Companies Need to Embed CSR Programmes in Sustainability Agenda for Impact

By Chris Githaiga

Corporate Social Responsibility (CSR) has for a long time been used by companies to contribute to positive social and environmental change while strengthening their brands and business impact.

Businesses that embark on CSR programmes always seek to enhance reputation, build customer loyalty, attract talent, strengthen stakeholder relationships, mitigate risks, and contribute to sustainable development. It is the kind of CSR initiative that a brand embraces that defines its image, makes it stand out in the market, and ultimately contributes to business success.

In Africa, companies are increasingly focusing more on sustainable development, inclusive practices, environmental stewardship, and partnerships. 

By demonstrating their commitment to social and environmental issues, brands know very well that consumers, investors, and other stakeholders will see them as socially responsible. This will earn them trust and make them household brands in any market as consumers have become more conscious of the environment and are preferring those businesses that embed environment sustainability in their strategies.
It is agreed that when brands engage in meaningful CSR initiatives, they build a connection with their customers on shared values. When businesses create emotional bonds with their customers, they earn loyalty.  This is why every company is staking its success on community initiatives that speak to current challenges facing the continent. It is a sure way to stand out from their competitors and gain competitive advantage.

Effective CSR programmes have also helped many companies to attract and retain a motivated and socially conscious talent as well as opening opportunities for fruitful engagement with employees, customers, suppliers, local communities, regulatory bodies and many other stakeholders.

When a CSR initiative is impactful, companies will realize new business opportunities and partnerships with other enterprises such as nonprofits and social enterprises. This will open doors to innovative ideas, shared resources, and access to new markets.

The bottom line is always the impact a CSR initiative will have on society and contribution to sustainable development. That is why the current CSR trends lean on addressing societal and environmental challenges that can help create a better world while securing a company’s long-term success.

Companies are however facing many challenges in making a significant impact through CSR not just because of the evolving societal and environmental challenges that make it difficult for them to keep up with emerging issues but also myriads of obstacles that they must overcome.

Many businesses are lurching onto popular trends without clear strategies that align with their core business goals. This often makes CSR initiatives become more scattered and disconnected towards achieving meaningful impact.

“Implementing CSR initiatives requires dedicated resources, both financial and human, to be effective. Many companies have failed to make an impact even with the best of CSR initiatives because of inadequate resources or failure to secure management commitment. Without sufficient investment, it is impossible to implement and sustain a CSR programme”.

Companies may initiate CSR projects but fail to execute them effectively across different regions or departments because of inconsistency. Lack of coordination and standardization can lead to fragmented efforts and limited overall impact.

If key stakeholders, such as employees, customers, and local communities, are not involved, many businesses will struggle to generate support and participation. When these stakeholders are not brought on board, the reach and effectiveness of CSR initiatives will be limited.

Then there is the issue of focus and unrealistic expectations. Many companies tend to have a short-term outlook when it comes to CSR. They expect quick results and immediate returns, which may not align with the long-term nature of CSR initiatives. Building sustainable impact often requires patience, persistence, and a long-term commitment.

But the major challenge for companies lies in measurement and reporting the impact of CSR initiatives, particularly when it comes to quantifying social and environmental outcomes. Companies may struggle to define appropriate metrics, gather relevant data, and report impact accurately. Without robust measurement and reporting systems, it becomes challenging to demonstrate the effectiveness of CSR efforts.

So how can companies achieve meaningful impact with their CSR programmes?

During climate change crisis, economic recession, and social unrest, consumer expectations and demands for more sustainable practices have become higher than they have ever been, and they have withstood the pressures of various crises. It is therefore imperative that companies embed CSR into their sustainability agenda to make the initiatives more impactful.

Embedding CSR in a business's sustainability agenda involves integrating CSR practices and principles into the core strategies, operations, and culture of the organization.

In 2019, Ipsos’ Global Trends survey in 33 markets found that concern for the environment (or “climate emergency”) was the number one value that united people around the world.  In September 2020, another survey found out that an increase in concern that we are headed for an environmental disaster if we don’t change our habits quickly.

Importantly, the public puts the onus of responsibility on companies (over the government or themselves) to ensure consumer products are environmentally and socially responsible. This rise in public concern and expectations is not the only mounting pressure on industry to make sustainable changes.

There is increasing global recognition that business as usual is no longer viable. This is well captured in the opinion of the World Economic Forum, Davos in 2020: “By now, we all understand the importance of investing in sustainable business practices. What was once considered a company mission to do social good is now a business imperative. The proof is easy to see.”

The opinion of the World Economic Forum is represented by businesses around the world. In August 2019, the Business Roundtable overturned a 22-year-old policy statement that defined a corporation’s principal purpose as maximizing shareholder return and adopted a new ‘Statement on the Purpose of a Corporation’ which declares that companies should not only serve their shareholders, but also deliver value to their customers, invest in employees, deal fairly with suppliers, and support the communities in which they operate.

With this opinion in mind, businesses that seek to make impact need to first establish a clear purpose and set of values that align with sustainability and social responsibility. This provides a guiding framework for all CSR efforts and ensures alignment with the organization's overall mission and vision.

They need to identify the social, environmental, and governance issues that are most material to the business and its stakeholders. This will help prioritize CSR focus areas and ensure that efforts are targeted where they can have the most significant impact.

Integrating CSR goals and objectives into the overall business strategy will align CSR initiatives with the organization's long-term vision and incorporate them into key decision-making processes, such as strategic planning, budgeting, and performance evaluations.

As noted earlier, involving every stakeholder in the CSR agenda is important. Companies need to understand their expectations, concerns, and interests, and integrate their feedback into CSR planning and implementation. This will foster collaboration, ensure diverse perspectives, and enhance the relevance and effectiveness of CSR initiative.

The targets should also be measurable. When a company establishes specific and measurable CSR targets and key performance indicators, it can track progress, monitor performance, and ensure accountability.

Providing training and capacity-building opportunities to employees at all levels will also enhance their understanding of CSR and sustainability issues. It will also foster a culture of responsibility and empowerment that will ensure all employees are aware of their role in supporting CSR goals.

The need to develop a robust CSR communication strategy to share progress, achievements, and challenges with stakeholders. Transparent and authentic communication builds trust, enhances reputation, and engages stakeholders in the organization's sustainability and CSR journey.

When businesses embed CSR into their sustainability agenda, it ensures that social responsibility and sustainability become integral part of their operations, culture, and long-term success.

At Ipsos in Kenya, we help clients make better, more informed decisions and define priorities across their CSR and sustainability efforts. Our approach incorporates ease of implementation with the impact of action as well as important factors such as cost, time, and the extent to which potential activities will positively impact society and businesses.

Chris Githaiga is the Managing Director at Ipsos in Kenya.