Professional Documents
Culture Documents
Final Report
April 2008
Table of Contents
1 Introduction................................................................................. 3
1.1 Background information ........................................................3
1.2 Structure of the Report .........................................................3
2 Methodology ................................................................................ 4
2.1 Data collection: secondary data review ...................................4
2.2 Data collection: CSR review survey.........................................4
2.2.1 Planning activities .............................................................. 4
2.2.2 Design of survey................................................................ 4
2.2.3 Sampling .......................................................................... 5
2.2.4 Conduct of survey.............................................................. 9
2.3 Discussion forums and working sessions..................................9
2.4 Interviews ..........................................................................9
2.5 International benchmarking................................................. 11
3 Overview of CSR ........................................................................ 12
4 Findings – large organisations ................................................... 22
4.1 Strategic approach to CSR................................................... 22
4.2 Internal CSR ..................................................................... 27
4.3 Framework for external CSR activities ................................... 31
4.4 Evaluation of implementation of CSR activities ....................... 40
4.5 Philanthropic and sponsorship activities................................. 44
4.6 Partnerships with other organisations ................................... 46
4.7 Corporate views on NGO ..................................................... 48
4.8 Potential partnerships......................................................... 53
4.9 Interest in policy dialogues.................................................. 58
4.10 Concluding comments......................................................... 59
4.11 Summary of key findings .................................................... 61
5 Findings - SMEs.......................................................................... 64
5.1 Strategic approach to CSR................................................... 64
5.2 Internal CSR ..................................................................... 65
5.3 Framework for external CSR activities ................................... 67
5.4 Evaluation of implementation of CSR activities ....................... 71
5.5 Philanthropic and sponsorship activities................................. 74
5.6 Partnerships with other organisations ................................... 76
5.7 End word .......................................................................... 81
5.8 Summary of key findings .................................................... 82
6 Findings – Rodrigues ................................................................. 84
7 Legal review .............................................................................. 85
7.1 Existing regulatory framework ............................................. 85
7.1.1 Fundamental Rights ..........................................................85
7.1.2 Labour ............................................................................88
7.1.3 Environment ....................................................................90
7.1.4 Trading ...........................................................................93
7.1.5 Business..........................................................................95
7.1.6 Security ..........................................................................99
7.2 Local voluntary codes of conduct and ethical standards ......... 100
7.2.1 Joint Economic Council – Model of Conduct ......................... 100
7.2.2 Mauritius Code of Ethics................................................... 101
7.2.3 Code of Corporate Governance ......................................... 102
7.3 International codes and guidelines...................................... 105
7.3.1 United Nations Global Compact ......................................... 105
7.3.2 OECD Guidelines............................................................. 107
7.3.3 Sustainability Reporting Guidelines (GRI Guidelines) ............ 109
7.4 Mechanisms of control from the State and civil society .......... 110
7.4.1 Ministry of Environment and National Development Unit ....... 110
7.4.2 Ministry of Labour and Industrial Relations ......................... 111
7.4.3 Ministry of Women’s Rights, Child Development, Family Welfare &
Consumer Protection.................................................................. 112
7.4.4 Registrar of Companies.................................................... 113
7.4.5 The Office of the Ombudsman........................................... 113
8 Recommendations ....................................................................115
8.1 Overview ........................................................................ 115
8.2 An enabling framework for partnerships .............................. 116
8.3 Initiatives at individual sector level ..................................... 117
8.3.1 Overview ....................................................................... 117
8.3.2 Private sector initiatives................................................... 117
8.3.3 Government initiatives..................................................... 119
8.3.4 Reform at NGO level ....................................................... 123
8.4 Joint partnership initiatives................................................ 127
8.4.1 Government and private sector dialogue ............................ 127
8.4.2 Private sector and NGO sector dialogue.............................. 127
8.4.3 Government and NGO sector dialogue................................ 131
8.5 Towards a three-sector partnership model ........................... 131
8.5.1 Mission.......................................................................... 133
8.5.2 Membership ................................................................... 133
8.5.3 Specific objectives .......................................................... 134
8.5.4 The modus operandi........................................................ 134
8.6 The Rodrigues case .......................................................... 137
9 Thematic areas of potential partnerships..................................140
10 Conclusion ................................................................................144
2
1 Introduction
♦ To assess CSR strategies in major industries and Small and Medium Enterprises in
the Republic of Mauritius and make recommendations to target enterprises and the
public sector;
♦ To assess the relation between the Private Sector and the NGO sector; and
♦ To identify potential areas of strategic partnerships between the Private Sector and
the NGO sector.
Sections 4, 5 and 6 present our findings on large organisations, SMEs and in Rodrigues
respectively.
Section 7 focuses on the existing regulatory framework, local voluntary codes of conduct
and ethical standards, international codes and guidelines and goes on to analyse the
adequacy of the mechanisms of control from the state and from civil society.
3
2 Methodology
Our team members engaged in a literature review on CSR. This was essential for the
exploratory research and design of the questionnaire. The literature review englobed the
Deloitte network, academic and business sources, the internet, and the media.
Rationale
A work plan was prepared for approval by the Project Management Unit (PMU). The
work plan:
Exploratory Research
In order to (i) verify the applicability and extent of CSR in the Mauritian context (ii)
refine the research objectives and (iii) obtain additional input for the questionnaire, we
conducted informal interviews with professionals from various organisations. Simple
questions were put to them such as:
4
Descriptive Research
A descriptive study was undertaken to find answers for the research objectives. A
questionnaire was designed to collect the primary data.
2.2.3 Sampling
The sampling frame addressed the 3 segments identified by the Strengthening of the
NGO Sector in Mauritius (SNSM):
Sampling process
For this study, organisations in major industries of the economy and SMEs were
investigated. More specifically, the sampling aimed at addressing:
5
For the purpose of this assignment, both the probability and non-probability sampling
methods have been used, as summarised below:
For major national and international corporations, the sampling frame that we have used
is the Top Hundred Companies as this gives a reliable and complete overview of major
national and international corporations.
Moreover, these organisations have been categorised along 2 major variables namely (i)
sector of activity (ii) turnover. We stratified the organisations with the following
results:
1 Agriculture 5 1 1 7
3 Construction 4 2 1 7
4 Consumer Business 17 9 8 34
5 Energy - 1 3 4
7 Manufacturing 16 1 3 20
58 18 24 100
6
For major national and international corporations, we considered a sample size of 63,
distributed as follows across the sectors:
Sample
Turnover (RsM)
Sectors <1000 1001 - 2000 >2000 No.
1 Agriculture 4 4
2 Aviation, Shipping and Transport 2 1 3
3 Construction 3 1 1 5
4 Consumer Business 12 3 5 20
5 Energy 1 1
6 Investment and Financial Services 3 1 2 6
7 Manufacturing 9 1 10
8 Technology, Media and Telecommunications 1 1 2
9 Tourism, Hospitality and Leisure 5 2 1 8
39 7 13 59
We considered the banking sector separately given that most, if not all, of them indulge
in CSR. The Top Hundred Companies has also been used as the sampling frame for
banks. We classified banks on the basis of total assets and took a sample of 4 banks
proportionately stratified as follows:
<5,000 6 2
5,001 - 10,000 5 1
>10,000 7 1
18 4
7
2. SMEs
For SMEs, we considered a sample of 37 organisations. The sampling variable was the
sector of activity of organisations with the SME directory as the sampling frame.
Sample
Sector Number
100
63 37
59 4
Contact method
8
We ran a training session whereby all interviewers were instructed into how to properly
administer the questionnaire so as to avoid ambiguity in questions and answers, and
how to interpret body language of respondent.
We facilitated consultative working sessions with the Steering Committee on the CSR
project. The Steering Committee comprised representatives from:
♦ the Government (e.g. the Ministry of Social Security, National Solidarity and Senior
Citizens Welfare & Reform Institutions, Ministry of Finance and Economic
Development, Prime Minister’s Office, Ministry of Foreign Affairs, International Trade
& Cooperation);
♦ the private sector (private companies, and bodies such JEC, and MEF); and
♦ the civil society (Fondation Medine Horizons, SOS Femmes, Trust Fund for Social
Integration of Vulnerable Groups, Prévention Information et Lutte contre le SIDA,
Centre de Solidarité pour une Nouvelle Vie etc).
2.4 Interviews
Ministry of Social Security, National Solidarity, and SCW & RI Permanent Secretary
Ministry of Social Security, National Solidarity, & SCW and RI Assistant Secretary
9
Body Whom we met
Senior Programme
United Nations Development Programme (UNDP)
Manager
Project Coordination
United Nations Development Programme (UNDP)
Officer
International
International NGO Training and Research Centre (INTRAC)
Consultant
Communication and
Mauritius Commercial Bank
Media Specialist
T-Printers Director
Social Implementation
Fondation Médine Horizons
Manager
10
Body Whom we met
11
3 Overview of CSR
Concept
The conduct of business has been an increased concern for society and subject to
continuous criticism over the years. Out of such criticism has grown the notion of
corporate social responsibility (CSR). Many critics argue that organisations must
evaluate the impact of their decisions and actions on society as a whole and that they
must assume responsibility for their activities and related consequences.
Furthermore, it is also argued that organisations should take steps to protect and
improve the welfare of society. Some have even suggested that organisations exist to
serve the needs of society. Therefore, being a steward of the needs of society is a
socially responsible, appropriate, and natural act. In short, organisations must evaluate
their decisions and actions not merely from the perspective of organisational
effectiveness, but also from the perspective of the greater good.
Against this background of rights and obligations, many organisations have responded
to the challenge with a commitment to social responsibility that has led to increased
corporate responsiveness to stakeholders and improved social (stakeholder)
performance.
Definition
The definitions provide some insight into the ideal of CSR. Some of the well-known
definitions of CSR are as follows:
12
History
Elements of corporate social responsibility (CSR) are not a new phenomenon nor
indeed are the business practices associated with it. “Traditions of corporate
philanthropy date back to the Victorian era with the activities of Quaker families such
as the Cadburys, Rowntrees and Hersheys who sought to improve their employees'
standard of living as well as enhancing the communities in which they lived” (Hancock,
2005).
CSR has rapidly grown in the last 20 years, moving up the boardroom agenda of even
the most hard-headed companies. At its most passive, there is the 'hands-off'
approach, with charitable giving and patronage of charities decided by the chairman or
a board committee. Even where there is a more business-based approach a great deal
of what passes as CSR at top companies has been described as merely ‘passive box
ticking’ driven by external pressures rather than a genuine desire to do business in an
ethical way. But increasingly there is support for more active CSR involving a range of
stakeholders. Many companies now back and organize specific schemes, often in
conjunction with the not-for-profit sector, with the belief that this will contribute to
both the medium-and long-term success of their business.
The current world business climate is positive for CSR. A global CEO survey undertaken
in the year 2002 found that 70 per cent of chief executives globally agree that CSR is
vital to profitability.
Moreover, according to Business in the Community, more than 70 per cent of business
leaders believe that integrating responsible business practices makes companies more
competitive and profitable.
13
Views on CSR
According to Hancock (2005), there exist 3 views on CSR namely: a sceptic view, a
utopian view and a realist view.
♦ Sceptic view
According to this view, the notion of CSR is inimical to democracy and freedom,
frustrating business focus on its purpose of wealth creation. Milton Friedman best
defines the approach: “Few trends would so thoroughly undermine the very
foundations of free society as the acceptance by corporate officials of a social
responsibility other than to make as much money for their stockholders as they
possibly can”.
♦ Utopian view
The utopian view of CSR reflects the idea that companies have a prior duty to any-one
touched by their activity, their stakeholders rather than their shareholders, and
especially the vulnerable, who may be exploited by the company's operation.
♦ Realist view
The view that gathers the greatest following is the realist view. According to this view,
CSR is not simply about whatever funds and expertise companies choose to invest in
communities to help resolve social problems, it is also about the integrity with which a
company governs itself, fulfils its mission, lives by its values, engages with its
stakeholders, measures its impacts and reports on its activities.
♦ Bottom line effect: By far the most relevant driver of CSR programmes is the
bottom-line effect of incorporating a socially responsible element into corporate
practice.
14
shift away from philanthropy in approaches to CSR and a movement towards the
greater alignment of CSR to business strategy and corporate governance.
♦ Customer loyalty: A CSR programme can build loyalty with customers and offer a
competitive advantage in a marketplace where consumers demand goods and
services ethically delivered or produced.
♦ Further investment case: A strong investment case exists for the avoidance of
expensive action suits and the ability to attract, motivate and retain a talented
workforce. In terms of a proactive strategy, CSR may give the opportunity for
business to inform shareholders of potential risks and issues. Any dialogue engaged
in allows companies to understand their stakeholders, including shareholders,
better.
CSR evolution
15
Moreover, breadth of CSR strategies and initiatives has also evolved immensely over
recent years as follows:
Advantages
“Most health care professionals promise that if we engage in regular physical activity
we’ll look better, feel better, do better, and live longer. There are many who say that
participation in corporate social initiatives has similar potential benefits. It appears that
such participation looks good to potential consumers, investors, financial analysts,
business colleagues, in annual reports and in the news” (Kotler & Lee, 2005).
