Africa’s Dutch Disease: the way forward

By Francis Xavier Tuokuu

“The resources are there. It is for us to marshal them in the active service of our people. Unless we do this by our concerted efforts, within the framework of our combined planning, we shall not progress at the tempo demanded by today’s events and the mood of our people. The symptoms of our troubles will grow, and the troubles themselves become chronic. It will then be too late even for Pan African Unity to secure for us stability and tranquility in our labours for a continent of social justice and material well-being”. (Dr. Kwame Nkrumah-first president of Ghana)


Introduction

Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² (11.7 million sq. mi) including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area. With 1.0 billion people (as of 2009) in 65 territories (including 54 recognized states), it accounts for about 14.72% of the world's human population. The continent is surrounded by the Mediterranean Sea to the north, both the Suez Canal and the Red Sea along the Sinai Peninsula to the northeast, the Indian Ocean to the southeast, and the Atlantic Ocean to the west. The continent includes Madagascar and has 54 sovereign states and two states with limited recognition. Either by fault or design, the entire continent has for the last fifty years been suffering from a condition famously labeled as the Dutch-disease.

This disease according to the Economists is a concept that explains the apparent relationship between the increase in exploitation of natural resources and a decline in the manufacturing sector. The term was first coined in 1977 by The Economist to describe the decline of the manufacturing sector in the Netherlands after the discovery of a large natural gas field in 1959. In recent times, the term refers to countries, which have abundant resources but are in deplorable states in terms of economic development.

Expectations Arising From the Existence of Resources

Africa is the richest continent in terms of natural endowments. Some of these resources include gold, diamond, crude oil, cocoa, and timber, in fabled quantities, vast expanse of land inter alia. Almost all African countries are endowed with natural resources but notable among them are; South Africa, Ghana, DR. Congo, Sierra Leone, Nigeria, Angola, Rwanda etc. With these resources, one would have expected that Africa should have the best health care delivery systems in the world, good education for its people, better infrastructure, vibrant industrial sector, more employment avenues, an enviable per capita income, higher standards of living etc.

Elsewhere, where a quarter of these resources do not even exist, efforts are being made by the people to develop their countries and some countries have actually made the transition into developed nations. Mention can be made of Germany, Netherlands and the so-called ‘Asian Tigers’. Japan and South Korea for instance do not posses as much natural resources as Ghana and Congo but development wise is light years ahead of the latter. In Japan, only 16% of the land is cultivable as most parts of it are mountainous, yet, she is able to produce enough to feed her people. Sadly, it cannot be said of most African countries. Japan also happens to be among the seven (7) most industrialized countries in the world despite these resource constraints. What is then the excuse for the continent’s abysmal performance in the sphere of economic development?

The Reality

Before one attempts answering such a question, one needs to examine the facts on the ground. Despite all the aforementioned resources, out of 24 nations in 2009 that were identified as having "Low Human Development" according to the United Nations’ Human Development Index, 22 were actually located in Sub-Saharan Africa (SSA). This lends credence to the fact that resource abundance does not necessarily mean development will naturally take place. Development will be stagnant if these resources are not put into effective and efficient use.

The evidence on the ground shows that in most countries with huge natural resources, these endowments have proved a curse rather than a blessing. For instance, most people in Yenagoa-a village in Nigeria’s oil rich Delta region live in mud huts without basic amenities such as potable water, schools, electricity and in-door toilets. Interestingly, these villagers reside only a few meters from the oil wells drilled by giant cooperations such as Chevron, Exxon and so forth. (African Agenda, 2006, vol.9.no.4 page 5). It is needless to also pinpoint the environmental hazards and especially the frequent oil spills that wreck havoc to farmlands and properties rendering the people not only homeless but prone to diseases.

There have been violent clashes between natives of the oil regions and the companies that produce oil in Nigeria for decades now. A fortnight ago, the government of Nigeria removed oil subsidies stating that several billions of dollars will be saved in order to develop infrastructure of the country. This move by the government led to mass protests on the streets of many cities especially the national capital, Abuja.  Most Nigerians are of the opinion that as the leading producer of oil in Africa, the only benefit they derive from the country’s oil is the 50% subsidies, which they enjoyed but which has now being removed.

The Nigerian case is not the only situation. The Democratic Republic of Congo (DRC) arguably is one of the most endowed countries in the world owing to the abundance of every natural resource. You name it; from rare minerals for manufacturing computer chips to vast forest resources the DRC has it. Experts have estimated that the Congo basin alone can produce enough food crops to satisfy the nutrition requirements of nearly half the population of the whole world (Obeng, 1997, vol.5, page 34).This potential wealth however, contrasts sharply with the extreme poverty of the people of this country. According to some statistics, an average Congolese earns an annual income of less than US$100. State revenue represents less than US$ 1billion for a country whose population is about 60million with a land area of 2, 243,000 square kilometers (African Agenda, 2006, vol.9.no.3, page 12). From this, it is clear that the natural resources of this country benefit neither the state nor the local communities. On the contrary, they seem even to become a sort of curse because of the repeated war situations they engender and the political and economic instability they create for this country (African Agenda, 2006, vol.9, no.3, page 12).

