Compact guide to CSR in Nigeria

Eche Munonye (2024), From Philanthropy to CSR: The Evolution of Corporate Responsibility in Nigeria. Lagos: Candella. 90 pages.

This concise book, comprising just 90 pages, effectively introduces readers to corporate social responsibility and its increasing importance in Nigerian corporate discourse. It functions as a helpful guide to the world of CSR, or corporate social responsibility.

The book’s nine chapters offer valuable insights and detailed information. It examines the origin of organisational philanthropy in Nigeria, the transition to corporate social responsibility, the growth of CSR in Nigeria, and its current status.

Other topics include the role of stakeholders in CSR, challenges and criticisms faced by CSR in Nigeria, prospects of CSR, and the shift from CSR to sustainability.

It opens with a retrospective look at the origin of organisational philanthropy in Nigeria. The author traces it to cultural practices and “deeply ingrained social norms that emphasised communal prosperity over individual success”.

Eche Munonye avers that “in the early post-independence period, corporate philanthropy remained largely informal and sporadic, mirroring the individual acts of giving that characterised the pre-colonial and colonial eras”.

Business leaders relied on their cultural values or religious beliefs to engage in philanthropy.

“While these early efforts were not yet framed within the modern concept of CSR, they represented the beginning of a shift towards more organised and systematic forms of corporate giving”.

“Global trends and international practices influenced the transition from simple philanthropy to CSR in Nigeria”, the book states in Chapter 2. It notes in particular the strategic contributions of multinationals in this move.

Such companies formalised their corporate communication and public relations function and embedded CSR within it.

Government policy was a deliberate facilitator.

“One of the most notable is the Nigerian Oil and Gas Industry Content Development Act of 2010, designed to increase local participation in the oil and gas industry. While the primary focus of the law was on promoting local content, it also had significant CSR implications as it required oil companies to invest in community development and capacity building in the regions where they operate.”

Tax incentives for corporate giving also contributed. Besides frameworks for monitoring and guiding CSR practices, such as the Nigerian Exchange’s Corporate Governance Rating System, the Nigerian Sustainable Banking Principles (2012) similarly encouraged the banking sector to increase investment and ensure compliance with CSR.

“These principles mandate that banks incorporate environmental and social risk management into their decision-making processes. The initiative “represents a shift towards embedding CSR within the financial sector, ensuring that banks contribute to sustainable development by promoting responsible lending and investment practices.”

Chapter 3 provides a concise history of the CSR journey of major players in the economy. It demonstrates that CSR in Nigeria extends beyond the oil and gas sector. Notable examples include Guinness Nigeria, Nigerian Breweries, Dangote Group, Shell Nigeria, Chevron Nigeria, and Total Energies. Others include Airtel Nigeria and MTN Nigeria Telecommunications. Financial sector contributors mentioned include Access Bank, Zenith Bank, and Guaranty Trust Bank.

The section on challenges in CSR implementation is valuable and provides a clear roadmap. It includes limited awareness and understanding, inconsistent regulatory frameworks, economic constraints, corruption and mismanagement, measurement and impact assessment, as well as cultural and social barriers.

The book includes an assessment of the role of stakeholders in CSR. That section is recommended reading.

The recap of the criticisms and drawbacks of CSR in Nigeria is also significant. Directors of the communication function should heed this reflection.

Challenges and criticisms include “greenwashing: when CSR is used as a marketing tool rather than for genuine impact, CSR focused on optics, “PR-Driven CSR, and the tension between corporate and community needs. The writer notes the tendency to resort to CSR as a means to mitigate community tensions and address accountability and transparency issues in reporting CSR expenditures. It has been a banana peel for many professionals managing the function.

The book concludes with an analysis of CSR’s development in Nigeria, ending with the adoption of global sustainability standards. “International frameworks such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) provide guidelines for sustainability reporting, but adoption of these standards is still relatively low in Nigeria.

Encouraging more companies to embrace these global standards could enhance transparency and offer a clearer view of CSR performance.”

From Philanthropy to CSR: The Evolution of Corporate Responsibility in Nigeria packs a dynamite in rich exposition and exploration of the issues in CSR in Nigeria.

On the other hand, it does not aim to be academic, and the absence of referencing could be a disadvantage.

Eche Munonye is a prominent Nigerian advocate and thought leader in corporate social responsibility (CSR), sustainability, and ethical business practices. He founded and led Africa’s leading media platform dedicated exclusively to CSR, sustainability, philanthropy, and nonprofit accountability. This initiative fills a significant gap in African media by showcasing social impact stories that mainstream outlets often overlook. CSR Reporters recently expanded into the UK.

Munonye organises the Social Impact and Sustainability Awards (SISA), an annual event recognising organisations and individuals making a difference in health, education, the environment, and social innovation. SISA has become a key event for celebrating CSR excellence in Africa. CSR Reporters also manages the bi-annual Non-Profit Excellence Award, which honours NGOs and civil society.

Bi-annual Nonprofit Excellence Award: This platform honours NGOs and civil society organisations that demonstrate transparency, innovation, and effectiveness in community service.

Munonye serves as an Advisory Board Member of the Tony Okpe Foundation, which concentrates on rehabilitating ex-convicts and fostering crime-free communities. His CSR Reporters collaborates with organisations to design, monitor, and evaluate impactful philanthropic initiatives, emphasising strategic sustainability. He received a Global Recognition Award for transforming CSR narratives in Africa and inspiring over 100 organisations to adopt sustainable practices. The award noted his “tireless work and innovative approach”.