Operational efficiencies can be achieved in other facets of CSR such as streamlining the
way that information is provided to the investment community as well as to other
stakeholders that demand increased transparency. Managing potential risks and
liabilities more effectively through CSR tools and perspectives can also reduce costs.
Using corporate responsibility and sustainability approaches within business decision-
making can result not only in reduced costs but can also lead to recognizing new
16
market opportunities such as when new manufacturing processes are developed that
can be expanded to other plants, regions or markets. There are various studies that
have examined the relationship between CSR and corporate financial performance and
most of the evidence suggests that the links are positive.
♦ Improved relations with the investment community and better access to capital
The investment community has been exploring the links between corporate social
responsibility and financial performance of businesses. There is growing evidence
(through indices such as the Dow Jones Group Sustainability Index (DJGSI), the FTSE4
Good indices, and the Jantzi Social Index) that companies that embrace the essential
qualities of CSR generally outperform their counterparts that do not use features of
CSR. This information is being translated into action within the investment community
(e.g. with creation of funds such as Socially Responsible Investment, Domini Social
Equity Fund, EcoValue 21).
An increasing number of mutual funds are now integrating CSR criteria into their
selection processes to screen in sounder companies and/or screen out businesses that
do not meet certain environmental or social standards. Thus, a CSR approach by a
company can improve the stature of the company in the perspective of the investment
community, a company’s stock market valuation, and its capacity to access capital
from that community.
These conditions can serve to help to recruit employees, retain employees, motivate
employees to develop skills, and encourage employees to pursue learning, to find
innovative ways to not only reduce costs but to also spot and take advantage of new
opportunities for maximizing benefits, reduce absenteeism, and may also translate into
marginally less demands for higher wages.
17
demonstrating transparency (through measuring, accounting, and reporting practices),
the relationship between the business and the community in which it operates is likely
to be more credible and trustworthy. This is a potentially important benefit for
companies because it increases their "licence to operate", enhances their prospects to
be supported over the longer term by the community, and improves their capacity to
be more sustainable.
The issues of "social responsibility" and "legality" are not one and the same. CSR is
often viewed as acts that stretch beyond what is prescribed by the law. Indeed, many
believe that certain existing laws do not promote socially responsible behaviour.
“Thinking about legality and responsibility identifies four distinct organisational
approaches to social responsibility: illegal and irresponsible, illegal and responsible,
irresponsible and legal, and legal and responsible” (Sims, 2003)
18
Approaches Examples (Sims, 2003)
3. Irresponsible and legal For example, beer companies produce commercials that
appeal to underage drinkers, and casinos sometimes
make special offers that encourage people to trade their
Social Security checks for gambling chips. These
organisations are acting within the letter of the law but
not the spirit of the law.
4. Legal and responsible Since 1984 Patagonia has given 10 percent of its pre-
tax profits to such groups as the Wolf Fund, the
Audubon Society, and the Nature Conservancy. Ben &
Jerry's gives 7.5 percent of its pre-tax profits to charity,
while the Hallmark Corporation for the past 80 years
has donated more than 5 percent of its corporate pre-
tax profits to charitable causes. These charitable acts on
the part of Patagonia, Ben & Jerry's, and Hallmark are
both legal and highly socially responsible.
19
Examples of CSR in the workplace
It is widely agreed that CSR is a concept that is theoretical and basically meaningless
to practice unless it is applied in some organisational context. Just wearing the CSR
badge does not necessarily mean that an organisation is responsible. Some
organisations use being responsible simply as a marketing ploy.
Generally speaking, social responsibility can be categorized into four major areas of
impact or performance: (i) human resources—development and protection of people;
(ii) community, cultural, and societal involvement and philanthropy; (iii) environmental
protection, waste reduction, and sustainability; and (iv) product, consumer, and
service contributions and protections.
20
Social responsibility Some examples of Policies and practices
area of impact
21
4 Findings – large organisations
CSR across the modern world traces its origin back to governmental regulation shaping
personnel and environmental issues back in the 1970s. At that time, CSR activities
were mainly confined to compliance with prevailing laws and regulations. Since then,
CSR has become embedded into the organisational culture, strategy and operations
across frontiers.
Chart 1
Others (include
vague answers and
undisclosed Since start-up
answers) 39%
19%
CSR initiatives go quite a long way back in Corporate Mauritius as well, up to 20 years
back. Involvement in CSR has started at varying points in time for the companies
surveyed. In order to assess the history of CSR and its trend over time, companies
were surveyed on their engagement in CSR activities. It is interesting to note that the
highest percentage of respondents (39%) have started CSR activities since their star-
up. 25% of companies engaged in CSR activities since recently only (less than 3
years) confirming the belief that CSR is an emerging trend in the country.
22
Introduction of CSR in Mauritian companies
Chart 2
15.9%
Glo bal P o licy
CSR seeped into Mauritian enterprises for various reasons. Most organisations initially
engaged in CSR activities mainly to enhance their image vis-à-vis (i) the internal
community (60.3%) and (ii) the external community (54%). The CSR adoption was
thus mainly for image building. Multinationals engaged in CSR not only to enhance
their image but also because they have to abide by their global policy.
Evolution of CSR
There is, thus, overwhelming evidence that private sector firms across the world and in
Mauritius and Rodrigues are aware that they have to balance, if not reconcile, their
obligations to shareholders with explicit contributions to the external community.
However, the way they make these contributions differs greatly. Different firms may
be at different stages of awareness of and work on CSR, which will dictate the contents
of their strategy: some may decide to adopt a "minimum necessary" stance. Others
may wish to make strategic forays into particular areas.
In its most basic application, CSR may be viewed as compliance with laws and the
presence of corporate ethics as laid out in codes of ethics / codes of conduct / codes of
corporate governance. These codes:
♦ Set forth norms for corporate behaviour and behaviour to be observed by each
director and employee;
23
♦ Set the rules for outlining the responsibilities of or proper practices for all in the
organisation; and
♦ Shape organisational behaviour towards employees and society at large.
The survey has revealed that more than 73% of large organisations have a code of
conduct/ethics/corporate governance. This is positive as the existing knowledge on
codes and their applications by large organisations can be a stepping stone towards the
adoption of good CSR practices. However, the fact that more than one quarter of large
organisations surveyed does not have any code demonstrates that there is room for
improvement to populate this practice.
CSR policy
A CSR strategy is a road map for moving ahead on CSR issues. It sets the direction
and scope over the long term with regard to CSR, allowing the organisation to be
successful by using its resources within its unique environment to meet market needs
and fulfil stakeholder objectives. A good CSR strategy identifies the following:
♦ overall direction for where the firm wishes to go in its CSR work
♦ a basic approach for proceeding
♦ specific priority areas
♦ immediate next steps.
Despite the long history of CSR in Mauritius & Rodrigues, only 22% of organisations
surveyed have a formal policy towards CSR. As such, there is no formal framework for
CSR initiatives in Mauritius and Rodrigues. This is evidence that CSR is not yet
embedded in the culture of many organisations in Mauritius and Rodrigues. This finding
conveys other strong messages such as:
♦ A proper CSR structure is not a priority for many organisations in Mauritius and
Rodrigues. Hence, in the future, while many organisations will continue to engage
in CSR, their approach will not be planned and formal.
♦ The majority of organisations do not realise the importance of a coherent and
systematic CSR undertaking on their organisational performance.
Yes No
Does your company have a formal policy towards CSR? 22% 78%
♦ Out of the 22% of respondents that have a formal CSR policy, more than 80% of
them engage in strategic CSR partnership at community level while more than 60%
do so at national level. This implies a strong positive correlation for existence of a
24
formal CSR policy and an engagement in strategic CSR partnership at community
and national level.
♦ This is a key finding as it reveals that organisations that have a structured and
disciplined approach to CSR find it easier to engage in strategic partnerships both
at community and national level.
The organisations which have developed a formal CSR policy were asked about the real
motives driving this policy adoption.
Chart 3
Image of company
14%
Social reponsibility
58%
♦ More than 50% of companies have done so (either formal or informal) in order to
be socially responsible, 14% aim to enhance the general well-being of the society,
14% to enhance the image of their organisations. Other reasons include welfare of
employees and stakeholder value as shown in the above chart.
♦ It is clear that there has been a shift in CSR motives, from originally to improve
corporate image, to achieving social objectives.
♦ Organisations with CSR policy/policies have had to adapt such policy/policies over
time as shown below.
Firms
having a
formal
CSR
policy
25
Coupled with CSR policies, organisations surveyed were prompted on the existence of
any risk management policies. As mentioned earlier in the literature review, some
rating companies have argued that an organisation’s equity risk premium may be lower
with the implementation of a comprehensive CSR programme.
Furthermore, only 52% of the companies surveyed were able to appreciate the bearing
CSR may have on risk management. This clearly shows that a lot of companies may
not really understand what CSR encompasses and are underestimating its importance,
and thus fail to see CSR as a key tool for risk management.
26
4.2 Internal CSR
The myriads of CSR initiatives are so much hyped about and made visible by media
today that it may lead to the fallacy of interpreting CSR as social activities external to
private enterprises. This would be erroneous in that CSR has evolved into two
perspectives: one related to internal corporate behaviours and the other related to
external corporate behaviours.
Internal behaviours refer to the way an enterprise conducts the day-to-day operations
of its core business functions. External behaviours refer to a corporation’s engagement
outside of its direct business interest, traditionally defined as a corporation’s giving
program.
The approach to internal CSR is somewhat similar to CSR in general with 65% of
organisations without any formal policy on internal CSR. This confirms that internal
CSR is yet to be integrated in the management culture of companies in Mauritius. The
issue of internal CSR pertains to “people management”, which has a fundamental
bearing on organisational performance.
Despite the fact that few companies have an internal CSR policy, the survey revealed
that all companies surveyed engage in one way or the other in internal CSR as
depicted in chart 4 below.
27
Chart 4
100% 87%
90% 76% 76%
80% 73%
67%
70%
60% 56%
50% 43% 41%
37%
40%
30%
20%
10%
0%
Participation in
satisfaction
Bargaining
Programs
Workplace
Work-Life
sharing/share
Incentive
Collective
Employee
Diversity
Balance
Advancement
Occupational
surveys
Employee
decision-
options
making
Profit
When companies surveyed were asked what internal CSR encompass for them, training
and development has the highest rating (87%) followed by occupational health and
safety (76%) and incentive programs (76%). Workplace diversity (73%) is another
important dimension of internal CSR. Profit sharing/share options, employee
satisfaction surveys and collective bargaining score relatively low (37%, 41% and 43%
respectively). This indicates that employers tend to arm their employees with the
necessary tools in order to become more productive.
Chart 5
28
Organisations have come to realise that people are their most important assets and
CSR does have a positive bearing on their performance and/or attitude. The
organisations benefit in multifold ways: higher productivity, better staff retention and
higher staff morale as illustrated in the above chart.
Thus, internal CSR has a positive impact on human resource and should be considered
as an investment for companies and not a cost, in that it contributes to organisational
performance.
Whilst there is a general consensus amongst organisations that benefits are indeed
reaped from CSR, these organisations stress that the promotion of CSR is dependent
on several factors. The majority of respondents (96.8%) believe that commitment of
top management is fundamental for inculcating CSR in the organisational culture of
companies. Therefore, it is very important for top management of companies to be
sensitised to the benefits of internal CSR in order to have their support, which would
cascade down the organisation.
Other key factors that are important to promote internal CSR include: integration of
internal CSR in the core values of organisations, commitment of employees, employee
participation in CSR activities and communication of CSR undertakings within the
organisation.
29
Chart 6
Yes
30%
No
70%
Chart 7
No
79%
It is interesting to note that 70% of organisations surveyed do not have CSR in their
induction programs and training activities and that 79% do not evaluate their
employees upon their CSR undertakings during performance appraisal. This
consolidates the finding that the majority of organisations do not have a solid internal
CSR framework.
As for top management, they do show concern about CSR undertakings of their
organisations. Indeed, the survey has revealed that 87% of organisations have
30
reported that CSR undertakings are important for members of top management. They
are aware of CSR’s impact on corporate performance. This is a key finding in that top
management can be convinced to formalise and structure their CSR policies in order to
benefit further from CSR.
The Government of Mauritius can capture this opportunity and capitalise on the
interest and willingness of firms to engage in CSR activities.
Despite the fact that Mauritian organisations have been involved in one way or the
other in CSR undertakings, the country still lags behind the western countries when it
comes to CSR being integrated in organisational strategy, structure and operations.
The future evolution of CSR rests upon the organisational framework within which CSR
takes place:
31
Approach (how)
Chart 8
Formal
37%
Informal
63%
The majority of respondents (63%) carry out CSR activities in an informal way. This
demonstrates that CSR is not carried out in a structured way. This may be due to the
fact that the majority of companies (70%) do not have a formal CSR policy.
Hence, formalisation and structuring of CSR will bring more discipline and consistency
on how CSR activities are conducted in Mauritius.
