National CSR policy launched

The national Corporate Social Responsibility (CSR) policy has been launched to promote the contribution of firms to the socio-economic development of communities within their share of influence to yield positive and sustainable impacts towards the achievement of the principles of the millennium development goals and sustainable livelihoods.

The policy development process is underpinned by seven principles namely: Accountability; Transparency; Ethical Behaviour; Respect for Stakeholder; Interests; Respect for the Rule of Law principles, Respect for International Norms of Behaviour and Respect for Human Rights

 It seeks to provide framework and guidance to facilitate the effective collaboration of all stakeholders which will yield economic growth, competitive advantage and social benefits.

The policy focuses on the following key areas: Poverty eradication, Employment and decent work for all, Sustainable agriculture, food security and nutrition, Health and quality of life, Education, Gender equality and women's empowerment, Sustainable infrastructure development.

It also includes sustainable use and management of natural resources, inclusive economic growth and industrialisation, sustainable production and consumption, conservation and sustainable use of marine resources, oceans and seas, ecosystems and biodiversity.

Mr Ekwow Spio-Garbrah, Minister of Trade and Industry launching the CSR policy in Accra at a ceremony that brought together captains of industries, policy makers, CSR executives and practitioners and among others.

He explained that many business operators in Africa and for that matter, Ghana do not fully understand CSR and have a limited concept of philanthropy, charity and donation.

“I am therefore glad to find many distinguished industry captains with sharp business acumen, valued experience and broad expertise at this launch. You have entrusted with the responsibility to manage the development of your business into models of excellence. 

“Remember that this calls for not only sound application of management principles but also a better appreciation of the socio-economic reality in which your companies operate,” he said. 

Mr Spio-Garbrah explained that Ghanaian firms expect to increase and improve their engagement in four key areas for the meaningful application of CSR, namely: CSR in the marketplace, the workplace, the community and the ecological environment adding that the businesses have a bigger purpose than to merely earn profits. 

“Just as you add value to your shareholders’ wealth, it is equally important to add value to the society at large, and in this vain, we would contribute our quota successfully to the object of this policy,” he said.

Dawarnoba Baeka, Chief Director Ministry of Trade and Industry explained that it had been a journey since the Ministry of Trade and Industry in collaboration with German Development Organisation (GIZ-Ghana) and the Centre for Corporate Social Responsibility - Legon started the process to develop the policy for the nation over a year ago.

The process, he said, involved tentatively, consultative and validation workshops in all the regions of the country which the document took into consideration the concerns of both urban and rural areas. 

He explained that the report was scrutinised by the stakeholders involved in the process, and with comments from other vital stakeholders who were identified along the process. 

“Also I am glad to acknowledge that, this document imbibes the global dynamics of good CSR practices accepted globally. It is on this note that I commend GIZ, the Consultants, Staffs of the Ministry and the selfless stakeholders for the role they have all played so far in the development of this CSR policy,” he said.

He observed that CSR is not entirely a new concept as it has been in existence for over a century. It overlaps other disciplines and its continuous increase in importance has led to the proliferation of names such as corporate governance, corporate conscience, corporate citizenship, sustainable development among other things.

“CSR goes beyond donations to cover vital areas including; human rights, welfare of workers, the safety of the environment in which the company is operating in, the health and safety of workers and customers,  the issue of child labour in the supply chain,  community-company as well as government relationships, transparency and accountability, tax governance and legal issues,” he stated.

When a company is given a legal contract to operate in any community by the government or relevant institution, it needs a “social contract” from the community to operate.

“Multinational corporations such as Tullow Oil Plc, Kosmos Energy, MTN Ghana, Airtel Ghana, and Guinness Ghana among others owe it a duty to respect the ethical standards and legal frameworks set by their host country. 

“These include, environmental laws, human right laws, corporate tax laws and it is only by obeying such legislation and incorporating it in their ‘Triple Bottom Line’ that,  they would be given ‘informal license to operate in’.

“What is required in Ghana and Africa as a whole is for the media and civil society organisations to play watchdog and vigilante roles in ensuring that businesses are socially responsible, accountable and transparent. If our governments and businesses are open and accountable, the citizens become the greatest beneficiary, and there will be development.

“Investors need to look beyond short-term financial performance and look into how businesses are run. We need business to give practical meaning and reach to the values and principles that connect cultures and people everywhere,” he remarked.