Private Sector Organisation of Jamaica (PSOJ) vice-president Richard Chen reading to students at John Mills All-Age School at the launch of PSOJ's 'Reading ...The Bottomline' project in May. - Contributed

Corporate Social responsibility (CSR) challenges businesses to go beyond the usual practices of maximising profits for shareholders who have invested in firms. Striving for CSR entails considering the firm's stakeholders in its decision making and actions. It also means that firms, while seeking profits, need to balance the benefits to be gained against the costs of achieving the benefits.

CSR is rooted in two main features of operating in modern societies: The essential function it performs for a variety of stakeholders, and the influence that companies have on the lives of its stakeholders. Firms are now increasingly involved in job creation, community well-being and contributing tax revenues to enable the State to perform its functions. Firms also are involved directly in meeting a variety of needs of citizens through the services and products that are provided.

However, the interpretation of what it means to act in socially responsible ways cannot always be prescribed, and there is much debate on what behavior constitutes social responsibility, and how extensive it needs to be.

The first step is to understand what is meant by CSR. Industry Canada, a social responsibility grouping, notes that CSR is an evolving concept that currently does not have a universally accepted definition. Generally, CSR is understood to be the ways firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner, thereby establishing better practices within the firm, creating wealth and improving society. The World Business Council for Sustainable Development defines CSR as "the commitment of a business to contribute to sustainable economic development, working with families, local communities and the society at large".

From these, some common themes emerge:

Preserving the environment for future generations through sound environmental policies and responsible environmental management.

Cultural awareness, education, diversity awareness or advocacy.

Community development, social consciousness.

Managing a company ethically and well to maximise shareholder wealth and making decisions that maximise wealth for all society.

Ensuring that marketing efforts are not discriminatory or biased and that they do not present ideas that are counter to the fulfilment of human rights.

Making an effort to ensure that suppliers are also operating in a responsible manner.

Considering current and future generations to ensure both social and business sustainability.

These themes present different areas that businesses can choose to focus on and opportunities for action if a company sees CSR as a beneficial practice.

Arguments for CSR

CSR is considered to be beneficial for a number of reasons. First, CSR allows for a balance between corporate power and influence with responsibility. Companies committed to social responsibility believe that if they misuse the power they have, then they may lose it.

Companies also feel that if they voluntarily support social causes and operate in responsible ways, then this may offset promulgation of government regulations that may reduce freedoms for both businesses and society. Often, the costs of complying with regulations are far greater than the investments in societal well-being. CSR at its best actually promotes long-term profit and viability for businesses by contributing social cohesion and development, and in so doing, influences citizens who may become future employees and customers.

Long-term business interests are also enhanced as they build the social reputation of the firm, an important component of establishing trust between the firm and its stakeholders. Reputation, though an intangible asset, works in helping to attract and maintain good employees and loyal repeat customers as both customers and employees want to be associated with 'good' companies.

Not everyone agrees that CSR is a good thing. A few companies and executives believe that businesses should stick to business and leave social matters to others. Those who argue against CSR say companies that use some of their resources for social purposes are lowering efficiency at their core business. Others argue that CSR imposes unfair costs on the more responsible companies and that some companies may pass the costs of CSR on to consumers. The last, and perhaps the most-often-cited argument against CSR is that business people are usually not trained to solve social problems, and so businesses shy away from getting involved in these issues.

The way forward

Many Jamaican companies are already convinced of the benefits of CSR and have been undertaking noble and meaningful CSR activities. By putting CSR on the business agenda, enterprises have an opportunity to offer a perspective of management systems, efficiency, oversight and governance to identify, prioritise and resolve Jamaica's social and environmental challenges.

The Private Sector Organisation of Jamaica (PSOJ) is highlighting to its members and the public, a number of projects and initiatives as opportunities for businesses to participate, and, in so doing, contribute to Jamaica's sustainable development and create an environment in which we can prosper, grow and do well for all our stakeholders.

Here are six great opportunities where businesses can make a difference.

Mentorship and youth leadership

The PSOJ Mentorship and Youth Leadership project trains young people in life and leadership skills in workshop settings. We then link the young people to mentors from PSOJ member companies who assist them to make the transition to the world of work, through career guidance and coaching in work ethics.

Companies can get involved by supporting the training sessions and encouraging their staff to volunteer to become mentors.

Reading the bottom line emphasises the important link between reading and career success. Staff of PSOJ member companies volunteer to go into classrooms to read to students and inspire them to read for enjoyment and as a way towards academic success.

Companies may support the project through book drives, as well as sponsoring age-appropriate books approved by the Ministry of Education.

Strengthening School Governance

Strengthening School Governance is an initiative in which the PSOJ, in collaboration with the National Council on Education and the Commonwealth of Learning, works with selected schools to strengthen their boards to govern effectively. Activities include the development of open and distance Learning resources for board members, training for board members and encouragement of the staff of PSOJ member companies to volunteer to serve on school boards.

PSOJ Committees

The PSOJ carries out its mission through the active involvement of its members on the following six committees:

• The Economic Policy Committee informs the private sector about Government's economic development policy and helps to formulate the PSOJ's position on key economic issues.

• The Corporate Governance Committee brings governance standards to public and private companies and offers training in those standards for company directors.

• The Education Committee advocates for an effective education system to help Jamaicans optimise their potential and become productive citizens.

• The Justice Reform Committee highlights the important role that an efficient justice system plays in establishing and maintaining an attractive investment climate in Jamaica.

• The Trade Policy Committee brings a greater understanding of trade issues to PSOJ members and sets the private sector's position on regional and international trade.

• The Standing Committee on National Security assists the security forces in their efforts to provide a safe and secure environment for Jamaica.

These committees aim to strengthen national governance and improve the business environment.

UNDP Co-Financing arrangement

The United Nations Development Programme and the PSOJ are new partners working to jointly fund key development projects through the Jamaica Development Co-financing Facility. A key project is the Jamaica Sustainable Peace and Development Project, which supports community safety, reduction of armed violence and drafting of national policies. This programme helps people on both sides of the law, including Justice institutions and at-risk youth. It also seeks to reduce crime and employ more effective crime-prevention techniques.

AdCouncil Jamaica

AdCouncil Jamaica is non-political, non-denominational and non-partisan organisation. Through partnerships with creative and production talents, corporate Jamaica, foundations and private citizens, it seeks to effect positive social change in designing and communicating targeted messages on major social issues.

The PSOJ hopes private-sector companies will realise the importance of CSR to their businesses and participate with us on these important initiatives.

Contributed by the PSOJ's Education and Corporate Governance Committees. Some of the materials for this article were taken from Anne Lawrence et al, "Business and Society and The Private Sector Collaborative's 'A Primer on CSR'".