Implementation of CSR activities calls on for internal resource deployment, unless the
organisation is involved in charity works (donations) or outsources its CSR
responsibilities.
The majority of respondents (54%) have someone to overlook CSR activities. This is a
positive signal as it shows that there is an increasing commitment to CSR.
32
Chart 9
C ompliance
5%
Marketing,
C ommunications,
External Affairs,
Business
Development
23%
33
Chart 10
Emplo yees
M anagement
However, despite the fact that organisations conduct CSR in an informal way, 70% of
companies surveyed set budgets for conducting CSR activities. This is a very positive
signal as it shows that there is a financial commitment on the part of these companies
to conduct CSR activities.
34
Timeframe (when)
Chart 11
Ad Hoc
71%
When it comes to the frequency of CSR activities, most companies surveyed (71%)
carry out CSR activities on an ad hoc basis. This is because the majority of companies
do not have a full fledged CSR committee or department nor have formal CSR policies.
It also indicates that the CSR culture is yet to be embedded in Mauritius.
Chart 12
100%
90%
90%
80%
70%
60%
60% 54%
50%
40% 33%
30%
17%
20%
10%
0%
Funds Products Skills Premises People
35
A majority of companies (90 %) allocate funds to CSR. A substantial percentage
(60%) also provides employees for organisation and participation in CSR activities.
Chart 13
Suppliers 20.6%
Shareholders 27.0%
Environment 66.7%
Customers 52.4%
Nearly all companies surveyed engage in internal and/or external CSR as illustrated in
chart 13. Companies carry out various CSR activities. More than 90% of companies
carry out internal CSR activities and external CSR activities to the community and
broader society. More than 60% of respondents carry out CSR activities in areas of
environment and governance/code of ethics.
This triggers a positive signal that companies are indulging in CSR activities, especially
in priority areas.
36
Forms of action (with whom)
Chart 14
Another important consideration which often determines the success or failure of CSR
undertakings is whether organisations partner up with other organisations or not.
These partners can be:
Chart 15
C ollective actions
only
19%
Both individual and
colletcive actions
46%
Individual actions
only
35%
37
The remaining 65%% conduct CSR either (i)through collective actions only (19%) or
(ii) through both individual and collective action (46%). This shows that partnerships
between NGOs and companies do exist and work and, can be enhanced. Private sector
– NGO partnership may be developed using existing ones as showcases.
Indeed, 65% of companies do not measure the impact of their CSR activities. This may
be explained by the following:
38
39
4.4 Evaluation of implementation of CSR activities
Benefits
The way CSR has seeped, as a reality, if not as an imperative, in corporate Mauritius is
insightful in that organisations have come to recognise the many benefits which can be derived
from such undertakings.
Indeed, most of the companies (69%) surveyed have reported having benefited from CSR
activities. However, 29% are not sure that they have benefited by undertaking CSR activities.
This is in line with the finding that a majority of respondents do not measure the impact of their
CSR activities. Absence of proper measurement does not reassure and convince organisations
of the benefits proffered by CSR.
Chart 16
79%
Better public relations
clients
suppliers
Companies which have benefited from CSR enjoy enhanced employees motivation (79%) and
better public relations (79%). In other words, companies are achieving their desired objectives
by carrying out both internal and external CSR activities. This may be a motivation to further
engage in CSR activities and encourage others to follow suit. However, the impact of CSR on
their trading partners was less apparent.
Challenges
Despite the multifold advantages attached to CSR, organisations face a number of constraints
and challenges. These may crop up before the start of the CSR activity (e.g. lack of
information) or during the implementation (e.g. lack of proper partnership or coordination) or
after implementation (e.g. lack of audit).
40
Chart 17
implementation
information
coordination
partnership
No proper
Lack of audit
Lack of
Lack of
after
The survey has reported that the lack of information on specific areas where CSR activities had
to be conducted is an important challenge, faced by as many as 33% of companies. They
pointed out that the government has to communicate more on areas requiring urgent focus and
actions and their strategies to address these so that the private sector could be in a better
position to know how they may help and target priority sectors.
The next important challenge is lack of audit after implementation of CSR (22%). This is the
result of conducting CSR in an unstructured way. In fact, as previously mentioned, the majority
of companies do not measure the impact of CSR activities, from their perspective and that of
the targeted group.
The challenges faced by organisations obstruct the evolution and expansion of CSR, and should,
thus be dealt with at root source.
Organisations are, on one hand allured by the multifold benefits derived from CSR undertakings
and, on the other hand, deterred by the practical challenges faced before, during and after
carrying them out. The way these two opposing forces would interact and dealt with would
greatly influence the future of CSR undertakings.
41
Chart 18
Expand C SR
activities
51%
Engage into new
C SR activities
11%
C urtail C SR
C ontinue C SR activities
activities C ease C SR 0%
38% activities
0%
Given these opposing forces, the survey tried to investigate into the foreseeable trend of CSR
activities. More than 50 % of companies surveyed stated that they would expand their CSR
activities while some 38% mentioned that they would continue as usual implying that
companies are more concerned about the many benefits reaped by CSR activities than deterred
by the challenges they face during or post-implementation.
These are clear indications that companies are increasingly sensitised to the importance and
impact of CSR. The prospective surge in CSR undertakings would benefit both internal and
external stakeholders.
Whilst the survey has indicated a favourable response for CSR activities in the future, one
should address the identified challenges in order to entice other organisations on CSR board
and thus creating a snowball effect.
The above results convey a strong message that companies would maintain the status quo (i.e.
continue the same CSR activities), or expand their activities, or engage into new activities in
the future. None would curtail or cease their CSR activities.
42
Chart 19
When further prompted for factors which would encourage them to increase such activities, the
two most important factors that surfaced were: the guarantee that the targeted groups are
indeed benefiting from those activities and the need for transparency in implementation of
activities at NGO level. Companies have thus indicated that they indeed would want value for
money and there may be a perception of lack of transparency from the NGO perspective.
Another important result is that all companies consider positive outcomes to them when
deciding whether to expand CSR or not. This indicates that companies do have, after all, vested
interests in whatever CSR undertakings they carry out and seek some rewards. More
information on NGOs, a forum whereby pressing needs are identified and a revision of the
actual policy are other factors which would promote CSR.
Role of government
The role played by the government impacts directly on CSR. As shown in the above chart,
almost all companies would consider a revision of tax policy regarding CSR activities as a very
important to somewhat important factor encouraging them to increase CSR. Thus, it is
impending to review the role of the government in CSR undertakings.
43
Chart 20
By acting as a facilitator
47%
Almost half of the companies surveyed pointed out that the government could be of help by
acting as a facilitator, intermediary and regulator. In fact, as mentioned previously, lack of
information is one of the main challenges faced by companies in their CSR endeavour.
Therefore, the government could assist in bridging that gap.
A significant proportion of them (30%) mentioned that the government policy could encourage
them in conducting CSR activities by way of fiscal incentives.
Philanthropic activities
Many organisations have started their CSR journey by initially indulging in philanthropy. Over
time, their approach has evolved and they have adopted a more strategic one. Despite the use
of philanthropy and CSR interchangeably by management gurus, these two concepts are not
the same. The former is the practice of performing charitable or benevolent actions. The latter
is more embedded in corporate strategy, structure and operations.
91% 9%
44
An overwhelming majority, 90%, of companies surveyed carry out philanthropic activities which
tend to revolve around 3 main areas namely health and safety, education and community
(including sports). A matching study may be carried out in order to ensure that NGOs needs
and requirements are really met.
Among those companies that are involved in philanthropic activities, the majority of them
(91%) are satisfied with their activities. This shows that these companies are achieving their
philanthropic objectives.
For those organisations that are not satisfied with their philanthropic activities, the reasons put
forward include:
♦ The organisation has the potential and resources to contribute more to CSR; and
♦ The organisation should engage in strategic CSR.
The existence of philanthropy indicates an opportunity to develop and refine a CSR framework.
The organisations are already participating in give-aways; however the method adopted may be
wanting in that there are debates as to whether philanthropy is sustainable or not. The fact
that most of those engaged in philanthropy are satisfied from such undertakings may represent
a formidable resistance to adopt a more strategic approach by actually engaging in CSR.
Sponsorship activities
94% 6%
Sponsorship is another concept close to CSR and philanthropy. It is a business tool used by
many companies as part of their communications, advertising and public relations budget to
associate the company name/brand/people with dynamic events and images for their media
broadcast and audience. Sponsorship usually requires a service, or action, in return for
financial support, so this frequently has clear marketing benefits and is therefore directly linked
to a company’s bottom line.
45
It is very encouraging to note that 83% of companies surveyed indulge in sponsorship
activities. Therefore, this is an opportunity of which both NGOs and the community at large
could take full advantage.
Among the priority sectors in which companies indulge in sponsorship activities, sports and
education top up the list.
Among those companies that are involved in sponsorship activities, as much as 94% are
satisfied with their activities, having achieved their set objectives.
There has been much convergence between CSR initiatives of private organisations and civil
society actions with a view to identifying opportunities to leverage corporate investment for the
benefit of NGO programs. Indeed many international institutions are drivers of such integrated
effort such as the UN Global Compaq and the Millennium Development Goals (MDGs). The 8th
MDG is to “develop a global partnership for development”. As such, there is consensus around
the world that partnership is a quicker, very often more efficient vehicle to achieve national,
and ultimately global goals. Such partnerships may take multifold forms and involve different
timeframes.
Awareness about the multiple benefits to be reaped from collective actions has already arisen in
corporate Mauritius as well. The survey investigated into whether companies partner up with
other organisations in their CSR activities. 54% of companies surveyed partner up with other
organisations in their CSR activities while 36% are not involved in any partnerships. Those
existing partnerships may prompt other companies to partner with others for CSR activities.
Timeframe of partnership
When prompted for the timeframe concerned, it has been found that the majority of
collaborations (76%) are on a long-term or short-term basis and 24% on a one-off basis. In
view of the fact that the majority of collaborations are not just one-off, sustainable benefits to
the community may be achieved.
46
Chart 21
One-off
24%
Short term
(2007-2010)
32%
Initiating step
An important finding yielded by the survey is that partnerships between companies and NGOs
started by the latter approaching the former in an overwhelming majority of cases, 76%.
Chart 22
76%
24%
My company
approached them
47
This shows that there is a willingness of the private sector to partner with NGOs for a common
cause. NGOs should thus be more proactive in looking for potential partnerships with
companies and buying them in, with clear objectives and transparency.
Whilst there are national and global efforts to promote partnership, it is also imperative to
evaluate such partnerships to assess whether they have brought satisfaction, and thus achieved
common and desired goals, or have resulted in incongruent goals and ultimately overall
dissatisfaction.
Chart 23
Yes
97%
No
3%
Almost all companies that partner with NGOs have reported that they are satisfied with their
partnerships.
This is a compelling finding in that when partnerships do take place, the actual
outcome portends well for the private sector and that existing partnerships between
companies and NGOs do work and can lead to a surge in private sector / NGO
Partnership, to the benefit of the community.
The proactiveness of NGOs has yielded many satisfactory partnerships. They have actively
sought and found assistance and participation from the private sector. This sheds light on an
important player in CSR undertakings, the NGOs.
Civil society engagement present since the 19th century now pervades most if not all spheres
of activities: social, economic, cultural, environmental, political, sports, and religious in
Mauritius. There are over 6,000 voluntary organisations with non-profit making goals. A
48
majority of these are community-based whilst around 300 are termed “non-governmental
organisations”.
These NGOs have developed for a variety of purposes humanitarian issues, developmental aid,
emergency aid, sustainable development, improving the state of the natural environment,
encouraging the observance of human rights, improving the welfare of the disadvantaged, or
representing a corporate agenda. The focus of the NGOs varies as well in that the ways the
NGOs reach their target beneficiaries are different.
Evolutionary
stages of ♦ Focus on small scale, self-reliant ♦ Terre de Paix
development local development
NGOs ♦ Build capacities of local
communities to meet needs
through “ self reliant local action”
A useful classification of NGOs is categorising them into advocacy and operational. The primary
purpose of an operational NGO is the design and implementation of development-related
projects. Advocacy NGOs are set up to defend or promote a specific cause. These
organisations typically try to raise awareness, acceptance and knowledge by lobbying, press
work and activist events.
For instance, the Mauritius Wildlife Fund is both an operational and advocacy NGO as shown
below:
♦ To conserve and manage the indigenous flora and fauna of Mauritius and its ♦ Operational aims
territories.
♦ To raise and supply funds necessary for the conservation projects undertaken by ♦ Operational/ advocacy
the MWF and its associate organizations. aim
♦ To co-ordinate and administer these projects. ♦ Operational aim
♦ To inform, educate and involve the Mauritian people in this vital work. ♦ Advocacy aim
Another important aspect when considering NGOs is the funding of these NGOs. Major sources
of NGO funding include membership dues, the sale of goods and services, grants from
49
international institutions or national governments, and private donations. Several EU-grants
provide funds accessible to NGOs.
