Speaking at a Forum* on the relevance of corporate social responsibility (CSR) during an economic downturn, Nestlé Malaysia’s Managing Director Mr Peter Vogt shared Nestlé’s concept of CSR called Creating Shared Value, which is to create value and sustainable growth for all of the company's stakeholders - from shareholders to the societies where it operates. He stressed that combining CSR and business strategy is good for both business and the community and enables Nestlé to have sustainable long-term initiatives. He added that even more so in a period of difficulty such as the economic downturn, Nestlé continues its CSR activities, as it is embedded in the company's business strategy. He also encouraged well-established companies such as Nestlé to mentor and assist SMEs in developing sustainable environmental management policies and practices. In the long term, these environmental practices can bring cost savings to the company, for instance, through energy-saving initiatives or effective waste management. Mr Vogt reiterated, “Companies should self regulate and adopt responsible and sustainable environmental approaches to their business operations. Where governments can assist is in strengthening enforcement.” *organised by the StarBiz-ICR Malaysia Corporate Responsibility Awards 2009, Star Publications (M) Bhd and Institute of Corporate Responsibility (ICR) Malaysia.

An extract of an article by Obiora Onyeaso, managing director of an investor relations firm in Nigeria.

  Like other fuzzy terminologies, CSR has several definitions. I like Geoffrey Heal’s best because it places CSR at the vortex of interactions where the company enjoys social subsidies in the process of creating private benefits for shareowners. Mr. Heal defines CSR as “a programme of actions taken to reduce externalised costs and avoid distributional conflicts”. His categorisation of CSR programmes as debts paid and obligations due and not the “thank you to our customers and community” they are frequently presented as is spot on. Peculiar Nigerian definition However, in a twist, among Nigerian companies it has come to be almost exclusively identified with donations and sponsorships. This one-dimensional conception of CSR as patronage reflects the expectations of demand communities around the company. A sunken borehole, refurbished school library, repainted dispensary block, food items for an orphanage, support for a cultural event and a new police patrol vehicle are a few examples of responses to such expectations. Although, companies on the Nigerian Stock Exchange spend several millions and non-trivial management time on such community outreach programmes, very few have any coherent publicly accessible policies that guide their engagements. Notable exceptions are Access Bank and Total which, in addition, publish CSR reports on their websites even though the thrust of their efforts are still overwhelmingly aimed at the philanthropy. As commendable as these commitments are, the often random selection process and allocation decisions may one day be challenged as misguided, unproductive or profligate. More than displays Corporate social responsibility is much more than widely publicised displays of the value-laden label “good corporate citizenship”. KLD Research & Analytics, publisher of the KLD400 Index, the leading benchmark on environmental, social and governance metrics for public companies and global authority on social research for institutional investors, lists eight indices for assessing CSR performance: community relations, corporate governance, diversity, employee relations, environment, human rights, product quality and safety, and controversial business issues. Until now, most local initiatives have focused on community relations, and specifically, donor activities. Examples include Zenith Philanthropy, Ecobank Cares and the Dangote Foundation. By extension, local CSR ratings like those published by SIAO, the consulting, tax, audit and HR firm, have emphasised such donor preoccupations. Reporting on the other seven indices is negligible.  In developed country markets, CSR has moved beyond the prevalent cosmetic do-gooder profiling to a set of stringent investment screening criteria judged according to these seven themes. Ethical funds and socially responsible money managers want to see much more than pictures of staff members clearing blocked drains or a company branded manicured lawn at a city centre roundabout.  These investors recognise that socially responsible organisations also tend to be well-run institutions. Over time, the sustained demand for a company’s securities by these funds and investors will raise its valuation, therefore shareholder returns, and more than make up for any prior costs in responsible behaviour. The task at hand for companies is to learn these criteria and work towards inclusion in the selection universe of these money managers. To view the complete article, please visit: http://customsstreet.com/csr-salad-is-corporate-social-responsibility-a-fad-diet-or-nutritional-staple/ Is Corporate Social Responsibility a fad diet or nutritional staple? We welcome your comments!

The University of Ghana Business School recently launched a report on corporate social responsibility (CSR). The report presents the broader aspects of CSR and as well as the opportunities and challenges it presents to businesses, and is based on a study conducted in six countries – Ghana, Kenya, Malawi, Mozambique, Namibia, and South Africa.  During the launch of the report, Dr Daniel Ofori, Head, Organisation and Human Resource Management of the University of Ghana Business School and co-author of the report, explained that CSR goes beyond philanthropy and covers a wider perspective that includes observing sound environmental maintenance practices, good treatment of workers, ensuring quality products, adhering to basic ethical standards in social and business circles, as well as observing their legal obligations.

In the past decade, there has been a significant shift in the way the private sector has addressed corporate social responsibility (CSR) – from inserting an environmental section to their annual financial report and only reacting to issues when it hit the media to being pro-active and embedding CSR as part of their day-to-day business operations. Bill Greenhalgh, in his recent article on CSR in the Financial Post, mentioned Nestlé’s work in the milk districts in India as “the ultimate example of altruistic self-interest” by continuously implemented initiatives that have improved the quality of life of the communities around its factories. Over the past 50 years, Nestlé has developed artificial insemination programmes for cattle, subsidised farmers’ purchase of milking machines and helped procure loans for the community. In addition, company veterinarians and agronomists supervise the milk routes and advise farmers on the most appropriate feed for the herds and milk storage facilities have been set up in close location to the farmers.  Corporations need to change the way they manage “people, planet, and profit” and embrace CSR as the way they do business.

A new ODI background note, commissioned by the UNICEF Regional Office for the Middle East and North Africa, assesses the evidence about the current and potential impacts of the ‘Triple F crisis’ (food, fuel, financial) on children and women in the Middle East and North Africa (MENA). It draws on an analytical framework developed by ODI’s Social Development Programme to assess the impacts of economic crises on children’s experiences of poverty and vulnerability, and how government and donor policy responses could determine the severity of these impacts. The paper finds that the crisis is already undermining children’s rights along a number of dimensions, including increased food insecurity and related risks of child malnutrition; rising rates of school dropouts in poorer countries in the region, with concerns about rising child protection threats (including harmful forms of child labour); rising vulnerability among migrant, refugee and IDP families; and significant impacts on the employment prospects of young people, already a major concern in many parts of the region.

The seventh CSR Asia Summit was held in Kuala Lumpur on 27 and 28 October 2009 and aimed to be the most innovative and challenging conference on Corporate Social Responsibility (CSR) in the Asia-Pacific region. The participants were reminded that amidst the global economic crisis, CSR is more important than ever. With the theme “Sustainable Business as the Road to Recovery”, the event was attended by more than 300 delegates from all over Asia. It explored key CSR issues and strategies to demonstrate leadership in times of turbulence. Nestlé Malaysia was an active participant in the Summit, featuring exhibits to introduce Nestlé’s concept of CSR, which is Creating Shared Value (CSV). The booth showcased both local and global CSV initiatives, as well as Nestlé Malaysia’s reporting initiatives. Nestlé’s CSV initiatives in Nutrition, Water and Rural Development were highlighted as exhibits as well as via a video. Apart from the breakout sessions, roundtables, training and stakeholder sessions were also organised for the delegates. The topics were mainly focused on Asia and brought new insights for businesses, governments, NGOs and other CSR practitioners.