Columnists

Why we need responsible businesses

Every year, publicly listed companies release their financial results. However, most of these reports do not tell of the social, economic and environmental impact of the company.

But with a growing interest in responsible business and corporate sustainability matters, investors, stakeholders and the general public are demanding that companies report not only on the long term profitability of a business, but also on ethics and governance, social justice and environmental care in what is called Sustainability.

Businesses should embrace and embed sustainability as part of their planning and remain at the core of their strategy.

Sustainability and sustainability reporting demonstrates openness of business to their ecosystem and is fast gaining currency in developing world and is almost a norm in mature economies.

Last year, I participated in the United Nations Leaders’ Summit in New York, whose theme was “Architects of a Better World”. The summit had a particular focus on Africa and highlighted how skills gaps, conflicting demands for resources and overall business as usual pressures are discouraging governments and corporates from embracing sustainability.

The clarion call from the meeting was that there is a need for both the public and private entities to act and do business responsibly by embracing the United Nations Global Compact guiding principles of human rights, labour, environment and anti-corruption.

In this regard, I would like to urge businesses to sign up to the Global Compact Network Kenya to build a network of organisations that believe in responsible business.

The local network remains a strategic policy initiative for businesses in Kenya that are committed to aligning their operations and strategies with ten universally accepted principles. We need to open up dialogue about creating responsible businesses in our country.

By doing so, business as a primary driver of globalisation can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere.

This year, Global Compact Network Kenya, has identified three focus areas for businesses that it believes will positively impact the way we all do business, internally and externally.

These are Ethics and Governance which are essential to customer trust, shareholder trust and the brand. Poor governance and poor ethics leads to poor business decisions, and in the long run, revenue losses, erosion of brand and reputation.

Mr Collymore is CEO, Safaricom Limited