Transforming CSR into IB activities
Corporate Social Responsibility (CSR) are activities of the private sector, which is not part of the core business of a company, but financed from the business profit, to address social and environmental concerns. Most CSR is very small, and comprises some funding for scholarship, hospital support, tree plantation and environmental cleaning, and family support. The funding is very small (typically less than 3% of the net profit of a firm, in Ghana between GhC 20,000 and GhC 1 million), and not sustainable in its financial contribution is heavily fluctuating.
Furthermore, the quality of CSR to actually make a change in society (even at small scale) is often questionable. Many times CSR – while helping a few poor families – is not addressing the root causes of poverty or environmental problems and thus persists poverty Therefore more systemic approaches in the use of CSR are discussed internationally, e.g. the establishment of foundatio9ns with clear objectives, professional implementation, and sustainable financing (such as Gates Foundation).
Transforming CSR into IB/IGB activity: In the IB/IGB discussion, general CSR work is not seen as IB/IGB eligible. However, CSR work that is transformed to pilot test a new core business line would qualify as IB/IGB activity.
Ghana has an active corporate social responsibility scene. CSR is typically done by mainstream business. Many IB/IGB firms do not have CSR activities, rationalizing this with the fact that their total business is deliberately designed to achieve large scale social or environmental impact. Many social enterprises also do not have CSR because of their very small revenue and profit availability. Unlike in other countries (e.g. India) doing CSR is in Ghana not mandated by the law for medium and large size industries. While some companies have sustainability reports, research on CSR in Ghana is a bit dated, more theoretical, and less quantitative.
CSR awards: Since 2013 the Centre for Corporate Social Responsibility & Sustainability (CSR) West Africa, a leading CSR and Sustainability advocacy organization in the West African subregion is organizing the Ghana CSR Excellence Awards in collaboration with the Association of Ghana Industries (AGI) and other partners.
AGI has an established an Environment, Social and Good Governance (ESG) award as part of its Ghana Industry Quality award. (link to the ESG page under AGI: ,the next being given on 16 November 2024in the World Trade Center in Accra.