Recently, Chief Executive Officer for conglomerate Press Corporation Limited (PCL), Ronald Mangani, expressed worry over the tendency by some ministries, departments and agencies (MDAs) to seek financial support from private sector players to conduct corporate social responsibility (CSR) activities.
Speaking in Lilongwe where he made a presentation during the 2024-25 pre-budget consultations meeting, Mangani revealed that PCL had already received a mountain of requests from MDAs asking for extra funds for their CSR activities. He highlighted that this trend contradicts the primary purpose for which the businesses and individuals contribute taxes.
Having served as Secretary to the Treasury, Mangani’s outspoken stance indicates an acknowledgement of shortcomings in the current implementation of CSR activities in the country.
Going by information in the public domain, this issue may not be unique to PCL, as various sectors are also getting similar fundraising appeals, urging private sector participation in causes such as education and health.
- Advertisement -
Without wanting to discourage private sector players from supporting CSR activities, Mangani stressed that “budgets of the corporations should be voluntary contributions by the corporations in these very same sectors”. Mangani, therefore, advised government to put in place measures that would deter MDAs from soliciting direct funding from the private sector through CRS requests.
- Advertisement -
To begin with, and for the sake of space, it would not be worthwhile bothering you with definitions and theories related to CSR. Suffice to say that CSR is a highly contentious issue, which is defined and understood according to the context, mission and values of a corporation and in line with an individual’s perspective.
CSR has evolved over time – from what used to be simple philanthropic activities to a complex subject that now integrates business interests with those of communities in which businesses operate.
CSR activities are fundamentally manifested in four thematic areas, namely environmental, ethical/human rights, philanthropic and economic. Approaches to CSR could either be normative, where corporations undertake CSR activities because they have to do so, or instrumental— whereby a business views CSR activities as a vehicle for the attainment of its financial goals. Approaches may also depend on the nature of the business, reasons for undertaking the CSR, just to mention but a few.
For example, a corporation may undertake CSR activities to enhance its image and visibility while some businesses will embed CSR activities within their marketing strategy.
- Advertisement -
Besides, CSR is now becoming a reputation issue, of which any corporate entity, be it in the public or public sector, would hardly choose to ignore. The more a business undertakes CSR activities, the more it enhances its reputation. It is also worth noting that CSR activities in most corporations are budgeted for and are housed either in human resources or public relations departments.
Furthermore, the rationale behind a socially responsible corporation that values its reputation is to ensure that the corporation’s activities are managed with the desire to, among other things, show the positive impact while reducing the negative impact that such activities or operations may have on the environment, staff, consumers, the people with whom it does business and those in local communities. In other words, any business should dsplay environmentally, ethically and socially responsible behaviours in its operations.
On the other hand, corporations operate in societies which are replete with challenges such as illiteracy, malnutrition, poverty and so on. These challenges could, if not properly addressed, make some members of communities feel marginalised or excluded. Any socially responsible corporation cannot, therefore, turn a blind eye to such challenges as it is going about its business.
MDAs are not an exception. They may also be faced with demands they would be compelled to address, albeit such not being within their priority areas or scope.
However, Mangani’s sentiments underscore the absence of a standardised CSR framework and guidelines for the public sector. While recognising the vital role played by MDAs and the private sector, there is a compelling need for coordinated regulation under a single responsible ministry. Establishing a public CSR framework, supported by legal instruments such as the Public Finance Management Act (PFA) of 2022[MC1] , could ensure accountability in donation and fundraising activities.
For example, in countries such as Jamaica, it is the Ministry of Finance and Public Service which develops the CSR Framework, strategy and templates for the public sector while in other countries, notably India, where issues to do with CSR are under the Ministry of Corporate Affairs, government opts for CSR voluntary guidelines which, among other things, specify core elements in CSR that businesses should focus on when conducting their affairs.
Perhaps, government could benchmark against such countries as it considers developing a Framework for CSR activities in Malawi. But whatever model government would adopt, a harmonised approach to implementation of CSR is necessary as this would promote accountability and transparency in the country.
All in all, fostering partnerships between the public and private sectors is crucial as they collectively strive towards the common goal of serving communities. Addressing the challenges in CSR implementation requires a harmonised and transparent approach, emphasising accountability and well-coordinated efforts of both sectors.
