TAKING CORPORATE SOCIAL RESPONSIBILITY TO THE NEXT LEVEL FOR WIN-WIN IN BUSINESS

I found below article from KCIC very helpful.You can have on your brouser

https://mailchi.mp/edwardmungai.com/africa-sustainability-matters-s0gpw5...

 

TAKING CORPORATE SOCIAL RESPONSIBILITY TO THE NEXT LEVEL FOR WIN-WIN IN BUSINESS

Businesses have traditionally not involved themselves in tackling the social challenges that countries face and for a long period, this was seen as a role of government. Occasionally, a business, in very isolated cases would involve itself in some sort of philanthropy trying to solve some of these problems. The concern with the philanthropy perspective is that it was considered after the bottom line of the company and was also seen as an extra cost to the business at the expense of the shareholders. The solving of the social problems by business was seen to have direct implications to their economic results. The reason for this is that, traditionally the role for business has been to maximize profits. For example, under the neoclassical economics and several management theories, it has been assumed that the role of a business is to maximize economic gains for its shareholders. 
 
Profit maximization relates to the shareholder’s theory and is has been in existence for more than 2 centuries with its father being Adam Smith’s as proposed in his book the Wealth of Nations. In 1970, Milton Friedman argued that the overriding reason for business is to ensure that the wealth of its stock holders is at the maximum. In the recent past the shareholder’s theory is being replaced by the stakeholder’s theory. Stakeholder’s theory advocates that there are other parties involved in the business ecosystem which includes the likes of government, civil society and NGOs, trade unions, communities, financiers, general public, suppliers, employees and customers. In this case, the shareholders are treated as the ultimate residual beneficiary as they are the provider’s financial resources to the business. This has resulted to business moving CSR from the philanthropy perspective to a more integrated way. For businesses to be able to address the stakeholder theory, there are various variables that businesses need to choose in terms of doing business and these includes; business caring more about other stakeholder other than the shareholders; (assigning importance to stakeholders compared to shareholders; companies looking at their performance more from a long terms perspective as opposed to quarterly and semiannual performances.; and focusing on the ethical grounds of their decisions. 
 
During the last two decades, more and more companies have voluntarily integrated social and environmental issues in their business strategies as part of the stakeholder’s theory integration through corporate sustainability activities. Corporate sustainability (CS) is a way of doing business that embrace opportunities and manage risks from three dimensions; economic, environmental and social. This is CSR in a broader sense than the case of the philanthropy. It implies management is concerned on the activities of the business and how that affects the stakeholders and this not only for the purposes of feeling good but also for making money. In other words, CSR is sustainability which is embedded in the business strategies of the business. The movement towards more than the philanthropy CSR has made the role of business in sustainable development more relevant. 
 
The introduction of the SDGs in September 2015 created a platform that will help companies to move towards more coordinated CSR which is more relevant, and which is a win- win for all the parties involved. Business will have no choice other than to move towards more sustainable CSR. This is not only the right thing to do but it is also the right thing to do due to the push by the various interested parties in a business. As an example, customers and employees are putting immense pressure demanding integration of the both the special and environmental issues in the business operations. Regulators are also pushing companies to be more ethical from different perspectives. This approach has now been proved to pay for the shareholders as there is a correlation between economic performance and corporate social performance and hence shareholders pushing for more embedment of social and environmental issues in business operations.

Trends On Sustainability 

We are Breathing Toxic Air 
Recent comprehensive global air pollution study by Heath Effects Institute reveals that 95% of world population breath unclean air with the burden falling heavily on poorest communities. Therefore, increased pressure to regulate the emissions coupled with better monitoring systems would revert the toxic air menace.  

Plastic Eating Enzyme Holds Promise in Fighting Pollution
Over decades, plastic debris finds their way to land, rivers, oceans beaches and coasts, causing enormous pollution. The menace has prompted scientist to explore technologies that would make the plastic biodegradable and breakthroughs are being realized with USA, and Britain scientist engineering an enzyme that eats plastics.

The Intensity of Carbon Emissions from Ships set to be Regulated
The shipping industry significantly contributes to carbon emission, therefore agreement to have their carbon emissions regulated by adopting efficient cleaner energy is a reprieve for the environment. The regulation is estimated to reduce emission of greenhouse gas from ships by half in 2050.

Integrated Waste Management Critical for Sustainable Cities 
A holistic approach that ensure a proper recycling, treatment and disposal is a win-win for cities. There exists immense opportunities with positive effects on the economy in a continent where addressing efficient waste management remains a challenge.

Adopt Behavioural Engagement to Unlock the Potential of Eco Mobility
Adoption of green transport is becoming an integral part of urban transport strategies. However, significant behavioral progress has not been realized in getting people to turn to greener modes such as public transit, cycling or walking.