Challenge of inclusive corporate social responsibility goes beyond philanthropy
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The idea of making money and doing good is not new. Over the past decades, this notion has gone through many names such as social performance, corporate conscience, corporate citizenship, sustainable management, responsible business.
What remains new is the challenge: How can businesses prosper without leaving the planet and people behind? In other words, how can we achieve inclusive growth, not just economic growth?
Now formally known as corporate social responsibility (CSR), the concept is going to be discussed in depth again during the CSR Asia Summit 2013 today and tomorrow in Bangkok. The name is becoming an integral part of sensible business plans, particularly in major corporations whose image nowadays is strongly linked to their proven track records in social and environmental contributions.
A marriage with a non-profit is the most common model sought out by companies. But there is more to CSR than a few days of mangrove reforestation, rural school construction or a one-time charity event. It has to be a long-term commitment.
To achieve sustainable growth, companies must put CSR into their strategic and operating plans. The term CSR got rather tainted in the past as it became associated with add-on philanthropic projects or publicity stunts such as those mentioned earlier, often totally unrelated to a company’s core business. But what really matters is whether business acts responsibly and sustainably in its main operations. CSR is only part of the big picture.
For example, the world’s 10 biggest food and beverage companies hold immense power within the food system to help create a world where everyone has enough to eat. Through their relationships with suppliers, retailers, consumers and farmers themselves, choices made by these companies reverberate across the food and beverage industry.
In Sri Lanka, food companies work with the government, farmer organisations and NGOs to secure a market for farm outputs. Plenty Foods is one of such companies operating through a network of 10,000 rural farmers and 106 company-appointed distributors and retail outlets within Sri Lanka, selling a large proportion of its products back into local communities.
The project provides market-based livelihood opportunities for small farmers. The company’s main product lines have been developed to serve nutritional needs that are relevant to rural and poor communities.
Sustainability is not just the responsibility of companies and our experience suggests that wherever the private sector, government and civil society have demonstrated leadership to work as multi-stakeholder partners, we have seen more equitable engagements and more robust distribution of risks and returns across the board. This progress will in turn become a major driving force for inclusive, as well as economic, growth.
Cherian Mathews is regional director of Oxfam Asia, an international humanitarian and development organisation that works to reduce poverty, social injustice and gender inequality. This article precedes the CSR Asia Summit, which kicks off in Bangkok today.
