Vanguard
27 October 2008
Corporate Social Responsibility (CSR) has been identified as a viable strategic approach that companies could rely on to anticipate and address issues arising from their interactions with different stakeholders in the normal course of business and also, important in enhancing corporate reputation.
In a presentation at this year's Best of Nigeria Expo in London, United Kingdom, recently, Dr. Barth Ebong, Group Managing Director/Chief Executive of Union Bank of Nigeria Plc, said companies could no longer afford to focus solely on the interests of shareholders by striving to maximize profits, but must also take into account the interests and concerns of other stakeholders in the decision-making process such as employees, the host community and the government.
Dr. Ebong, who was represented by Dr. Kola Ali, Managing Director/Chief Executive of Union Bank UK Plc, said the case for a sound CSR strategy was further strengthened by the fact that it enhances corporate reputation, which ranked top among the valuable intangible assets at the disposal of a company."It is, therefore, important to manage it as carefully as possible and guard it jealously.
In doing so, it is important to stress that there is a strong positive link between a company's reputation and how well the effects of its operations on those with whom it inter-faces is managed," Dr. Ebong stressed. He noted that with the keen competition in the Nigerian banking industry post-consolidation, banks were under intense pressure to develop and implement robust risk management frameworks, saying CSR constituted a central pillar of these initiatives.
He added, "this is because banks cannot afford their hard-earned reputation to be dented or ruined through such incidents as corruption, scandals or neglect of the immediate environment. These are incidents that would readily attract unwanted attention not only from regulators but also the media and government."
The Union Bank boss also identified the reasons why Nigerian banks, being a part of the private sector, should embrace CSR to include customer loyalty, greater access to finance, enhanced confidence and trust of stakeholders.
Be the first to Write a Comment!
Copyright © 2008 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
