Recession: Brands slow down on CSR activities
Over the years, Corporate Social Responsibility (CSR) initiatives have become a part and parcel of most organizations.
Across the world, many success stories have been linked to some form of CSR initiatives and lifelines. Many celebrities have sweet stories to tell about how some form of philanthropic activities ‘saved’ their lives.
As a child, Barcelona star and winner of ‘Ballon d’Or’ and ‘FIFA World Player of the Year’ awards, Lionel Messi was diagnosed with a growth hormone deficiency. At age 13, he relocated to Spain to join Barcelona, who agreed to pay for his medical treatment, hence his loyalty to the club over the last 16 years.
Real Madrid star and ‘Ballon d’Or’ winner, Cristiano Ronaldo was once named the most charitable athlete on the planet for his charity work as he have been involved in series of charitable activities. He once donated $165,000 to fund a cancer centre in Portugal that treated his mother, paid for experimental drugs to aid the recovery of a nine-year old Canaria native who was suffering from cancer of the spine, paid for the entire £50,000 operation of a 10-month old Erik Ortiz Cruz requiring brain surgery, once sold the Golden Boot he won in 2011 for 1.5million pounds to donate the funds to Palestinian school children in Gaza, donates blood twice a year hence has avoided getting tattooed avoid the cross-contamination and potential diseases.
Nigeria’s Kanu Nwankwo through his Kanu Heart Foundation (KHF) has given hope to many African children diagnosed with varying heart problems – condition he also survived after a stellar performance at the Atlanta ’96 Olympics where Nigeria won Gold.
The list goes on and on, hence, it is not surprising that many corporate organizations are involved in Corporate Social Responsibility (CSR) projects.
Also called corporate conscience, corporate citizenship or responsible business, Corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that benefit society.
CSR strategies encourage the company to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others.
Owing to the economic downturn, most companies in Nigeria have soft-pedaled on their CSR activities – at least, for now.
Between June 2014 and July 2015, over 100 companies in Nigeria spent over N37 billion on CSR, with oil companies topping the list of spenders, according to Ken Egbas of Trucontact Communications, promoters of the Nigerian Social Enterprise Report and Awards (SERAs).
Earlier in the month of September, Airtel launched the third edition of its CSR initiative ‘Touching Lives’. Speaking at the occasion, the company’s Director, Corporate Communications and CSR, Mr. Emeka Oparah said he was skeptical about submitting the proposal for the initiative this year but the CEO insisted on it. “I was very happy when that happened because I felt the economy situation would make us have a re-think.”
Airtel CEO, Mr. Segun Ogunsanya in response said: “Touching lives cannot wait. Touching Lives doesn’t depend on the economy. Doing good just cannot wait. We can’t wait till we come out of recession to help others. In every society, the rich have an obligation to support the poor and the strong should support the weak,” he explained.
Nevertheless, many more organizations that were big on CSR projects have slowed down this year and understandably so.
South African telecommunication firm, MTN through its MTN Foundation engages in a lot of philanthropic activities that border of education, health, security and empowerment.
This year (April precisely), the foundation’s Security Support Project donated 10 patrol vehicles to the Lagos State aimed at contributing to a secured and favourable environment for lives, property and business operations across the country.
Also in April, GTBank created the awareness for Autism by organizing a walking and cycling campaign. GTBank has over the years partnered with Patrick’s Speech and Language Centre to create awareness on the disorder as well as enlighten people through annual Autism Seminars with international experts.
In Fidelity Bank, their CSR drive as an organization stands on the tripod of the Environment, Education and Health & Social Welfare.
Working in collaboration with public institutions – state and local governments – the bank aims to create and maintain green parks in chosen locations. Examples of work in this regard are the beautification of the Falomo Roundabout in Lagos State, in partnership with the Lagos State Government as well as Onikan, Milverton, Dopemu and Matori Roundabouts in Lagos State; RSUT in Rivers State, Rangers Avenue junction in Enugu State, Mbaise Road in Imo State, Abia Towers in Umuahia, Krika Sama Roundabout in Maiduguri, Borno State; Secretariat junction, Ibadan, Oyo State; and Itam Peace Colon, Akwa Ibom State among others.
According to the MD/CEO, Mr. Nnamdi Okonkwo, the Bank also supports environmental advocacy groups like the Nigeria Conservative Foundation (NCF) in their advocacy programmes, one of which is the annual ‘Walk For Nature’.
He said: “We also undertake green initiatives that assist the environment. In this regard, we have become the first, and perhaps, the only bank in Nigeria that dispenses cash with recycled biodegradable cash bags instead of polyethylene bags used by others, which is destructive to the ecosystem.”
Nigeria’s largest brewery, Nigerian Breweries Plc is a socially responsible corporate organization with a good track record of corporate social initiatives. Driven by the vision, ‘Winning with Nigeria’, the company has over the years been active in supporting national development aspirations in line with that vision.
In 1994, the organization established an Education Trust Fund with a take-off grant of N100 million to fund educational and research activities in institutions of higher learning in an effort to encourage academic excellence in Nigeria.
They have also made social investments in communities across Nigeria by building several solar powered boreholes, commissioning independent street lights and constructing bus shelters across country.
In May, Nigerian Breweries was involved in the development of musical talents through the ‘Goldberg Fuji T’o Bam’ talent hunt held across cities in South West Nigeria and in July, through its ‘Progress Booster show’ (an entrepreneurial talent hunt and mentoring radio programme Targeted at innovative businessmen and women in the South-East who can bring their business ideas) by Life Continental Beer brand which has rewarded many Nigerians with the sum of N250,000 each.
“We started this because we know what is in the heart of the Igbo man. Most of the time, they have good business ideas but do not have money to fund them. We are running the Progress Booster show for Igbos living and doing business in the East. This is because we want them to benefit from Life Continental Lager Beer,” said Emmanuel Agu, Portfolio Manager, Mainstream Lager and Stout Brands, NB Plc, while addressing guests at the event.
Coca-Cola in Nigeria has over the years partnered with the Nigerian Media Merit Awards (NMMA) to sponsor winner of the ‘Brand and Marketing’ category of the prestigious ceremony on various capacity-enhancing courses at the Pan-Atlantic University, Lagos.
The Director, Public Affairs and Communication, Coca Cola, Clem Ugorji explained that Coca-Cola believes that journalism and journalists have a role to play in nation building. “We believe that journalists are significant members of the society and critical change agents. We believe that the role they play is important for building sustainable communities and because we are interested in supporting everything that supports the building of sustainable communities we feel that it is important to support anything that helps capacity building for journalists”.
Ugorji further explained that the company’s sponsorships and CSRs are not necessarily to create direct impact on the company. He said: “For us as a company, we see ourselves as integral part of the Nigerian nation. The things we do we do first and foremost are because we believe that they have a positive impact on society, and not necessarily that they have direct bearing on our business. We believe that when we have a vibrant media, when we have the media that compares with media industry anywhere in the world; the society will be better for it.”
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