Equally mind blogging is the case of Sierra Leone. Many people especially vulnerable groups like women and children lost their lives needlessly owing to greed over the exploitation of blood diamond. Nowadays, the heavily burdened Sierra Leonean Government makes a lot of money from the diamond mines but this is yet to reflect in the lives of the people.

Ghana in a less dramatic fashion is no different. The production of cocoa has given way to mineral production. The regular blasting activities of Newmont Ahafo have resulted in cracks in a number of houses at Dormaa in Kenyasi No. 2 and Habitat in Kenyasi No. 1. It is now difficult for students to acquire scholarships from the Ghana Cocoa Marketing Board (GCMB) since the cocoa farms which were evidence to acquire scholarships are no more as the land is now being used for mining activities. This has given rise to poverty in the area (African Agenda, 2006, vol.9, no.3, page 14). Furthermore, the recent discovery of oil in Ghana in commercial quantities does not excite some people judging from the examples of other countries. Others have made it clear that, if the discovery of oil in Ghana will become a curse on the people then, it should be allowed to stay on the ground.

In his address to the Parliament of Ghana in 2009, President Obama remarked “the African continent is rich in natural resources and that there is bountiful wind and solar power; geothermal energy and bio-fuels. From the Rift valley to the North African deserts; from the Western coasts to South Africa’s crops-Africa’s boundless gifts can generate its own power, while exporting profitable, clean energy abroad. He reminded Ghanaians in particular about the fact that oil brings great opportunities, and that, Ghanaians have been responsible in preparing for new revenue but that, oil simply cannot become the new cocoa” (Daily Graphic, 13th July, 2009). This is because, “dependence on commodities-or a single export has a tendency to concentrate wealth in the hands of the few, and leaves people too vulnerable to downturns”.

Why the Current state of underdevelopment?

Most people have always blamed Africa’s problems on colonialism. The British, the Portuguese, the French, Germans, Belgians, had colonies in Africa and took away resources of their colonies which they used to develop their countries. They also introduced the slave trade in Africa, where the best brains and the labor force of Africa were sent mostly to the Americas to develop plantation farms owned by the colonial masters. This many believe till date is the main cause of the underdevelopment of Africa.

However, in the 21st century, this argument does no longer hold water when assigning reasons to Africa’s underdevelopment. This argument has been described as a staggering one and a deliberate attempt to look away from the real causes. Even though some external factors play a role of a sort such as imbalance terms of trade and the fact that African countries still depend on loans and grants from foreign countries especially their colonial masters, which dependence is accompanied by unfavorable conditions, a chunk of the problems of Africa emanate from within.

First, many have decried the attitude of African leaders beginning from the post-colonial independence to the contemporary era as reasons for Africa’s poor state. Many African leaders have reserved the national resources to themselves and cronies in the form of money mostly in foreign banks. Mention can be made of Mobutu Seseku, Gen. Saani Abacha, Iddi Amin, Murmur Gadhafi among others who were richer than their respective countries. The former Egyptian strongman, Hosni Mubarak is currently standing trial in his country not only for responsible for the recent upheavals in that country which led to loss of lives, but for allegedly stealing several millions of dollars belonging to the Egyptian tax payer. Indeed, corruption and bad leadership has become so pervasive in Africa that, an African philosopher, Prof. Kwesi Wiredu describes it as ‘a moral pollution’. It has become part of the African daily life and even more serious in government institutions. To overcome this, we need what he (Prof. Wiredu) calls ‘a conceptual moral revolution’ (Gyekye, 2004).

Poor work ethics is another factor militating against Africa’s development. People generally do not give out their best in their respective work places especially in the public sector. Therefore, the resources can be there, but once the people’ attitude to work is negative, development will remain stagnated.  Also, the concept of ‘African time’ is retarding the progress of development in Africa. It is a common practice in government institutions across the continent where some workers often go to work late, go for break before time and close from work earlier than the time given. It is not uncommon for people to go for a programme scheduled for 10am at 12pm believing in the concept of ‘African Time’. How do we expect our productivity to increase when we do not respect time? Time management is very important in every sector of our economy and that explains why we have planning officers in every unit or department/agency to plan our projects and programmes according to a stipulated time period.

In Africa, there is no rule of law but reality of the law, where the reality of the law refers to the fact that all persons are equal but some are more equal than others. It is often as though the law is made for some people and this has led to the culture of impunity. We have cases where governments in power massage their constitutions to stay in power forever and examples can be found in Niger, Senegal, Zimbabwe etc. These have led to conflicts in many parts of the continent. According to President Obama, “no person wants to live in a society where the rule of law gives way to the rule of brutality and bribery.
That is not democracy that is tyranny” (Daily Graphic, 13th July, 2009, page 9).

The way forward for Africa

Education is the secret of the developed world and Africa has regrettably only begun to realize this. Without education, regardless of a nation’s natural resources, its people will remain steeped in poverty without till the end of civilization. It is therefore imperative for our leaders to invest in the education of the youth. In most African countries, our educational systems are not only ‘confused’ but do not equip students for industry. In Ghana for example, the politicians keep on reforming the educational system year after year but end up sending their children to the best schools in Europe and elsewhere.

