& Private Sector Developmen1 t PROPARCO'S MAGAZINE N° 21 - June 2015 Africa: on the way to CSR Philippe Barry Promoting CSR in Africa RSE Sénégal 2 Towards an intercultural - a sustainable approach to CSR in Africa Alexandre Wong RSE & interculturalité development opportunity 6 An agribusiness group pioneering CSR practice in Africa Corporate Social Responsibility (CSR) initiatives are growing in Africa, Franck Eba opening up opportunities for development. What conditions are needed SIFCA Group 9 for this trend to gain ground? Boosting CSR in African SMEs: the experience of an impact EDITORIAL BY ANNE PAUGAM CHIEF EXECUTIVE OFFICER OF AGENCE FRANÇAISE DE DÉVELOPPEMENT (AFD) investor Elodie Nocquet Fad, smokescreen or real paradigm shift? CSR generates interest as well Investisseurs et Partenaires 12 as controversy. Yet despite this, the last decade has seen it spread across every continent, transforming businesses. More and more private companies Key data are taking their stakeholders’ interests into account and incorporating The RSE in figures environmental, social and governance concerns into their operations. The 16 CSR movement is a reality and the major international organisations have produced guidelines, norms and standards to provide the private sector with The role of development the relevant benchmarks and references. finance institutions in promoting CSR Odile Conchou, Juliette Ramondy In Africa, there is little awareness of CSR in both public and private sectors. and Julia Richard de Chicourt Yet the last few years have undoubtedly seen new developments, as reflected Proparco in the contributions published in issue 21 of Private Sector & Development. 18 Alongside the subsidiaries of multinationals, local businesses are starting to adopt CSR strategies. The proliferation of new initiatives includes From aid to partnership: business networks, specialist training, quality labels that assist the spread of Lafarge’s CSR programme knowledge and skills at the local level. Chambers of commerce, civil society in sub-Saharan Africa and the media have also turned their attention to CSR and governments are Alan Kreisberg and Pierre Delcroix gradually adopting regulatory frameworks to encourage businesses down the Lafarge 22 path of sustainable development. Persuading businesses to commit: the WWF approach CSR represents a twofold opportunity for Africa. It can encourage inclusive Anne Chetaille, Jochen Krimphoff and sustainable development while also improving companies’ performance and Jean-Baptiste Roelens and their image. This is a win-win situation for Africa. The development of WWF France CSR on a large-scale across Africa will require the involvement of all actors. 25 Development finance institutions will have a major role to play in supporting businesses moving in this direction and in building public and private sector coalitions to promote CSR. PROPARCO IS A DEVELOPMENT FINANCE INSTITUTION WITH A MANDATE TO PROMOTE PRIVATE INVESTMENTS IN EMERGING AND DEVELOPING COUNTRIES Private Sector & Development 2 Promoting Africa: CSR in Africa - a sustainable development opportunity on the way to CSR Nowadays the concept of CSR is becoming increasingly widespread and is endorsed by a growing number of economic actors. Yet awareness levels in sub-Saharan Africa remain low, and few businesses implement formalised CSR initiatives. Encouraged, supported and adapted to local realities, CSR could be an effective lever for sustainable development. Philippe Barry climate change, the economic management of resources, biodiversity, preventing pollu- Specialist CSR consultant and founder of Initiative RSE Sénégal tion and nuisance, etc. (the Senegal CSR initiative) In the face of this multidimensional issue the ultimate aim is to re-think the whole Corporate social responsibility (CSR) business around the concept of sustainable is an emerging concept in Africa but development, incorporating E&S concerns awareness levels among most of the within its global strategy and operations. continent’s business leaders and executives This is what makes CSR fundamentally dif- remain low. According to the broad defini- ferent from corporate sponsorship initia- tion shared by the United Nations, the Or- tives undertaken more independently. ganisation for Economic Co-operation and CSR is based mainly on the voluntary enga- Development (OECD), the European Com- gement of businesses which are looking mission and the international standard- to operate in a more responsible way. It is setting organisation ISO, CSR refers to a often developed under pressure from civil company’s contribution to the challenges of society and the public authorities, but is also sustainable development and its responsi- driven by companies’ own ambitions and bility with respect to the environmental their sense of how it will benefit them. And and social (E&S) impacts of its operations. indeed, although CSR may involve an up- Overall, CSR defines a front investment – impact studies, audits, company’s responsibility accreditations, mobilising internal human towards its stakeholders: and material resources, specific investments, this involves taking sha- etc. – it also delivers significant business reholders’ expectations benefits: competitive advantages, impro- into account, but also ved relationships with stakeholders and en- the needs of a wider hanced reputation, higher levels of employee group of actors – em- engagement, economies achieved through ployees, customers, sup- improved resource utilisation (lower water