The FINANCIAL — “One just has to look at the companies that are known for their CSR activities – and you have your proof how companies benefit from it,” said R. Michael Cowgill, President of GAU, Chair of CSR Committee at AmCham and Steering Comm. Member of Global Compact Georgia. “Others should use them as models.”
The FINANCIAL — “One just has to look at the companies that are known for their CSR activities – and you have your proof how companies benefit from it,” said R. Michael Cowgill, President of GAU, Chair of CSR Committee at AmCham and Steering Comm. Member of Global Compact Georgia. “Others should use them as models.”
“I would encourage each business to better understand its current status regarding CSR and then include a more formal CSR program in its strategic and tactical planning. The companies should use the resources available from the business associations to which they belong to do this.
Sustainability only comes from something being successful. As such, companies should build some measures of performance into their CSR programs to fully understand what is and what is not working. “
“GAU was one of the first universities to promote CSR as a corporate strategy and has the financial success that comes with a growth in student enrollment and students being hired,” he added.
Q. Do you feel that CSR practices are improving in Georgia ?
A. In general, yes. However, the business community cannot avoid being affected or distracted by changes, political or otherwise. Unfortunately in such times of change (and we seem to undergo many changes), CSR activities seem to diminish. But I fully hope and expect to see more attention to CSR in 2013.
Q. What kind of CSR activities can be the most stable and long-term in Georgia?
A. Undoubtedly those that either help the bottom line profitability and/or enhance the brand recognition of the organization. Of course these will be specific to each organization. At GAU, such programs would include those that highlight the quality and applicability of its educational programs to the job market and the attention to Georgia's youth. As an example, GAU has a clinical law program providing free legal advice to socially disadvantaged persons by law school students who are mentored by law school professors.
Q. In your point of view, why is interest toward CSR low in Georgian companies?
A. I believe it is a lack of understanding by management of the relationship between CSR and the company's success – however that success is defined.
Q. How can companies in Georgia benefit from social responsibility projects?
A. I'm about to begin my 15th year in Georgia and have seen many changes. Some of us have even discussed lately that there seems to be a trend backwards to when the general public perceived businesses and especially their owners as greedy and only out for making money. CSR activities can have a significant impact on how the public perceives business and no better time than right now to make that happen.
Q. How would you estimate generally company's’ governance in Georgia? What impact do you think corporate management systems have on the Georgian economy?
A. First, I'm glad that you are including corporate governance in CSR. It is often overlooked in the discussion. But as you imply – it is very important. I have stated this before, but the most successful companies and organizations are those that give relatively equal priority to the 3 main stakeholder groups: owners; clients; and staff. All corporate governance processes then follow from that philosophy. Of course obeying laws and regulations are part of that process. But CSR also encourages organizations to not only do what is legal – but what is right.
Good corporate governance is not just preferred, but essential for a company's success.
Q. Reporting is one of the main principles of socially responsible business. Though very few companies in Georgia make public their financial information. In your view, what can encourage companies to start making pubic reports?
A. This is a very difficult subject. One of the competitive advantages of a private company is the confidentiality of its financial operations. The transparency of a company is and should be primarily dictated by what the customers want or require – rather than by regulations.
Q. In Georgia companies in the same sector don’t cooperate together in terms of social projects and environmental protection. How this process could be encouraged and why is it important?
A. Previously in my career, I was deeply involved in developing more robust safety measures within the energy sector – and also ensuring that the public understood that the individual companies placed safety above competition. Sharing and developing safety practices was good for the entire industry. CSR could be seen in a similar way. Some CSR programs can only be successful with many sponsors and companies and there is a need to understand the economies of scale necessary.
Individual company brand awareness and recognition can still occur and even be enhanced by pooling resources. Further, Business Associations such as AmCham and others can be very instrumental in making this work.
Q. Which direction of CSR is the most important for Georgia? Why?
A. Let's define the key parts of CSR, say for companies: 1) be profitable; 2) be legal; 3) do what is right; and 4) philanthropy or charitable giving. We know that companies focus on profitability and being legal and following the rules and regulations – and good governance has been a key. I believe that we have progressed to the point where more focus can be placed on nos. 3 and 4 – which is the logical path for CSR growth in a developing society.
Q. Do you think the CSR message is only being heard and acted upon by large companies? Why should small and medium businesses implement CSR activities?
A. The same principles and advantages apply to all sizes of companies. Larger companies tend to have more resources to devote to CSR. However, this is again where the business associations can play a key role in ensuring that best CSR practices are known, understood and made available to all sizes of companies.
Discussion about this post