Management’s role in Corporate Social Responsibility

Chapter 3 of the ZimCode addresses board of directors and directors. Under the leadership of a board of directors a company has to meet several obligations. One of the key obligations that a company has to satisfy is its Corporate Social Responsibility (CSR).

CSR aims to ensure that companies conduct their business in a way that is ethical. This means taking account of their social, cultural, economic and environmental impact, and consideration of human rights.

CSR is a broad aspect that can involve a range of activities such as working in partnership with local communities, socially responsible investment, developing relationships with employees and customers, environmental protection and sustainability.

All these activities can help the company to build stronger relationships with the external world which is critical for its survival.

While the board of directors provides guidance and oversight on CSR, it is the CEO and management who are responsible for the actual execution.

It means that what is envisaged by the board concerning the company’s CSR program should be well understood by the CEO and senior management and is cascaded to line managers and all employees for implementation.

Paragraph 130 (b) of the ZimCode states that “the chief executive officer and senior managers should ensure that the company has a corporate culture that promotes sustainable ethical practices, encourages individual integrity and fulfils the social responsibility objectives and imperatives of the company”.

CEOs and senior managers engage with key stakeholders in government, industry, civil society and international organisations and are able to capture valuable information about emerging social and environmental issues that’s they can use to the benefit of their companies.

Corporate social responsibility (CSR) is increasingly becoming a strategic issue that has to be well appreciated at all levels of the company.

Employee involvement is a critical success factor for CSR performance such that managers should take time to understand the CSR objectives of the company and constantly keep abreast with the CSR goals and initiatives taking place within the company and in other parts of the business.

CSR should be a part of regular conversation between managers and employees; and formal communications about expectations, performance, progress and development help build the right mind-set for CSR within the company.

High performing CSR companies foster a culture of CSR and fully integrate CSR throughout their operations, rewarding and incentivising CSR decisions and initiatives.

Furthermore, managers need to encourage a culture of social responsibility by supporting employee participation in the CSR activities and even allow employees to play grass roots leadership roles during these activities.

Of course it needs to be balanced with the need to focus on the company’s primary business but CSR work doesn’t have to be viewed as wasted time.

It too can contribute to teamwork, employee engagement, employee development, and even the company’s bottom line.

ZimCode paragraph 266 highlights that companies should be guided by a Triple Bottom Line approach of people, planet and profit which involves taking into account the company’s environmental and social performance in addition to its financial performance as well as its responsibility to stakeholders.

The Triple Bottom Line approach drives businesses towards sustainability and a commitment to CSR implies a commitment to economic development approaches that also benefit the local environment and quality of life. For more information on the ZimCode contact: secretariat@ nationalcodeoncg.co.zw