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Aligning CSR With Business Goals

CSR is about far more than just rands and cents.

Josh Becker

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Across Africa, corporate social responsibility (CSR) programs are often a requirement (if not a mandate) of any international investment. Their application varies from simple PR opportunities fulfilling government requirements, to effective, community-changing organisations of their own.

The approaches companies take to engage in philanthropic activities include everything from just writing cheques to causes, to developing their own in-house programmes.

No matter what approach you choose, or your company already has in place, here are some thoughts based on observations of 50+ years of CSR programs across Africa and in developed markets.

Start with what you know

The challenge here lies with pre-conceived ideas of what social responsibility looks like. In emerging markets it traditionally has something to do with healthcare, education, or food/water access.

This doesn’t have to be the case though. Think outside the box, and start with what you know; what your core competencies are as a company. Then use those sets of skills, resources, or tools as the foundation of your CSR program.

When a logistics multinational won a local port management concession, the government mandated a certain rand amount to be spent on CSR initiatives. This company took the traditional route, with little to show for it beyond a nice donation figure with several commas to illustrate the CSR impact.

What would have had greater impact on the community, and arguably eventually their own business, would be to provide their services gratis to local NGOs or entrepreneurs starting businesses.

These service ‘rands’ would help stretch NGOs’ limited budgets that much further, perhaps allowing them to bring in additional shipments. Or, they might have helped the struggling, budding entrepreneur to bring just a little more product to really get the business off the ground.

Provide services or product with monetary value, but in ways that leverage your company’s resources and skill sets for a much broader impact.

Focus on adding value

This theme, though sometimes cliché, is key to developing and operating an effective CSR programme. Ask yourself, ‘how do we add value to this community?’ The obvious answers of employment, taxes, etc. aren’t what we’re looking for in outcomes of a CSR programme. Any company could provide those benefits. What does your company do or offer beyond those things that adds and creates value in the local community?

Andrew Carnegie was responsible for building over 2 500 libraries around the world. In the era before the Internet and broadcast TV, libraries were the primary source of information and knowledge outside of schools.

Libraries, to Carnegie, were key to building knowledgeable societies that could take advantage of opportunities to create value and grow. Though this work was done in a personal capacity and not as a CSR project affiliated with a company, his position and influence at the time as a surrogate for the US Steel industry is valid.

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Branson on Growing Your Business By Building a Community.

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Look in, employees

Modern, global companies – often in the tech industry – have figured out that engaging employees in what is important to them, and providing outlets and support for their personal interests actually adds value to the company. This is often true when developing CSR strategies in countries across Africa.

When trying to identify needs in the community, look in first. What do your employees say? What are their needs when they go home? What do they wish their kids had access to? By directing resources towards things that matter to your employees, they are driven with dedication to the company. They also become valuable allies if (or when) issues or differences arise with the local community or officials.

Leveraging the input and ideas of employees has even greater importance when you consider recent studies on the implicit leadership theories of many of the cultures across sub-Saharan Africa. These studies have shown that none of the top 10 leadership traits important to western cultures are even on the same list as the local ones.

The key takeaway for CSR strategy is that the most common number one leadership trait locally is the ability to ‘take care’ of the followers. Your company is the leader of your employees and their communities. Take care of them with genuine dedication, and you might be surprised how your company benefits in turn.

Measure

Finally, make sure that you can measure the impact of your CSR programme’s activities beyond just a highlighted rand figure of money spent.

  • How many people are better off now than before?
  • How many people are healthier now?
  • How many people have taken advantage of opportunities they couldn’t before?

Measuring ensures accountability. The benefits to your company from measuring and demonstrating effectiveness can’t be overstated.

However, the greatest benefits from designing and implementing an effective and efficient CSR programme will most definitely show up on the bottom line. After all, business exists to create and build value. Just don’t make profit the sole focus, and you might be surprised at the results.

Joshua Becker is the son of missionaries who moved to Zambia from the US when he was a baby. Becker is the co-founder of Impele Consulting Group, a consulting and investment advisory firm with local expertise now in nine countries across Africa. Additionally, he is currently the founder and chairman of the board of LibertyWorks, a socially and environmentally positive green energy and hardwood products manufacturer in Liberia, West Africa. Becker holds a BS in Management from ORU, and an MBA from Thunderbird School of Global Management.

