UN Habitat in Kenya: Antoine King, Programme Support Division

UN-Habitat is headquartered in Nairobi. In this interview with CSR International CEO Wayne Visser, the Director of the Programme Support Division of UN-Habitat Antoine King talks about the importance of understanding CSR in his work with cities.

Video Blog - Healthcare in East Africa: Maryjka Beckmann, AAR Holdings

Maryjka Beckmann is Executive Director of AAR Holdings Ltd, which has pioneered healthcare services in East Africa. In this interview with CSR International CEO Wayne Visser, she talks about the role of generic drugs and how the company uses CSR can tackle health issues.

Video Blog - Business ethics in Kenya: Ken Njiru, Uungwana Resource Institute

Ken Njiru is Executive Director of Uungwana Resource Institute and one of the leading proponents of business ethics in Kenya. In this interview with CSR International CEO Wayne Visser, Njiru explains how they are working on rebranding unethical behaviour as "primitive" or "backward" in the public and business consciousness.

Reflections on CSR in Kenya and China in Africa

By Wayne Visser

Last week, I was hosted by Ufadhili Trust to deliver a 2 day workshop on CSR in Nairobi, Kenya. As I was last in Kenya 20 years ago when I attended an AIESEC African Leadership Development Seminar, it was wonderful to return and compare my impressions.

The biggest changes have been political. In 1990, Daniel Arap Moi was still president (from 1978 to 2002) and ruled a one-party state with an iron hand. My impression back then was of relative stability, but no great sense of prosperity or advancement. I recall that the hotel we stayed at on the coast in Mombasa had a water-cut and the security guard carried a bow and arrow. Also, it took 9 hours to drive the 440 km of pot-hole ridden road between Nairobi and Mombasa.

Today, Kenya has a multi-party democracy under President Mwai Kibaki, although the disputed 2007 general election (and post-election violence) has led to a coalition government in which Raila Odinga shares power as Prime Minister. Apart from changes in politics, the economy is stronger (despite unemployment estimated at 40%) and the roads are noticeably improved.

In fact, the roads sparked one of the first lively debates in the workshop. Why? Because they are built by Chinese contractors. The "Chinese in Africa" topic is a real hot potato, and fascinating from a CSR perspective. The Chinese are bringing massive business investment to Africa (especially in infrastructure), but at what cost? They are accused of low labour, ethical and environmental standards, as well as taking away local employment.

I don't fully buy the "evil China" story (and I fear a new xenophobia is taking hold around the world), for a number of reasons. First, I would far rather see investment in infrastructure than development aid going to Africa. Second, the Chinese government is starting to show concern about its tarnished reputation abroad, so I expect pressure and standards to rise in the coming decade. And third, the Chinese are not all about low costs and poor standards. They have an incredible work ethic and high productivity level, which I believe introduces healthy competition and challenges attitudes of entitlement in countries like Kenya.

The other theme that emerged strongly in the workshop was corruption, although there was less "fight" in this debate. I almost sensed a feeling of resignation among most of the participants. How do you fight a disease that - like cancer - is so endemic in government, business and society at all levels?

One refreshing voice in this debate was Ken Njiru, Executive Director of Uungwana Resource Institute and one of the leading proponents of business ethics in Kenya. He believes that corruption needs to be branded in the public and business consciousness as "ushenzi", which means "barbaric", “primitive” or “backward”. This is contrasted with "uungwana", which means "civilised" or "advanced" or "righteous". (See my video interview with Ken)

As far as general CSR goes, Kenya is still mostly stuck in the PR/philanthropy mode. However, there are inspiring examples of CSR 2.0 practice, such as Vodafone/Safaricom's M-PESA scheme, which allows the unbanked to transfer money by mobile phone text. Similarly, Equity Bank, which has successfully targeted the poorest sectors of society and now, with 4.1 million accounts, makes up over 52% of all bank accounts in Kenya.

I look forward to watching how Kenya can continue to develop and inspire, both within Africa and the world, as it takes its CSR agenda forward. Thank you to Director Mumo Kivuitu and everyone at Ufadhili. (See my video interview with Mumo), Keep up the great work!

Video blog: CSR in Kenya: Mumo Kivuitu, Ufadhili Trust

Ufadhili Trust is the leading promoter of CSR in Kenya. In this short interview with CSR International CEO Wayne Visser, Ufadhili Director, Mumo Kivuitu talks about some best practice case studies M-Pesa and Equity Bank

The Long Tail of CSR

I recently read The Long Tail, by Chris Anderson and it started me thinking: What is the Long Tail of CSR? 