pliers, financers, public and energy consumption, waste reduction, authorities, local popu- recycling, etc.), for example. For all these lations, and so on. reasons, CSR is now endorsed by increasing PHILIPPE BARRY CSR covers multiple numbers of economic actors and is steadily After fulfilling management spheres of operation: spreading across all the world’s continents – roles in Senegalese at societal level, rela- including across Africa. businesses for twenty years, tionships with custo- in 2008 Philippe Barry set up mers, suppliers and civil A host of international CSR initiatives CFPMI, the first consultancy wholly dedicated to corporate society; in labour and The concept of CSR came into being in the social responsibility (CSR) employment practices, United States in the 1950s but only spread in West Africa. A specialist fighting discrimination, to European companies during the 1990s. It consultant supporting working conditions, has developed through the initiative of in- businesses looking to set up occupational health and tergovernmental and regional organisations CSR programmes compliant with ISO 26000, Philippe safety, and staff mana- which have published guidelines and stan- Barry is also the founder of gement; and at environ- dards, establishing a comprehensive CSR Initiative RSE Sénégal. mental level, combating reference toolkit for the private sector. Over www.proparco.fr 3 the last two decades, CSR strategies have Performance Standards as their benchmark – evolved towards increasingly standardised as do the commercial banks that have adop- frameworks. ted the Equator Principles. These represent The OECD Guidelines, which have been in one of the most rigorous approaches to CSR force since 1976 and were revised in 20111, practices, covering issues such as preven- are the primary international reference fra- ting pollution, conserving the environment, mework on CSR matters. These non-binding labour and working conditions, as well as recommendations, addressed to companies extending beyond this to address often un- by the 42 signatory governments, deal with der-regulated issues such community health, human rights, employment and industrial safety and security, land acquisition, the relations, the environment, fighting corrup- resettlement of displaced communities and tion, etc. Their key distinguishing feature is defending the rights of indigenous peoples. that they provide an implementation me- There are also specialist reference systems chanism via a network of National Contact for reporting attainments with respect to Points (NCPs) which receive complaints and CSR, such as the Global Reporting Initiative can impose sanctions in every signatory (GRI), which provides a standard reporting country. The UN’s Global Compact, launched framework for non-financial data for the in 2000, encompasses ten principles in the private sector, along with guidelines for fields of human rights, labour standards, the developing this reporting. Finally, all these environment and anti-corruption measures. international initiatives are supplemented Today it has more than 8,000 signatories at national level by state policies encoura- including 6,000 companies in 135 countries. ging economic actors to undertake CSR pro- Alongside these frameworks establishing grammes – mainly in European countries the principles of CSR there are international – and by business networks dedicated to standards companies can use as a support promoting good CSR practices. structure for implementing them. The most high-profile of these standards relating to The issues around CSR in Africa CSR is ISO 26000, which provides guidance CSR still has a relatively low profile in Africa, on how organisations can operate in a so- whether among public authorities or busi- cially responsible way with respect to gover- ness leaders, and few companies implement nance, human rights, labour relations and CSR policies in line with the international working conditions, the environment, and definitions. In general terms, too, Africa’s community relations – among other mat- predominant culture is one of corporate ters. This is a non-binding sponsorship rather than CSR. It is very com- ‘In general terms, too, standard and is therefore mon, for example, for companies to receive Africa’s predominant not intended or appro- requests for social investments in commu- culture is one of priate for certification nities at times of natural disasters or in the corporate sponsorship – unlike other standards fields of healthcare or education. Where it rather than CSR.’ which concentrate on does exist, CSR is often the prerogative of more specific areas, such major multinationals or limited to satellite as ISO 14001, which defines the criteria for programmes which do not as yet sufficient- an environmental management system or ly impact the way companies manage their ISO 18001, which establishes accreditation operations overall. Even so it is difficult to standards for occupational health and safety accurately assess the current state of play management systems. Development finance for CSR in Africa today, partly because the institutions have also developed standards concept itself is a relatively new introduction applicable to companies and to the activities on the continent and because many African they finance. Many of them currently use the businesses are setting up CSR initiatives wit- International Finance Corporation (IFC)’s hout formalising them as such. The last few years have seen an increase in FOCUS CSR activities in Africa, a trend in which