Additionally, generous investment into technology, industry and scientific research and development should be made if African nations are to compete in the technologically driven world of tomorrow. This will not only help to alleviate poverty and improve the economic well being but quintessentially, provide the vital human capital which can conveniently innovate as well as utilize these technologies to withstand the imminent surprises of the next decade.

Development depends on good governance and that is the ingredient that has been missing in Africa for many years. “Each nation gives life to democracy in its own way, and in line with its own tradition. Governments that respect the will of their own people are more prosperous and successful than those that do not…. No country is going to create wealth if its leaders exploit the economy to enrich themselves-or if the police can be bought off by drug traffickers” (Daily Graphic, 13th July, 2009, page 9). The hour is upon us to put an end to the numerous wars and conflicts in Africa. African children are crying for development and Africa can only come out of poverty if we put an end to the wars and conflicts. Researchers at the International Rescue Committee, a US-based aid agency that has chartered the impact of DR. Congo’s war, say 1,000 people continue to die every day, mostly from hunger and disease, on-top of the 4million that have died since the last war began in 1998 ( BBC Focus on Africa, 2006, vol.17, no.2, page 15).

Most resource rich nations of Africa are politically volatile with several local disputes ensuing over the control or distribution of wealth which has for long remained the sole source of national revenue. Poverty and lack of visionary – cum transparent leadership has rendered these nations backward, thereby inflicting much dint in its human capital development. Urgent measures need to be put in place to reduce if not completely eradicate these conflicts.  Furthermore, public fora should be organized on regular basis. At such fora, the way forward as to how to manage the resources of each country will be discussed to reduce unnecessary suspicion from the people thereby minimizing the tendency for various forms of confrontations between the government and the duty-bearers.

State institutions must also be strengthened to work so that those who break the laws will be punished severely by the appropriate bodies mandated by law. In the words of Obama, Africa needs strong institutions and not strongmen. Many argue that stiffer laws should be introduced but this might not be the remedy to the problem. The answer lies in a higher commitment to the implementation of the existing laws, which do not have teeth to bite especially the powerful in society.

All in all, as Dr. Kwame Nkrumah summarily captures it “our people supported us in our fight for independence because they believed that African Governments could cure the ills of the past in a way which could never be accomplished under colonial rule. If, therefore, now we are independent we allow the same conditions to exist that existed in the colonial days, all the resentment which overthrew colonialism will be mobilized against us”.

Francis Xavier Tuokuu is a Freelance Journalist and a Postgraduate Student in Corporate Social Responsibility and Energy (MSc) at Robert Gordon University, Aberdeen, Scotland. He can be reached via fxtuokuu@yahoo.com or Room 5 A, Dieview, Stonehaven Road, Aberdeen.

Prof.Wayne Dunn – Professional Profile

Wayne Dunn has over 25 years of senior-level global experience with Corporate Social Responsibility projects, including both strategic consulting and direct on-the-ground implementation, with industry experience in a diverse range of sectors.


His projects have won major international awards, been made into a Stanford Business School Case Study and used as a consultation best practice by Northern Ireland Ministerial Advisory Group. He is a frequent keynote speaker and lecturer at major events worldwide, (see examples) and publishes on CSR and strategy topics. As well, he is an acclaimed educator with extensive experience delivering CSR lectures and programs throughout Africa and globally.

Dunn is President and Founder of the CSR Training Institute and Professor of Practice in CSR at McGill. He’s a Stanford University Sloan Fellow with a M.Sc. in Management from the Stanford University Graduate School of Business. 

Wayne is recognized globally as a CSR pioneer and a veteran of 25+ years and 70+ projects in the space where business meets society. His experience includes social and environmental sustainability work with industry, governments, NGOs, IFIs and multi-laterals, and directly with communities. His work encompasses the design, development, implementation, monitoring and management of CSR projects, CSR strategy and policy, as well as training and support for Executives, Boards and workers from all types of organizations, including governments. He has worked in over 35 countries and on every continent with extensive experience in Africa, North and South America.

Current and Recent Past Positions Include:
·    President & Founder, CSR Training Institute
·    Founding Member of the Advisory Board of the EU Africa Chamber of Commerce,
·    Professor of Practice in CSR, McGill University
·    Chaired the 2014 EU Africa CSR Awards Gala
·    Leading the 2015 EU Africa CSR Dialogues
·    Jury Chair for the 2015 EU Africa CSR Awards Gala
·    Aboriginal Experts Group for implementation of Canada’s Extractive Sector Transparency Measures Act
·    4 years as Vice-Chairman of the Canadian Council on / on Board of Directors since 2004
·    Founded and operates an African/Canadian social purpose venture, Baraka Supplies, importing Ghanaian products and marketing them throughout North America

Wayne - a Canadian citizen - has worked around the world in many industries and sectors including extensive experience with Indigenous Peoples both in Canada and globally. His work has won major international awards and has been used extensively as ‘best-practice’ by industry and academia, including as a case study by Stanford Business School and has been featured on the front page of the Wall Street Journal.

