"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
PRESENTS
GOOD CORPORATE CITIZENSHIP
Jacky du Plessis
July 2003
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Good Corporate Citizenship
“We have to choose a future between a global market driven only by calculation of short-term profit, and one which has a human face. Between a world which condemns a quarter of the human race to starvation and squalor, and one which offers everyone at least a chance of prosperity, in a healthy environment. Between a selfish free-for-all in which we ignore the fate of the losers, and a future in which the strong and successful accept their responsibilities, showing global vision and leadership”
Concerns about globalisation, free trade, human rights, poverty alleviation, environmental degradation and many more face the business world today. Much of this was summed up by and dealt with at the World Summit on Sustainable Development (WSSD) held in Johannesburg during 2002, which provided the stage on which the world’s leaders thrashed out deals for an economically, socially and environmentally sustainable world. A look at the UN-provided development fact file highlights a number of serious challenges:
Business is not divorced from these issues facing society – quite the opposite is true where, in fact, business and society are interdependent – and must be seen as part of the solutions. The long-term prosperity of companies and ultimately their survival depends on their ability to align corporate goals with those of society. Today there are growing calls by society for those that are rich in skills, wealth and knowledge to make these available to help the poor and needy, as well as address some of the many challenges facing the world. In the 21st century, the world won’t tolerate organisations that don’t take this partnership seriously, and will eventually reward those that do. This is particularly true of multinational organisations whose power is being challenged, and who are now expected to demonstrate in practical terms their willingness to be part of the solutions.
Why is it then that business and multinationals in particular are accused of being the problem? Although the reason for the existence of business at law is to produce acceptable returns for its shareholders and investors, business and business leaders are facing ever-increasing levels of distrust and outright suspicion over their motives and role in society. It can be said that a company’s licence to operate now includes public opinion, industry reputation, the media and pressure groups. Concerns about globalisation, free trade, the ecological crisis, human rights and many more confront us almost everyday. There is a corresponding growth in activism, and the belief by many that social and environmental standards are being compromised by global business. In a world of so much contradicting information and mixed messages, who is one to believe and which “facts” are to be considered accurate? Many of the messages are so wrapped up in emotion it is difficult to focus on the true facts. It can be said that trust is a soft issue, based more on perception than fact. But without facts, there is no basis for establishing trust.
How then does business go about establishing trust? Firstly there is the need to recognise society’s concerns and growing expectations for business to assume a wider role in society. Secondly it means living up to their responsibilities as corporate citizens and local neighbours by developing action-oriented programmes, often referred to as Corporate Social Responsibility (CSR), that contribute towards creating a more stable, healthy and prosperous world. Training, the transfer of skills and expertise, new technological solutions, contracting of services, helpful infrastructure development, as well as community social and health programmes and a clear commitment to human rights must be underpinned by a genuine understanding of people’s needs and wishes. CSR must bring about positive and sustainable changes.
What are the benefits for business? CSR enables business to build constructive relationships and engage in dialogue with governments and organisations, which allows for a better understanding between the many sectors of society. Through mutual understanding and responsible behaviour it is hoped that the contribution made by business towards making a real and lasting difference for the environment and an improvement in living conditions for the majority of the world’s population will be recognised. It is in the interest of business for society to develop and prosper in a stable way - it is an inseparable part of society, contributing to and benefiting from it. Business needs the approval of society to prosper!! Approval cannot be obtained without trust and trust is about proving you are trustworthy. This can only be built up over a period of time through shared experience, and through consistency in word and deed.
Jacky du Plessis
Kofi Annan, UN Secretary-General January 1999
- the world’s population has doubled to 6,1 billion in the last 40 years, and is projected to grow to 9,3 billion over the next 50 years
- by 2050 4,2 billion people will be living in countries that cannot meet many of the basic requirements, such as 50 litres of water per person per day
- since 1990 the number of poor people has increased by an average of 10 million a year for Latin America, South Asia and sub-Saharan Africa
- 1,1 billion people are undernourished and underweight
- 1,5 billion people live in water-scarce areas
- 1 billion live on environmentally fragile land
- nearly 25 million people in the world die each year because of a lack of clean water and adequate sanitation, etc.
We are told the rich are getting richer and the poor poorer. The list of challenges seems endless and the pressure is mounting to find responsible and meaningful solutions.
July 2003
dkaconsult@mweb.co.za
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