An interesting feature of success is that it is more about other people than it is about the successful individual. Think about it: A company that makes a billion Naira profit might share a part of that profit to shareholders. But before the profit was made, staff salaries were paid; transporters delivering goods to the customers were paid, etc. The transporters patronise food sellers on the way to delivery, staff pay school fees at private educational institutions that their children attend, etc. The point is the more successful we may be, the more others benefit from us and what we do in so many more ways than we may directly benefit. This should not only be clear to us, but we should be happy about and embrace it. However, beyond payment of staff salaries and transporters for their services, we need to make our businesses responsible corporate citizens. How do we go about that?
What is corporate citizenship? By law, corporations are legal entities with several human-like features, rights and responsibilities. Unfortunately, many entrepreneurs focus only on the economic goals of running their businesses. But beyond revenues and profitability, entrepreneurs should also be aware and alive to their legal and voluntary social responsibilities. Corporate citizenship is, therefore, about the responsibilities that a business owes the society. The ultimate objective of responsible corporate citizenship is about helping to deliver higher standards of living and the quality of life for communities in which the business operates directly or indirectly.
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It was reported that a total of US$560.52 million, about N213 billion then, was collected in Nigeria on the COVID-19 pandemic as at 13th July, 2020. Of the said amount, more than ninety per cent was contributed by private sector donors. The financial and non-financial contributions of the private sector to various developmental efforts, from local communities to national levels, are what we must continue to provide for the upliftment of our societies and to grow as entrepreneurs.
What are the benefits of responsible corporate citizenship? The purpose of all responsible corporate citizenship efforts is for an entrepreneur and their business to positively contribute to people, communities and the world. The activities you conduct could also be tax deductible and you and your corporation will earn a lot of goodwill from the government as well as the public. Beyond all that, you will derive satisfaction in the services that you provide beyond personal economic benefits. In addition, your social activities will give your brand better recognition as well as organizational growth through goodwill and patronage.
There are conditions for responsible corporate citizenship:
1. Legitimacy of activities: All activities you will be engaged in must be sanctioned by the law.
2. Protect the environment: The activities you engage in should protect the environment.
How do you make your business a responsible corporate citizen? The International Organisation for Standardisation has developed a set of standards that can help in the implementation of corporate social programmes. But I have a slightly different pathway that I like to suggest as follows:
1. As always, start from the mind! You will need to first understand the positive implications of the contributions you are likely to make as being worthy of all the effort and resources you may put in and the sacrifices you may make. You then have to internalise that and also carry along your people.
2. Establish your areas of engagements: Identify the areas of engagement in which your company has the capacity in terms of competence and resources, as well as the needs or causes you want to and can sustainably support. Interestingly, we should understand that people appreciate our intentions and commitment more than the actual quantum of our interventions. So, it is advisable that you start modestly even as you look into the future with more ambitious programs.
3. Understand where best you can help: The process of establishing your areas of possible engagements involves studying the areas of the needs of the communities and causes you wish to support. This will involve talking directly with stakeholders, such as individuals and communities, as well as other businesses, government agencies and non-governmental organisations.
4. Set up a system: Carrying out interventions well requires that develop internal policies and build a system. Within the policies and systems, you should identify units and officials and the responsibilities they are to discharge and how to discharge them. Whatever system you put in place should also include a continuous assessment of the impact of your interventions.
5. Spend wisely: The whole idea of your interventions is about improving the standards of living, the quality of life and creating opportunities. Consequently, you should be prudent through ensuring that every Naira you invest will achieve or contribute to the achievement of your set objectives.
6. Encourage innovation and participation: Solving problems and creating solutions is about innovation. The participation of people of different statuses, experiences and backgrounds does help in creating solutions. Encourage your people, the beneficiaries, and experts to participate and contribute in what you are trying to do.
7. Think of it as a marathon: We can, of course, provide certain supports on one-off basis. But it is better to think of our intervention on a long-term basis. That way we can be more realistic in what we do and how we do it, and above all, it will have more impact.
Our business successes are not just about our turnover, profitability and the personal good lives that we enjoy. Ultimate business success is also about our positive impact to the public and our communities beyond what may be our legal responsibilities. We can contribute to communities and charity groups in small and not-so-small-ways. We can be partners in running a local orphanage or support a local public primary school with supplies or finance the university education of brilliant but indignant students, etc.
Our social contributions to our communities beyond our economic roles are great indicators of our humanity and true success. Let us take and play this role as committedly as we take our economic responsibilities.
Next week, we will take up Customer Service.
