Published by NMBBC

Many believe and contend that the business of business is business; that a company's primary responsibility is towards their shareholders and perhaps towards employees and customers, those individuals who contribute directly to the bottom-line. Indeed a company does have this responsibility, the need to ensure that the business is sustainable in producing sufficient profit to continue to fulfil its purpose and mission.

However, the South African landscape is also characterised by poverty, a high unemployment rate and poor education, all of which pose immense challenges to overcome as a nation. The question is frequently asked, “who is ultimately responsible to address these socio-economic problems? Some would say Government… but the reality is that this is an enormous task that cannot be accomplished in silo, by any single sector. Chantyl Mulder, Director of Nation Building for the South African Institute of Chartered Accountants, says that “together, through strategic partnerships with the private sector and small business owners, we will build our nation”.

An alternative perspective on the business of business, is that all business leaders, as citizens of our country, have a responsibility and role to play in addressing our socioeconomic challenges. Each company has a responsibility to strategically consider the ways in which they could contribute and make a positive impact to alleviate poverty, decrease unemployment and improve education. This is called a company's corporate social responsibility, a responsibility towards society beyond their normal stakeholders. Implementing an effective corporate social responsibility strategy within your company could go a long way to improving the quality of life for the less advantaged and contributing to our nation's transformation.

The Broad-Based Black Economic Empowerment Act and Codes of Good Practice in fact provide a framework through which the private sector can proactively implement their responsibility towards society. Elements on the B-BBEE scorecard, such as Enterprise and Supplier Development, Skills Development and Socioeconomic Development, create a platform for corporate social responsibility. The unfortunate misperception by many business leaders is that B-BBEE is simply a matter of business compliance, but the intent of  Government is that B-BBEE could provide greater access to the economy for people to whom access was limited in the past.

The Hope Factory's Enterprise and Supplier Development Manager, Sipho Pilime, says “that we should all adopt a pioneering spirit that leads us to think differently about poverty and about our challenges”. B-BBEE can be a vehicle for transformation if business leaders recognise the link between their corporate social responsibility and the structures provided within the Codes of Good Practice. This requires corporate leaders to think differently and implement strategies that consider the needs of a broader set of stakeholders and how best their company could address such needs.

Through socially responsible economic growth and job creation, we have the opportunity to create a better life for the people of our nation. As South African citizens we should all take a moment to acknowledge that our battle is real; that poverty, unemployment and poor education will remain unless we, together, make an intentional effort to bring about much needed change.