The Long Tail – named after the extended tail of a statistical distribution curve - is the idea that selling less to more people is big business. It’s the business model that has spawned the most successful companies of the Web 2.0 age. The Long Tail questions the conventional wisdom that says success is about generating ‘blockbusters’ and ‘superstars’ – those rare few products and services that become runaway bestsellers.

Anderson sums up his message by saying that: 1) the tail of available variety is longer than we think; 2) it’s now within reach economically; and 3) all those niches, when aggregated, can make up a significant market. He also notes that this Long Tail revolution has been made possible by the digital age, which has dramatically reduced the costs of customised production and niche distribution.

There are three enablers of successful long tail businesses, according to Anderson: 1) democratising the tools of production (e.g. digi-cams, content editing software, blogging tools); 2) democratising the tools of distribution (e.g. Amazon, eBay, iTunes, Netflix); and 3) connecting supply and demand (e.g. Google, blogs, Rotten Tomatoes).

So how might this apply to CSR? To me, the Long Tail of CSR is all about extending the reach of CSR, and improving its ability to satisfy specific social and environmental needs. Let’s use Anderson’s enablers as a framework for thinking about this ...

Democratising the tools of CSR production

This is about breaking CSR silos and extending CSR beyond multinationals. At the early stages of CSR adoption, it is often confined to Public Relations, Corporate Affairs or Marketing departments. As CSR implementation matures, responsibility tends to migrate to specialised CSR departments of various descriptions (environment, health & safety, accountability, corporate citizenship, etc.). However, these versions of CSR are like the Hollywood model of blockbuster films. They suggest that CSR is about a few, high visibility programmes that are designed by CSR experts and delivered by big companies.

By contract, democratising CSR production would be mean firstly embedding CSR across the organisation – making it the responsibility of operations managers, financial managers, shop floor workers, basically everyone. This is only possible if CSR becomes part of the culture and incentive systems of an organisation. Secondly, CSR would need to be extended beyond the usual suspects (i.e. the high profile, branded multinationals) to the less visible B2Bs (business to business), to national (rather than multinational) organisations, to SMEs (small and medium sized enterprises), and down the supply chain (as WalMart is now most famously doing).

Democratising the tools of CSR distribution

To date, CSR has mainly be ‘distributed’ via a few select projects – typically philanthropic or charitable activities – in which the company offers its help to the ‘less fortunate masses’. Usually, the nature and scope of CSR activities is determined top-down and offered as a fairly undifferentiated ‘service’, e.g. Nike might decide to focus on sponsoring sports teams, events and celebrities and Coca-Cola might choose water as its key CSR issue. The most common delivery mechanisms are money (sponsorship and other forms of charity), or for the more advanced companies, adhering to generic CSR codes and standards.

By contrast, democratising the tools of CSR distribution should include allowing staff to participate in CSR delivery through volunteer programmes, and developing more geographically tailored and sector-specific CSR codes and standards, such as the Roundtable on Sustainable Palm Oil, or the Global Reporting Initiative guidelines for HIV/Aids reporting. Beyond this, embracing Bottom of the Pyramid (BOP) markets and supporting social entrepreneurs will allow the reach of CSR to be extended so that the needs of formerly unserved or underserved people can be met.

Connecting CSR Supply and Demand

Traditionally, CSR has been offered in the form of grants by multinational head-offices, who control the budget and set the criteria by which prospective philanthropic projects should be selected. For the more advanced companies, this has been extended to adherence by their operations to corporate codes of CSR practice and communicating this through CSR reports. Demand has typically come from community groups applying to corporate foundations for funding, or NGOs taking an activist approach to demanding improved CSR practices.

By contrast, connecting the Long Tail of CSR supply and demand will rely increasingly on cross-sector partnerships and multi-stakeholder groups. For example, Rio Tinto may work with the Word Conservation Union to identify biodiversity needs and satisfy them through appropriate CSR activities. Companies may also use extended stakeholder networks of community groups, social entrepreneurs and microcredit enterprises to better match their capacity to make a positive impact among those who can most benefit, as BP is doing with smokeless stoves in India and SC Johnson is doing with cleaning products in Kenya.

Conclusion

 To conclude, applying the Long Tail concept to CSR requires a different way of thinking about how CSR is generated, delivered and managed. It means making CSR a more inclusive and embedded process within the company, and a more diverse and far-reaching set of activities outside the company. It also means creating meaningful stakeholder partnerships to ensure that the right kinds of CSR benefit the right groups of people, where and when they need it.

The Long Tail in a nutshell, according to Anderson, is: “culture unfiltered by scarcity”. By extension, the Long Tail of CSR in a nutshell is: “responsibility liberated by collaboration”.

To download this think-piece as a pdf, go to: 

http://www.waynevisser.com/article_waynevisser_csr_longtail.pdf