His acclaimed Certified Training Conferences© have trained hundreds of executives and leaders from industry, NGOs, government and international organizations around the world, including over 200 trained in Sub-Saharan Africa.

Wayne is a globally recognized CSR thought-leader and a highly acclaimed, frequent lecturer and speaker on CSR, economics, development and strategy at events worldwide. His writings on CSR are followed globally and he is currently in discussions with a U.K. publisher interested in developing them into a book.

Wayne has also worked oil rigs, prospecting, diamond drilling, logging, commercial fishing, heavy equipment operator, farming, truck driver, trapper and underwater logging, and founded two start-ups among many other wide-ranging life experiences.

Wayne’s career includes big successes, and spectacular failures. He has learned from both. As comfortable at a minesite as working in the C-suite or addressing major international events, he is effective in both the jungle and the boardroom.

Project Experience
Select recent lectures & keynote presentations
CSR Strategy and Implementation

Wayne’s initial work on what came to be known as CSR began in northern Saskatchewan in the late 1980s, working with indigenous peoples and the mining industry. Early notable accomplishments include facilitating the first ever agreement between a mining company and an Indigenous organization (Corona Gold / Reindeer Region Economic Development Corporation), facilitating collaboration between the outfitting industry and indigenous fishing communities and assisting the Uranium mining industry (including Cameco) to develop and implement a highly successful CSR and social license strategy (see report here and case study here).

Over the past two decades he has organized numerous international events, round tables and development sessions including at the United Nations, World Bank and Inter-American Development Bank. He has worked on and led over 70 CSR projects spanning the globe a few of which are cited below.

Note that most of the projects share common themes including extractive sector CSR, multi-sector CSR partnerships, next generation CSR, creating and transferring global best practices, etc..


Placer Dome Care Project (South Africa, Mozambique, Swaziland, Lesotho & Botswana).  Wayne was a key part of the leadership team to design and implement this ground-breaking partnership between CIDA Inc. and Placer Dome.  The project was credited with ‘changing the social face of the mining industry’ and won the World Bank’s Development Innovation Award the Nexen award as the top Canadian CSR project (2004) and was made into a Stanford case study.
EU Africa CSR Awards Gala (All of African countries).  Assisted the EU Africa Chamber of Commerce with the planning and execution of this event and served as Chairman of the Jury for the November 2014 Gala and holds the same role for the 2015 event.
Strategic CSR Review/Plan (Tanzania) – completed a detailed strategic review of CSR issues, opportunities and challenges for Placer Dome’s North Mara mine (Tanzania) just prior to Barrick’s acquisition of Placer Dome.
AngloGold Ashanti, Community/CSR Awards.  Jury member for South African based AngloGold Ashanti’s global Community/CSR Awards competition
EU Africa CSR Dialogues – assisting the EU Africa Chamber of Commerce to develop and implement the EU Africa CSR Dialogues.
National CSR Policy (Ghana) Advised Government of Ghana on the development and implementation of a national CSR Policy
Strategic CSR Review/Plan (Mali) – completed a detailed strategic review of CSR issues, opportunities and challenges for Nevsun Resources’ operations in Mali.
CSR Strategy and Support to Ghana National Petroleum Corporation including with industry wide issues and opportunities as well as project and partnership specific strategies and approaches.
HIV/AIDS programming in Southern Africa mining industry (South Africa, Mozambique, Swaziland, Lesotho & Botswana).  Worked with Placer Dome and other industry leaders and stakeholders to facilitate the mining industry’s engagement in HIV/AIDS programming
Executive Program in CSR Strategy & Management (South Africa & Ghana, with participants from Mozambique, Kenya, Tanzania, Uganda, Ethiopia and 7 other African countries). Designed and led an acclaimed executive program that trained over 200 executives and leaders in Africa.
CSR Partnerships (Extractives) provided strategic advice and support on NGO partnership selection and development to mining and petroleum firms operating in Africa and Asia.
Care+ (South Africa, Mozambique, Swaziland, Lesotho & Botswana).  Worked with Placer Dome and other industry leaders and stakeholders to develop an outreach program to help mitigate the socio-economic impact of HIV/AIDS at the community and family level in labour sending communities.
CSR Strategy & Partnerships (Golden Star Resources, Ghana).  Developed and assisted with implementing a CSR Partnership strategy to engage more effective with NGOs, governments, international partners and local communities
Social Purpose Ventures – conceived, launched and run two Social Purpose Ventures focused on commercially connecting Ghana and North America (see SBM & Baraka Supplies)
CSR Workshop (Ghana) in 2004 worked with the Minerals Commission and the Ghana Chamber of Mines to organize the first ever CSR event in Ghana, bringing together national stakeholders and key initiatives and stakeholders from elsewhere on the continent, including Southern and Eastern Africa.
Mining and CSR Policy – ad-hoc advice and support to Ghana Minerals Commission and Ghana’s Minister of Lands and Natural Resources on CSR, social license and associated issues and strategies
CSR Partnerships – advised and supported 4 international NGOs on CSR partnership development, strategy and networking
CSR Strategy & Advice – (mining), provide ad-hoc strategic advice and capacity development related to CSR and associated strategy support to 14 mining companies operating in 18 different countries.
Education & CSR – provided strategic advice and support to various universities and technical training institutes in Ghana on private sector collaboration and CSR
Aboriginal Expert Group (Member) to advise the Government of Canada on the implementation of the Extractive Sector Transparency Measures Act (ESTMA)
Africa Mining Vision / African Mineral Development Centre.  Assisted the Government of Ghana and the UNECA’s African Mineral Development Centre with planning and negotiations leading to Ghana’s engagement in the development of a Country Mining Vision.
CSR Strategy & Advice (Petroleum) –, provide ad-hoc strategic advice and capacity development related to CSR and associated strategy to several major international petroleum companies.
Inuit Impact Benefits Agreement – provided strategic support and assistance to Kitikmeot Inuit Association in the first ever Impact Benefits Agreement negotiations to take place in Nunavut.
South-South HIV/AIDS programming technology transfer (South Africa, Mozambique, Papua New Guinea).  Working with Placer Dome, World Bank, CIDA Inc and key stakeholders in Mozambique, Papua New Guinea and South Africa used African HIV/AIDS programming experience to assist Papua New Guinea to develop a strategic public private partnership approach to HIV/AIDS programming
CSR Value Continuum – designed and developed a number of next generation CSR tools and frameworks that facilitate pragmatic application of practical shared value concepts (see article)
CSR Metrics & Reporting – assisted numerous clients with a range of CSR Metrics and Reporting strategies, solutions and implementation plans
CSR Knowledge Centre – created the CSR Knowledge Centre and authored numerous strategic application and learning guides on CSR.
 
