Effective CSR is embedded in the business, not siloed in a foundation

Many companies in Bangladesh are outsourcing their conscience. They hand CSR over to their foundations, cut a cheque, and call it responsibility. On paper, it appears neat: the foundation supports schools, hospitals, or scholarships, while the company proudly checks the "CSR" box.

However, there is a catch: CSR is not the same as charity or philanthropy. It is not about writing a cheque to a foundation and moving on. CSR is about how responsibly a company conducts its business — how it earns, how it consumes, and how it impacts society and the environment. 

A foundation may do commendable work, but it cannot replace the accountability of the company itself. Or else, what we are calling "CSR" is just charity in disguise.

Foundations are popular in the business world. We see many large foundations, such as the MetLife Foundation and the Gates Foundation, among others, doing praiseworthy work around the world. Foundations are meant to drive philanthropy, often operating independently of their parent organisations. But when companies push all "CSR" to their foundations, two things happen:

First, CSR becomes a PR stunt. The company proudly says, "Our foundation built a hospital!" Meanwhile, its factories continue to pollute rivers or neglect worker safety.

Second, CSR becomes disconnected from the business, creating a stark misalignment. A cement company running a scholarship is noble, but real CSR for a cement company means tackling emissions, ensuring construction safety, and maintaining supply chain standards.

In Bangladesh, the confusion regarding the foundation is common. Companies establish foundations that engage in significant charity work, but their businesses often remain unaddressed by sustainability or inclusivity practices. 

Compare that with companies that integrate CSR into their core operations, such as banks focusing on financial literacy, apparel companies investing in worker well-being, or telecom companies driving digital inclusion. The difference is stark: one is charity, the other is responsibility.

Here are some straightforward recommendations:

Keep CSR in-house: CSR should be an integral part of the company's overall strategy and not outsourced to an external group, including any business-related foundations.

Align with the business: CSR initiatives should be aligned with the core nature of the business. For example, telecom companies should focus on enhancing digital skills, cement companies should prioritise reducing emissions and ensuring safety, clothing brands should improve working conditions, and banks should promote education and financial literacy.

Measure impact: It's critical to track the impact of your CSR initiatives in relation to your business goals. If you cannot measure this impact, then it is not truly CSR; it falls under charity. This practice is vital for evaluating the effectiveness of your CSR efforts.

Use foundations to support, not replace: While foundations can assist in charitable activities, the company itself must take responsibility for its own commitments and obligations.

CSR is not about cheque handovers or ribbon cuttings, and it cannot be delegated like a side project. Outsourcing CSR to a foundation is essentially outsourcing accountability, and that defeats the purpose.

It is time for our companies to take responsibility in-house. CSR belongs in the business - in its boardrooms, balance sheets, and everyday decisions- where it adds value to the company and makes genuine differences.

Shafiq R Bhuiyan is a storyteller who examines the intersection of social progress, effective communication, cultural development, and corporate social responsibility while sharing insights to inspire change. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.