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Throughout this next decade, our team at NSI Consultants remains committed to finding CSR solutions for businesses. Our goal is to change the way we approach investments and relationships when it comes to social responsibility; it is not an obligation-- but an opportunity, to make a change. We aim to implement this mindset with the business we'll work with through this decade. We will also work more with non-profit organizations and NGOs to expand on their projects by having access to more resources.
Our newsletter for this month focuses on our goal for the future. Knowing how to implement a circular economy (CE) model for a sustainable business isn't just a model that large coporations can attain: small and medium sized businesses can work with this also, and NSI Consultants can help businesses adapt to this change. We also focus on Foreign Direct Investment in Africa, and different programs that have been implemented to creat social and environental change from business initiatives.
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Circular economy: an important pillar of sustainability business models
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With the world shifting, businesses are now becoming fully aware of the responsibility they have towards creating a more sustainable world. Sustainable business models now insist on companies to think about their purpose beyond profit and developing long-term values. The transformation has been also driven by a growing pressure from the public that is now much more concerned about what companies are doing.
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One of the most important shifts towards embracing sustainable business model is circular economy (CE). The CE model provides a new chance of innovation and integration between businesses, natural ecosystems and waste management. The definition of CE according to the World Economic Forum is:
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“A circular economy is an industrial system that is restorative or regenerative by intention and design. It replaces the end-of-life concept with restoration, shifts towards the use of renewable energy, eliminates the use of toxic chemicals, which impair reuse and return to the biosphere, and aims for the elimination of waste through the superior design of materials, products, systems and business models.”
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Implementing such initiatives can be difficult for companies of all sizes. Therefore, the first step to ask for businesses is to ask themselves the question: “How can we make headway towards no waste and instead use what we have to create a cycle?” Once a company can find an answer to this, it is about using it as a foundation for responsible and sustainable practices and applying them into the new organizational culture and their Corporate Social Responsibility strategies.
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The key components of CE are:
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rethink the business model
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design for the future
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focus on regenerative resources
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preserve and extend what is already made
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use waste as a resource
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integrate digital technology
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unite to create joint value
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Moving towards CE delivers benefits such as reducing pressure on the environment, minimizing dependence on importation of raw materials, increasing competitiveness, stimulating innovation, boosting economic growth and creating new green industries and jobs.
To shift to CE and unlock these benefits, we must all urge for change. The global market is pushing and the need for action and ability to act has never been better aligned. It is all about encouraging the next generations to think and design in a sustainable way as well as using circular business systems to build a better future. Companies now have the opportunity to solve some of the world's biggest sustainability disputes and if they do not keep up, they might risk falling behind.
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A summary on Foreign Direct Investment in Africa
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Foreign Direct Investment (FDI) has been a vital part of globalization and how businesses have been able to grow and expand. FDI for a better part is integral for an open and effective economic system and has served as a catalyst for developing countries. When effectively used, FDI not only provides economic development but also leads to job creation, a transfer of skills, technological development and many more. However when coupled with corporate social responsibility, FDI allows for firms to do better, earn higher profits while having a far better impact on societal issues faced by the host country and bring about actual change and difference to the local communities.
Following the increase in Foreign Direct Investment as well as benefits of CSR towards developing countries, there has been a justifiable increase in expectations by the local communities as well as investors, aimed at multinational companies to be more involved in projects. Below are a few examples of rather impressive CSR programs implemented successfully and have had rather sustainable impact on societies in Africa.
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While this might not be in Africa alone, it is worth taking note that the Coca Cola Foundation from 1984 till present has donated more than US$820 million particularly to causes prioritizing women’s empowerment, access to clean drinking water as well as the development of disadvantaged youth. Furthermore the beverage company gives one percent of its profits to communities around the world.
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Dell on the other hand, implemented a 2020 Legacy of Good Plan with the commitment to “drive human progress” through hiring diversity, addressing community challenges, environmental sustainability, global supply-chain responsibility and dedication to putting back more than they take. Also having partnered with Camera Education, it aims to provide 16 million hours of ICT training to 3 000 teacher in Ethiopia with the aim that computer knowledge is spread to the classrooms as well as the youth of the nation.
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Dustin Poirier as well as Justin Wren both whom are internationally recognized Mixed Martial Arts figures have used their ‘brand’ as a fighters to use their ‘The Good Fight Foundation’ and ‘Fight For the Forgotten’ to support the community development projects in land, water, and food initiatives currently for the Batwa Pygmies in Uganda. Since the initiative, 14 new wells have been drilled serving more than 5600 people as well as land acquisition in the name of Batwa Pygmies has begun from which their 5 acre farm has started producing tomatoes, rice, soybeans, cassava, bananas and cabbages.
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