In addition to the above there are many more projects in Africa, throughout Canada and globally, including many with Indigenous Peoples in Canada and throughout the Americas.

Professor Dunn’s lectures and keynotes on CSR are widely praised for being informative, education and thought provoking. Drawing on his extensive CSR project, policy and strategy experience and building from his writings and teachings on the subject and his own hands-on industry experience he is able to engage and entertain audiences of all types.


Aligning Interests:  CSR, Social Enterprise and beyond. Soul of the Next Economy Forum Calgary, Canada | Oct 2014 [click for slides]
Community Relations/CSR: Creating value for industry and community International Congress on Community Relations, Lima, Peru | August 2014 [click for slides]
Aligning Interests: Stakeholder engagement tools & strategies  Effective Stakeholder Engagement program, London, England | October 2014 [click for slides]
CSR in Africa:  EU Africa CSR Awards | Gala, Brussels, Belgium, Nov 2014
CSR Value Continuum:  Another Way to Think About Shared Value Canada Indonesia Chamber of Commerce Breakfast Briefing, Jakarta, Indonesia | May 2014 [click for slides]
Systematic Approaches to CSR:  Tools, Techniques & Frameworks McGill University, Executive Program on CSR Strategy and Management, Accra, Ghana | April 2014 [click for slides]
Relationships Matter! Acquiring, maintaining and losing social license.  PDAC CSR Seminar Series Toronto, Canada | March 2014
CSR:  IT IS ALL ABOUT VALUE Mining Industry Event, SPAN OMS Vancouver, Canada | Feb 2014 [click for slides]
Thinking about CSR in Practice:  learnings from decades in the trenches McGill University, Executive Program on CSR Strategy and Management Accra, Ghana | Nov 2013 [click for slides]
CSR, Value & Responsibility: Shareholders, Communities and Governments Canada-East Africa CSR Forum on Developing CSR Policies and Guidelines Dar es Salaam, Tanzania | Sept 2013 [click for slides]
CSR & Value Creation:  shareholders, communities and governments Keynote Address to UN Global Compact Annual Awards Banquet / Inaugural National Public Lecture on CSR Accra, Ghana | Sept 2013 [click for slides]
Thinking about CSR in Practice:  thoughts, tools & examples  McGill University, Executive Program on CSR Strategy and Management Cape Town, South Africa | May 2013 [click for slides]
Role of Private Sector in International Development McGill University, ISID Executive Education Program on International Development | Vancouver, Canada | June 2012 [click for slides]
Mining and Corporate Social Responsibility  University for Development Studies Wa, Ghana | Oct 2011 [click for slides]
Getting Here from There Sloan Fellowship/Master’s Program – 50th Anniversary Celebration Stanford University Graduate School of Business Stanford, CA | September 2007 [link for youtube video]
CSR:  Integrating financial, social and environmental value creation Canada/Ghana Inaugural Seminar on Corporate Social Responsibility Accra, Ghana | February 2006 [link for slides]
Beyond the Paycheck:  Placer Dome’s CSR Program in Southern Africa Leading Social Innovation Across Sectors:  Net Impact Conference Stanford University Graduate School of Business Stanford, CA, | November 2005 [link for slides]
CSR and Corporate Strategy in South Africa CSR in Africa  Canadian Council on Africa Calgary, Canada | June 2003 [link for slides]
Professor Dunn has authored a series of articles on various aspects of CSR strategy and implementation (available here).