Leading

What A Grade 1 Sticker Business Taught Me About Business

It’s the very fundamentals that are frequently overlooked amid ambition and “blue sky thinking” – yet, these remain the most crucial element of any business.

Grant Field

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When I was a kid, my father believed that instead of getting pocket money, my brothers and I should learn how to make money. Stickers were the school craze when I was in Grade 1, and we wanted a collection for ourselves, so Dad said if we wanted to buy the stickers, we needed to make the money. So, logically, we started a sticker trading business. Dad gave us the start-up money and took us through the basics of business.

We had a cash float for purchases, and learnt about cost price, mark-up and selling price – very basic accounting. We kept recycling that money, making extra and using it to buy more stickers. Then we worked out that if we increased the mark-up, we’d make a bigger profit – so why not make the mark-up as big as possible? The obvious happened. Our prices were too high, and we lost customers.

Valuable business lesson learnt, we came back down to a mark-up that other kids were willing to pay for.

More lessons to learn

Then people came to us and asked if they could take a sticker today and pay us tomorrow. We saw no reason not to trust them. Guess what? They didn’t pay us back. We had bad debt on our hands. When we sold out of stickers, we had cash-flow issues and couldn’t buy more stock. Dad was there to help us out, though, so we received another capital injection to get back off the ground. And this time, if we did extend credit, we loaded it for the privilege of “buy now, pay later” – another lesson learnt.

We ran a proper ledger for the business, tracking our inventory, sales and profit. Even if our “bank” account was a piggy bank, we had a clear record of what was going on. When I look back on it, none of what I learnt was irrelevant.

Today, I run a leading financial services company with billions of rand running through our bank accounts. Even though the finances of the business are run on a much larger scale, the principles of business – those basic principles that we learnt trading stickers – still power our company. And when I see entrepreneurial ventures failing, or when friends come to me for advice because their business is struggling, it’s almost always because they haven’t got these basics right.

Related: Successful SA Entreps Share Their Most Valuable Business Advice Ever Received

Clarity

One of the most important lessons I’ve learnt is that if you don’t fully understand how the money is being made, walk away. Whether you are dealing with stickers or financial services, the business principles should be straightforward: money coming in, money going out, and profitability.

Every day, I look at an Excel statement of my company’s forty bank accounts. Every day, I look at the cashflow, and unusual big-ticket items get a note so I know what’s going on. It’s just like that Grade 1 business, only on a bigger scale.

Entrepreneur, thwarted

Once the other kids saw the success of our sticker business, they started to want to get in on the action, so they came to market with their own competing products. At first, we were able to innovate as the competition squeezed our margins and started to impact on our profits. Eventually, the whole situation got completely out of hand and the school banned sticker trading for profit.

While I didn’t become a sticker magnate, the lessons I learnt in Grade 1 remain central to every business I am involved with – get the basics right.

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Leading

How To Handle A Director Who Always Says No

Diverse opinions on a board is a good thing — but is it boosting your business, or hindering growth and decisions?

Carl Bates

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Do you have that director on your board who always says ‘no’? Regardless of what the issue is, regardless of the context, who raises it or whether or not it is indeed a good idea, their response is either a simple ‘no’ or an elongated perspective on why they disagree? It can even feel at times that they are actively working against the company and against the board. Although they obviously do not see it that way.

Experienced directors will have multiple war stories related to this subject. Aspiring directors should be aware of how to approach these situations when they arise and how to avoid becoming the subject of such stories.

Develop a culture of trust, candour and professionalism

A board’s conduct must be characterised by trust, respect, candour, professionalism, accountability, diligence and commitment. It is the board’s collective responsibility to build this culture and to engage with one another in a productive and effective way.

Dissent should be welcomed when it is constructive and engaging. The idea of being the ‘devil’s advocate’ for the sake of it however, is not the best way to approach this. Dissent should be based on a real belief that the issue has not been fully debated or creates a real challenge for the company going forward.

If you have a director who genuinely believes a different path is right for the company, hear them out and engage in the discussion. In my experience, this often opens up an issue or changes a detail that when taken as part of the whole, improves the decision-making outcome for the board and the company.