international funding agencies and multi- nationals have played a substantial part. A Initiative RSE Sénégal (the Senegal CSR initiative) aims to promote growing number of initiatives are emerging social responsibility (CSR) among local businesses. The initiative is promoted by the consultancy CFPMI and its activities are supported in the field of CSR training: for example, the by 30 companies and numerous public partners (including Agence IFDD (Institut de la Francophonie pour le Française de Développement – the French development agency – Développement Durable – the Francophonie and Germany’s Technical Cooperation Agency GTZ). It organises the institute for sustainable development) Senegal CSR Forum, promotes CSR practices online (www.rsesenegal. com and www.facebook.com/RSE.Senegal) and organises training 1New provisions relating to human rights were introduced in 2011, bringing events in this area. the supply chain within companies’ sphere of responsibility. Private Sector & Development 4 Africa: on the way to CSR Promoting and ENAP, the National School of Public Obstacles, challenges and opportunities CSR in Africa Administration in Quebec, are developing a Conceived in the countries of the global North - a sustainable development sustainable development and organisational – primarily in Anglo-Saxon countries – CSR opportunity social responsibility programme (under the is the outcome of a long process of evolution French acronym PIDDRSO) which is delive- involving stakeholders who have successfully ring training sessions in Francophone Afri- transformed their power rela- can countries. The environmental sciences tionships into a concerted pro- ‘The standard fiscal institute (Institut des Sciences de l’Environ- gramme of action. It calls for a provisions in many nement, ISE) at Cheikh Anta Diop Univer- structured business environ- African countries do sity in Dakar, supported by Initiative RSE ment in which each individual not include any Sénégal, has developed a Master’s level CSR actor has attained a level of special measures degree programme. Institut Afrique RSE – organisation and visibility that in favour of CSR.’ the specialist consultancy which supported enables them to play their mo- the creation of Kilimandjaro, a network of derating or regulating role – which is only rarely African experts in CSR and sustainable deve- the case on the African continent. CSR requires lopment – regularly organises CSR training the engagement of a critical mass of economic events in African countries. Other key de- actors capable of translating this policy pro- velopments are the development of several gramme into concrete initiatives, creating a labels (Morocco) and charters (Senegal, see ripple effect across the whole economic fabric. box 1) by the private sector. The importance of the informal sector in Africa Though still limited in scope these initiatives makes this kind of policy difficult to imple- are nonetheless encouraging, opening up ment on a large scale. A key preliminary to the new and promising possibilities for success- growth of CSR is a drive by public authorities to fully tackling some of the development chal- promote it, regulate it and facilitate consulta- lenges facing the African continent. Working tions between stakeholders. Unfortunately few in conjunction with public policies, CSR ini- governments have adopted appropriate politi- tiatives can for example help to overcome cal frameworks for CSR and private-sector or- the under-employment of young graduates ganisations – where they exist – lack sufficient by linking existing professional training influence over public authorities to encourage provision more effectively with pathways them to adopt measures favouring businesses into work (Box 2). Even if few of them have with virtuous CSR practices. The standard fis- formalised it, African companies can also cal provisions in many African countries do not help to improve the social protection system include any special measures in favour of CSR. – through their role as employers, in parti- Another key challenge is the ability of African cular. Moreover, the spread of CSR can only governments to impose standards on com- reinforce the battle against biodiversity and panies and to monitor their implementation resource erosion (deforestation, monocul- effectively, especially when the companies are ture, over-exploitation of fishing resources, located in regions far from central adminis- mining, etc.). trations. Nonetheless it should be noted that governments are showing a growing interest in BOX 1: SENEGAL’S CSR AND SUSTAINABLE DEVELOPMENT CHARTER Launched in 2012 by Initiative RSE need to define and share – internally contracts with micro-enterprises and Sénégal and the Conseil National and with stakeholders – corporate SMEs which are themselves committed du Patronat (Senegalese employers’ values relating to ethical principles to CSR and have the potential federation), Senegal’s “Charte RSE et and good governance. Signatories also to create jobs. They must observe Développement Durable” (CSR and undertake to preserve natural resources the principle of legality with respect sustainable development charter) was and reduce pollution levels; they must to working conditions and human developed by eleven companies from support the development of a green rights issues. They must also prioritise a number of different sectors (mining, economy in Senegal. For example, a community engagement that manufacturing, construction/civil several signatory companies (Simpa, extends