By Princewill Ekwujuru

No doubt, companies are increasingly recognising the strategic importance of building business practices that create sustainable economies, environments and societies. In the business world, Corporate Social Responsibility, CSR is an indispensable tool for corporate legitimacy and competitive edge.

Even as Foreign Direct Investment, FDI, is a keenly pursued objective of developing nations, its quest has lead to multinationals having access to emerging economies and when they are eventually admitted, the companies do not live up to the CSR demands of their host communities.

In Nigeria for example, Shell Petroleum Development Company, SPDC, Mobile Producing, MTN, Airtel, British American Tobacco Company of Nigeria Foundation, BATNF, Glo DHL, Promasidor, Guinness, Dufil, Nestle Nigeria Plc to mention but few, had come up with some development programs in host communities through their various Foundations in order to maintain their social license to operate, with focus in areas such as health, education and community-building.

Yet, when particularly oil companies like Shell, Mobil, Total and BATN attempt to implement a CSR agenda, they are regularly a target for social activism on issues of malpractice.

Likewise, the water of life project embarked upon by Guinness Nigeria Plc in parts of the country only ran for a few months. A check at some of the water sites in Ajegunle, Agege, Ogun state and other places showed that the sites are lying fallow, this according to residents was as a result inability of water to flow from the taps after commissioning and that since then Guinness have not returned to find out how the project is performing.

Speaking, Franklin Emejo, a resident of Mba street in Ajegunle, said water stopped flowing few months after it was commissioned. The story was the same in Agege area for the Guinness water of live project. In Ijebu-Ode consumers pay a token to fetch the water, the money Guinness said is to maintain the project. The bore hole constructed by Dufil Prima Foods, owners of the Indomie brand had the same fate befall it as residents in Orile- Iganmu say water stopped flowing longtime ago, likewise in other parts the company cited the project.

Speaking, Andrew Ojei, a resident of Orile -Iganmu, said that some of the CSR activities are shams. His words, “it is a reap off in terms of tax reduction from the federal and internal revenue offices. It’s a reap off in terms of deceit of the citizenry who associate themselves with the brands.” Even though multinational investors or FDI inflow into multinationals or transnational corporations with the financial strength of some corporations larger than that of many developing countries; are expected to meet their CSR requirements, companies still remain adamant to plight of their operating communities.

A Non Governmental Organization, NGO, Water warehouse Nigeria official, Ngozi Maduekwe, said that the major problem is that most of the CSR projects are not the need of the people. “Communities should be consulted before carrying out their activities, a community may require school but construct water which may not be their immediate need, they may require road and you build them clinic, these are some of the problems associated with what she called unplanned CSR initiative.”

However, even when these multinational corporations make so much profit, giving back to their host communities through the concept of CSR becomes a problem, asserts Igwe Odinaka, Head, Research at Orlick Communications. He stated that most of the multinationals fail to live up to laws governing their operations and activities, with regards to giving something back to society.

For example, Coca-Cola is mandated by USA law to contribute no less than $100 million annually towards the progress of Hollywood, the American movie industry. But in Nigeria, no such initiative is available for Nollywood. It was the late Senator Uche Chukwumerije who tried in this capacity to institute the 1 percent contribution for CSR was frustrated along the line by some the multinationals.

Even though some CSR activities are riddled with deceit and controversy, their some companies that have performed well in terms of giving back to the society. While Nigerian Breweries Plc has run a couple of reality TV shows and talent hunt events such as AMBO box office, rested Music Quest, these cannot be compared to Heineken’s support for the British Film industry as seen by the millions of pounds it pumped into Skyfall, a James Bond movie. Odinnaka retorted

But Adelaja Toki of Toki Mabogunje and Company, argued that a company will generally be more proactive in its country of origin, when it comes to living up to its obligations. Its CSR activities in other countries would be only a small percentage of its profit, when it looks at the huge tax it pays on revenue it generates, as well as remunerations to the local staff.

Thus, the establishment of a business integrity movement and the subsequent coming into being of the Convention on Business Integrity, CBI with the support of leaders of thought like Dr. Christopher Kolade, Dr. Michael Omolayole, Mr. Akintola Williams, and Prof. Pat Utomi, among others. CBI has as its objective, the promotion of ethical business practices, transparency and fair competition in the private and public sectors, amongst other things. Living up to its billing, the business integrity movement has since won converts among illustrious Nigerians and institutions.

Guinness Nigeria Plc, Access Bank, GTBank, MTN Nigeria Communications Limited, and SAP Nigeria, among others are signatories to CBI which aims to move the Nigerian business community towards a state of visible zero tolerance for corruption, and higher CSR performance by companies, yet this is lacking.