Majority Chief Whief Frank Annoh Dompreh is pushing for the legislation of Corporate Social Responsibility in the country.

Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns into their business operations and interactions with their stakeholders.

According to him, "Ghana stands a better chance at a better future in a more secure economy, when we legislate Corporate Social Responsibility now."

"With the legislation of CSR, we stand in a better position to help corporations in protecting the environment, with initiatives aimed at reducing their environmental footprint, product safety, and quality.

"This way, we safeguard against the exploitation of our natural resources. Whether it is the sourcing of raw materials or siting of manufacturing facilities and office buildings, factors can be fused into the CSR law which will ensure that business corporations fund projects to restore or protect biodiversity. 

"A commendable instance is the recycling project that Voltic Natural Mineral Water has put in place to mitigate the effects of rubber and plastics pollution on the ocean and land," he stressed.

Speaking on the floor of Parliament on June 29, the Nsawam-Adoagyiri MP explained that much emphasis has not been placed on the ‘responsibility’ in Corporate Social Responsibility.

According to him, CSR will be incomplete if Ghana turns down the invitation to invoke accountability of the corporate bodies for their CSR.

He cited a quote to buttress his point raised, “As the renowned College Basketball head coach Patricia Summit expressed “Responsibility equals accountability, equals ownership…”, CSR will be incomplete if we turn down the invitation to invoke accountability of the corporate bodies for their CSR.

He highlighted the need for CSR legislation as follows:

1. Standardisation and Accountability: CSR legislation provides a standardized framework that defines what is expected from companies in terms of social responsibility. This ensures that all companies, irrespective of their size or sector, are held accountable for their relative impact on society and the environment.

• Protection of Stakeholders: With CSR legislation, the rights and interests of stakeholders such as employees, consumers, local communities, and the environment are protected. This is particularly relevant in sectors where operations can have significant social or environmental impacts.

• Promotion of Sustainable Business Practices: CSR laws promote sustainable business practices. They encourage companies to consider the long-term implications of their actions and to balance profit-making with societal and environmental considerations.

• Transparency and Trust: CSR regulations based on how they are crafted require companies to share useful information about their social and environmental practices. This transparency can help build trust with consumers, investors, and the broader public.

• Competitive Advantage: By requiring all businesses to adhere to certain CSR standards, the legislation can help to level the playing field in assessing organisation's CSR contributions. This can prevent companies from gaining a competitive advantage by neglecting their social responsibilities.

• Supporting National and Global Goals: CSR legislation can align corporate activities with national development goals or global initiatives such as the United Nations' Sustainable Development Goals (SDGs). This can facilitate collective action toward addressing major societal and environmental challenges.

Mr Speaker,

• Undoubtedly, legislation on CSR will have significant implications for a country like Ghana where the major industries such as mining, oil & gas have substantial impacts on local communities and the environment.

• CSR legislation protects communities and the environment: Legislation can ensure that companies conduct their operations responsibly, minimizing harm to local communities and the environment. In Ghana, where sectors such as mining and petroleum can have significant environmental impacts, legislation can help prevent degradation and protect biodiversity.

• Sets clear expectations: A legal framework establishes clear guidelines and expectations for corporate behaviour. Companies know not only what, but how they are expected to contribute to society beyond their primary business activities.
• Promotes Sustainable Development: CSR legislation can encourage companies to invest in sustainable practices, contributing to national goals in areas like education, health, and environmental conservation. This aligns with Ghana's commitment to the United Nations' Sustainable Development Goals.
• Encourages Economic Equality: CSR can help address regional disparities in economic development. Companies, particularly those extracting natural resources, can be required to invest in local communities, improving infrastructure, education, and healthcare facilities. This direction can only come from legislation.

However, Mr Speaker, legislating CSR can have several effects:

• Compliance Costs; where companies might incur additional costs to comply with CSR legislation. While these costs can lead to long-term benefits, they might be viewed as burdensome by some companies, particularly small and medium-sized enterprises which form a great proportion of corporate entities in the country.

• Enforcement Challenges: The government would need to adequately monitor and enforce compliance, which could require significant resources.

• Potential for Unintended Consequences: If not well designed, CSR legislation could lead to unintended consequences. For example, companies might focus only on compliance rather than genuinely engaging with the spirit of CSR.

• Overall, while CSR legislation holds significant potential benefits for Ghana, careful thought and consultation would be needed to design an effective framework that maximizes the benefits while mitigating potential drawbacks.