“Generosity Index”: Paving the future of CSR in Ghana for sustainable development

Corporate Social Responsibility (CSR) took center stage at the Ghana Social Enterprise Forum, held on November 14 at the University of Professional Studies, Accra (UPSA). Michael Etrue, representing Zach Levi & Associates, delivered an insightful presentation titled “The Future of CSR in Ghana: A Case for the Generosity Index.” His address highlighted the transformative potential of CSR in addressing Ghana’s most pressing socio-economic challenges.

CSR: From Charity to Governance

Michael Etrue emphasized the shift of CSR from acts of goodwill to an integral element of corporate governance. He explained, “CSR is no longer just about giving back; it is about aligning corporate goals with community needs to bridge critical development gaps in education, healthcare, and environmental sustainability.”

During the presentation, Michael introduced the Generosity Index (GI), a pioneering tool designed to evaluate corporate philanthropy. By ranking corporations based on factors such as CSR spending relative to profit, directors’ fees, and auditor’s fees, the GI establishes a transparent and data-driven framework to measure corporate benevolence.

Key Findings from the Generosity Index

The 2023 Generosity Index revealed that the petroleum and telecommunications sectors stood out as the most philanthropic industries, reflecting significant contributions to societal well-being. While specific corporations were not named, it was noted that companies showing consistent increases in their CSR budgets over the years scored highly on the index. On the other hand, firms that spent disproportionately on directors’ fees compared to their CSR efforts ranked lower, revealing gaps in accountability and resource allocation.

Addressing Ghana’s Development Challenges

The presentation also spotlighted the urgent socio-economic challenges confronting Ghana. These include the continued use of over 5,000 schools operating under trees, a dire doctor-to-patient ratio exceeding 1:10,000, and limited access to clean water for only 42% of the population, with basic sanitation accessible to just 25%. Additionally, Ghana faces severe environmental degradation, with 35% of arable lands at risk of desertification.

“These gaps are too vast for government efforts alone,” Michael noted, underscoring the vital role of CSR in complementing public initiatives. He added, “CSR must complement public initiatives to close these divides.”

The Case for Social Enterprises

In discussing the future of CSR, the forum stressed the importance of social enterprises as a natural evolution in corporate responsibility. Unlike traditional corporations, social enterprises integrate societal benefits into their core operations, offering sustainable solutions to development issues. Michael highlighted that the Generosity Index aims to support these enterprises by directing corporate funding to entities tackling critical issues such as healthcare, education, and environmental sustainability. “Social enterprises are the key to sustainable development,” he stated.

A Call to Action for Ghana’s Corporate Sector

Michael Etrue concluded his presentation with recommendations to enhance CSR’s impact in Ghana. He called for the recognition of companies that demonstrate exceptional CSR practices, encouraging targeted funding that aligns with local community needs. He also advocated for increased transparency through the Generosity Index to foster accountability and promote healthy competition in corporate philanthropy. Additionally, he urged corporations to channel more resources into supporting social enterprises, which are uniquely positioned to address Ghana’s development challenges.

Fostering a Sustainable Future

The Ghana Social Enterprise Forum underscored that CSR is no longer optional; it is a strategic necessity for advancing national development. With the Generosity Index setting new standards for corporate giving, a future where businesses actively bridge Ghana’s development gaps becomes increasingly achievable. As Michael aptly concluded, “By creating a culture of accountability and collaboration, we can maximise the impact of CSR to foster national development.”