Thursday, 9 February 2017

Employees-centric CSR helps business model

The concept of corporate social responsibility is all about the welfare of society wherein employees come first and the public at large second. 
Funding a school, a hospital or a charity organization from the corporate fund is an noble cause, provided the donor organization has taken good care of its workers, ensuring proper workplace ventilation, daycare center for female workers’ children, safety measures, first aid, etc. Charity is useless if an industry is dumping its untreated waste in the water channels. The harms of pollution are always by far greater as well as long-lasting than the short-term benefits of charities. 
Looking after the welfare of the workers makes economic sense.  A study of corporate enterprises reveals that socially responsible companies are still managing to survive while those shying away from social responsibility are in trouble. Workers tend to stay longer and loyal to their organization.
These workers are more productive not only because of sincerity to the organization but also because of the experience they gain during they prolonged association with the organization. 
Modern day industries need quality human resource. The quality human resource prefers enterprises that provide them with the comfort of stable and secure job, clean working environment, and social benefits like fair price shops, health coverage etc. Genuine philanthropists are good and responsible corporate citizen.
They contribute resources to the community and try to improve the lives of all. Those, who contribute resources for outsiders (community at large) but ignore those who are associated with them, are ungenuine altruists. 
Ethics demands that corporate sector should consider it an obligation to do what is right, just, and fair.
They should avoid causing harm to the society and obey the law under which they are expected to pay minimum wages and do not discriminate them on the basis of cast, creed, religion or gender. It’s not to suggest the commercial organizations compromise their commercial aims. They should strive to maximize profits. It is a common misapprehension among entrepreneurs that socially compliant companies become noncompetitive due to welfare expenditures. 
Yet a look at the corporate sector of Pakistan reveals that every socially compliant company in Pakistan has weathered the storms comfortably. They never stopped growing even in worst of recessions. This is because they attracted the best talent on the strength of their reputation.
These companies not only include multinationals but domestic concerns as well. The best talent helped the produce the best quality products. They earned more on the strength of their quality and efficient marketing.
The non-compliant concerns simply drag on during high growth and go sick at the first sign of recession.  Even the exporting industries that closed down during recession were mostly not socially complaint.
These industries did not have pleasant working environments; they lacked water treatment plants and naturally had an inferior workforce than the complaint industries.
This does not imply the socially responsibility ensures viability of commercial projects; however, it is one factor that enables the company to absorb pressure as the human resource in such companies is more faithful and responsible than in non-compliant companies.  
It is worth noting that socially irresponsible companies invariably are also tax-evaders, under-filers, and cause of heartburning among the employees, who consider their employers as exploiters and have no sympathy for them.
It, therefore, is in the interest of the economy that the economic regulators ensure minimum social compliance and don’t compromise on minimum wage, healthy working conditions, and worker-friendly environment. 
Looking in our region we find Bangladesh has made huge provisions for discounted food to ensure the workforce and their families get proper nutrition.
All creditable studies have proved that productivity is linked to quality of nutrition. Quality nutrition is not available to ordinary workers in Pakistan due to high food inflation. Entrepreneurs would be ensuring long-term productivity growth if they look after this basic need of their workers now.

-The News


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