Building organisational reputation through responsible corporate social investments

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In these days of distrust and community apathy to orchestrated corporate reputaion programme, corporate social investment remains a novel yet veritable path that organisations can chart in building their

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Building organisational reputation through responsible corporate social investments

  1. 1. Building Organisational Reputationthrough Responsible Corporate Social Investments Bolaji Okusaga
  2. 2. What’s Your Organizations Objective?• Corporate Objective articulates a Organizations manner of doing business and the kind of relationships it need to create with its Stakeholders to deliver on its purpose• These objectives are encapsulated in the organizations mission, vision and culture and help set the tone for interactions with its Stakeholders• Corporate Objective asks the questions: What is the purpose of our organization? What value do we intend to create? What kind of ideals bind our stakeholders together?• By answering these questions, Corporate objective helps an Organisation to differentiate, plan, execute and deliver exceptional performance
  3. 3. Identifying Stakeholders Anyone on the Street Influencers Core Target
  4. 4. The Organisation and its Stakeholders CUSTOMERS GENERAL EMPLOYEES PUBLIC THEMEDIA GOVERNMENT ORGANISATION SUPPLIERS SHAREHOLDERS COMPETITORS
  5. 5. Corporate Objectives and Stakeholder Theory VALUE AS INPUT / OUTPUT CONTEMPORARY COMPASS MODEL APPROACH In traditional input- Contemporary Stakeholder output models theory recognizes other Stakeholder theory corporation use the parties such as begins with the inputs of government, politicalhypothesis that values investors, employees, a groups, trade are part of doing nd suppliers and associations, trade business converts it to usable unions, communities, assoc outputs iated corporations as Stakeholders. The theory recognizes thatIt address the Principle Stakeholders are By this model, firms constituencies thatof Who or What Really only address the needs contribute, either voluntarilyCounts by establishing and wishes of four or involuntarily, to an which groups are parties: Organisation’s wealth- Stakeholders in a Investors, Employees, S creating capacity, and may corporation uppliers and Customers be its beneficiaries and/or risk bearers
  6. 6. Understanding Stakeholder Dynamics ACTIVE Adversarial Advocate Stakeholders StakeholdersNON-SUPPORTIVE SUPPORTIVE Apathetic Dormant Stakeholders Stakeholders INACTIVE Source: Brad Rawlins, Brigham Young University
  7. 7. The Demands of Stakeholder Engagement? • Every organisation relates with different publics - from the Relationships Shareholders, Staff, Customers, Industrial Unions, Government and Regulatory Bodies, Counter-and Expectations parties, the Press to the local community. • These stakeholders are different in terms ofDifferences and their interests and expectation from the organisation Divergence • The organisation therefore needs a deep-seated Understanding understanding of these interests and expectations to maintain a dialogue, enhance relationships the Dynamics and retain its goodwill among its stakeholders.
  8. 8. Managing Stakeholders Problem IdentificationAffects Objectives / Goals Information Gathering Stakeholder Analysis Allies Assets / Constraints Opponents Stakeholder Management ProcessStrategy Managing Expectations Action Plan
  9. 9. Corporate Objective and Corporate Reputation The Community outside the The organizations Organization must understandvision, mission, strategy, corporate company’s overall objective and to concern and market objectives understand the market must have relevance to the environment in which their outside world organization operates Corporate Reputation is about The outside world must getting the world outside theunderstand the organizations view organization to buy into theof the regulatory and competitive organization’s Corporate and landscape Market Objectives
  10. 10. Outcomes of Sound Corporate Objective and Good Reputation Good Stock Price Growth in Operating Commands Market Share Margin Premium Market Huge Gross Leadership Profit Increase in Impressive Market Turn-over CapitalisationAbsence of Crisis borne out of a healthy Operating Environment
  11. 11. What’s Corporate Reputation without Responsibility?“Our best-regarded companies achieve their reputationsby … adhering rigorously to practices that consistently andreliably produce decisions that the rest of us approve andrespect.” (Charles Fombrun [1996], Reputation: RealizingValue from the Corporate Image, p. 29.)
  12. 12. The Concept of Social Responsibility Social Rapid Responsibility is a transformation of relatively new business landscape phenomenon in and altering of the business. social frameworkCorporate leaders grapple withthe fact that businesses’ license The rule of theto operate have moved beyond game has suddenly filling a consumption need in changedsociety in exchange for profit to becoming a bulwark for positive social transformation
  13. 13. The Social Responsibility Continuum The Era of the The Laissez faire The Era of the Triple Watchdog and Approach Bottom-line Compliance Maximize Do more than Integrate BalanceCompany’s Fight social required; e.g. social profits and profits by responsibility engage in objectives socialeliminating initiatives philanthropic and business objectives all else giving goals Lead the Do what it takes industry and to make a profit; Comply; do Articulate other skirt the law; fly what is legally social value businesses below social required objectives with best radar practices