Below are some of the articles with hyperlinks to the online PDFs.

     CSR Metrics:  You can’t measure temperature with a speedometer (read)
     Eleven strategies for maximizing value from CSR (read)
     Thirteen mistakes that prevent and destroy multi-sector partnerships (read)
     Natural CSR Partnerships – Unnatural Partners:  Multi-sector partnerships (read)
     NHL Sustainability Report:  Good, but incomplete (read)
     Twelve strategies for CSR in budget crunch times (read)
     From Pariah to Exemplar:  Worst to first six best practices (read)
     Seven strategies for engaging internal stakeholders on CSR  (read)
     Eleven mistakes to avoid in CSR Communications (read)
     Eight self-serving steps to create a CSR program (read)
     Five common mistakes in stakeholder engagement (read)
     Another perspective on shared value: the CSR Value Continuum (read)
     Smarter CSR Budgets: Connecting Value & Budget (read)
     Don't be an Altruistic Angel! (read)
     Six best practices in stakeholder engagement (read)
     Twenty eight expert tips on stakeholder engagement (read)


Please feel free to contact Wayne directly for additional information

 wayne@csrtraininginstitute.com / +1.250.701.6088

Corporate Social Responsibility: Is it an ‘‘alternative to government’’?

Corporate Social Responsibility (CSR) programmes are initiated by companies to give back to society what they have taken from them. It is a tool meant to gain ‘‘informal license to operate’’ in a particular community. As David Henderson puts it, CSR is meant to give capitalism a ‘‘human face’’.  Simply put, CSR is when a company lives a good neighbourly life with the community in which it operates. 

Blowfield and Frynas described CSR as an ‘‘alternative to government’’ and this is ‘‘frequently advocated as a means of filling the gaps in governance that arisen with the acceleration of liberal economic globalization’’. Should companies do the work of governments particularly in the developing world where basic amenities are lacking? Are governments not shirking off their responsibilities simply because multinational companies have been providing schools, hospitals, roads in the name of CSR?

In an article, titled, ‘‘CSR as Corporate Social Responsibility or CSR as Colonial Structures Return, the case of Nigeria’’, my own Professor and Supervisor, Stephen Vertigans enumerated how people in the Delta State of Nigeria often complain about lacking basic human needs such as shelter, toilet facilities, portable drinking water among others. However, anytime they lay their concerns before the government, they are told to contact the oil companies operating in their community. The oil resource has become a curse to them rather than a blessing and that explains why many in Ghana think that if the country’s oil wealth would not bring the desired benefits to the populace, it should be allowed to stay where it is.

Many multinational companies operating in the developing world especially Africa are richer than the countries in which they operate in. As a result, they capitalize on that and sign contracts with government officials in secrecy and with confidentiality clauses. They dictate to our governments and virtually run our economies. Kwame Nkrumah was right when he said, ‘‘the resources are there. It is for us to marshal them in the active service of our people. Unless we do this by our concerted efforts, within the framework of our combined planning, we shall not progress at the tempo demanded by today’s events and the mood of our people. The symptoms of our troubles will grow, and the troubles themselves become chronic. It will then be too late even for Pan-African Unity to secure for us stability and tranquility in our labours for a continent of social justice and material well-being’’.

While it is unacceptable for multinational companies to dictate to governments in countries where they operate, it is unpardonable for governments to shirk off their responsibilities to their citizens. The right thing is for governments to partner with non-governmental organizations and the private sector to serve as drivers of CSR in order to have a win-win situation between business and society.

It is the duty of every government to draw public policies and programmes to ensure that environmental and social problems caused by multinational companies are reduced if not completely eliminated. The dependence of the state on multinational companies may hinder such noble initiatives but governments have no choice than to promote the greater good of their citizens.

Civil society organizations, businesses and the government all have roles to play in ensuring that there is accountability and transparency in the system and that, multinational companies by virtue of their financial muscle should not dictate to our governments. Responsible business is a driver to sustainable and inclusive development. Therefore, it is important for both governments and businesses to identify their roles and responsibilities and play them accordingly and not lord it over the other in the name of CSR.

In conclusion, businesses can only gain the trust of the communities in which they operate by incorporating the ‘triple bottom line’ which are; environmental sustainability, economic sustainability and social sustainability and not by dictating to the government of the day. Stakeholders are as important as the shareholders and every business decision must consider the concerns of both.


By Francis Xavier Tuokuu

Corporate Social Responsibility: Is it a misplaced virtue?

Corporate social responsibility (CSR) is not entirely a new concept as it has been in existence for over a century. It overlaps other disciplines and its continuous increase in importance has led to the proliferation of names such as corporate governance, corporate conscience, corporate citizenship, sustainable development inter alia. It is what Elkington refers to as the ‘Triple Bottom Line’ which means economic sustainability, social sustainability and environmental sustainability. Therefore, every CSR programme should incorporate these three “virtues”.


The European Union defined CSR as a “concept whereby companies integrate social and environmental concerns in their operations and in their interaction with their stakeholders on a voluntary basis (European Commission 2001).