Bearing the ultimate objective of the survey in mind, it becomes imperative to investigate into
the following;
NGO popularity
Chart 24
NGO popularity
40%
35%
35%
% of companies listing these NGOs
30%
25%
19% 19%
20%
16%
15% 13%
10% 10%
10% 8% 8%
6% 6% 6%
5% 5% 5% 5% 5% 5%
5% 3% 3% 3% 3% 3% 3%
0%
0%
APEIM
SOS Femmes
Ti Diams
Les Enfants d'un rêve
Étoile Esperance
Friends in hope
Lois Lagesse
SOS Pauvreté
SOS Village
APSA
MPRB
NATRESSA
PAWS
PILS
Terre de Paix
United Way
Centre de solidarité
CARITAS
MACOSS
RED CROSS
Surprisingly, when prompted to enumerate NGOs in Mauritius, the respondents have named at
most 6 NGOs, a meagre response. PILS is the most popular NGO amongst the respondents.
This may be due to a combination of factors such as the topical nature of the cause it defends,
50
its visibility due to its wide press coverage, the endorsement of Government to its cause and
the stated achievements to combat AIDS and its stigma.
Other popular NGOs include: Association des Parents d’Enfants Inadaptes de l’ile Maurice,
Mauritius Wildlife Foundation, Terre de Paix, SOS Village amongst others.
NGO rating
It was difficult to obtain a good rating of the NGO sector because of the following:
However, when prompted to provide a rating of the overall NGO sector, the majority of
respondents had either good or fair opinion of NGOs in Mauritius while very few companies
rated NGOs as excellent/very good as shown below:
Chart 25
Mobilisation of resources
C ommunication
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
A better evaluation of each of the above criteria can be made by analysing the mean score as
shown below:
51
Apart from the aims and mandate of the NGOs which achieves a mean of 3 (i.e. good), all the
other criteria listed have means below 3 (i.e. fair). This implies that they are perceived as being
fair to poor by the majority organisations surveyed. Hence, while the aims and mandates of
NGOs might be noble and interesting, the way NGOs are structured, their commitment and
professionalism, level and quality of communication, resources mobilisation, membership and
quality of resources and performance towards goals are perceived to be below expected
standards by Mauritian organisations.
Perception is as good as reality – NGOs should reverse this perception by addressing the above
dimensions.
52
NGO characteristics encouraging partnership
Lastly, respondents were invited to pick the characteristics of NGOs which count most in their
partnership search decision.
Chart 26
Performance towards
goals
Mobilisation of
resources
C ommunication
C ommitment &
Professionalism
Structure &
Organisation
C ommunity Outreach
Brand C redibility
- 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0
%
Aims and mandate of NGOs, commitment and professionalism and performance towards goals
are the most important factors that companies consider when partnering with an NGO. This
may explain why PILS top up the popularity list of companies since they successfully satisfy the
above dimensions.
Tri-sector partnerships that engage private sector, civil society, and the government are very
much in vogue currently and have become particularly powerful engines of change in recent
years. These multi-stakeholder partnerships have become an established form of actualising
corporate commitments as shown in the following table:
53
Multinational Sector of activity NGO/Company Partnership area
company
BNP Paribas Banking GoodPlanet Environment protection
Agence de L’Environnement et de la
Maitrise de l”Energie
Accor Group Hotel Pomozte detem Foundation (Czech Children’s welfare
Republic)
SOS Children’s Village (Morocco)
Cue Kids (Oceania)
Plan International
Ben and Jerry’s Consumer Business Dave Matthews Band Environment protection
SaveOurEnvironment.org
Procter and Consumer Business Children’s Safe Drinking Water Children health
Gamble promotion
Body Shop Consumer Business British Union for the Abolition of Vivisection Animal protection
MTV Network International
Health promotion
Unilever Consumer Business World Food Programme Poverty
Indeed partnership models that link private, public and civil society contain the twin possibilities
of both addressing pressing social, economic and environmental challenges as well as benefiting
the partnership agencies.
54
This survey will ultimately have to recommend potential multi-stakeholder partnerships. Key to
such an endeavour is:
Respondents were asked about their awareness of partnerships which exist between the private
sector, NGOs and the Government, and their level of satisfaction with such partnerships.
75% of them were aware of such partnerships in Mauritius. However, almost half of them were
not satisfied with them. This high rate of dissatisfaction may be due to the perceived stand-
alone position of each stakeholder in CSR activities resulting in a lack of coherence and goal
congruence.
55
Interest in partnership
Respondents were asked whether they would be interested to partner up with other
organisations to conduct CSR activities.
Chart 27
Yes
79%
No
21%
79% of respondents have shown interest to partner up with other organisations to carry out
CSR activities. This is a key finding in that if such intent is materialised into meaningful
and long-term partnerships, then the state of CSR in Mauritius could drastically
improve, with the result of an embedded CSR culture in Mauritius.
This high interest shown by large firms in future partnership triggered the following question,
who would they wish to partner up with.
Chart 28
If yes, who?
54.0%
Government
88.0%
NGOs
76.0%
Private Firms
56
Although there is a perception that NGOs have significant room for improvement, in general,
88% of companies are interested to partner with them, 76% with other private sector firms and
only 54% with the government.
In fact, for NGO-private firm partnership, they aspire to partner with certain specific NGOs
which seem to perform well such as PILS, Mauritius Wildlife foundation amongst others.
The respondents were then prompted to share areas where they would like to conduct CSR
activities but have limited information.
Chart 29
Yes
44%
44% of companies surveyed would like to conduct further external CSR activities but have
limited information in areas of need. Education, environment and poverty are the main areas
where organisations are keen to engage in but lack information.
In fact, as previously mentioned, lack of information was one of the main challenges of
companies in their CSR endeavour. Hence, there is an urgent need to bridge this information
gap.
The survey has revealed that private sector firms are willing to partner up in varied areas
ranging from promoting children welfare and health to protection of environment and
promoting education.
57
Areas of potential partnership Number of private sector (large)
firms showing interest in this field*
Education 17
Environment/wildlife 15
Humanitarian 12
Health 11
Community and society 10
Business conduct, empowerment and 6
training
Drug/alcohol 4
Criminality 4
Women 3
Sports and culture 3
Children 2
Civic life 2
Elderly people 2
Animal welfare 1
Development 1
* These areas of interest are not necessarily mutually exclusive, e.g. a firm may wish to engage in CSR to
help women with drug problems.
Poverty is an area where companies would like to intervene, and poverty recurs both under
“humanitarian” and “community and society”.
Companies wishing to help children may wish to intervene in areas as diverse as education, health,
dru/alcohol.
The above table shows that certain areas interest a large number of respondents such as:
humanitarian (poverty, hunger and homelessness), environment, education, community and
society, and health.
Engaging in policy dialogue is another form of activity which can shed light into various aspects
of CSR:
58
Chart 30
Yes
79%
No
21%
The majority of companies surveyed (79%) are interested to participate in policy dialogues
initiatives involving NGO/Private Sector/Government. This could be a stepping stone for
possible partnerships between the private sector, NGO and the Government.
Organisations willing to participate in such policy dialogues are of the view that areas of focus
should be on the following: community, education, health and safety, poverty, social flaws
(AIDS, alcoholism, drugs, violence, and criminality)
Moreover, the main criterion for partnership between private sector, NGOs and Government is
congruence of ideas. In other words, partnerships can best happen if there is a shared vision.
This can be achieved by bringing major stakeholders together at workshops, discussion forums,
etc.
♦ Share the benefits that their engagement in CSR has brought about;
♦ Provide the trend that they foresee in CSR activities.
59
Benefits of CSR
Chart 31
40%
35%
35% 33%
30%
25%
% of Companies
25%
20%
15%
10%
10% 8%
5%
0%
Internal External Personal Other No answer
stakeholders stakeholders satisfaction
Benefit category
Most companies mentioned that the main benefits of CSR undertakings are twofold:
♦ Affecting internal stakeholders, i.e. employees – there is better employee relations, higher
employee productivity and satisfaction, sense of belongingness, better employee retention.
Companies benefit directly in that employee productivity increases and indirectly by
avoiding costs such as recruitment, training, team building sessions etc.
♦ Affecting external stakeholders, i.e. customers, public at large, government. Companies
have cited that they are able to retain customers, attract more customers, the corporate
image is enhanced, there is better brand recognition and awareness amongst others.
This indicates that companies are achieving their objective of enhancing their image vis-à-vis
both the external and internal community.
A few respondents have reported that they derive a sense of satisfaction for “doing good in
society”.
CSR trend
The companies were invited to share their views on trends for companies with respect to
adopting CSR practices. Nearly half of the respondents (49%) surveyed believe that CSR trend
will be increasing in Mauritius. This may create a snowball effect to the benefit of the
60
community. Moreover, this reinforces the finding that the majority of companies will continue
and/or expand their CSR activities. Around 9% of the companies have however indicated that
they anticipate CSR to remain stagnant or to decrease.
Endword
Chart 32
Endw ord
The players
should be more
credible Government
6% There should be
should act as a
more concrete
facilitator
commitment from
0% 21%
the Private
Sector
14%
CSR is important
and is a must
59%
59 % of companies concluded that CSR is important and must be practised for the benefit of
both the internal and external community. Other reflections and arguments included: more
commitment from the private sector, need for the government to act as a facilitator.
CSR culture
♦ CSR culture is not yet embedded in Mauritius. 25% of respondents have started their CSR
undertakings in the past 3 years only. However, there is an increasing interest and
sensitisation to the CSR cause.
CSR policy
♦ CSR is not structured and formalised in terms of policy, procedures and planning in most
organisations.
♦ The majority of organisations do not realize the importance of a coherent and systematic
CSR undertaking on their organisational performance.
♦ A proper CSR structure is not a priority for many organisations. While many organisations
will continue and/or expand their CSR activities in the future, their approach will not be
planned and formal.
61
♦ A significant proportion of respondents (i) do not consider CSR as a key tool for risk
management and (ii) fail to appreciate the bearing that CSR may have on risk management.
Internal CSR
♦ Organisations in Mauritius tend to arm their employees with the necessary tools in order to
become more productive while neglecting the social and family life aspects.
♦ Very few organisations have internal CSR dynamics embedded in their Human Resource
systems.
♦ Organisations have benefited from conducting internal CSR activities in terms of higher
productivity, better staff retention, higher staff morale, goodwill and corporate image.
♦ A large proportion of organisations do not measure the impact of their CSR activities.
♦ Most organisations in Mauritius communicate about their CSR activities mainly through their
annual report and/or newspaper/magazine.
♦ Most companies surveyed have reported having benefited from CSR undertakings in terms
of goodwill, productivity, employee and client satisfaction.
♦ The 2 major challenges that organisations encounter when conducting CSR activities
include: lack of information on needy CSR areas and lack of audit after implementation of
CSR initiatives.
♦ The majority of companies in Mauritius will continue and/or expand their CSR activities in
the future, and believe that CSR is important and must be practised for the benefit of both
the internal and external community.
♦ According to organisations in Mauritius, the Government can help in the promotion of CSR
by acting as a facilitator, intermediary and regulator.
62
Philanthropic and sponsorship activities
♦ 90% of respondents carry out philanthropic activities while 83% indulge in sponsorship
activities.
♦ 79% of large companies surveyed have shown interest to partner up with other
organisations to carry out CSR activities in the future.
NGO in Mauritius
♦ While the aims and mandates of NGOs in Mauritius might be noble and interesting, the way
they are structured and governed are perceived to lack excellence and professionalism.
♦ Organisations will lay much emphasis on aims and mandate of NGOs, commitment and
professionalism, structure and organisation and performance towards goals when partnering
with NGOs in the future.
Policy dialogues
♦ The majority of companies surveyed (78%) are interested to participate in policy dialogues
initiatives involving NGO/Private Sector/Government.
♦ Organisations willing to participate in such policy dialogues are of the view that areas of
focus should be on the following: community, education, health and safety, poverty, social
flaws (AIDS, alcoholism, drugs, violence, and criminality).
63
5 Findings - SMEs
Overview
Although CSR undertakings are generally attributable to large organisations and multinationals,
SMEs play a growingly significant part considering their economic role in creating employment
and their social embedding.
History of CSR
Chart 33
<10yrs
13%
The introductory question aimed at gaining information about the engagement of the SMEs in
CSR. The survey revealed that 54% of them have been carrying out CSR activities since start
up, 33% trace their CSR commitment to a long time back (more than 10 years) and the rest
have started less than 10 years ago. When prompted further, it emerged that most of them
conduct CSR in an informal way:
64
♦ Often carry out CSR as an integral part of their operations
Chart 34
Global Policy
Others
Upon inquiring into the motives for engaging in CSR activities, these were mostly done for
image building purposes.
As for large companies, SMEs have been probed for their internal CSR undertakings.
Chart 35
No
83%
When asked whether they have an internal CSR policy in place, 83% of the respondents
answered negatively. This is probably because they are too small and lack the means for
implementing internal CSR policies.
