CSR projects must be well planned and inclusive

The International Labour Organisation (ILO) defines CSR as “a way in which enterprises give consideration to the impact of their operations on society and affirm their principles and values, both in their own internal methods and processes, and in their interaction with other actors.”

The ILO definition indicates that CSR must not only be seen as an outward bound function, but also as an inward-looking activity.

For instance, having a CSR programme that rehabilitates classrooms within the community could be a great idea, but if it only involves a company official issuing a cheque to the school for that purpose, then the programme has only managed 50 per cent of its potential.

An alternative approach would be to ask employees to volunteer to adopt certain schools as their projects and take it upon themselves to propose ways of raising funds for the rehabilitation.

Many companies have delivered their CSR programmes through direct employee involvement whereby volunteering employees are encouraged to raise money through their own initiatives and the company then doubles or triples the amount raised towards the identified project.

The responsible employee also supervises the work to completion.

Such CSR programmes promote ownership by the employees.

The associated “feel good” factor and employees ownership ultimately contributes to staff retention and better performance.

To that extent, the CSR project will have impacted both the external and internal processes and beneficiaries.

Another example of CSR that is both inward and outward-looking is one in which a company gives priority to members of the local community when recruiting staff.

Consider a company setting up a business in Samburu.

Such a recruitment policy would first give consideration to a qualified Samburu before opening chances to others.

This must, of course, not be done at the expense of quality and fairness.

Members of the local community thus feel appreciated, and at the same time the company also benefits from the support and goodwill derived from employing a professional from within the community who has knowledge of the social and cultural issues that may impact business in the locality.

The ILO further lists features that make a CSR programme complete. One is that CSR should be voluntary.

No employer is compelled to have CSR projects. The voluntary nature gives it authenticity in the sense that something done out of goodwill is bound to be passionately executed.

It is therefore important to think through CSR programmes before implementation rather than jumping into action due to peer pressure.

Carefully thought out CSR projects are likely to be sustainable. Sustainability is the other feature that a good CSR initiative should possess, according to ILO.

The other aspect is that CSR has to be “systematic and not occasional”. In other words, the activity should be a process and not a one-off event.

Sporadic activity

This calls for a CSR working document that has clear short and long-term objectives, and a well spelt-out means of delivery.

Hence a sporadic “one-off” food donation exercise, no matter how well-intentioned, does not qualify as CSR.

Going by the ILO definition, CSR should be “an integral part of company management”.

This advances the inward looking approach to CSR over and above the more popular external activities.

Many companies now have dedicated teams responsible for initiating and managing CSR engagements.

Some employ a CSR team leader or manager. Having an employee fully engaged on CSR work ensures better management of the initiatives undertaken and helps to institutionalise CSR.

A point of caution given by the ILO is that CSR should not be approached in a way that substitutes the role of government.

Constructing a public road, for instance, could easily usurp the role of the local authority, and perhaps set a bad precedent where such authorities shirk their responsibilities.

A well-rounded CSR initiative promotes the achievement of triple bottom line, known as TBL.

Proponents of TBL argue that companies should perceive success not only through profit margins (economic), but also through the impact it has on people (social) and the environment (ecological).

The last two have a CSR factor. How do you now rate your CSR initiatives?

Mrs Mugo is the Executive Director of the Federation of Kenya Employers