Related: Contributing In The Boardroom

Remove the politics from the boardroom

At the heart of this issue is often politics. Politics between directors, who are also shareholders or executives. Politics between the ‘new guard’ and the ‘old.’ Regardless of the genesis, politics really do not have a place in the boardroom and directors who engage in it should be called out by the chairman or another senior director.

In local government I have heard stories of councillors who always vote ‘no,’ so that whenever something goes wrong, they can say “I told you so,” and show the public why they should be re-elected. But that is indeed politics. The boardroom is a very different space. It is private and discussions should be confidential.

Board rotation, a simple solution

While the removal of an errant director should never just be left to resolve itself, there is a simple solution that can support the easy removal of the most difficult directors. The challenge is that it requires forward planning prior to the appointment of any new director.

Directors should only ever be appointed for a predefined term, with automatic rotation at the end of that term. This does not stop you from reappointing a director for a further period. It is, however, always easier to ask someone to consider a further term than it is to tell them that their time has come and they should resign from the board.

Having a predefined term for a director essentially ensures an automatic resignation period. A simple rotation policy for directors is not just good governance, it is a practical step you can take to provide a way out of a sticky relationship.

Ultimately the board as a whole must address issues that detract from the board fulfilling its function as and when they arise. A rotation policy might provide an effective backstop. A high-performance board is one that will tackle the issue head-on.

Read next: How Diversity Drives Board Performance

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Leading

The Power Pose: Using Body Language To Lead

Use the way you move and stand and interact with others to become a better entrepreneur and leader.

Howard Feldman

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In 2012, the power pose became a global sensation. A Ted Talk by Amy Cuddy hit a staggering 46 million views and became the second most popular Ted Talk in history. The premise was simple – hold a powerful pose and it will not only affect the way you behave but it will even change your body chemistry. Since the talk, the power pose has met with heavy criticism and been labelled as nothing more than pseudoscience. Fortunately for believers, they were proven right. Amy Cuddy released further research this year and it fundamentally proves that this bold stance works exactly how she said it did back in 2012.

The power pose isn’t something that you’d adopt in a meeting or around the office but the science behind it shows how important it is to pay attention to your body language as it can fundamentally change how you are perceived.

Notice how you are noticed

People spend a lot of time reading one another’s body language and the way a person stands or holds their hands or moves can influence how others see them. It’s very natural to judge someone else’s posture, but what about the way they are judging yours? Few people look at how their body language is affecting the way people engage with them.

Related: [Quiz] How Good Are You At Reading Others In Business?

So, what are you supposed to do?

Fake it until you make it

Want to know how can you adapt to become a better leader? You can fake it.

The power pose isn’t the only way to change your mood. Research has shown that whether you laugh naturally or put on a smile and make yourself laugh, your body still releases the same levels of serotonin.

Whether you are really laughing or just pretending to laugh doesn’t matter – they both have the same impact on your demeanour.

Change how others see you

Think about the pose that every athlete adopts when they win a race or achieve something that’s been physically taxing. They hold their hands outstretched in the air. Even blind athletes hold the same pose. It’s big, it’s bold and it’s a physical manifestation of success.

Now consider the defensive pose. The tight hunched shoulders or inward curve of the spine. These poses immediately make a person look nervous, afraid and lacking in confidence. Like the porcupine curling in on itself for protection.

The same ideas apply to daily business life. While the power pose and the athlete pose are not necessarily a team activity, ensuring that you hold your body upright and with confidence means that you’re conveying an attitude of strength. You come across as confident and capable and positive. You are ready to take on anything and overcome the odds.

By contrast, if you are hunched and withdrawn, you come across as nervous and lacking in confidence and these are not the qualities you want associated with you as an entrepreneur and a leader.

Related: (Slideshow) 5 TED Talks That May Change Your Perspective on Life

Body language for entrepreneurs

  • Shake hands like a hero. The way you shake hands with someone is very significant in terms of establishing equality. Be even, be firm but don’t pull people towards you or turn their hands under your own. This makes them feel like you are trying to establish dominance.
  • Create an atmosphere of openness. Maintain eye contact, say hello to people with warmth while holding a strong posture. A warm and open greeting is essential to establishing trust.
  • Do the power pose for two minutes before any meeting or interview. This will get those chemicals stirring and make you feel confident and in charge.

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