Social investment key to business success

Companies have continued to discover the power of Corporate Social Investment (CSI). Giving back to communities where companies operate has indeed become an integral part of doing business.

A clearly articulated and implemented CSI strategy can also result to a strong bottom line, especially where companies consider the interests of multiple stakeholders. Generally, the idea operates on the principle of firms ploughing back into communities in which they operate.

Companies spend millions of shillings every year on CSI. Some give away products to support people in need, while others invest in clean technology to lower their environmental footprint.

One of the commonest ways companies have advanced this line of business in Kenya is by engaging their employees in non-profit work. It is understandable to look in awe, or even wonder why companies engage in all these? It is because companies want to associate with the communities in which they operate and become part of the solution to their problems and challenges they face.

Taking on responsibility in society builds trust with key stakeholders. And trust is what we need to create support from these stakeholders in the reputation economy.

An example of how this works is the Water of Life initiative being run by the East African Breweries Ltd (EABL). Through the programme, which has been operational for over a decade, the company has participated in different projects that aim at increasing water availability and access for low-income households in both urban and rural areas.

The company chose water because of the grim statistics surrounding the commodity. According to the United Nations, 780 million people have no access to safe drinking water. It gets worse. The Environmental
Outlook to 2030 notes that 47 per cent of the world’s population will be living in areas of high water stress by 2030. That’s close to half the world’s population .

Such grim numbers have prompted the UN to make repeated calls on corporations, communities and governments to co-operate in finding solutions that will guarantee access to water by all.

This year’s World Water Day to be observed on March 22 is quite aptly dedicated to water co-operation and 2013 has been dubbed the UN International Year of Water Cooperation.

Statistics on the future are however not written in stone. They can indeed change. But that depends on what we all do in the present. Corporates are aware of the fundamental role they can play in establishing sustainable water use.

With growing concerns on the effect of climate change on water tables throughout East Africa, EABL has for instance embedded environmental sustainability programmes that embrace the management of water use with local water challenges in mind.

At Ruaraka, the company has constructed a Sh255m waste-water treatment facility to further its conservation endeavours. These management efforts are part of a plan to increase water usage efficiencies in all EABL subsidiaries across the region.

We each have a part to play. Question is; what are you doing to play your part?