Why practice CSR when the objective of every business is to make as much profit as possible for its shareholders? For Milton Friedman, an Economist and a Nobel Laureate whose article appeared in the New York Times in September, 1970, “the business of business is business” and as such, companies should channel their resources into making profits for their shareholders and forget about CSR. David Henderson agreed with Milton Freidman and stated that, CSR is a “misguided virtue” and its practice will reduce competition and “undermine the market economy”.


Wood (1991) believes however, that, business and society are not mutually exclusive. The two are interwoven and cannot be separated from each other and so CSR should be used as a vehicle for providing social services such as housing, roads, education, health among others.


Many business operators in Africa and for that matter, Ghana do not fully understand CSR and have limited the concept to philanthropy or charity (donation). For example, a company that donates huge amounts of money to the Black Stars of Ghana or Osu Children’s Home as part of its corporate responsibility but fails to pay taxes or comply with the environmental laws of the country is not socially responsible.  A look at the pyramid of CSR indicates that, philanthropy or charity is the least in order of importance but which many in Africa have reduced the concept to. CSR goes beyond donations to cover such vital areas including; human rights, welfare of workers, the safety of the environment in which the company is operating in, the health and safety of workers and customers,  the issue of child labour in the supply chain,  community-company as well as government relationships, transparency and accountability, tax governance and legal issues. CSR thus addresses the concerns of both shareholders and stakeholders. In fact, it is the stakeholder theory that gave birth to the concept of CSR.


In addition, when a company is given a legal contract to operate in any community by the government or appropriate institution, it needs a “social contract” from the community to operate. For example, the government of Ghana in 2011 gave Ghana Gas the legal mandate to process gas in Atuabo in the Western Region. However, Ghana Gas needs a “social contract” from the people of Atuabo to operate without which the company will encounter difficulties.
Multinational corporations such as Tullow Oil Plc, Cosmos Energy, MTN Ghana, Airtel Ghana, and Guinness Ghana among others owe it a duty to respect the ethical standards and legal frameworks set by their host country. These include, environmental laws, human right laws, corporate tax laws and it is only by obeying such laws and incorporating it in their ‘Triple Bottom Line’ that,  they would be given ‘informal license to operate in’.


President John Kufour is reported to have said shortly after Ghana discovered oil that, “oil is money, and we need money to do the schools, the roads, the hospitals. If you find oil, you manage it well, can you complain about that? Even without oil, we are doing well already. Now, with oil as a shot in the arm, we are going to fly (Gary 2009). Seven years down the line since the discovery of oil, can we say we are benefiting from our oil? Are we getting value for money?  Ghana has been mining gold and other precious minerals for over a century now yet; there is nothing to show for it. Obuasi (Ghana) and Johannesburg(South Africa) are among the top gold producing cities in the world but there is poor housing, massive poverty, pollution in Obuasi whereas there is massive infrastructural development in Johannesburg comparable to any city in the world.  Have we gone as a country or we have come after 57 years of independence?


It has been noted that, “the relationship between brand image and corporate social responsibility is strongest for familiarity, not for favourability. That is, if the company is well-known in its community, its corporate social responsibility activities will strengthen its brand image more than they would if the company were less known”. The end result of CSR should be a win-win situation and that explains why it is important for businesses whether big or small, to incorporate the concept in their operations. The notion that, “CSR rests on a mistaken view of issues and events, and its general adoption by businesses would reduce welfare and undermine the market economy” in itself is misguided and untrue.


What is required in Ghana and Africa as a whole is for the media and civil society organizations to play watchdog and vigilante roles in ensuring that businesses are socially responsible, accountable and transparent.  Our governments should not sign contracts in secrecy and with confidentiality clauses in them. If our governments and businesses are transparent and accountable, the citizens become the greatest beneficiary and there will be development.



By Francis Xavier Tuokuu

Corporate Social Responsibility And The Value Of Stakeholder Engagement

Corporate Social Responsibility (CSR) is when an organization or a company lives a good neighbourly life with the community in which it operates in. This is done by incorporating the ‘triple bottom line’ in its operations (that is, economic sustainability, social sustainability and environmental sustainability). According to the World Business Council for Sustainable Development, Corporate Social Responsibility is “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” 

It is the stakeholder theory that gave birth to CSR. Stakeholders are generally people who have interests in a business and they include; host communities, customers, government, shareholders as well as staff of the company. The success of every business requires stakeholder engagement (both internal and external). The interest of the company to the shareholders is as important as those of the stakeholders. Therefore, CSR projects should not be undertaken by only the shareholders but together with stakeholders for a win-win benefit.

One reason why it is important not to leave out stakeholders is the fact that stakeholder dialogue enhances corporate standing of a company and many companies can attest to this. If a company respects the views of its stakeholders, it helps to enforce trust and mutual understanding and hence, a ‘‘social contract’’ to operate in a community is given to the company.

