The vital role of CSR

Quoting the Corporate Social Responsibility (CSR) Report of the Overseas Investors Chamber of Commerce and Industry (OICCI), a Recorder news report states that in addition to providing foreign direct investment (FDI), employment opportunities and contribution to tax receipts, members of the OICCI are significantly involved in the uplift and development of the country with their corporate social initiatives, contribution on this count amounting to over Rs 2,194 million.
Most OICCI member companies have CSR departments functioning alongside their routine business activities. Given the largely unconsolidated social landscape of Pakistan, interventions by the private sector in the form of donations, sponsorships, public-private partnerships and expertise have now been documented in a manner that appropriately reflects their contribution.
Notably, the CSR Report has been described as an attempt to consolidate these initiatives by presenting an outline of the good corporate citizenship programmes embarked upon by its members, on whose behalf it has elaborated upon their performance and programmes through a collective demonstration. Significantly, mention among its aims has also been made of the organisation's focus on facilitating the transfer of best practices from member companies to all corporate entities in Pakistan.
Of course, the CSR report as now issued can be seen as demonstrating foreign investors' commitment to overall development of the communities they work in, though not limited to their area of operations, as a number of member companies also partner with social sector organisations to expand the geographical scope of improvement in the living conditions of the less privileged members of society.
Needless to point out, all this may give rise to some kind of confusion as to what CSR is all about, and how it differs from other approaches. Considerably in practice though in the West, CSR needs be deeply contemplated in developing economies, such as Pakistan, for its socially beneficial manifestations.
Not to be mistaken with corporate philanthropy, which is just as good as putting something back into the community from which the business makes profits, maybe, from a rather veiled approach of charity though. As against this, CSR, which is a voluntary initiative, can be seen as carrying a premium as a management tool, thus deemed advisable for prioritised adoption.
For, basically an obligation, working for the benefit of social good, alongside profit maximisation, it refers to business's decisions and actions, as partially beyond the firm's direct economic and technical interests. However, as arguments for and against the concept of CSR cannot be ruled out, it can best be justified as a matter of enlightened self-interest, emanating from the realisation that the business ultimately helps itself, by helping in resolving the social problems.
In so far as its manifestations in this country are concerned, apart from others, mention may specifically be made of Engro Chemical Pakistan Limited receiving the Fifth Asian CSR Award in Manila, Philippines, in 2006, attended by some 500 delegates from 24 countries and 321 organisations.
In a very strong competition between 178 entries from 98 national and multinational companies operating world-wide with their headquarters based in 14 countries, its Project Hope - Telemedicine Project was deemed the most outstanding in the Concern for Health category.
Started in August 2005, Project Hope links rural spokes via video-conferencing to the hub in Karachi, where specialist doctors' access x-rays, ECGs and other diagnostics in real time. More to this, Attock Group's history of nearly 100 years carries a number of CSR initiatives too.
Their activities are distinguished from others due their innovative and sustainable nature of initiatives - socially, economically and environmentally. These encompass priority areas of health, education, women and youth development, environment, provision of potable water and poverty alleviation. All in all, inspired by the urges, aspirations and performances of the OICCI, our national trade bodies would do well to emulate the example it has set.