The Future May Be More Splendid For Organizations That Integrate CSR Into Their DNA and Strategy
By Mwangi Wanjumbi Newtimes B.S. Chief Trainer/Consultant
On numerous occasions, readers have requested for elaboration on Corporate Social Responsibility. However, I have not felt compelled to do so, until listening to interesting presentations by Mr. Michael Odera, Managing Director of Tata Chemicals Magadi. This is the company earlier known as Magadi Soda. In a recent Management Forum, this CEO was, at ease explaining their involvement with CSR just like it is one of the core activities of the company.
Simply put however, Corporate Social Responsibility is the positive behavior expected of corporate bodies as they relate with the society and the environment in which they operate. Notably, corporate bodies are artificial persons whose existence is made possible through operation of legal statutes. They are citizens just like you and me, only that we are natural, whereas they are artificial beings. In that regard, the human beings associated with the said corporate bodies walk, talk and act on behalf of these entities.
Thus, it is the respective men and women who are entrusted with behaving on behalf of the said organizations. Realistically, the environment in which these corporate bodies operate is where they do business. Most often, they exploit the requisite natural resources and other activities. Alternatively, they engage in economic activities of exchanging goods and services, with the community resident where they are likewise domiciled.
Under such circumstances, it would be unfortunate for the organizations to benefit, but never to give back anything to the same society, and environment with whom they are supposed to co-exist. That is why the term corporate social responsibility is interchanged with responsible citizenship which is aligned to moral principles of doing business. It is simply about giving back and co-existing harmoniously. But, does it always happen?
The old adage to the effect that “the business of business is business” is still very alive even now. In other words, many businesses exist only for the purposes of making profits (the profit motive applies in this case). Thus, Corporate Social Responsibility has largely been a foreign concept until in the recent years. But, even when it started taking shape, CRS was largely viewed as an indirect marketing strategy or public relations exercise, which was on its own supposed to drive business and contribute to the bottom-line too.
Things are however changing pretty fast. Many organizations are today removing the CSR interventions from the core business and forming separate entities, now conveniently christened as foundations. Good examples include Safari com Foundation, Equity Foundation with its “Wings to fly Project and many more.
Nevertheless, there are not many existing CSR programs that are known to be integrated into organizational DNA and strategy. But, that of Tata Chemicals Magadi is rather interesting and in a class of its own. This century old company is situated at the lowest point in the Rift Valley and has been in the business of exploiting the resources available in Lake Magadi. Interestingly, anybody who has been to Magadi, must have observed that Tata Chemicals Magadi not only owns and maintains the road leading to the company factory, but also the respective railway line.
More still, the company supports the ecosystem that sustains both the scattered human population and probably the wildlife existing within the vicinity of close to 120 km lonely stretch of road, after Kiserian Township.
In fact, the hostile climatic conditions make Tata Chemicals Magadi, a key if not the only link between civilization and the communities living in the area. It is no wonder then that social responsibility is out of necessity en grained all the way in the company DNA.
According to Mr. Odera, Tata Chemicals Magadi, develops and supports schools, medical health facilities, infrastructure, provision of clean drinking water and many other interventions. In fact, the local community knows only too well that their continued survival entirely depends on the success of Tata Chemicals Magadi.
In turn, they provide security to the company installations such as the railway line, water piping system and any others. Accord to Mr. Odera, the CSR program contributes invaluably to the growth and profitability of the company even though in reverse. Why?
Had the CSR of Tata Chemicals Magadi not been integrated, the communities may not have been cooperatively participating in today’s mutually beneficial relationship. Instead, they could themselves have been an expensive risk to company installations, which are spread far and wide.
Further, salt the main product is a seasonal commodity which requires intensive labour, only on a temporally basis. The same is readily available from the friendly community. Additionally, maintenance of company installations largely relies on technical support that the company has developed from within the community.
Enumeration of the benefits can go on and on. They nevertheless explain why the CSR programs have continued uninterrupted by different company owners. That is despite change of hands that has happened 4 times, during the history of the company. But does this CSR just happen?
Apparently, the entire community is involved in strategy formulation of the different activities; just the same way they are engaged with regard to government projects. With devolvement of the country into counties, the role of CSR could probably be more pronounced in the coming years. Likewise, the future of CSR proactive companies could be safer in the hands of the respective communities.
Notably, personal and team assessment tips and guides on desirable re-alignment strategies, are now incorporated into all our training programs. This is in realization that people will inevitably unleash their potential only when work becomes fun. Welcome!!!!
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