65
Types of internal CSR
Chart 36
60%
51% 51% 54%
50%
40%
35%
32%
30% 27%
24%
20% 16%
11%
10%
0%
satisfaction
Training/Career
Workplace
Work-Life
sharing/share
Incentive
decision-making
Bargaining
Collective
Participation in
Employee
Diversity
Advancement
Occupational
Balance
surveys
Employee
options
Profit
When asked about what internal CSR encompassed for them, it was evident that all the
SMEs engage in at least one form of internal CSR. The most popular form of internal
CSR activities was provision of good occupational health and safety atmosphere for
their employees (54%). Training/career advancement of employees and Incentive
programs are other forms of CSR adopted by SMEs. These dimensions are considered
the basic ingredients for business success.
This confirms that SMEs still operate in a very informal way, with little, not to say
none, written policies and procedures.
Chart 37
66
The survey inquired in detail about the benefits the SMEs reap from engaging in
internal CSR. The most important benefit is higher staff morale for 65%, followed by
better staff retention for 60% and higher productivity 46%.
The following question concerned the factors that were important to promote internal
CSR in SMEs. 68% of companies stated that “Commitment of top management to
inculcating CSR in the organisational culture ” was a powerful promotional dimension in
SMEs. Communication about CSR commitment and people commitment surveys were
brought up as less important factors.
Percent
Commitment of top management to inculcating CSR in the
68%
organisational culture
Chart 38
38%
31%
31%
67
The next question aimed at identifying who assumed responsibility for CSR in SMEs.
Most SMEs, 38%, appointed a third party to conduct CSR. In 31% of SMEs the owner
assumed the CSR responsibility and in the remaining 31%, a team was allocated that
responsibility.
It was also interesting to see whether there was a clear demarcation in involvement of
management and employees in CSR.
Chart 39
16%
Emplo yees
84%
M anagement
In the majority of SMEs surveyed (84%), the management team is involved in CSR
activities. Employees generally are not involved in CSR activities. This is probably
because SMEs are small by nature and they have limited resources for CSR endeavour.
Chart 40
80% 76%
73%
70%
60%
50%
40%
30%
30%
22%
20%
10%
0%
Funds Products Skills Premises People
68
The survey tried to identify resources which SMEs allocated to CSR: funds, products,
skills, premises or people. Most SMEs contribute to CSR activities by funding activities
and donating their products. It is interesting to note that SMEs contribute to CSR
activities more in kind than in funds. Furthermore, SMEs do not allocate their premises
for CSR undertakings. NGOs may thus gear their demands accordingly.
Chart 41
Suppliers 14%
Stakeholder Engagement 0%
Shareholders 3%
Public Reporting 0%
Environment 27%
Customers 35%
The CSR undertakings of most SMEs feature a strong focus on society and employees.
This confirms that SMEs have a great social embedding. It is noted that due to their
sheer size, they are less involved on topical issues such as the environment and
governance/code of ethics.
Forms of action
Chart 42
Collective
Action
14%
Individual
Action
86%
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SMEs were also asked whether they conduct CSR individually or by partnering up with
other organisations. Most organisations prefer to act individually when they undertake
CSR activities (86%). The underlying reason for such a decision would seem that they
encounter unequal participation from other organisations in which they have
collaborated in the past. Out of the remaining 14% which do CSR through collective
action, 14% carry out CSR activities by partnering up with NGOs and 16% with the
private sector.
Chart 43
Collective Action
Chart 44
Yes
19%
No
81%
Only 19% of SMEs ensure that the targeted groups have benefited from CSR activities.
This is explained by the fact that SMEs’ contribution to CSR is too minimal on one hand
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and on the other, SMEs lack the necessary personnel and time to go on site to evaluate
the backdrop of their CSR undertakings.
Benefits
Chart 45
The engagement of SMEs in CSR activities clearly indicates that there are many
benefits to be reaped. These firms were asked how they have benefited from
conducting CSR. Most companies surveyed reap benefits of CSR activities through
enhanced employees motivation (59%) and better public relations (49%).
Companies are thus achieving their desired objectives by carrying out both internal and
external CSR activities. This would definitely encourage them to carry more of such
activities.
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Challenges
Chart 46
16%
14%
14%
14%
12%
10% 8%
8%
5%
6%
4%
2%
0%
coordination
implementation
information
partnership
No proper
Lack of audit
Lack of
Lack of
after
It was also interesting to identify challenges facing SMEs before, during and after
implementing CSR activities. Lack of coordination and information are the main
challenges that the organisations have to face. This is attributed to the fact that SMEs
have limited structure and resources to carry out CSR activities.
Many companies pointed out that the government has to intervene by identifying on
needy CSR areas and devise strategies to address these issues.
Chart 47
C ontinue C SR C urtail C SR
activities activities
59% C ease C SR11%
activities
3%
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undertakings is not significant, this would at least help to breed the CSR culture in the
business community in Mauritius. However, it is interesting to note that 14% of SMEs
foresee to curtail or cease their engagement in CSR. This may be due to the many
challenges they have faced before, during and after implementing CSR.
Chart 48
When prompted to share what would encourage them to increase CSR, the guarantee
that targeted groups are indeed benefiting from CSR activities turned out to be the
most important factor. On the other hand, partnership with external organisations
does not hold much of importance. As regards to revision of tax policy regarding CSR,
this measure would be well appreciated and help to enlarge SMEs’ CSR activities.
Role of government
Chart 49
Assistance in kind or
fund
18%
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SMEs, having reported that they do not necessarily wish to partner up with others in
their CSR undertakings, have nevertheless reported that the government may play a
more active role. 32% of the SMEs surveyed welcome fiscal incentives from the
government. This demonstrates that the willingness for CSR endeavour is present
among SMEs but they lack funding to carry out such activities.
Philanthropic activities
Chart 50
Yes
86%
No
14%
Chart 51
Social evils 2%
Community 45%
Environment 5%
Education 29%
Religious 8%
Poverty 27%
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Community and Education are the two most common priority areas in which SMEs
conduct CSR activities. It is interesting to note that large companies have also
earmarked these two areas as the most important to carry CSR activities.
Sponsorship activities
Chart 52
No
51%
Yes
49%
Chart 53
Community in
24%
general
Religious 16%
Sports 27%
Priority areas sponsored by SMEs are mainly in sports, the general community and in
religious activities. Sports is the most common area which SMEs provide sponsorship.
Again this may be due to a quest for more visibility.
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5.6 Partnerships with other organisations
Chart 54
One-off
50%
Long term
yond 2010)
33%
Short term
(2007-2010)
17%
A key finding from our study reveals that 84 % of SMEs do not partner up with other
organisations for CSR activities. This is because they are not well structured and like to
do their CSR activities in their own way and in their own pace. Many SMEs have also
encountered unequal participation during previous partnerships with other
organisations.
Those SMEs that collaborate with other organisations do it on a one-off basis. This is
probably because they carry CSR activities in an informal way and due to limited
resources.
Chart 55
NGO popularity
40% 35%
35%
30%
25% 19%
20%
13%
15% 10% 10%
10% 5% 5% 5%
5%
0%
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We also queried the respondents on NGO popularity. SMEs consider PILS to be the
most popular NGO. It is important to note that PILS is also the most popular NGO
among large companies.
Chart 56
Mobilisation of resources
C ommunication
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Furthermore, just like for large companies, the majority of SMEs rate NGOs in
Mauritius as good/fair. Very few rate NGOs as excellent/very good. The mean score
gives a better evaluation of each of the above criteria.
Mean Score
Aims and mandate of the NGOs 2.8
Structure and organisation 2.6
Commitment and professionalism 2.5
Communication 2.6
Membership and quality of resources 2.5
Mobilisation of resources 2.5
Performance towards goals 2.6
Aims and mandate of the NGOs obtains the highest mean score but all of the above
criteria obtain a mean score of less than 3. This implies that they are perceived by
SMEs as being fair to poor. Perception is as good as reality – NGOs should reverse this
perception by addressing the above dimensions.
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Chart 57
Yes
43%
Another key finding is that more than 50% of SMEs reject the idea of a partnership
with other organisations to conduct CSR activities, hence substantiating the fact that
SMEs are not prepared to devote significant funds and time to the provision of CSR
activities. This is mainly due to their small size and limited resources.
Chart 58
If yes, who?
38%
Government
94%
NGOs
56%
Private Firms
Those SMEs that are interested to do partnerships with other organisations are not
keen to partner with the Government. They prefer to partner with NGOs to carry out
CSR activities.
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Chart 59
Environment
13%
Poverty
40%
Education
47%
It is also to be noted that SMEs favour education as an area for potential collaboration,
but they lack information on this sector. This is also the case for large companies.
Therefore, there is an urgent need for the government and the NGOs to provide all
necessary information on education in order to allow business organisations to carry
out their CSR activities properly.
Chart 60
Health
21%
Poverty
38%
Education
41%
The main areas which SMEs consider important to partner with NGOs, private sector
and the government are namely in Education, Poverty and Health. Just like for large
companies, the majority of SMEs consider Education to be the most important area to
have partnerships.
Moreover, credibility of partners is the most important criteria for SMEs prior to
partnering up. This is because SMEs funds are limited and they want to ensure that
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their partners will make good use of their funds. Other criteria include: goal
congruence, communication and formal CSR structure.
Chart 61
Personal 10%
satisfaction
Employee 14%
satisfaction
Goodwill 10%
Our study also investigated whether SMEs in Mauritius are deriving benefits from CSR
activities. The findings reveal that the main benefits that SMEs have obtained from
CSR undertakings are public relations, employee satisfaction, goodwill and personal
satisfaction. Public relations is considered to be the most important benefit for SMEs
since they are small in size and thus lack visibility. Therefore, CSR activities have
helped to make their name known to the general community and have thus enhanced
their visibility.
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5.7 End word
Chart 62
End word
Government
Increased should act as a
commitment facilitator
from Private 47%
Sector
53%
As an end word to the interview, SMEs mentioned that in order to enhance CSR
development, there must be an increased commitment from the private sector in
general and the government must reinforce its role as a facilitator.
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5.8 Summary of key findings
CSR culture
♦ Though not formalised and structured, CSR culture and interest is very much
present among SMEs in Mauritius.
CSR policy
Internal CSR
♦ However, the majority of SMEs in Mauritius indulge in internal CSR activities mainly
in the form of training/career advancement and occupational health and safety.
♦ 87% of SMEs surveyed prefer to carry out their CSR activities on an individual
basis.
♦ More than 75% of SMEs will maintain/increase/start CSR activities in the future.
♦ The major benefits that SMEs have derived from CSR undertakings are public
relation, employee satisfaction, goodwill and personal satisfaction.
♦ Only 20% of SMEs partner up with other organisations in their CSR activities.
♦ More than 50% of SMEs reject the idea of a partnership with other organisations to
conduct CSR activities. It is also worth noting that SMEs that are willing to partner
up with other organisations are not keen to partner with the Government.
NGO in Mauritius
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Policy dialogues and areas for potential collaboration
♦ SMEs favour education as an area for potential collaboration. Other interest areas
include poverty, health and environment.
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6 Findings – Rodrigues
♦ CSR in Rodrigues is carried out in an informal way. The concept has not yet seeped
into the vision and strategy of companies, big or SMEs.
♦ Internal CSR practices are not common in Rodrigues showing that the concept of
organisational development is yet to gain popularity.
♦ NGOs have reported lack of funding from Private Sector and Government as
being a major cause for lack of integrated CSR projects in Rodrigues; and
♦ The well-known NGOs in Rodrigues include: Craft Aids, Red Cross, ACIR, ABRO,
Shoals of Rodrigues.
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7 Legal review
We have carried out a high level overview of relevant laws and codes that may affect
CSR directly or indirectly and have identified improvement areas to them.
Some of the principles laid out in the Constitution of Mauritius are namely:
The Constitution of Mauritius further contains provisions for the enforcement of those
rights.
Strength
♦ The principles laid out in the Constitution of Mauritius take precedence over
laws and are at the highest level of the legal hierarchy.
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Weaknesses
♦ The Ombudsman is there in theory, but ordinary citizens are not aware of same.
Recommendations
♦ Once the above measures are in place, adequate information campaigns must
be done so that ordinary citizens are aware of the existence and mechanism of
those systems.
Strengths
♦ The Act provides that the Commission will enquire into any complaint not only
from anyone alleging that his rights are being violated but also when there is a
likelihood of his rights being violated.
♦ There is a set time limit of a maximum of 2 years within which the Commission
will enquire.
♦ The Commission works quite independently but at the same time has to report
each year to the President.
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Weaknesses
♦ Though the Commission has quite vast powers, it still cannot deal with any
complaint subject to its enquiry and has to refer the matter to the appropriate
body based on the matter at issue. For example where a complaint deals with
the commission of an offence, the matter is referred to the DPP.
Recommendations
♦ The Commission could be given more powers so that it could deal directly with
any matter without having to have recourse to other institutions. The
Commission should have powers to act immediately and without notice in case
where celerity is needed.
Strengths
♦ The Act provides for a definite set procedure to deal with complaints and sets
up an amicable way of resolving same.
Weaknesses
Recommendations
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7.1.2 Labour
7.1.2.1 Labour Act 1975
This Act governs all employer-employee relationships and deals with issues such as the
payment of remuneration, the modes of payment of remuneration, any advances or
deductions.
