot afford to sponsor themselves.
MSMEs can also offer food donations to old peoples’ homes. Soup kitchens and rehabilitation of street kids can also be considered as worthy CSR initiatives.
In conclusion, it is important for SMEs to ensure that their CSR programmes are entrenched in their daily operations. It should also be noted that dedicated resource and a budget are an absolute must.
This week let’s reflect on Henry David Thoreau’s strong observation, “Goodness” is the only investment that never fails.
Joseline Sithole is the founder of Southern Africa Development Consultants and SME Consulting Firm. Contact:[email protected]
Bongani Ndlovu