beyond corporate engineering, banking, the hotel industry, Eiffage Sénégal, Cbao Attijariwafa bank, sponsorship by getting involved in etc.) taking into account both their Neurotech) have subcontracted the high-impact CSR projects designed shared concerns and the sustainable collection and recycling of their waste to deliver lasting change. Finally, development challenges facing Senegal. to small local businesses. Companies signatory companies must provide The charter defines seven minimum signing the charter must help to combat fully transparent reporting commitments every company in Senegal youth unemployment and promote the of initiatives undertaken should make, whatever its size, in order formalisation of their sectors – two key in the CSR sphere and publish to comply with its CSR policy guidelines. concerns in Africa – by implementing documentation evidencing their The first commitment covers to the local purchasing policies and prioritising achievements on a regular basis. www.proparco.fr 5 this area and are gradually adapting their admi- a strong ripple effect on the local economy. The nistrations and their legislative production to higher visibility of these initiatives could help address these challenges. to trigger a wider awareness of CSR in Africa One of the main obstacles impeding the spread and promote its development. Yet CSR cannot of CSR in Africa is still a widespread lack of awa- become deeply rooted unless businesses and reness about the concept and its benefits. It is local organisations can individually and collec- important, therefore, that training and aware- tively develop their own tools for disseminating ness-raising programmes are developed in this its practices, based on the founding principles area, targeting all the various actors concerned. and realities of their societies. Above all, though, it is vital to adapt CSR prac- tices to African sociocultural realities and to the specific characteristics of the local business environment. As it is, international norms and standards are still perceived by the vast majo- rity of business leaders as overcomplicated. Using the guidelines of the international refe- rence systems as a base, it is vital to construct tools appropriate to the economic context of each African country. While the fundamental principles of CSR are univer- ‘It is vital to adapt CSR sal, the practices relating to practices to African the central issues of CSR must sociocultural realities necessarily be adapted to each and to the specific country’s customs and environ- characteristics of the local ment. The key challenge today business environment.’ is to translate the founding principles of our rich traditio- nal African cultures (group ethos, contracts based on trust, hospitality, solidarity) into the principles of CSR. Africa’s economic performances and trends, combined with its demographic vitality, point towards a brighter future for CSR on the conti- nent. Socially responsible investment models are beginning to spread widely in Africa, thanks to initiatives by major companies in the mi- ning, infrastructure, agro-industry and ecotou- rism sectors. These practices often involve high value-added subsidiary businesses which have BOX 2: THE THIÈS GREEN ECONOMY BUSINESS INCUBATOR CERSET (which stands for the Thiès The incubator will connect recent or working within their supply chain. Centre of Excellence in CSR) was graduates, existing small businesses ITEV will be a source of income for established in 2013 to facilitate the and major companies undertaking CSR local communities, an opportunity implementation of pioneering CSR and programmes. The incubator’s users will to enhance youth employability, a sustainable development projects in learn to work in a network with other contribution to plant biodiversity and to the Thiès region of Senegal. Supported stakeholders while absorbing the values the development of an environmentally by CERSET, a collective of public and that drive CSR. Biodiversity research will beneficial agroforestry sector – while private partners from education, be a key priority, as well as establishing also benefiting the partner companies. professional training and research came effective connections between training, CSR has the potential to lay the up with the idea for ITEV (Incubateur research and the market. ITEV’s backers foundation of a public/private de Thiès pour l’Économie Verte – the include major companies such as partnership dedicated to promoting Thiès green economy incubator), a Wartsila West Africa, Eiffage Sénégal, self-employment among young business incubator specialising in Grande Côte Opérations, Sonatel and people, the production of a range of the agroforestry sector. The incubator Blaise Diagne International Airport. Their plant species for regenerating land will provide young graduates with role will be to facilitate the training and areas degraded by major companies, assistance and a supportive environment support of local entrepreneurs operating and the use of these plants for food, as they start up their businesses. in or close to their production areas and/ cosmetic and medical purposes. Private Sector & Development 6 Promoting Towards an intercultural CSR in Africa - a sustainable development opportunity approach to CSR in Africa By virtue of their specific cultural imperatives and practices, African businesses are invested with a social mission, extending beyond their exclusively economic role. At a time when a more corporate and Western conception of CSR is gradually becoming