Why Companies should review Corporate Social Responsibility

Media houses, governments and public, activists are becoming more interested at holding companies to account for the social consequences of their activities. Different companies ranging from banking, Telecom, manufacturing and Production have been here (Uganda) and globally engaging themselves by committing a certain portion of their proceeds to CRS.

In this particular article i propose a new way of thinking by looking at a positive relationship between doing a dignified business and society that does not treat corporate success and social welfare as a zero-sum game.

CSR is absolutely critical to any company strategy – but if you stop there it is corporate “risk management”, a necessary cost of doing business. therefore corporate companies should identify issues that affect the public and address them. Nike, for example, faced an extensive consumer boycott after the New York Times and other media outlets reported abusive labor practices at some of its Indonesian suppliers in the early 1990s. Oil giant Royal Dutch Shell agreed to a $84m (£55m) settlement with residents of the Bodo community in the Niger Delta for two oil spills.

Different activist organisations have been formed lately to create awareness and eradicate and they have been more aggressive and effective in engaging public to hold companies accountable on their operations. Most companies do not know what to do to mitigate risks that come up with less effort towards CSR. Therefore in the near future there might a shift in consumer behavior where consumers would buy goods that have a social cause. A good example is www.notforsaleale.com, a company among it’s major objectives is to sell it’s products and channel it’s profits to stop human trafficking.

Corporations are not responsible for all the world’s problems, nor do they have the resources to solve them all. Each company can identify the particular set of societal problems that it is best equipped to help resolve and from which it can gain the greatest competitive benefit