This law also provides for internal working conditions such as hours of work, including
overtime, conditions of work, measures against workplace violence and includes
provisions on termination of employment as well as payment of severance allowance,
both normal and punitive and other related matters.
Strength
♦ The Labour Act provides positive measures such as the prohibition of employing
children or even young persons in dangerous environment. Moreover, it
provides penalties against violence at the place of the work.
Weaknesses
♦ The Act does not make provision for enforcement agent to check the
employment of children or any employment of young persons in a dangerous
environment.
Recommendations
It also provides for the recognition of trade unions and relationships between the
unions and management.
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accommodation, in companies, partnerships or other associations, in clubs on grounds
of sex, marital status, or pregnancy.
Strength
Weakness
♦ There is the need for the Sex Discrimination Division to promote understanding,
acceptance and compliance of the Act. It has to undertake research and
educational programs and other relevant programs for promoting the objects of
the above Act.
Recommendations
♦ It is suggested that the Sex Discrimination Division must show more visibility
and thus encourages victims of sex discrimination to come forward for the
necessary protection.
♦ The division must also play a more proactive role in the provisions of sexual
education. This may be by disseminating guidelines to the public starting from
schools to work places.
♦ Moreover, seminars must be organised to cover the main provisions of the Sex
Discrimination Act.
It establishes the Training and Employment of Disabled Persons Board which provide
for the welfare of disabled persons and prevent discrimination in employment.
Strengths
♦ The Act imposes a duty on every employer having in its employ 35 or more
people to recruit a percentage of disabled persons.
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♦ The Act provides that a disabled person shall not be employed in a work which
is unsuitable having regards to the nature of the disability.
Weakness
♦ The Training and Employment of Disabled Persons Act does not make any
provisions in respect of enforcement agents at work places.
Recommendations
7.1.3 Environment
7.1.3.1 The Environment Protection Act 2002
The Environment Protection Act 2002 has been enacted to provide for the protection
and management of the environmental assets of Mauritius so that their capacity to
sustain the society and its development remains unimpaired and to foster harmony
between quality of life, environmental protection and sustainable development for the
present and future generations.
More specifically, the Act provides for the legal framework and the mechanism to
protect the natural environment, to plan for environmental management and to
coordinate the inter-relations of environmental issues, and to ensure the proper
implementation of governmental policies and enforcement provisions necessary for the
protection of human health and the environment of Mauritius.
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♦ Powers of entry and arrest on its authorised officers in the enforcement of its
objects.
Strengths
Weaknesses
♦ Appeals before Environmental Appeal Tribunal are not efficient. The frequent
change in the Chairmanship of the Tribunal is often the cause of delays in the
processing of appeals.
Recommendations
♦ Appeals before the Environment Appeal Tribunal can be more efficiently dealt
with.
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Caution must however be exercised as too much protection is also not good since
sometimes actions under the Environment Protection Act can block projects of national
interest which provide create employment.
♦ Issue beach traders' licence for activities at such places on public beaches as
may be specifically reserved for that purpose
♦ Advise the concerned Minister on all matters relating to the management and
development of public beaches
7.1.3.3 Biological And Toxin Weapons Convention Act 2004 and The
Chemical Weapons Act 2003
This law gives effect to the Convention on the Prohibition of the Development,
Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on
their Destruction and to the Convention of the Prohibition of the Development,
Production, Stockpiling and Use of Chemical Weapons and on their Destruction.
This enables police officers who have reasonable grounds to believe that an offence has
been, is being or is likely to be committed in breach of this Act, to apply to a
Magistrate for a warrant to enter and search any premises and seize any material kept
in contravention of the said Acts.
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7.1.3.4 Dangerous Chemicals Control Act 2004
The Dangerous Chemicals Control Act 2004 provides for the prevention of damage to
health and to the environment caused by dangerous chemicals and for better
protection of the workers, members of the public and the environment against
dangerous chemicals.
It confers the powers of search on the enforcement agency where it suspects that
there is imminent danger to the public health, public safety or environment.
Any persons suspecting the illegal handling of dangerous chemical by any one should
have a duty to report to the enforcement agencies established under the Act.
7.1.4 Trading
7.1.4.1 The Fair Trading Act 1979
The Fair Trading Act is one of the cornerstones of our consumer protection law. The Act
protects consumers by prohibiting misleading or deceptive conduct in trade .
♦ Some consumer trade practices are prohibited. By virtue of the said Act, no
person shall for the purposes of trade or promotion carry on a consumer trade
practice which has the effect or is likely to have the effect of -
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The Act also :
General views
The issue of competition cannot be viewed in Mauritius in the same way as it is viewed
in large countries. We are a small country, with a limited market, limited resources,
and an adaptation of the norms prevailing in other countries is necessary. Failure to
make such an adaptation will be detrimental to the country.
Strengths
♦ The Act prohibits unlawful consumer trade practice and upholds consumer
protection, whilst expressly providing for traders not to mislead or confuse
customers .
♦ Section 6 promotes the spirit of fair competition and restricts any unlawful and
prohibited agreements made with a view to prevent, restrict or distort
competition.
♦ Specific codes of practice may be prepared and regulated by the Minister or his
designated officers.
♦ The Act provides that non-compliance with any compulsory code of practice or
any other contravention of the Act will constitute an offence and may be
punished by a fine or a term of imprisonment.
♦ Any goods which is the subject matter of an offence under the Act may be
seized and detained.
Weaknesses
♦ The Act provides for the protection of consumers but in too general terms. No
channel of complaint or any powers of the consumer is expressed for the
protection of the consumer to operate. This may cause prejudice to customers
in as much as in case of non compliance with the Act, no direction is available
to customers as to the form or tenor of their respective complaints.
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7.1.4.2 The Consumer Protection Act
The purpose of the Act is to promote protection of safety and quality of goods supplied.
The Act further provides that the Minister may make regulations under the Act. Only
two regulations have been published, one for toys and another for laser pointers.
Strengths
Weaknesses
Only two regulations having been passed under the Act, the scope of the Act is limited.
This Act, which is frequently applied, gives wide powers to the Minister of Commerce to
fix maximum prices, fix maximum mark-ups and recommend maximum prices.
The Act further imposes obligations on traders, like, for example, the obligation to
display goods traders have on sale, the obligation to keep goods in specific places and
the obligation to sell gods exposed or kept for sale.
Many regulations have been fixed in relation to several products, such as milk,
petroleum products, bread, fertilizers, second hand motor vehicles, etc.
Penalties apply if traders do not comply with the Act or with the Regulations.
Several traders interviewed complain about the effects of this law and of the
regulations passed thereunder, the Ministry’s position being that the regulations are
justified.
7.1.5 Business
7.1.5.1 The Companies Act 2001
The Companies Act 2001 provides for:
♦ The duty of directors to act in good faith and in the best interests of the
company
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♦ Framework for the protection of minority shareholders
Strength
Weaknesses
♦ There are very limited practical recourses for breach of duties under the
Companies Act 2001. Very few directors and officers are prosecuted, although
the breaches are more frequent than the number of actions against directors
and officers.
♦ The poor results tend to cause victims to be very reluctant to take actions
against directors and officers.
Recommendation
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7.1.5.2 The Financial Intelligence and Anti-Money Laundering Act 2002
The Act, inter alia,
♦ deals with offences involving proceeds of crime as well as putting into place a
Financial Intelligence Unit which has wide powers to deal with financial
information relating to proceeds of crime, issues of money laundering and
transactions related to terrorism financing;
♦ imposes specific duties on banks, financial institutions and cash dealers, and
imposes on them an obligation to take all necessary precautions to prevent
money laundering. The said persons must report any case in which they
consider that there has been money laundering;
Strength
♦ The Act penalizes not only instances where a person deals with property which
represents the proceeds of a crime, but also where the person suspects or has
reasonable grounds to suspect that the property represents the proceeds of a
crime.
♦ The penalties set out in the Act appear quite stringent and in our view
constitute a strong deterrent.
♦ The setting up of the Financial Intelligence Unit having wide powers and acts as
an independent body to scrutinize the issue of money laundering and terrorist
financing.
♦ The Act also provides for mutual assistance with overseas bodies in relation to
money laundering and for matters connected therewith and incidental thereto.
Weakness
♦ Very few offenders are prosecuted, and prosecutions do not bring the desired
results. The prosecution side can be improved.
Recommendation
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♦ In our view, the inquiries so far have not been carried out at the right places.
Better methods of collaboration between Mauritius and foreign States are
necessary, and the legal framework for such international collaboration can be
improved (e.g. for frauds involving several jurisdictions). An improvement of
the prosecution side is necessary to improve the deterrent effect.
The Act further establishes the office of the Commissioner of Income Tax and gives
vast powers to request for production of books and records and other information, of
inspection as well as to waive penalty to the Commissioner.
Strength
♦ A variety of penalties are available for various offences relating to Income Tax
from minor ones such as failing to submit tax returns to failing to pay tax.
Weakness
Recommendation
The Act provides for protection to a borrower who is unable to meet his obligations
under a credit agreement as a result of illness, injury, loss of employment, death of
working spouse or other reasonable cause of hardship, which affects his capacity to
repay the debt and who reasonably expects to be able to discharge his obligations if
the terms of the credit agreement are revised.
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It covers any lending institution such as banks, insurance companies, and such other
prescribed financial institutions.
It also contains some good ideas but tends to go too far in protective measures. Such
over-protection can have a counter-effect and constitute a handicap for a category of
persons who can be deprived of credit due to the unwillingness of lending institutions
to grant loans due to the obstacles of the Act.
7.1.6 Security
7.1.6.1 The Prevention of Terrorism Act 2002
The Prevention of Terrorism Act 2002 provides for measures to combat terrorism and
for related matters.
Under the Act, an offence shall also be committed if a person who participates in
terrorist meetings, harbours terrorists, do not disclose information about acts of
terrorism or even obstruct terrorist investigation.
Under the Act, an act of terrorism would include an act which in a large sense may
seriously damage a country, its population or an international organisation.
♦ Kidnapping of a person
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♦ The manufacture, possession, acquisition, transport, supply or use of weapons,
explosives or of nuclear, biological or chemical weapons, as well as research
into, and development of, biological and chemical weapons
Moreover under the Act, an offence shall also be committed if a person who
participates in terrorist meetings, harbours terrorists, do not disclose information about
acts of terrorism or even obstruct terrorist investigation.
The Convention for the Suppression of the Financing of Terrorism Act 2003 gives effect
to the International Convention for the Suppression of the Financing of Terrorism.
Strengths
♦ The Company operates within a framework of fair and open competition where
competitors are treated fairly and trade is done to the highest ethical standards
in order to ensure and maintain long terms business relationships.
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♦ The Company must function with the aim of increasing growth and profits for
the benefit of shareholders and all financial records must be kept in the most
concise, complete and up to date manner.
♦ The Company shall be an equal opportunity employer and shall offer high
health, safety and welfare to its employees.
♦ Care for the environment is one of the Company's main concerns. The
manufacture, handling and disposing of materials is done in such a way that
risks to human health and environment is minimised.
♦ Channels of complaints are open to everyone and all complaints are considered
impartially and efficiently.
♦ A very efficient and courteous service is offered to customers, who at the same
time have the privilege of benefiting from products that meet a high standard of
safety, quality and reliability.
Weaknesses
♦ The code provides for strict adherence to the laws of Mauritius whilst at the
same time not trying ‘to bribe any public official in any circumstances
anywhere’. It would seem that from this section it could be inferred that officials
‘other than’ public officials could be bribed or induced! This section, as it is
presently worded, would not apply to officials employed by private companies
or private banking institutions for example, as they do not fall within the
category of ‘public officials’.
♦ The code fails to provide for the type of penalty for those who act in breach of
it.
Recommendations
♦ The code may provide for penalties and punishment in case there is any breach
of the code. This will ensure a better compliance with the code. Moreover it
should provide for a unit whereby complaints may be made by any person.
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principles which guide the behaviour and action of public officers so as to inspire public
confidence and trust and those values and principles are Integrity, Objectivity,
Conscientiousness and Loyalty to the Government of the day.
Strengths
♦ The code provides for the relationship between public officers and ministers to
be based on mutual trust and confidence. Public officers should work with their
ministers to the best of their ability with integrity, courtesy and respect.
♦ In their relations with the public, public officers must always act in a courteous
and careful manner. Every member of the public must get an equal and efficient
treatment, irrespective of their social class. Officers must always act with a view
to enhance the reputation of the public service.
♦ Public officers should ensure that public assets and other resources are used for
official purposes only and are managed scrupulously, properly, efficiently and
effectively. Waste and extravagance in the use of resources must be avoided.
♦ Officers must be careful in what they do, say or in the way they behave or dress
and they should operate in a proper work environment where respect and
mutual understanding prevails between colleagues.
Weaknesses
♦ The code does not provide anything in case of breach or failure to abide by its
provisions nor does it make any mention about any penalties to those who
contravene its provisions.