Not only that but also, stakeholder dialogue helps a company identify its internal and external problems. Examples include the use of child labour, environmental pollution, company-community relationship inter alia. Readers may recall how NIKE products were boycotted some years ago because its official supplier of raw materials in Pakistan used child labour in its production. This instance was a clear case of a company ignoring the interests of its stakeholders but was ONLY interested in making profits for its shareholders. In the end, this led to a decline in the profit margin of NIKE. CSR and profits therefore go hand in hand and businesses should not underestimate the importance of CSR.

Furthermore, a mob group within a community can sometimes rise up against a company operating in a community that is not environmentally friendly but only interested in making profits for their shareholders.

A Professor of CSR Practice at McGill University, Wayne Dunn whom I had the privilege to interact on many occasions, advise that as much as possible staff of companies working with stakeholders should be passionate and not fanatical about their work. According to him, ‘‘most of us working in CSR and stakeholder engagement are passionate about our work but so too are many who work in other areas of your organization. Passion is a gift. Cherish it. Fanaticism is a curse. Avoid it because it is destructive’’

Generally, consumers want to associate with a brand that respects their stakeholders and not one that is only interested in making profit. A research conducted by Cone Inc. In 2009 indicates that, ‘‘79% of consumers would switch to a brand associated with the good cause. A new concept of co-donation has been triggered by the companies in which they are giving schemes that will involve consumers by letting them co-donate or co-decide, as with Pepsi Refresh’’ (Kaur and Agrawal 2011). Businesses should know that without their stakeholders, they cannot operate. The two cannot be separated from each other because they are interwoven.

African governments need to put in legislations to check on the many oil and gas companies as well as mining companies who pollute our environments, destroy our water bodies through oil spillage, take away our lands, evade taxes and behave irresponsibly. The UK Government under Tony Blair realizing the importance of CSR created a Ministry of Corporate Social Responsibility with its first minister as Kim Howells to ensure that businesses operate responsibly and incorporate the concerns of their stakeholders into their operations. Can African governments learn from the UK example?









By Francis Xavier Tuokuu

Profile of Francis Xavier Tuokuu, MSc (UK), B.A(Ghana)

Francis is the Executive Director of Center for Responsible Business-Ghana. He is a Doctoral Researcher in Environmental Studies (Environmental Social Scientist) at Antioch New England Graduate School in the United States of America, where he also serves as the Editor-In-Chief of the PhD Newsletter. He is a 2015 Finalist of The Mandela Washington Fellowship for African Young Leaders (an initiative of President Obama). He is also a Sustainability Fellow at Franklin Pierce University,where he coordinates the university's climate change and energy conservation program and works as Project Officer with CSR Training Institute, Canada. He has over 50 published articles and over 300 daily news/reports and stories in various newspapers, websites and magazines across the world including, The Daily Graphic (Ghana’s leading newspaper),Business and Financial Times,The Finder newspaper, The Chronicle Newspaper, myjoyonline.com, etc. He has one published book, two peer-reviewed articles, one accepted book chapter and two peer-reviewed articles under review. Francis has served as a reviewer for a number of journals including the Journal of Global Responsibility (Emerald). He holds a BA(Hons) Degree in Geography and Resource Development from University of Ghana, Legon and a Master of Science Degree in Corporate Social Responsibility and Energy from The Robert Gordon University, Aberdeen, UK. Having received his training across three continents(Africa, Europe, North America), Francis can work in different cultures. He is a member of both the Association of Environmental Studies and Sciences and American Association of Geographers.

Areas of expertise:
1.Environmental Policy/Governance
2.Corporate Social Responsibility
3.Natural Resource Governance (Mining and Petroleum) in Africa
4.Political Economy & Sustainability
5.Energy and Climate Change ( Writing Greenhouse Gas Inventory Reports, Climate Action Plans)
6.Human-Environment Interactions

Centre for Responsible Business (CRB)-Ghana

CRB-Ghana is an advocacy and advisory enterprise, dedicated to the advancement and awareness of Corporate Social Responsibility (CSR), environment (climate change) and sustainable development. We offer CSR and Environmental Management Services to mining companies, oil and gas companies, governments, banking and non-banking sectors, telecommunication companies and communities. The Centre believes responsible business is the key to sustainable development.

We also rank companies based on the 10 principles of the UN Global Compact. The top 10 companies in Ghana who operate "responsibly"  feature in our Corporate Citizenship List
The UN Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption enjoy universal consensus and are derived from:
• The Universal Declaration of Human Rights
• The International Labour Organization's Declaration on Fundamental Principles and Rights at Work
• The Rio Declaration on Environment and Development
• The United Nations Convention Against Corruption
The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption:

Human Rights
• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
• Principle 2: make sure that they are not complicit in human rights abuses.
Labour
• Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
• Principle 4: the elimination of all forms of forced and compulsory labour;
• Principle 5: the effective abolition of child labour; and
• Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment
• Principle 7: Businesses should support a precautionary approach to environmental challenges;
• Principle 8: undertake initiatives to promote greater environmental responsibility; and
• Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
• Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Mission

We work to create awareness and knowledge of corporate social responsibility in businesses, environmental governance and to promote transparency and accountability in the oil and gas sector and the mining industry as well.

Vision

To be the number one stop point of all corporate social responsibility issues and to partner with all stakeholders for sustainable development in Africa.