established in Africa, these two approaches can mutually enrich each other – as long as their respective values are recognised and their complementarity is effectively engaged. Alexandre Wong ments. Yet even though African companies have begun to take on board the concept Coordinator of the network “RSE & Interculturalité” 1 (Intercultural Understandings of CSR) and its implications relatively recently, it is highly probable that they were already prac- In most countries in sub-Saharan Africa tising CSR in all but name – if only via the the public debate on corporate social fundamental social role they play within responsibility (CSR) is still in an embry- their communities. onic phase. African actors in general have very little awareness of international ini- Diverse approaches to CSR in Africa tiatives in this area and businesses with an In sub-Saharan Africa, corporate social re- independent CSR strategy or policy remain sponsibility is largely based on philanthropic few in number. In anglophone African coun- initiatives in the fields of healthcare, educa- tries generally, and especially in South Af- tion, employment, infrastructures and the rica, interest in this issue environment. In Africa, the ultimate pur- is more pronounced and pose of businesses – and therefore by exten- various initiatives have sion their responsibility – is primarily social been launched. The dis- in nature: a business should yield a profit for cussion is also becoming its owner and the owner’s family but also for institutionalised in Mo- the community. The busi- rocco, Tunisia and some ness success should help to ‘In Africa [...] a business other francophone coun- build social cohesion rather should yield a profit tries, even if its scope still than jeopardising it. Peo- for its owner and the remains limited to a small ple’s respect for the entre- owner’s family but also number of organisations.2 preneur will in part depend for the community.’ Academics, business pro- on his or her contribution ALEXANDRE WONG fessionals, associations to the community’s well-being (Yaméogo, and experts are beginning 2007). Alongside this strictly social aspect, Alexandre Wong, PhD to take up this subject – an the idea of conserving shared resources is (Philosophy), is associate researcher at CNRS (the French issue that is also increas- also strongly rooted in African traditions, National Centre for Scientific ingly attracting media at- requiring every member of the community Research) and consultant. tention and engaging pub- to protect them. His research is focused on lic opinion. At the same time an approach to CSR based the historical, political and The location of multina- on the Western model is starting to be- economic forces that have shaped people today and on tional subsidiaries with a come established. Intergovernmental or- intercultural approaches to group CSR policy – formu- ganisations – such as the African Union and corporate social responsibility lated at head office level UEMOA (West African Economic and Mone- (CSR). He coordinates RSE & – and the current mas- Interculturalité (Intercultural 1 This article draws extensively on a publication by the author and Urbain Understandings of CSR), a sive presence of the media Kiswend-Sida Yaméogo (2011) entitled Les responsabilités sociétales des entreprises en Afrique francophone [Corporate social responsibility in network of experts working sphere and communica- francophone Africa] (see References). on the interactions between tion facilities, are probably 2 There has been notable progress in Morocco (CSR accreditation created by the CGEM – General Confederation of Moroccan Enterprises), Senegal (a CSR practices at international, among the factors driv- dedicated forum held annually in Dakar since 2008) and Cameroon (forum national and regional levels. staged by the Groupement Inter-patronal du Cameroun – Cameroon ing these recent develop- employers’ association – in 2011). www.proparco.fr 7 tary Union) – are setting up frameworks pro- organisation. The two approaches should do moting its development, public authorities more than just co-exist – they must mutually are strengthening regulatory frameworks acknowledge and enrich each other. to encourage the private sector to adopt in- Any CSR policy in Africa must take into ac- ternational standards. Major African busi- count the fundamental responsible practices nesses in the formal sector are adopting QSE in African corporate management. Firstly, (Quality, Safety and Environment) tools business funding is intrinsically community and certifications – ISO 9001, ISO 14001 or based. It is the community, via the tontine OHSAS 18001, for example. Another exam- system of informal credit, which supplies ple of the general trend towards standardisa- the capital for African business and calls en- tion on the African continent is the spread of trepreneurs to account. This capitalisation the ISO 26000 standard – specifically relat- of financial resources extends by analogy ing to organisations’ social responsibility. It to the community-based capitalisation of is still rare, though, for an African business natural resources. Similarly, in this context to have a dedicated CSR unit. investing in business is effectively an invest- It should also be noted that the Anglo-Saxon ment based on solidarity – it benefits soci- approach to CSR, based more on a dialogue ety. Accountability to their community of with the company’s stakeholders, is more investors is not enough, though: companies widespread in Africa than the European and also need to meet the financial French approach – which places the empha- needs of their wider commu- ‘The fact that a sis on sustainable development and on com- nity – for example by financing com pany is present panies’ compliance with national and inter- a small business, the purchase and rooted in its national regulations. of a taxi, education, provid- community builds At least two forms of CSR therefore co-exist ing assistance to orphans, etc. trust in its economic in Africa – a Western-inspired form globally – in line with the principle of relationships.’ regulated by the ISO 26000 standard and an wealth redistribution. The African form founded on the primarily social business should also help to maintain social function of any business. cohesion: because it has its roots, its finan- cial, relational and cultural capital, within Key African cultural specificities the society, it bears a responsibility for this Applying international CSR frameworks in society in return. Redistribution of employ- Africa without any adjustment to local reali- ment within the community is an example ties is liable to decontextualise businesses’ of this: relational hiring – recruiting from CSR initiatives, disconnecting them from within the wider ‘family’ – is an expression the real needs of their beneficiaries and ren- of solidarity. By taking everyone’s needs into dering them meaningless in stakeholders’ account the company disadvantages no one, eyes. International standards – in this case and in the process helps to maintain a kind ISO 26000 – must be adapted to local eco- of social stability. The fact that a company is nomic situations and cultural specificities or present and rooted in its community builds run the risk of remaining largely ineffective. trust in its economic relationships. In this This is not to say that there is any fundamen- way the life of the business is governed by tal incompatibility between a “Western” CSR co-existing codes that are implicit and explic- policy and a more traditional conception of it, oral and written, traditional and modern the social role of business. African corporate (Box). As a result it is not always necessary responsibility does not contradict African to formalise contracts or agreements: rela- modernisation – in fact it supports the mod- tionships of trust, based on reciprocal obli- ernising process. It is by taking African prac- gations, encourage community-responsible tices into account that the requirements of practices. Operating in a way that challenges CSR can be integrated effectively within an these customary practices can prove highly counter-productive. FOCUS Towards a hybridisation of CSR practices In order to promote the growth of CSR in RSE & Interculturalité (Intercultural Understandings of CSR) is a Africa it is vital to develop procedures for network of researchers and organisations – from the state sector, the private sector and civil society – dedicated to the intercultural and adapting Western CSR requirements to Af- local dimension of organisations’ CSR policies. The network explores rican cultural and economic contexts, in col- the interactions between a ‘top-down’ CSR policy – mainly focused on laboration with both African and Western disseminating international regulations (standards, codes, etc.) across managers working on the continent. For organisations – and a ‘bottom-up’ CSR founded mainly on local social, international groups based in Africa political and economic practices already in existence. Private Sector & Development 8 Towards an intercultural approach to CSR in Africa Promoting this means taking greater account of Recognising diverse cultural approaches to CSR in Africa African modes of organisation, business CSR and recognising the existence of an Af- - a sustainable development administration and management – so that rican CSR – though it is not labelled in the opportunity they are not asking their employees to act in same way – opens up a pathway to a different, a way that is inconsistent with their beliefs. more effective and more intercultural way of At the same time it is important that local organising and managing businesses in Afri- economic and institutional players adopt a ca (whether subsidiaries or local businesses). proactive role in promoting Africa’s respon- Rather than thinking only of modernising sible corporate practices internationally. African responsibility practices, these prac- Very often there is still a lack of awareness tices should be viewed as a source of inspi- with respect to the value of local practices. ration – yielding a deeper understanding of Only an intercultural understanding of both economies in the developing world, where international and local practices will enable economic relationships are often founded on the different modes of organisation, admin- ethical values based on trust. istration and management to be combined in the most effective way. This process could be supported by a pro- gramme of targeted initiatives. The prior- ity here will of course be to raise awareness among managers of interna- ‘Very often there is still tional businesses based in Africa a lack of awareness of the need to hybridise African with respect to the and Western responsibility prac- value of local practices.’ tices. Yet Africa’s diasporas also have an important role to play in the transmission of Western responsibil- ity practices in Africa and of African respon- sibility practices in the West. A more inter- cultural approach to the ISO 26000 standard should also be defined. This work of revising standards should draw on the expertise of African and Western researchers specialising in CSR and interculturality in Africa. Finally it would be helpful to raise awareness of pro- gress in the field of CSR across African civil society – by generating coverage in the Afri- can and Western media of intercultural and CSR initiatives in the business world. BOX : COMMUNITY CONFLICT RESOLUTION In the African subsidiary of a from the role they occupy inside Opening up this arena for mediation multinational group, and in African and outside the subsidiary or helps to create a family atmosphere companies in general, informal business, in the communities – within the company and prevents power centres co-exist alongside the civil, religious, ethnic, etc. – that social conflicts which could cost hierarchical organisation structure. connect company employees the company a great deal in terms These traditional mediators, with external stakeholders. of time and money. Against this unlike the representatives of Their role is to lend legitimacy to background, a company that takes trade unions, do not feature in management decisions and also an issue to tribunals is effectively the companies’ organisation to regulate social relationships demonstrating its inability to resolve charts. Nor do they necessarily within and outside the subsidiary conflicts internally. National laws are occupy important roles within or the business, by ensuring that merely a last resort when a problem the subsidiary or the company – if customary rights are respected, cannot be settled “within the family” indeed they are actually employed with a view to maintaining social in line with the customary practices there. Their reputation derives cohesion within the community. applicable within the business. References / Yaméogo, U.K.-S., 2007. L’Émergence de la responsabilité sociale des entreprises en Afrique : état des lieux, enjeux et perspectives, université Paris-XII Créteil. // Wong, A. et Yaméogo, U.K.-S., 2011. Les responsabilités sociétales des entreprises en Afrique francophone – Le livre blanc, éditions Charles-Léopold Mayer. www.proparco.fr 9 An agribusiness group pioneering CSR practice in Africa The example of the Côte d’Ivoire group SIFCA demonstrates that CSR is a guarantee of sustainability and functions as a performance lever for companies. Since 2007, SIFCA has been committed to sustainable development, showing that the success of CSR initiatives depends crucially on the extent to which every level within an organisation takes ownership of those initiatives and on the quality of the relationships the organisation has with local communities. Franck Eba An active commitment to sustainable development Director, Integrated Agricultural Unit (DUAI) / Agroindustrial complex, SIFCA group subsidiary Sucrivoire On the initiative of its General Director, the SIFCA group adopted a sustainable deve- lopment and corporate social responsibility The agricultural industry is central to (CSR) strategy since as early as 2007. At this the major environmental and social time very few African companies had taken (E&S) issues affecting land use, biodi- these issues on board and SIFCA played a versity conservation, planters’ incomes and pioneering role.1 employee working conditions. The SIFCA The group has relied on the services of the group believes in corporate responsibility international Ernst & Young firm to assess in these areas and adopted a sustainable the environmental impact of its operations, development policy in 2007. the working conditions of its employees For a group of SIFCA’s size operating in and its relations with local communities. sub-Saharan Africa, good E&S management A ‘sustainable development‘ team was also drives improved per- then established within the formance. For example, group, followed by a semi- ‘The group’s future is reducing consumption of nar on the development and closely linked to the quality natural resources, impro- introduction of the strategy of its relationships with ving working conditions - launched the same year - small-scale planters.’ and reducing the num- and the appointment of a bers of accidents – and head of CSR in each subsidiary. All subsi- hence absences – leads to diary heads and secretary generals worked lower operating costs and with the heads of CSR to devise the sustai- greater sustainability. nable development strategy. A bespoke orga- FRANCK EBA The group’s future is clo- nisation (Box) was set up to coordinate the Franck Eba has a PhD in sely linked to the quality overall strategy. engineering sciences from of its relationships with SIFCA’s CSR strategy is based on six pledges. the University of Besançon small-scale planters, who To start with the social sphere, it involves and a master’s degree in provide 60% of its agri- publicising and implementing the health and business management cultural resources. Access safety policy and establishing effective moni- and administration from the École de commerce to raw materials is key, so toring of workplace accidents (Pledge 1). et de gestion of Abidjan. it is vital to establish rela- Employees must also have access to safe In October 2007 he tions of trust with local tools and equipment and subcontractors was appointed head of communities near pro- must be monitored to ensure that they sustainable development at duction sites. The SIFCA comply with the regulations (Pledge 2). SIFCA, where he coordinates CSR for the group as a whole. group also relies on pro- In addition, the group undertakes