♦ The code contains only the general applicable principles, and is not a detailed
one. More details of what is expected from the public officers, or of what they
should not do, could be given.
♦ This code is not known to the public in general, so that members of the public
do not know when public officers trespass the code. No mention is made of
where breaches of the code should be reported by members of the public.
Moreover, there is no specific form on which complaints can be made.
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In this Code, various functions of the different players of a company are detailed, and
their roles are carefully defined to protect investors and the other stakeholders of the
market.
The Code applies to all companies with turnover exceeding Rs250M and these
companies have to comply or else furnish explanations for non-compliance.
The Code covers a number of key areas of CSR which are as follows :
(1) Physical;
(2) Operational;
(4) Technology;
(6) Financial;
(8) Reputational
7.2.3.2 Accounting
The Code of Corporate Governance for Mauritius also lays emphasis on preparation and
presentation of accounts which fairly represent the state of affairs of the company and
the results of its operations.
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7.2.3.3 Integrated Sustainability Reporting
It is in the long-term economic interest of a company to conduct itself as “a
responsible corporate citizen”.
♦ Ethics;
♦ Environment;
♦ Social Issues.
Strengths
♦ The Code introduced several new principles, and changed quite substantially the
day-to-day life of boardrooms.
Weaknesses
♦ The enforcement of the Code is not really effective. Many companies with
turnover exceeding Rs250M, especially state-owned enterprises, do not comply
with the Code since it is not legally binding.
Recommendations
♦ Additional CSR principles can be introduced in the Code for example the
obligation to introduce a report on CSR activities, strategies and policies in the
annual report. The Code can introduce the requirement of a new full time
officer, a CSR officer, for all companies of a certain size or of a certain turnover.
Corporate Governance should be viewed in the local context, and some
principles applied internationally may be adapted to the local context.
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7.3 International codes and guidelines
The Global Compact was first announced by the then United Nations Secretary-General
Kofi Annan in an address to The World Economic Forum on January 31, 1999, and was
officially launched at UN Headquarters in New York on July 26, 2000.
The United Nations Global Compact Office is supported by six UN agencies: the United
Nations High Commissioner for Human Rights; the United Nations Environment
Programme; the International Labour Organisation; the United Nations Development
Programme; the United Nations Industrial Development Organisation; and the United
Nations Office on Drugs and Crime.
The Global Compact’s ten principles in the areas of human rights, labour, the
environment and anti-corruption enjoy universal consensus and are derived from:
Human Rights
Principle 2: make sure that they are not complicit in human rights abuses.
Labour Standards
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Principle 6: the elimination of discrimination in respect of employment and
occupation.
Environment
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including
extortion and bribery.
The Global Compact is not a regulatory instrument, but rather a forum for discussion
and a network for communication including governments; companies and labour,
whose actions it seeks to influence; and civil society organisations, representing its
stakeholders. The Compact’s goals are intentionally flexible and vague, but can
promote local networks and policy dialogues.
However many NGOs, such as Greenpeace, ActionAid, Global Policy Forum, CorpWatch,
SOMO and Berne Declaration, believe that in the absence of any effective monitoring
and enforcement provisions, the Global Compact fails to hold corporations accountable.
Moreover, these organisations argue that companies can misuse the Global Compact as
a public relations instrument for bluewash, as an excuse and argument to oppose any
binding international regulation on corporate accountability, and as an entry door to
increase corporate influence on the policy discourse and the development strategies of
the United Nations.
Strengths
♦ Human Rights:
♦ Labour Standards:
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3) Elimination of all forms of forced labour and compulsory labour must be a
primary aim.
♦ Environment:
8) Businesses should work against corruption in all its forms, including extortion
and bribery.
Weaknesses
♦ Moreover, these organizations argue that companies can misuse the Global
Compact as a public relations instrument for 'bluewash', as an excuse and
argument to oppose any binding international regulation on corporate
accountability, and as an entry door to increase corporate influence on the
policy discourse and the development strategies of the United Nations.
♦ the Global Compact has no legal effect in Mauritius, and is not known by most
companies of Mauritius, even though the general principles contained in the
Global Compact are known to most Mauritian businesses.
Their aim is to ensure that multinational enterprises operate in harmony with the
policies of the countries where they operate and with some standards set out in the
Guidelines.
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The Guidelines are voluntary and consequently, not legally enforceable. This however,
does not imply less commitment by OECD governments to encourage their observance.
The guidelines address private parties, i e, enterprises and not the government
themselves.
General Policies
The General Policies: contain the first specific recommendations, including te need to
protect human rights, to have sustainable development, supply chain responsibility, to
cooperate with the local community, to encourage human capital formation, to refrain
from seeking or accepting exemptions not contemplated in the statutory or regulatory
framework, to support and uphold good corporate governance principles, to develop
and apply effective self-regulatory practices and management systems, to promote
employee awareness of ,and compliance with company policies, to refrain from
discriminatory or disciplinary action against employees who make bon fide reports to
management, to encourage (where applicable) business partners to apply principles of
corporate conduct compatible with the Guidelines, and to abstain from any improper
involvement in political activities.
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Strengths
With Mauritius moving into the global sector, and wanting to attract more and more
international investments, the OECD guidelines are a good example of the standards
that should be achieved by the MNEs investing in Mauritius and the Mauritian
companies which want to extend their activities by foreign investments.
Weaknesses
The OECD guidelines are not legally enforceable and do not contain any penalties in
case of breach.
The guidelines present reporting principles and specific content to guide the
preparation of organizational-level sustainability reports, assist organizations in
presenting a balanced and reasonable picture of their economic, environmental and
social performance, promote comparability of sustainability reports, while taking into
account the practical considerations related to disclosing information across a diverse
range of organizations, many with extensive and geographically dispersed operations,
support benchmarking and assessment of sustainability performance with respect to
codes, performance standards and voluntary initiatives and serve as an instrument to
facilitate stakeholder engagement.
Strengths
♦ Organisations can use the GRI reporting to help measure and benchmark
performance, both against their own targets and externally. Management can
use GRI indicators to encourage employees to make good progressive
performance.
♦ The Guidelines are flexible and can be used in different sectors and
geographical contexts.
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Weaknesses
♦ Adhering to the Guidelines may be labour intensive and full reporting may
represent a challenge for smaller organizations.
♦ Their history of use in the social enterprise sector is limited and some of the
language and approaches are more familiar and appropriate for multinational
corporations.
♦ Their main focus is 'sustainability' for example, reporting external impact but
not necessarily focusing on positive outcomes or impacts.
We have undertaken a review of the existing mechanism of control from the state
through meeting with various Ministries and Authorities namely the Ministry of
Environment, Labour, Women, the Registrar of Companies and the Office of
Ombudsmen.
There are a myriad of provisions for penalties in the Environmental Protection Act
(EPA) for infringement of environmental laws.
The EPA stipulates that certain projects have to obtain an Environmental Impact
Assessment (EIA) or Preliminary Environment Report (PER) prior to obtaining approval
from the Government for their implementation stage.
The Ministry of Environment has a compliance division that assess EIAs and
consultation is made with various Ministries and Authorities prior to granting EIA
certificates to promoters.
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Issues
♦ The ‘Police de L’environment” unit of the Ministry lacks visibility throughout the
country.
Recommendations
The compliance department of the Ministry does regular checks in companies to ensure
that the rights of workers are not infringed. Regular payroll checks are conducted to
ensure that salaries are paid according to the applicable renumeration order. Officials
of the Ministry also interview employees of Companies in respect of their working
conditions.
Issues
♦ The penalties in the labour Act are too lenient and the legal procedures are not
user-friendly for employees.
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♦ There is a lack of sensitisation campaigns from the Ministry of Labour that
inform and educate employees about their rights
Recommendations
♦ The Ministry of Labour could be assisted by a full time legal person to improve
prosecutions.
♦ It is impending for the government to review the Labour Act and make it
become more user-friendly for employees. Penalties must be increased
substantially to act as a deterrent to labour law infringement.
The CPU ensures that imported products (steel, toys, fire crackers, etc) are safe for
consumers and are in line with local and international standards.
Surprise checks are carried out at trading outlets to check on any overpricing and to
ensure that all products on display have a price tag and indication of the country of
origin. They also ensure that retailers do not sell stale products. The CPU also indulges
in information campaigns by distributing brochures on consumer rights to the general
public.
Issues
♦ The Ministry of Women Rights is not the appropriate Ministry for the CPU.
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Recommendations
♦ The CPU could be assisted by a full time legal person to improve prosecutions.
♦ The CPU must be under the aegis of an appropriate Ministry say the Ministry of
Commerce in order to ensure better coordination and concerted actions by the
government in their endeavour to enhance consumer rights.
♦ The CPU must make more use of the Media in order to show more visiblity and
provide insightful advices to both retailers and consumers.
Issues
♦ ROC needs to sensitise more the business community (especially the family
businesses) about the legal implications of non-compliance with their statutory
obligations.
Recommendations
♦ The ROC must have a better control over the prosecution aspect in order to
speed up legal cases and bring more cases to a positive result.
♦ The ROC must play a dual role in organising regular training sessions to the
entrepreneurs (especially the family businesses) to ensure proper statutory
compliances by companies.
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Enforcement provisions and mechanism of control
The Office of Ombudsman carries out regular inspections for instance in prisons to
ensure that the rights of prisoners are respected. They usually work under close
collaboration with the police
Issues
♦ The Office of Ombudsman and his powers are not sufficiently known and user-
friendly.
Recommendations
♦ The ombudsman must play a linchpin role in reinforcing its presence in the
country through media for instance in order to encourage the general public to
come to them for assistance.
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8 Recommendations
8.1 Overview
Conceived by businessmen and executives from the private sector, Ethos Institute is
a center for mobilization, organization of knowledge, exchange of experiences and
development of tools that can help companies to analyze their management
practices and deepen their commitment with corporate responsibility. It is today an
international reference in the issue and develops projects in partnership with several
bodies worldwide.
Case 3: NGO Forum - The government's 1999 white paper 'Saving Lives: Our
Healthier Nation' established the National Forum of Non-Governmental Public Health
Organisations (subsequently known as the NGO Forum) as part of its developing
public health strategy. The Forum is sponsored by the Department of Health and is
managed by the Royal Society of Health.
Membership is open to any national NGO and interested orgnisations can sign up for
the monthly email news bulletin to be kept regularly informed of developments.
The NGO Forum today is the key vehicle for engaging key national NGOs in the
planning and delivery of all future social marketing enhanced national programmes
and campaigns."
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The main finding of the survey was that CSR is not embedded in corporate culture.
However, CSR has been gaining momentum gradually in Corporate Mauritius as
companies engage more and more into multi-stakeholder initiatives. It has become
the force behind and very often the enabler of sustainable development whether
companies act alone or in joint partnerships with other stakeholders in their CSR
initiatives.
The survey has revealed that 79% of companies have demonstrated interest in diverse
partnerships for CSR initiatives.
22%
11% 2%
53%
♦ A forum whereby pressing needs can be identified (by more than 75% of
companies);
♦ Partnerships with other companies and/or NGOs (by more than 60% of
companies); and
The above findings are strong signals that there is a missing enabling framework to
bring these three stakeholders together. Thus, the initial, crucial initiative which
should be envisaged should be to elaborate a policy framework with representatives of
all three stakeholders with the aim of promoting, encouraging, facilitating and
supporting CSR initiatives within a broader social and economic integration so as to
address national development challenges.
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This policy framework will provide the required impetus to CSR by addressing issues at
various levels:
♦ At Corporate
Government
Mauritius level, at
the civil society level
and at the
Government level;
Private Sector NGO sector
♦ At joint partnership
level by ensuring a
better liaison between the various stakeholders (between Government and
private sector, Government and NGO sector, private sector and NGO
sector); and
8.3.1 Overview
In order for each stakeholder to be able to fully play their role in this tripartite
partnership and discharge their responsibilities with commitment, care and diligence, it
is imperative that reform be initiated on an individual player level and on an individual
sector level.
“A vision of development that leaves out the private sector is only vision,” said a UNDP
official. Indeed, the private sector is playing a vital role through the CSR endeavours
to address national development issues at the national and/or community level.
However, coordinated and concerted actions by the private sector may be more fruitful
than individual actions and CSR initiatives. The survey has revealed that around three
quarters of the companies would wish to team up with other private sector companies
in conducting CSR. The rationale for this interest in private sector partnership resides
in the fact that companies understand their counterparts better than they do NGOs and
Government, and they are more compatible in terms of culture and work ethics.
Companies would hold similar expectations from partnerships. Coordinated private
sector CSR initiatives offer a number of benefits:
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♦ Rationalising resource utilisation and improve projects' complementarities
while reducing intervention overlap by ensuring coordination amongst the
various counterparts through joint programming;
Strategic approach
Our survey has revealed that there is a strong positive correlation for existence of a
formal CSR policy and an engagement in strategic CSR partnership at community and
national levels.
