Monday, October 27, 2008 Oledan: Social accountability By Radzini Oledan Slice of Life
IT IS said globalization requires global responses and multilateral strategies involving cooperation among key actors and stakeholders.
Public-private partnership has been recognized in sustainable development as a leading success factor towards sustainability and efficiency. This indicates that a multi stakeholder approach to good governance and development encompasses corporate and social responsibility (CSR).
Corporate Social Responsibility is defined by the World Bank as "the commitment of businesses to behave ethically and to contribute to sustainable economic development by working with all relevant stakeholders to improve their lives in ways that are good for business, the sustainable development agenda, and society at large".
The debate around CSR is gaining full momentum and is increasingly relevant for economic development of the Asia-Pacific region.
CSR principles and practices have been found to make companies to become more innovative, productive, and competitive. It helps make business more competitive by supporting operational efficiency gains; improved risk management; favorable relations with the investment community and improved access to capital; enhanced employee relations; stronger relationships with communities and an enhanced license to operate; and improved reputation and branding.
It overlaps with similar approaches such as corporate sustainability, corporate sustainable development, corporate responsibility and corporate citizenship.
In Mindanao, many establishments see it as the private sector's way of integrating the economic, social, and environmental imperatives of their activities. As such, CSR closely resembles the business pursuit of sustainable development and the triple bottom line.
Last week, I had an interesting discussion with a colleague who pointed out that CSR could be a tool for peace and development in this region.
Indeed, with different establishments around, their investment in the community where they operate could translate into an improvement in the lives of the people.
But I view CSR beyond its supposed benefit to the community.
This stance is too patronizing and views the community merely as beneficiary of initiatives. More than the provision of jobs and putting in place road networks and a community day care center, Corporate Social Responsibility is considering the interest of the community by taking full responsibility for the impact of business activities on the community and other stakeholders by voluntarily taking step to improve the quality of life in the area in which they operate.
This is critical in Mindanao where the influx of extractive activities such as mining and agro-industries threatens the environment and the people around it. So much for the short-term economic benefits.
This is where the question of whether the potential of CSR is harnessed to the fullest.
Oftentimes, the image of companies working hard to make changes in a community is often just an image. What are needed are new laws to make businesses really accountable and responsible for protecting human rights and the environment where they work.
This means that CSR should endeavor to involve creating innovative and proactive solutions to environmental challenges with both internal and external stakeholders to improve CSR performance.
Taking responsibility for its impact on community means in the first instance that a company accounts for its actions.
CSR is not merely a superficial window-dressing. There is a strong business care for corporate social responsibility, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short term profits and the supposed short term economic benefits to the community. Email comments to roledan@gmail.com
