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

1. Building Organisational Reputation
through Responsible Corporate Social
Investments
Bolaji Okusaga

2. What’s Your Organization's
Objective?
• Corporate Objective articulates a Organization's 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 organization's
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. Identifying Stakeholders
Anyone on the Street
Influencers
Core Target

4. The Organisation and its
Stakeholders
CUSTOMERS
GENERAL
EMPLOYEES
PUBLIC
THE
MEDIA GOVERNMENT
ORGANISATION
SUPPLIERS SHAREHOLDERS
COMPETITORS

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, political
hypothesis 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 that
It address the Principle Stakeholders are
By this model, firms constituencies that
of Who or What Really only address the needs contribute, either voluntarily
Counts 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. Understanding
Stakeholder Dynamics
ACTIVE
Adversarial Advocate
Stakeholders Stakeholders
NON-SUPPORTIVE SUPPORTIVE
Apathetic Dormant
Stakeholders Stakeholders
INACTIVE
Source: Brad Rawlins, Brigham
Young University

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 of
Differences 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. Managing Stakeholders
Problem Identification
Affects Objectives / Goals Information Gathering
Stakeholder Analysis
Allies Assets / Constraints Opponents
Stakeholder Management Process
Strategy Managing Expectations Action Plan

9. Corporate Objective and
Corporate Reputation
The Community outside the
The organization's
Organization must understand
vision, 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 the
understand the organizations view
organization to buy into the
of the regulatory and competitive
organization’s Corporate and
landscape
Market Objectives

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
Capitalisation
Absence of Crisis borne out of a healthy Operating Environment

11. What’s Corporate Reputation
without Responsibility?
“Our best-regarded companies achieve their reputations
by … adhering rigorously to practices that consistently and
reliably produce decisions that the rest of us approve and
respect.” (Charles Fombrun [1996], Reputation: Realizing
Value from the Corporate Image, p. 29.)

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 framework
Corporate leaders grapple with
the fact that businesses’ license The rule of the
to operate have moved beyond game has suddenly
filling a consumption need in changed
society in exchange for profit to
becoming a bulwark for
positive social transformation

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 Balance
Company’s Fight social required; e.g. social profits and
profits by responsibility engage in objectives social
eliminating 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. The Laissez Faire Order
With the development of large
corporations coming on the heels
of the industrial revolution of the
Business 19th century, there arose pungent
For the sake environmental impacts and social
Of 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. The Philanthropic Order
The era of Philanthropy
started with business icons During this
such as Andrew era, businesses found it
Carnegie, David Rockefeller hard to situate their role
and Gerald Ford and were in the larger social nexus
predicated on enlightened
self-interest and the
ethical notion that the
wealthy should give to the
needy in society.
Giving out of enlightened self interest

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. From Triple Bottom-line to Discussions on
Sustainability
Organization/ Society Dialogue
What is the
Environmental How can How can we
/Social/ we reduce the
The 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. Principles of Sustainability
PRINCIPLES COMPONENTS
Technology 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-term
Governance Companies should operate based on the highest standards of corporate
governance including management responsibility, organizational capacity,
corporate culture and stakeholder relations
Shareholders Shareholders' demands should be met by sound financial returns, long-term
economic growth, long-term productivity increases, sharpened global
competitiveness and contributions to intellectual capital
Industry Companies should lead their industry's shift towards sustainability by
demonstrating their commitment and publicizing their superior performance
Society 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. CSI and Reputation Building
Reputation as a Social Relevance as
Loss of Reputation
Strategic 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. 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 DEVELOPMENT
Conservation Water Social Amenities
ECONOMIC INCLUSION
Financial Education SME and Entrepreneurship Trainings

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 large
Major Areas of Intervention:
- Education Major Players:
- Youth Empowerment BATNF, Etisalat, Chevron, Shell,
- Health & Environment Issues British Airways, Dangote, MTN
- Community Development

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. 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. Mining the CSI Opportunity
Impact
Assessment and
The Social
Reporting Process
Thought
The CSI Project
Leadership
Organization
in relation to
its
Stakeholders

25. Thank You