One thing is for sure, in Namibia, corporates are finding their rhythm in the proverbial dance with ESG. It is all we hear about at tables of influence and has become an increasingly key part of business strategy, as entities continue to lean towards responsible business.
Yes, sure, we could say that the global buzz around Namibia is favourable – but of what worth is the frenzy, without an honest commitment to Environmental, Social and Governance (ESG) principles, beyond a performative agenda?
At Advantage Advertising, we’re exploring how we can help corporates use their powers for good, creating a positive impact in the communities they serve while also running a profitable business.
Unpacking ESG creates a lens into actionable, sustainable avenues that corporates can explore, including that of Shared Value.
Shared Value is the responsible step beyond ESG. It is a revenue strategy that shifts businesses away from profit versus purpose, and towards profit and purpose. It allows corporations to find business opportunities in societal needs, reiterating that the long-term profitability of a business depends on an enabled society. Shared Value goes beyond Corporate Social Initiatives (CSI). It goes beyond philanthropy. Beyond donations.
Shared Value combats superficial impact washing, which is defined by Harvard Business School as the overstating or false claiming of an investment’s positive impact on the environment or society.
They further that impact washing can be “a purposefully dishonest claim, an embellishment of the truth, or a mistake due to inadequate impact measurement.” By all accounts, we can state that impact washing is as unsustainable as it is unethical – and in direct conflict with true ESG principles.
In contrast, Shared Value creates portals to truly responsible business. It enables positive ESG results. It amplifies CSI efforts. It embodies an ecosystem of aligned strategies that lead to the benefit of all.
It wasn’t long ago that CSI was a game of optics leaning against a robust marketing strategy. Corporate brands improved their consumer sentiment with the occasional donation.
The internal corporate siloes between profit and purpose remained, and CSI kept its position as a checklist exercise. Don’t get us wrong – not much about that has changed. CSI is just undergoing a slight rebrand into ESG.
The regulatory conversations circling around ESG will see more corporates blending their alignment to our National Development Plan, on the back of their ESG strategies. This can, and should, be more than a rebrand of CSI. It should be an intentional path towards an environment that is protected in the quest for development.
It should be governance that complies to localised global best practice. And arguably the most important of all, it should be an unwavering commitment to the socio-economic elevation of the Namibian populace.
It should be measurable. It should be accountable. It should be transparent. And above all, it should integrate into the ethos of teams across the board, with practice.
With Shared Value, business opportunities are expanded, product and service development leaps forward with innovation, and Corporate Social Responsibility becomes more than Googling the United Nations Sustainable Development Goals and selecting a colourful block to align to.
Shared Value creates value for all parties involved. It is the responsible step beyond ESG – for a future Namibians deserve.
* Ama Owusu-Agyemang is Head of Strategy & Shared Value at Advantage Advertising & Communications
