{"id":46770,"date":"2019-11-20T17:01:08","date_gmt":"2019-11-20T15:01:08","guid":{"rendered":"https:\/\/www.csregypt.com\/?p=46770"},"modified":"2019-11-20T17:01:08","modified_gmt":"2019-11-20T15:01:08","slug":"taking-corporate-social-responsibility-to-the-next-level","status":"publish","type":"post","link":"https:\/\/csregypt.com\/en\/taking-corporate-social-responsibility-to-the-next-level\/","title":{"rendered":"Taking Corporate Social Responsibility To The Next Level"},"content":{"rendered":"

What do you think of when you see images of the Egyptian pyramids? Perhaps words like wonder and history?<\/p>\n

Themba Mkhwanazi<\/a>, CEO of\u00a0Kumba Iron Ore<\/a>\u00a0(the fifth largest iron-ore producer in the world and the largest in Africa), shared an interesting perspective \u2013 they reflect legacy and business leaders should aspire to be pyramid builders.<\/p>\n

\u201cThe pyramids were built by people some 5,000 years ago and they’re still around today,\u201d\u00a0Mkhwanazi said. \u201cWe marvel at all the various attributes around the pyramids. I look at my life and career and say whatever I do must also have sustainability. Long after I’m gone, I want to make sure that whatever I started continues and evolves, but that the foundation is still there.\u201d<\/p>\n

Such a transformational legacy requires more than just the status quo corporate social responsibility (CSR) that might entail some nice website language and some feel-good one-off philanthropy initiative. To have a legacy requires a type of CSR that is deeply engrained in all organizational activities.<\/p>\n

This column has focused on how purpose can engage employees and serve as a decision-making guide.\u00a0Mkhwanazi added to this set of insights by underscoring the role of purpose in guiding CSR as an integrated part of the business. The organizational purpose at Kumba Iron Ore is \u201cre-imagining mining to improve people\u2019s lives.\u201d<\/p>\n

\u201cThis speaks to a much broader commitment to the world and to society at large beyond just our specific commodity,\u201d\u00a0Mkhwanazi said. \u201cWe\u2019re not going to be remembered for the dividends we paid or the productivity improvements. We\u2019ll only be remembered for the difference we make.\u201d<\/p>\n

At Kumba Iron Ore, this translates to building shared value across all stakeholders ranging from regulators to shareholders to communities, according to Mkhwanazi. \u201cWe want to create a thriving community as a consequence of our operations. This means thinking beyond just\u00a0being\u00a0<\/em>in a host community.\u201d<\/p>\n

Kumba Iron Ore takes this seriously. For example, the company has a discretionary procurement of about 12 to 14 billion South African rand (approximately $800 \u2013 $950 million). Many companies in the mining space might just work with national or international companies that are well established, but don\u2019t take into account the triple bottom line of social, environmental and financial. Guided by its purpose, this year Kumba earmarked 2 billion rand for procurement directed at host community business. This represents a growth from 100 to over 300 local businesses, directly impacting the lives of over 16,000 people. This is now in place in the\u00a0Northern Cape<\/a>\u00a0(South Africa\u2019s largest province) and has contributed in various ways to job creation and skills development.<\/p>\n

More than a few skeptics have predicted that this decision would negatively impact both quality and costs. \u201cIn fact, we\u2019ve seen the opposite because they have skin in the game with us,\u201d explained Mkhwanazi.<\/p>\n

Indeed, the companies working with Kumba in the Northern Cape are now very ingrained in the business. There have been no disturbances in terms of protests and blockages, an issue that frequently plagues mining companies. Consider this \u2013 when there might be an issue with the regulators, leaders from the host community businesses are actually speaking on Kumba\u2019s behalf because they are experiencing the benefits.<\/p>\n

\u201cHaving a purpose helps us make decisions that are holistic, long-term and sustainable,\u201d Mkhwanazi said. \u201cWe could quite easily just focus on costs or running operations to the detriment of the ecosystem. Purpose keeps us locked in, making sure that we’re always doing the right thing. It always reminds us of the difference we can make in society. We believe that when we succeed, our communities also succeed.\u201d<\/p>\n

Points to consider<\/strong><\/p>\n

You might be thinking of the personal application of this for your business. How do you use purpose so CSR is fully ingrained in the business? Here are some points to consider:<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Think ecosystem<\/strong>.\u00a0<\/strong>Purpose should be an exploration of the relationship that your company has with its entire ecosystem \u2013 all internal and external groups that your organization impacts in some form.<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Remember to include \u201crelational capital\u201d in your assessment of value<\/strong>. Yes, it\u2019s critical to manage scale in, say, supply chains. Kumba reminds us that local suppliers\u2019 feelings towards their company is a major factor in their ability to scale. The positive feelings from suppliers result in hard-to-measure levels of discretionary effort and support that translates into even more tangible value creation. Purpose enhances your ability to consider the importance of relational capital.<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Redefine CSR<\/strong>.\u00a0Vinita Bali<\/a>, former Managing Director of Britannia in India, once told me: \u201cCSR should stand for corporate\u00a0strategic\u00a0<\/em>responsibility.\u201d I strongly agree. CSR should be integrated into the core of who you are as a company in order to ensure that it\u2019s both impactful and sustainable.<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Lengthen your time horizon.\u00a0<\/strong>By looking beyond a budgeting or even a career time horizon, leaders can focus more clearly on their legacy. This notion of stewardship is a core leadership implication of a clear purpose. If you are reading this on your main monitor and have access to a second screen, type in Egyptian pyramids in Google Images. With these pictures in the background, consider this idea of legacy \u2013 both for you individually and your organization.<\/p>\n","protected":false},"excerpt":{"rendered":"

What do you think of when you see images of the Egyptian pyramids? Perhaps words like wonder and history? Themba Mkhwanazi, CEO of\u00a0Kumba Iron Ore\u00a0(the fifth largest iron-ore producer in the world and the largest in Africa), shared an interesting perspective \u2013 they reflect legacy and business leaders should aspire to be pyramid builders. \u201cThe […]<\/p>\n","protected":false},"author":410,"featured_media":46771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6261,6702,984,6047],"tags":[6251],"yoast_head":"\nTaking Corporate Social Responsibility To The Next Level - Csr Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/csregypt.com\/en\/taking-corporate-social-responsibility-to-the-next-level\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Taking Corporate Social Responsibility To The Next Level - Csr Egypt\" \/>\n<meta property=\"og:description\" content=\"What do you think of when you see images of the Egyptian pyramids? 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