Companies, keep community lines open

Increasingly there is tension between companies and communities, interest groups and officials, employees and employers, church and state.  Gone are the days when communication was a one-way process in which a dictum was decreed and compliance was expected.  Today’s world of stakeholder interest and analysis requires that you get “buy-in” before you make a move.  This is opening up new areas of communication for organisations and individuals.

Corporate Social Respon-sibility
The re-hashed language is “Corporate Social Responsibi-lity” (CSR) and while some may regard it as the latest  fad, it is clear to me that organisations which do not take a proactive approach to their Corporate Social Responsibility (CSR) may find themselves at best on the receiving end of “negative flack.” The main driver of this CSR band-wagon is the expanded world of communication which we live in.  Just one click and you know that Hewlett Packard has set up wireless networks for American Indians or that Nike has been on the receiving end of negative global pressure for its unfortunate labour practices.  On the other hand, Avon is enjoying  phenomenal publicity because of its support for breast cancer activities throughout the world. Why CSR? It is simply good business sense to have the community on your side but they won’t support you unless there is a genuine feeling that as a company you are doing what’s in their best interest. There are many communities to consider. Whether right or wrong the progress of the government’s VSEP plan for Caroni has received a setback at least for one group of workers. This occurred because in the eyes of one judge they had not consulted the bargaining unit. Again whether right or wrong the Point Fortin residents seem bent on halting any expansion of the LNG plant because they feel that they are being abused by the company. Again right or wrong, the Toco harbour plans were halted because the host community did not see the potential benefits. Organisations caught in the middle of such controversies have a delicate road to walk.  They must balance the common good with shareholder interest and satisfy the various communities of interest which can influence their future and therefore impact on their return on investment.

Negotiating Minefield
The business of business is not simply business, it has shifted to include satisfying host communities.  Maybe the most important action is to engage in formal and informal conversations with target audiences in order to identify what would make them comfortable with your business.  This means employing a suitable research methodology to get the right answers. The information derived from your research should then inform the development of effective policy which will guarantee a win/win solution. The third step is ensuring that key stakeholders understand and accept this policy. The reputation you develop is acted out by the leadership of your organisation and if they don’t understand it, they can’t sell it on an ongoing basis. The final step, mass communication. This would then be based on mutual understanding and sound knowledge of community expectations.

No Option
In this global village, the man in the street can learn about applicable standards of operations at the click of a mouse.  He/she can tell you what similar organisations or governments are doing to satisfy community interests in various parts of the world.  One can assume that the Trinidadian will continue to operate as he did 20 years ago and ask for a little sponsorship here or a little sponsorship there.  Or one can   dialogue with communities to ensure that action is based on what is in the best communal interest. In the latter case, the enlightened self interest of dialoguing with communities will result in third-party endorsements which are invaluable. Action based on some assumption  that a few persons know what is in the best interest of all is doomed to fail.  The only model likely to succeed is one based on the full involvement and participation of host communities. This can only be achieved by communication and dialogue. Corporate Social Responsibility provides an opportunity for organisations to be proactive and participate in formulating the agenda for action. Those who grasp the opportunity will occupy centre stage and enjoy a level of business success which will be envied.  In addressing the recently concluded World Summit, chairman of Royal Dutch Shell said: “Shell now sees that environmental and social responsibility are essential allies to business success.  Business should embrace sustainable development and corporate social responsibility not just as a force for good, but because it is our clear competitive advantage.”

The views expressed in this column are not necessarily those of Guardian Life. You are invited to send your comments to guardianlife@ghl.co.tt