to pro- Since August 2014 he has tecting the environment, vide accommodation for permanent headed the Borotou Koro which underpins agricul- 1 Survival of the group’s businesses has been under threat from global agro-industrial complex for tural production. prices and political struggles. Once their future was assured, improving SIFCA subsidiary Sucrivoire. the living and working conditions of the group’s employees quickly became a priority. Private Sector & Development 10 Promoting and seasonal workers and their fami- savings plan” and a tailored health insu- CSR in Africa lies, and to ensure provision of drinking rance. For around 6,560 FCFA (€10) a month, - a sustainable development water, sanitation and electricity (Pledge 3). deducted at source from their crop sales opportunity Lastly, SIFCA is committed to the active income, planters and their families benefit implementation of a policy to prevent the from health insurance covering 80% of medi- spread of infectious diseases, notably HIV/ cal costs. Planters are also offered training to AIDS and malaria (Pledge 4). In the envi- help them to optimise their output. ronmental sphere, CSR involves preven- The group is also developing local infras- ting accidental soil pollution, identifying tructure (safe drinking water, transport, and assessing the environmental impact of electricity) and programmes to give local each of the group’s activities (Pledge 5) and populations access to health and education. encouraging sustainable practices, notably As regards environmental issues, SIFCA has by promoting responsible planting. All these adopted a charter in which it commits to strategies ultimately rely on a strong par- ensuring the treatment of liquid effluent, tnership with local stakeholders. To this end, proper management of solid waste, redu- close and sustained dialogue is systematically cing air emissions from factories and the established with the local communities with responsible use of pesticides, herbicides and the aim of improving their health, education other chemicals. Energy efficiency measures and income levels (Pledge 6). These pledges have been introduced. The SANIA subsidiary have been adopted by each subsidiary, taking is involved in a Clean Development Mecha- account of the different regulatory require- nism (CDM) to replace natural gas with bio- ments and local specificities of the countries mass from felled rubber trees and seed husks where the group operates. as fuel for electricity generation for the palm As part of their funding package, develop- oil refinery’s new boiler. In 2013 this project ment finance institutions have suppor- made it possible to notch up 14,724 tons of ted the development of a CSR strategy in CO in carbon credits and to cut electricity 2 SIFCA subsidiaries. For example, Proparco costs by over 500 million FCFA (€765,000). has assisted Sucrivoire, GREL and Palmci in Another innovative initiative has seen the improving their E&S performance. construction of workers’ housing using compressed stabilised earth blocks (CSEB), Compelling results which have good thermal capacities and can SIFCA has directed its efforts towards be laid without cement. This project enabled improving the working and living condi- the group to reduce its ecological footprint tions of its employees. For example, it has while also saving 2 billion FCFA (€3 million). sought to reduce the frequency and gravity of workplace accidents (the degree of gra- Buy-in - a crucial success factor vity has been cut by two-thirds since 2008) SIFCA’s experience shows that the success by upgrading equipment and raising awa- of a CSR policy largely depends on gaining reness among its personnel concerning the the support of every level of management in major risks linked to their work. Safer wor- the business and on the king environments means fewer stoppages quality of relations with ‘SIFCA’s experience shows and ensures continuous operations. The local communities. that the success of group has also prioritised the fight against Internal awareness-rai- a CSR policy largely HIV/AIDS and malaria. Its anti-malaria pro- sing and training need depends on gaining the gramme has prevented 1 117 days of sick to be undertaken on a support of every level leave. All the group’s subsidiaries now have major scale to motivate of management.’ screening centres. staff and convince the There are also initiatives aimed at the many who are resistant to change. CSR is not 93,000 planters who sell their rubber, sugar- always fully understood and is seen by some cane and palm oil to the group. For example, as ‘something for westerners’. Being locally the subsidiary SAPH has set up a “planter rooted is another determining factor. The strategy’s instigator should preferably be a FOCUS person who is ‘local’ and ‘internal’, part of the local community and of the company. Close SIFCA is a major player in the West African agricultural industry. cooperation between instigators of change The group covers the entire value chain, from plantation to and those tasked with its implementation is marketing, for palm oil, rubber and sugarcane. Through its ten crucial. The establishment of an internal CSR subsidiaries, some of which are quoted on the regional stock network has also been vital for the project’s market in Abidjan and on Paris Euronext. SIFCA operates in Côte success. Responsibility for CSR actions was d’Ivoire, Liberia, Ghana, Nigeria, Senegal and France, and has over 30,000 employees. given to managers already working in the www.proparco.fr
Description: