CORPORATE SOCIAL RESPONSIBILITY

HOW DO YOU MEASURE THE CSR FRONT?

Some quarters think corporate social responsibility (CSR) in Malawi is not given much thought among the economic drivers, banks inclusive. They have observed that CSR accounts only 3 percent of most companies' marketing activities. This view is somehow shared by Lillan Kawaza NBS Bank's Marketing Officer .

"As a marketer I look at CSR as a marketing tool, which helps to improve the image of the company.

But the irony is that most companies skimp on spending when it comes to their corporate social responsibility (CSR) activities. They often view CSR activities as mere window-dressing which simply has nothing much to do with profit margin, so they see no point in pursuing it.

" Linda Mchombo, the Marketing Manager for Standard Bank Ltd, holds a different view. According to her, more companies are becoming socially responsible. In this year almost every week you learn from the media that a certain company or some companies have donated something to the community. Businesses have realised that they cannot just take from the environment, but they need to give back as well.

To put it in a layman's language, when we talk about corporate social responsibility (CSR), we refer to the concept that all companies have obligations to the wider community and good corporate citizenship extends further than just following the law. Some call it the awareness, acceptance and management of the implications and effects of all corporate decision making.

Others extend it further by arguing that it is a commitment to behave ethically and contribute to economic development while improving the quality of life of a company's workforce, their families as well as the local community at large.

It simply deliberately including public interest in corporate decision making and honouring of, as marketers put it, a triple bottom line; people, planet and profit.

A common approach to CSR is philanthropy. This includes monetary donations and aid given to local organisations and impoverished communities in most developing countries like Malawi. One of the banks that have taken this approach is Standard Bank Ltd.

"At the beginning of this year, we went to Chilipa Health Clinic in Mangochi, and we were able to revamp the whole maternity wing, bought all the equipment that they needed. In addition we also gave them a generator," says Mchombo.

Furthermore, a few months ago the bank built school blocks at Mulunguzi Primary School in Thyolo East. This area initially had no school. According to Mchombo, the bank is proud to do this as a way of shaping future leaders who at some point may even become Managing Directors of Standard Bank!

NBS Bank, just like most other banks, have followed suit.

"We part sponsored the Mother's Day Fun Run which was organised by Nation Publications Limited last year. The aim of the fun run was to raise funds to acquire hospital equipment for Dedza Hospital. The funds that were raised were used to buy hospital ward trolleys among others," Kawaza said.

Recently, the bank has donated assorted groceries to a woman who is based in Kasungu. This woman was featured on Reach Out and Touch programme that is aired on MBC TV. According to Kawaza, the Kasungu woman is a very simple woman who is doing a noble job of taking care of abandoned babies in Kasungu despite her own poverty.

However, this philanthropy approach to CSR has been viewed negatively by some commentators. This is because they feel that this approach does not help build on the skills of the local people. Much as the communities are needy and deserve the donations, they get them on a silver platter. Such people prefer development to be community-based, since there is a high chance of sustainability.

For instance, in South Africa (although it is not usually referred to as a developing country), Shell Foundation has involved itself in the Flower Valley project. It has set up an Early Learning Centre to help educate the community's children as well as develop new skills for adults. Instead of just handing the people food, money or other material aid, a community based development approach is encouraged.

From her personal point of view, Mchombo thinks it depends on the project and the people you are helping.

"You find some youth or wcmen who have formed a group and they are looking for funding to conduct a workshop that will equip them with skills.. .in that case, yes, you are giving them money but they are becoming self reliant. This is different from where some people want to just get money and spend it today [without investing]."

Like in the case of the school Standard Bank constructed in Thyolo, the bank assisted with the materials but the community (already has qualified teachers) will definitely play a bigger role of teaching and encouraging pupils to go to this school. In this way, both Standard Bank and the community are contributing to the sustainable (education) development of this community.

Most marketers view CSR is as advantageous to the organisation as it is to the beneficiaries, in this case, the community at large.

It is quite agreed that companies have to protect the interest of shareholders, making sure that the business strives and flourishes. But the hard part of this is that if they cast a blind eye to societal concerns, they are at an increased risk of projecting a poor public image." says Kawaza.

She continues to argue that a business must balance its commitment between various stakeholders in the business: customers, shareholders, employees, the host community, government and others without getting distracted from its aim of making profits.

"Studies have shown that most buying decisions are made on the basis of a selection between three or fewer alternative brands. When a business goes out of its way to contribute to the well-being of its community, it can use the positive image this gesture brings to get competitive advantage over its competitors," Kawaza counsels. These sentiments are also shared by Mchombo.

"As a bank you get to demonstrate your emotional side, that you are not just a building, but you have that personal touch... You know that you are helping your customers, potential customers and the society you live in.

" At the end of the day, all that matters is not the show off and the outdoing of each other as competitors. Corporate Social Responsibility (CSR) is about contributing to sustainable development of a community at large that results in the sustainable development of the whole nation and a raised public image of the financial institution.

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