Corporate social responsibility

Published December 22, 2008

In developed countries, stakeholders are increasingly demanding that all companies, particularly multi-nationals, be more responsible and work more closely with the societies that they profit from. Corporate Social Responsibility or CSR emerges from this realization.

It is when organizations consider the interests of society by taking responsibility for the impact of their activities on their stakeholders, society at large and also the environment profit from it. CSR is the legal rights of legitimate businesses to participate in society and a ban on these activities contradicts international initiatives and existing legal duties.

However in Pakistan, CSR is looked upon with suspicion, for we are not used to anyone giving back to the society. For example, there were few news items that looked at the philanthropic work of a tobacco company as irresponsibility.

Unless tobacco industry is illegitimate, or their CSR not authentic, there is no reason to instruct them to quit their good work. As a matter of fact, one should encourage them to take over some more responsibilities.

In fact all industries should be encouraged to allocate more funds for the activities that can help communities develop.

Presently, the said industry gets to do some superficial activities like sponsor a play, build a monument in some park or plant trees which cannot be called either constructive or sizeable expenditure. Why not ask these companies to put in resources in the sectors that require sustained efforts, for extended period of time, like health and education. Why not make them build schools and hospitals. After all they are just as much a part of our society as anyone else.

Instead of making the tobacco industry stop good work, I would suggest they should be made to do more. Consider it their penalization.

SHAHID DOGAR

Lahore