The
private sector must play a
vital role in fostering corporate social responsibility (CSR) practices, said
Khaled Kassar, founder and CEO of CSR Lebanon. “Responsible corporations can
further the CSR culture by complying to internationally recognized standards
and embedding relevant policies in their workplaces, marketplaces throughout
their value chains, their communities where they can support awareness raising
and fostering accountability, and surrounding environment where they can invest
in minimizing their negative impacts in favor of their direct stakeholders,” he
told The Daily Star in an interview.
By speaking about the private sector, he does not only
refer to companies but also to businessmen associations who are expected to
provide significant support for such initiatives.
“Businessmen associations, such as the Chamber of
Commerce, Association of Lebanese Industrialists and the Association of
Lebanese banks, must be active in promoting sustainability,” he said. “This is
what such entities in other countries usually do.”
Kassar’s interview was held leading up to the occasion of the
5th annual CSR Lebanon Forum, dubbed “How
Sustainability Enhances Brand Value and Reputation,” which will take place on
Oct. 26-27 at the Phoenicia Intercontinental Hotel.
“At a time where the country is witnessing a set of
challenges due to the waste management dilemma, the forum will shed light on
the role of the private sector in being part of the solution through
well-defined social and environmental strategies,” Kassar said. “This will not
only help in preventing similar crisis in the future but it is also an
opportunity to enhance companies’ brand perception and earn greater respect,
trust and loyalty from their customers as proved by several recent studies.”
According to the Nielsen Global Survey 2014, around 55
percent of global consumers will pay extra for products and services from
companies committed to positive social and environmental impact.
Another study by Cone Communications show that 90 percent
of consumers would switch brands to one associated with a social or
environmental cause.
Kassar added that the need for a serious approach to
adopting CSR principles was clearly reflected in Volkswagen’s recent emissions
scandal. “The scandal shows a failure of Volkswagen’s consumer policy and its
corporate responsibility policy,” he said. “Also, the loss of billions of
shareholder value within just one week indicates to what extent CSR is
essential in maintaining a good reputation and hence maximizing a company’s
profits by sparing it such unnecessary incidents.”
In a bid to ensure transparent CSR practices vis-à-vis
consumers every company must publish annual reporting for its sustainability
initiatives, Kassar said.
“Around 86 percent of global citizens believe that if a
company makes CSR commitments, it should be responsible for producing and
communicating results,” he said citing a study by Cone Communications.
CSR has recently assumed strategic significance in the
industrial world for companies and governments in the region.
But Lebanon, unfortunately, still lags behind its regional
peers.
“CSR in Lebanon is still perceived as an add-on to
business rather than integrated values. Thus, the problem lies in
implementation where majority of corporations involved in CSR projects or
initiatives lack strategy and long term vision,” Kassar said.
He stressed that CSR is a business strategy that should be
mainstreamed in every business aspect and activity. It’s in the DNA of
business.
Statistics conducted by CSR Lebanon show that 90 percent
of corporate social practices in Lebanon remain philanthropic with little
consideration beyond PR. It said that only 2 percent of corporations are
committing to an officially announced long term CSR strategy and vision.
The study added that 55 percent of Lebanese citizens like
to be involved in choosing a corporation’s CSR initiative. It said that only 16
percent of bank customers are aware of the presence of CSR reporting in the
banking while only 2 percent of banks published official CSR reports.
In addition to the great role that must be played by the
private sector in promoting sustainability, Kassar believes that the government
must also do its part in raising awareness about the importance of integrating
CSR as well as in creating opportunities, facilitating partnerships, and
offering incentives.
“In the world for instance, companies that show a history
in publishing reporting about their CSR initiatives are usually offered special
incentives in public sector tenders by their governments,” he said.
“But unfortunately this has never been a priority for the
Lebanese government,” he added.
-albawaba business
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