There are largely 2 types of approaches to CSR –
• Make money.
• Spend money.
Businesses are first and foremost, designed to make a profit.
When CSR is designed as a part of the profit making process, it is sustainable, independent of the times.
When CSR is designed as an after-thought of the profit making process, it is unsustainable, dependent on the times.
Some of the most effective CSRs have been about input reduction and waste reduction. These 2 are designed to improve profit making.
Building hospitals, schools, roads, electricity, boreholes and the likes are great, but they are dependent on the profitability of the company. Such CSR projects require maintenance after the one-off commissioning, but because they are an expense, the cost is taken as a one-off and maintenance is transferred to the community. Guess what the community does? Zero maintenance. This is not unusual, because in the world, if you build, it is expected that you also maintain.
An alternative approach is to allow governments do their jobs (building and maintaining basic infrastructure), while demanding from organisations that they demonstrate ways in which they reduce input and waste, per unit output. This improves profitability, driving companies to innovate and improve – taking less from society and giving more value, per unit output.
– Osasu Oviawe