DEBATE: Should every corporate company participate in Corporate Social Responsibility?

Corporates can help society more by focusing on business without CSR I am not against corporate companies spending the money they have, but being in the business of making profit, I think the idea that companies have a duty to address social ills is not just misleading, it also makes it more likely that we’ll ignore the real solutions to these problems. Let corporate companies focus on their core business and, that way, they will serve society better and this is how I think they can be of more help. Many corporate companies (especially the well-established ones) spend millions on CSR with the aim to take pictures, smile with the population and feel good about being part of society in which they have fully exploited. With CSR of corporate companies, they are allowed to give to the needy but never really follow up on making sure what they gave is sustainable or even useful to the people they gave it to. A few of the examples of CSR done by corporate companies include supporting sports, visiting hospitals, providing lighting to rural areas and giving basic needs to the underprivileged. If all this money is instead spent on research and development aimed to make the products or services they sell much more affordable, then that would be a better option that would serve their clients and even develop the nation much better and faster. For example, if a corporate company is making household materials, why doesn’t it spend that money in conducting research and developing an affordable and durable iron sheet that will be bought by citizens that wouldn’t have otherwise afforded it? If budgets for CSR are reserved and instead channeled towards paying employees a better and more decent salary, there are a lot of benefits to this. At least a portion of employees in every company use their salary to take care of their siblings, elderly parents or relatives and with this, you can improve the quality of life of a number of people without necessarily spending millions that just put people in situations that they can’t sustain without someone coming to them with more aid. You can’t go spending money on unnecessary frills when you’re laying people off and morale is rock bottom - which some corporate companies do. In many developing countries, already corporate companies experience a high cost of doing business, not forgetting that the high taxes and more expenditure on CSR sometimes don’t make any business sense. At the end of the day, corporate companies are in the business of making profits, making return on investment and paying tax for it. The welfare and standards of living increase in any community where corporate companies are sprouting out and making money than in a society where many corporate companies are doing a lot of CSR. Issues of poverty and environmental degradation will only be solved by real solutions not handout, part time activities from corporate companies that don’t even know the problem in the first place. patrick.buchana@newtimes.co.rw Why not? CSR builds a mutual relationship with the community There should be no debate on the issues of corporate companies getting involved in the Corporate Social Responsibility (CSR) activities. I believe it’s paramount for any company that wishes to establish any relationship with the community it’s located in or where it operates to carryout Corporate Social Responsibility (CSR) activities. CSR not only grows relationships with customers or suppliers but it positively impacts the community at large. For instance, if the company invests in the education of the children that live in the community where it’s situated, these same children will work for the same company in the future and they will also maintain the cycle of awarding scholarship as beneficiaries. We all know the fruits we reap from having an educated or informed community. Let’s not pretend and ignore the fact, with CSR, a company’s business reputation is boosted, thus it attracts more customers. Which company does not want to increase its customers? Most mission or vision statements of a company have an element of giving back to society by improving socio-economic welfare of the community, and what better way to give if not through CSR? There are many benefits for a corporate company that has CSR activities in its agenda, but one outstanding advantage is giving employees time to do volunteer work. Volunteer work provides a sense of purpose and fulfillment. All the above mentioned factors not only benefit the employee as an individual but the company as well. Based on a publication titled “The Benefits of Building Your Corporate Social Responsibility Strategy”, by Krista Young, Corporate Social Responsibility is at the forefront of business as it has increasingly received global recognition. The author furthers states that CSR can be described as the management of improving and mitigating a company’s social, environmental and financial impact through sustainable actions and methods. CSR is often associated with the terms philanthropy, non-profit, NGOs and good-doers. Therefore, if corporate companies want the community to recognise their existence, why not try to offer medical insurance to the vulnerable groups or set up a scholarship fund. Facts on the ground show that if the corporate companies do that, there will be no need for them to advertise, the beneficiaries of such programmes will become ambassadors of the company. doreen.umutesi@newtimes.co.rw

Lifestyle

DEBATE: Should every corporate company participate in Corporate Social Responsibility?