CSR requires being proactive!

Corporate Social Responsibility is one of the widely used business terms, with various interpretations depending on social, environmental and business contexts. Thanks to its self-regulating and non-codified nature, the scope of CSR activities has continuously evolved since its emergence in the 60s.
Contemporary trends suggest that CSR has gone way beyond charities and donations. The gear has already shifted from reactive to proactive mode in the developed world, as corporations are expected to engage with the communities they operate in and impact upon. Led by the multinationals and large local corporates, such engagement is now being witnessed in many less developed countries as well.
Formalized CSR initiatives remain few and far between in Pakistan, as corporations prefer to donate to select organisations. Pakistan Centrs for Philanthropy estimated that Pakistani publicly listed companies donated 0.9 percent of their profit before tax in 2009, compared to international giving standard of 1 percent. The total quantum of business donations is said to be much more due to non-documentation.
With the kind of development profile Pakistan has, and with the recurring natural disasters, there is a lot more that the businesses can do under the ambit of CSR. Speakers at recent SDPI seminar - Peace building through CSR - expressed similar thoughts, and emphasised upon Pakistans corporate sector to play its role in resolving conflict-breeding socio-economic issues such as poverty and unemployment.
Whats in it for the businesses in Pakistan, some ask, terming CSR a distraction. They argue that its unfair to expect the businesses to give back - considering that the government has been unable to supply basic utilities; has been negligent to maintain law and order, and is uninterested in providing enabling business environment. The business of a business is to do business, they say, echoing Milton Friedman.
A Pakistani business should be involved in CSR precisely because of the above reasons. The states ability to govern and administer social services has markedly deteriorated over the years, and the businesses have a role and stake in this regard. On one level, the businesses can influence public policy, and on the other, they can proactively lead community development and invest in local talent.
Yet, it is important to learn from the Ghotki experience. Following decades of industrial activity and energy production, it is said that Ghotki doesn have a vibrant local economy. Worse, it doesn have a single technical training institute that could teach locals the skills to get better jobs in those factories and plants.
Perhaps, the cues lie in the Pakistani dairy sector, where small-scale milkmen are the strongest link in the supply chains of large companies. It is indeed good business to integrate CSR into business model.
At the heart of this CSR debate is the notion that doing business is a privilege, granted by the state and society. Societal resources (e.g. human, financial, and environmental) are utilised to earn profits, so giving back to the society is only fair. Since CSR is shaped by societal expectations, there can be no laws mandating it. But, filling the development gaps in Pakistan will require proactive corporate efforts.