We find companies making efforts to enhance the community in which they operate. Some ways in which they do this are by training and employing local talents; implementing socially conscious policies and through philanthropy. There are many reasons companies engage in Corporate Social Responsibility (CSR) activities. For some, not only is it the right thing to do (morally), it makes good business sense. They gain a competitive advantage because of how the perception of customers and investors through CSR actions boosts brand value.
However, in context, is an inherent relationship between consumer value and CSR. In fact, organizations that understand this use it as a differentiation strategy against competitors. Customers do not just want to buy or use products because of need. They want to connect with you. And this happens when you care about the issues or causes that matter to them which eventually translates to strong relationships, loyalty, and increasing bottom line.
So much in time and money is being invested in CSR activities. In 2018, it was reported that Nigerian companies spent about N11. 3 Billion on charitable donations. Since Nigeria started combating the containment of coronavirus, donations from individuals and corporate bodies have surpassed N21 Billion Naira.
While these donations come in handy even as we live through an unprecedented time, some businesses have been struggling. There has been downsizing or completely shut down owing to the economic effects of the virus. Some have spent so much to adapt to the new normal to enable continuous operations. Meanwhile, for others, it has resulted in them finding purpose and aligning business activities to reflect this newfound purpose, not negating the need to also make profit hence, reshaping their CSR.
As against traditional philanthropic approaches, managers are seeing the need to think long term in response to underlying global emergencies, not only as it relates to health crises. Can they still keep staff throughout a pandemic? Instead of sourcing for supplies abroad, can they move towards maintaining and sustaining local partnerships considering recent fluctuations in currency and an imminent global recession? Can they continue to offer products and services cost-effectively and to quality while maintaining profits?
We have seen the effects of pandemics in all aspects of life. However, the COVID-19 has revealed lingering systemic social issues private organizations did not thoroughly consider. We can now see that societal causes ranging from poverty, gender inequality, and income misdistribution to weak health and education institutions pose significant risks to the business environment. Business leaders, more than ever, need to refine organizations’ approach to CSR. They would ensure too, as much as is within their control, that company aligns with social causes and in-house activities do not enable these problems. What this looks like in reality is supporting activities that promise sustainable growth. Patronizing local markets, for instance, is a much more solid and effective solution towards alleviating poverty. Investing in programs that will enable beneficiaries to stay financially independent. Offering access to funding, technical resources, and networks to scale up business growth in rural communities. Influencing policies that will create access to markets and opportunities for poor people. Collaborating with state agencies to achieve stronger health institutions.
Also, given the trend on the effects of the global pandemic, research by Nature (a multidisciplinary publication) suggests that disease outbreaks affect men and women differently and that women bear the greater risk of being disadvantaged than men. This says a lot, especially for women who are breadwinners, colluding with the fact that women are more prone to job losses and less likely to return to work. Several researchers have reported the significant roles women play in the business world- influencing household buying decisions, boosting insights on consumer preferences, adding dynamism to a workforce and leading with empathy. Therefore, policies centered on women’s empowerment, equal representation and sexual harassment in the workplace should be embedded in work culture.
Corporate social responsibility initiatives should go beyond philanthropy. Civil expectation mandates business organisations to be socially available, responsive and responsible in a manner that shows genuine commitment. We have seen the relationship between consumer behavior and social responsibility with buyers consciously making spending decisions on brands that share in their values. Rather than trying to profit from a pandemic by inflating prices or driving false marketing, corporates should actively engage in mindful actions that will bring in lasting solutions.