  14. 14. The Laissez Faire Order With the development of large corporations coming on the heels of the industrial revolution of theBusiness 19th century, there arose pungentFor the sake environmental impacts and socialOf Business dimensions to the operation of corporations. Aside from the rendering returns to investors, payment of taxes to Recognition government, dispensing with wage Of Authority obligations to their And Tax obligations employees, corporations couldn’t situate their role within society.
  15. 15. The Philanthropic OrderThe era of Philanthropystarted with business icons During thissuch as Andrew era, businesses found itCarnegie, David Rockefeller hard to situate their roleand Gerald Ford and were in the larger social nexuspredicated on enlightenedself-interest and theethical notion that thewealthy should give to theneedy in society. Giving out of enlightened self interest
  16. 16. The Era of the Triple Bottom-line• Overtime, society started to question the existence of business beyond the mercantilist motive.• Faced with greater scrutiny on the outcomes of business, companies started to report outcomes of their operations beyond profits, hence the coming to being of the concept of the triple bottom-line: Planet People Profits • Show the impact • Show the human • Show the outcome of business on the and community of the exchange of environment development value in return for impact of business profits
  17. 17. From Triple Bottom-line to Discussions on Sustainability Organization/ Society Dialogue What is the Environmental How can How can we /Social/ we reduce theThe Corporate Citizens in Economic / negative and Citizen measure Communities Technological increase the Impact of it? positive? Business? Distrust and Suspicion • Faced with the volatile and unpredictable nature of organization/society dialogue, communities have tended to withdraw their trust for the corporate citizen unless it can demonstrate that such confidence is justified in action and not just in words. • Growing understanding of the social impact of business and rising expectations from society create a demand for higher standards from businesses on the local and global
  18. 18. Principles of SustainabilityPRINCIPLES COMPONENTSTechnology The creation, production and delivery of products and services...based on innovative technology and organization that use financial, natural and social resources in an efficient, effective and economic manner over the long-termGovernance Companies should operate based on the highest standards of corporate governance including management responsibility, organizational capacity, corporate culture and stakeholder relationsShareholders Shareholders demands should be met by sound financial returns, long-term economic growth, long-term productivity increases, sharpened global competitiveness and contributions to intellectual capitalIndustry Companies should lead their industrys shift towards sustainability by demonstrating their commitment and publicizing their superior performanceSociety Companies should encourage lasting social well being by their appropriate and timely responses to rapid social change, evolving demographics, migratory flows. Shifting cultural patterns and the need for life-long learning and continuing education
  19. 19. CSI and Reputation Building Reputation as a Social Relevance as Loss of ReputationStrategic Business route to building = Death of Business Asset Reputation Corporate organizations such Beyond the brand Reputation is a as Enron, Anderson concept, companies critical corporate Consulting and build and sustain on asset which must Worldcom became their reputation be built in a extinct as a result of through social strategic manner the erosion of their interventions reputation
  20. 20. Possible CSI Intervention Agenda EDUCATION AND CAPACITY BUILDING PROGRAMMES Schools Technology Upgrade / Skills Development DEMOCRACY AND GOVERNANCE Political Education Political Participation BUSINESS ETHICS AND INTEGRITY Corporate Governance Transparency and Accountability ENVIRONMENT AND HUMAN DEVELOPMENTConservation Water Social Amenities ECONOMIC INCLUSION Financial Education SME and Entrepreneurship Trainings
  21. 21. Trends in CSR Practice in Nigeria CSR In Nigeria A mix of social The practice dates back to investment, corporate the advent of Multinational philanthropy and the need Corporations/Institutions in to add value to the society Nigeria at largeMajor Areas of Intervention:- Education Major Players:- Youth Empowerment BATNF, Etisalat, Chevron, Shell,- Health & Environment Issues British Airways, Dangote, MTN- Community Development
  22. 22. Social Influence and Reputation Management CONSUMERS PORTFOLIO MANAGERS / INVESTORS COMMUNITIES / PRESSURE GROUPS BUSINESS LEADERS FINANCIAL ANALYST / BUSINESS PRESS REGULATORS MAJOR CUSTOMERS DISTRIBUTION / CHANNEL PARTNERS POTENTIAL EMPLOYEES EMPLOYEES Source: Regis McKenna
  23. 23. Achieving a Congruence in Reputation Building and CSI• Organizations must constantly align their Social Responsibility Policy with their Corporate Strategy, to enhance execution and attainment of Corporate Objectives with various relevant publics.• The four stages of the process are listed below: Analysis and Research Planning Implementation Insight Building a Research and Recognition of Framework of Assessment of Social Needs Social current Responsibility Application of position with and Corporate the plan the external Human Social environment. Development Investment Priorities Strategy
  24. 24. Mining the CSI Opportunity Impact Assessment and The Social Reporting Process ThoughtThe CSI Project Leadership Organization in relation to its Stakeholders
  25. 25. Thank You

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