On her part Ms. Sharon Donnir , a chartered accountant and Lecturer in the Department of Accounting at the University of Professional Studies, Accra ( UPSA), CSR is part of corporate strategy and that CSR expenditure must be budgeted for and approve by the board of directors and shareholders at annual general meetings (AGMs).
She explained that CSR should be done with the long term goals of the organization in mind, saying COVID-19 became a serious matter at the time that most companies were preparing for their AGMs coupled with lockdown and restrictions on movements and gatherings.
This Madam Donnir said affected the approval of many annual financial plans including CSR activities and corresponding budgets.
She advised that companies should use virtual means to organize AGMs since spending without approval will have audit implications in the future.
Ms Donnir called for review of CSR budgets by board of directors and avoid spending above approved revised budgets.
She explained that while CSR is good gesture during the pandemic there should be a responsible limit since CSR is not the core activities of the companies.
She emphasized that when CSR is well budgeted for it is easy to measure the tax benefits associated with any CSR efforts.
Ms Donnir advised board of directors not to approve revised CSR budgets beyond the financial capacity of their organizations.
Dr Abraham Ansong , the Head, Department of Management at the School of Business, University of Cape Coast , explained different motivations for engaging in corporate social responsibility such as philanthropy, economic and legal.
He explained that the motivation will affect how a company approaches corporate social responsibility.
Ms Selma El Fard , a researcher at Vigeo Elris who specializes in environmental social governance, explained during the pandemic much attention has been shifted to health and safety under CSR with limited efforts at the environmental front though with the closure of airports and low industrial production carbon emissions have reduced significantly.
She said stocks with environmental consciousness are receiving value investment as more than 63% of investors and 87% of millennial investors prefer to invest in companies that promote social justice, social investment, employee welfare and environmental good governance.
She advised companies to be balanced in where they spend their CSR money to ensure sustainability. Ms. Selma called for shareholder activism to redirect CSR to reflect shareholder interests and perspectives.
Frederick Aryeetey who is the Executive Director of Institute of Directors-Ghana, explained CSR should not be seen to be an activity by only big companies, that Micro, Small and Medium Scale Enterprise (MSMEs) including informal sector businesses should all play their part.
The topic for discussion was Coronavirus Pandemic and Corporate Social Responsibility Strategies. The e- seminar was chaired by the Provost of the College of Humanities and Legal Studies, Prof. Francis Eric Amuquandoh .
African Eye Report