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KATHMANDU: World Business Council for Sustainable Development

says Corporate Social Responsibility (CSR) is the continuing


commitment by business to contribute to economic development while
improving the quality of life of the workforce and their families as well as
the
community
and
society
at
large.
Through my work with VSO and Community Self-Reliance Centre
(CSRC) I have had the opportunity to explore and hopefully build and
encourage further dialogue and implementation of strategic CSR in
Nepal. I have visited numerous corporates trying to get a handle on
peoples understanding regarding their definition of CSR. What I have
found is a mixed bag, in which some peoples understanding is that CSR
is about corporate philanthropy, a photo opportunity and some positive
publicity about a monetary or in-kind donation, while others are trying to
incorporate sustainable CSR into their corporate objectives and making
this part of their corporate culture, as reflected in a vision or mission
statement. In my initial meeting with the corporate crowd, I explain that
CSR is about building partnerships, in which all parties can mutually
benefit. CSR is about impact, value for money and positive change in
society. It is not a short-term activity, but about strategic investment and
has to benefit and be integrated into core business objectives in order to
be effective. CSR is about innovation and taking advantage of
opportunities.Strategically focused businesses have specific core
objectives, typically looking to grow to maximise profits for the business
and shareholders. Some businesses in Nepal are starting to realise how
partnering with NGOs, who are working with specific communities, can
help them in furthering their core objectives. This is indicated by the
types of CSR activities and investments that are being made. Corporate
are also beginning to realise how much sense a triple bottom line, that is,
people, profits and planet can make for growing their business. As
consumers become better educated, they want to know that businesses
treat their employees well and how the manufacturing of specific
products
and
/
or
services
impacts
the
planet.
CSR is about investing, which does not have to be about money, but can

be conducted through the use of human resources, value chains,


infrastructure and other business expertise. CSR activities do have to be
well thought out as shareholders and management will want to ensure a
positive return on investment. This means positive impact and outcomes,
in which a societal change is made in whatever thematic areas fit in with
core
business
objectives.
As indicated in the paper Corporate Social Responsibility in Nepal: A
Chance for Peace and Prosperity? a report based on a Mission
to Nepal in November 2006 by Caroline Welzel Butz-bacherstr CSR is
not about how a company spends its income but rather about how it
generates that income. In Nepal, CSR can very much be about helping
to stabilise the peace process. Time has come in Nepal to continue well
thought out, strategically focused CSR activities. It is no longer just about
doing a good deed because somebody wants to give to those considered
to be less fortunate, although this is as good a reason as any. CSR is
about working with those who may be outside the mainstream, for
example, developing livelihood opportunities so that people do not have
to migrate, developing programmes that keep children, especially
females in school, so that they can obtain at least a SLC certificate, or
providing health facilities for women to be protected in reproductive
health issues or bringing about an inclusive society and so much more.
Business is the driver, but needs to partner in order to continue to
develop new markets and be sustainable. (The author is a VSO
volunteer working at both VSO Nepal and Community Self-Reliance
Centre, a land rights and agrarian reform NGO, in the field of corporate
social responsibility. He plays and coaches basketball in Nepal on a
regular basis and can be contacted through mikerlakers@yahoo.com)

KATHMANDU, April 5: Private sector in the country has a lot of grievances. On the
surface it may be summed up as the outcome of unstable and insecure political
environment, but there is more to it. Private businesses suffer from labor conflicts, noncompliance with existing rules and regulations, protesting customers and lack of
transparency among others.
This discordance between businesses and their various stakeholders - consumers,
employees, investors, suppliers, local communities, government and civil society -- has
created conflicts which are in the interest of neither the business people nor other
stakeholders. In this backdrop, Corporate Social Responsibility (CSR) can be the best
strategy for businesses to improve their relationship with stakeholders, which will in
turn ensure their sustainability.
"CSR is establishing mutually beneficial relationship between business people and
stakeholders and helping find win-win solutions for both," said Catrin Froehlich, CSR
expert at National Business Initiative.
Although businesses in Nepal have always been conducting philanthropic activities, CSR
concept was introduced among the business sector in 2003 following the first ever
study on CSR in Nepal by Lotus Holding, Action Aid and Federation of Nepalese
Chambers of Commerce and Industry (FNCCI), according to an article Country Profile
of Nepal in the Sphere of Corporate Social Responsibility by Socially Responsible
Business Development Network (SRBDN). The study showed the poor awareness on
CSR among businesses at that time.
Like in most developing countries, CSR in Nepal has often been confused with charity.
Although community service is a good and welcome move, it does not have the benefits
and impact of CSR for businesses and their stakeholders.
Majority of the activities currently carried out in the name of CSR are unsustainable
because they are not carried out strategically and do not relate to the core business,
where businesses have the largest impact. In addition, focusing only on community
service leaves other stakeholders like employees, consumers, suppliers and government
out of the loop. Along with carrying out strategically sound CSR activities, businesses
should also effectively market those activities.
Private sector in the country has taken some strides in CSR through initiatives like
National Business Initiative (NBI) and FNCCI CSR Forum with the help of international
organizations like GTZ and global initiatives like UN Global Compact.
What we need today is a strong private sector that can protect its own interest, as well
as the interest of its stakeholders. If businesses uphold their CSR, they are well on their
way to be the most sustainable development partner for Nepal.

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