Another area of focus for the private sector would therefore be to improve their
approach to CSR and give more structure to CSR initiatives by:
♦ Private companies may partner up with NGOs in their CSR activities, and
strategise about such partnerships by :
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b. Establishing key performance indicators (KPIs) for each project so as
to be able to monitor performance;
Proposed mechanism
The coordination of CSR initiatives requires instituting some kind of formal or informal
body as facilitator or assigning the responsibility to an existing representating body of
the private sector. The Joint Economic Council (JEC), “the coordinating body of the
private sector in Mauritius”, regroups the main business organisations of the country:
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♦ Setting and ensuring compliance with minimum standards;
♦ Corporate governance;
In the Mauritian context, the intervention of the government could have a three-tier
focus:
Furthermore, “soft laws” bring in additional, if not missing, regulation guiding private
sector practices and these soft laws include a myriad of national, regional and
international codes, conventions, directives, agreements and standards.
One area that would promote the development of CSR is to improve accountability of
NGOs through new regulation as proposed in the Assessment Report of the legal and
Regulatory framework affecting NGOs in Mauritius. Corporate sector representatives
interviewed would welcome a clearer legal framework that provides for more
accountability of NGOs across the board through introducing a public benefit status (or
minimum standards for governance, operation and reporting).
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There are mixed views regarding tax incentives for donations to registered charitable
institutions which have been abolished. The Financial Secretary has expressed the
view of the Government in that, despite the abolishment of this incentive, with the
recent introduction of a lower corporate tax rate, companies have more to spend. As
such, for the Government this measure should not be interpreted as a deterrent to
CSR. However, almost 70% of companies surveyed reported that a revision of the
actual tax policy would encourage them to increase their CSR activities. In addition,
30% of companies have stated that the Government assistance should be in terms of
fiscal incentives.
We would tend to agree that the prevailing low tax rate for the both individuals and
corporate should counter balance the abolishment of previous tax incentives and
therefore the interventions in CSR should not be tax incentive driven.
The survey and discussions with stakeholders have revealed that CSR should remain as
a voluntary activity. The government can however, and in fact should, limit its role to
being a facilitator in supporting the development of CSR. The British government’s
approach may be one of the best example of non-regulatory activism model with the
following public policy framework:
♦ Assist in the development of CSR and corporate citizenship skills through the
provision of education and training;
♦ Assist smaller and medium sized firms apply corporate citizenship practices;
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commitment (other stakeholders), benefits reaped from CSR, challenges
faced, implementation issues including monitoring of CSR activities,
amongst others;
♦ Introducing national awards for big companies and SMEs on CSR; and
The Government should “lead by example” and act as demonstrators of best practice in
corporate citizenship. For instance, the Government may:
♦ Apply procurement and tender policies in all instances requiring same; and
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Advisory Body to Government
The Government could draw from such best practice and institute an advisory group to
oversee and promote CSR and providing the required framework to support multi-
stakeholder dialogues on the subject. This advisory group could operate under the
aegis of the Ministry of Social Security, with experts from other relevant Ministries and
should establish the following:
♦ Its activities.
The UK government has gone one step ahead by conferring the responsibility of CSR to
the Minister of State for Competitiveness and Consumer Affairs.
♦ Rating the whole of civil society was difficult because the population is so
big, there is so little information available on NGOs, these are not regulated,
amongst others. However, when prompted for such a rating, companies
provided average ratings for all charateristics, showing a need for
improvement:
4. Communication;
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6. Mobilisation of resources; and
The NGO sector should imperatively reform itself. The logical step would be a review
of civil society in Mauritius. The following recommendations are based on views
opiniated by Corporate Mauritius and limited consultation with NGOs.
Capacity building
The greatest need that was revealed during the research for this project was to build
the capacity of NGOs so as to become more reliable partners for the corporate (as well
as the government) sector. NGOs need support to develop in several fronts but from
the point of view of intersectoral cooperation, their most urgent needs include:
In terms of how this capacity building can be implemented, there are several
interconnected ways:
♦ some companies interviewed are doing such capacity building already for
the NGOs they choose to work with (e.g., helping them develop grant
proposals or reports);
♦ the UNDP and other international actors may take on this task within their
range of competence;
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♦ MACOSS is engaged in capacity building for NGOs though not at the level
that would be demanded based on the sheer volume of the needs of the
organizations;
♦ There are some NGOs already who possess one or another skill mentioned
above and who could serve as a resource for others; and
Networking of NGOs
♦ Buying in active support from the government and private sector for their
integrated network activities;
The major barriers to such network grouping are the unique program strategies of
individual NGOs, their specific organisational characteristics, their wish to retain a
certain level of autonomy and at time even rivalry.
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Representation body, MACOSS
The umbrella organisation in Mauritius, the Mauritius Social Council (MACOSS), should
be proactive in trying to increase its affiliation from the current 220 (approximate)
member NGOs (the unofficial figure of some 6,000 civil society organisation (CSOs)
has been echoed regularly). Alternately, MACOSS could encourage NGOs to initiate
networks and build bottom-up representation. The MACOSS has already classified its
existing members into the following 16 categories:
♦ Advocacy;
♦ Children;
♦ Community development;
♦ Disabled;
♦ Education;
♦ Elderly;
♦ Poverty alleviation;
♦ Service clubs;
♦ Youth.
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Several stakeholders interviewed asserted that MACOSS should aim to become more
effective in achieving its objectives. E.g., it could rationalise efforts of NGOs on a
grouping basis and as mentioned above assist in their capacity building (project
proposal writing, financial management, project management, fund raising activities,
communications etc).
In addition, the existence of MACOSS should not deter other emerging networks from
organizing themselves into their own representational bodies and assist their members
in becoming better partners for the corporate and government sectors.
There should be liaison and concerted efforts between the various stakeholders:
between Government and private sector, Government and NGO sector, private sector
and NGO sector. Such two-stakeholder dialogues and coordination allow a better focus
on specific needs of the stakeholders.
♦ to liaise with Government and other bodies on matters relating to the socio-
economic development of Mauritius;
In addition, there already exist formal and informal mechanisms of interaction between
the two stakeholders:
Formal Informal
CSR could be taken in the agenda of the JEC as a major business endeavour to
contribute to the socioeconomic development of Mauritius.
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♦ The funding support for projects and/or overheads private sector can
provide to NGOs; and
Characteristics
♦ NGO is contracted for identifying target group needs, project concept development, and
technologies transfer.
Benefits
♦ There is efficient delivery of company’s CSR programs whilst at the same time the ability to
focus on business activities.
♦ Such partnership contributes to the fund generation activities of NGOs, should the NGO service
delivery be contractual and remunerated.
Limitations
♦ The efficiency of the program would depend on the professionalism of the NGO.
♦ Credit for the projects may be wholly taken by the NGOs so that the company(nies) do not
benefit from enhanced image in the external communities.
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2. NGOs as Project Manager partnership model
Characteristics
♦ The management of the project is outsourced to an NGO, based on its sectoral expertise, aims
and mandates and principles.
Benefits
♦ Both the private sector and the NGO focus on their competitive advantage.
♦ Such partnership contributes to the fund generation activities of NGOs, should the NGO service
delivery be contractual and remunerated.
♦ Both the company and the NGO gain recognition for service rendered in the external
communities.
Limitations
♦ Efficiency of programs is dependent on the professionalism of the NGO and all resource
limitation at NGO level will impact directly on efficiency of project implementation.
Characteristics
♦ A working group including NGO staff members and representatives from the private sector is
established.
Benefits
♦ Both the private sector and the NGO focus on their competitive advantage.
♦ Large-scale projects can be implemented when more than one player from the private sector
team up.
Limitations
♦ The working group may lack structure and roles and responsibilities may not be explicitly spelt
out so that the partnership may suffer.
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4. Other innovative forms of corporate –NGO partnerships:
130
- Corporate collections – similar to the previous but even more
flexible - the company actively promotes the NGO either through
its regular services or in other ways and sometimes even matches
the funds collected. E.g., in Hungary T-Com (Deutsche Telecom
owned Hungarian phone company) provides a fundraising hotline
to NGOs throughout the year, each selected NGO gets two
months and during those two months T-Com actively promotes
them to its clients to call in. Similar campaigns are done to
prompt people to send text messages to raise funds for NGOs.
Or in another example, Tesco awards the “Charity of the Year”
each year with a serious amount of money based on the votes of
its employees (they do this locally and nationally as well). Or we
can mention the British Airways “Good for Change” campaign
when they collect the left-over coins and small change from
passengers on-board to help UNICEF.
First, key actors in all three sectors should build on existing good practice and boost
the potential of already established initiatives to advance three sector partnership. A
case in point is the Empowerment Programme, which was initiated by the government
to create employment and bring social justice but both other sectors are increasingly
involved in its operation. Within the Empowerment Programme there is a chance to
further explore and encourage solutions based on three sector partnership, not just
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two-way engagements as is the current trend (i.e. the government making separate
partnerships with companies and with NGOs to realize the Fund’s goals). A small
three-sector policy planning expert group could be set up and work out new methods
to help reach the objectives in implementing government policies. One successful
existing partnership is the Zone d’Education Prioritaire which regroups the UNDP, the
Government of Mauritius (Ministry of Education and Human Resources) and private
sector companies to give special support and compensatory education in schools in
deprived and underprivileged localities, caters for the special needs of the pupils, and
includes the provision of a midday meal of bread, cheese and fruit/juice to every pupil,
This approach could be applied to other initiatives as well.
Second, the stakeholders may adopt an informal Policy Round Table approach as a
self-initiated platform for stakeholders from the three sectors to undertake joint policy
planning and implementation. Its work would be aimed at one priority area (at least
initially) to be determined by the participants, a more concrete area where reform is
needed and where the actors can deliver tangible results. (However, it would likely
address an issue outside the competence of the Empowerment Programme, such as
education, housing or extreme poverty.) The group would then determine the need for
research and needs assessment in this area; take part in conducting or commissioning
the research; and based on the data would devise strategies involving all three sectors
to address the identified root problems. The “division of work” would not necessarily
resort to the classic roles of the partners in relation to each other (i.e. government =
regulator, company = funder, NGO = project implementer) but could also result in
innovative and efficient public policies that involve ongoing cooperation and build on
the respective strengths of each sector. (See the examples above on strategic
partnerships.)
The group could over time decide to become more formalised but could also be in
existence only for the duration of successful delivery of its concrete objectives. The
group would of course set up its own internal modus operandi, elect its leadership etc.,
but with considerably less cost and bureaucracy than a permanent, government
endorsed structure.
Third, a Body with a clear Charter enabling the three-sector partnership, may be
instituted to provide a forum for the three-sector participatory process whereby the
private sector, the NGO sector and the Government can meet to discuss about
economic and social opportunities and issues, and address national development
challenges. The Charter will clarify in detail the membership of the Body, its mission,
its specific objectives, the modus operandi, the various roles and responsibilities,
reporting duties, and donor and NGO review mechanisms.
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GOVERNMENT
♦ Needs focus on:
1. Finding competent partners Key mechanisms:
Key mechanisms: in the private sector and NGO 1. Funds and subsidie
1. IRS JEC sector; 2. Registration
2. Corporate 2. achieving more transparency Accountability
Governance code and efficiency in its relations regulations
3. tax incentives? to its partners 3. Capacity building
MACOSS support
Key mechanisms:
1. Funding support, support for
overheads
2. Technical assistance in
implementation
3. Pooling of funds
8.5.1 Mission
The mission of the Body would be to provide a forum for policy dialogue and a
framework to coordinate three-sector participatory activities for addressing national
development challenges.
8.5.2 Membership
The Body would be made up of the following members:
Issues which may have to be addressed with respect to membership areas are as
follows:
♦ Representation of the private sector may be worked out faster and more
easily than representation of the civil society.
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♦ Another issue pertaining to membership may be the chairing or co-chairing
responsibility. It is recommended that an independent person, trusted and
respected by each stakeholder, chair the Body.
♦ Identify and prioritise social projects and issues for tripartite action;
Executive Committee
Secretary General
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CSR project initiation
The three-sector partnership would identify social issues and draw up a list of priority
areas for intervention.
♦ The project proposal, with milestones for project monitoring and post
project review;
♦ The Body will evaluate various projects for part or full funding. A Project
Evaluation Commission may be designated to evaluate the project
proposals.
Project funding
The Body may adopt the call of funds during the initial phase, and once trust has been
built and instilled move to a pooling of funds phase.
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Monitoring and review mechanism
During the survey, clear signals were obtained that transparency and credibility at the
NGO level were a major concern for private companies. Transparency can be ensured
through:
Enabling Body
Initially, pending the instituting of the Body and finalisation of its Charter, the NESC
can provide a temporary platform for the three-sector partnership given its mission
and objects.
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Furthermore, the major functions of the Council are to:
♦ undertake such studies as it deems fit and give its opinions and
recommendations;
The NESC already has in place a Secretariat and a research team, as well as a
commission for economic affairs, a commission for infrastructure, physical resources,
environment and sustainable development and a commission for social affairs and
human resource development.
♦ Difficult communication;
The reform at individual sector level highlighted in Sections 8.3.2 (Private sector
initiatives), 8.3.3 (Government initiatives), and 8.3.4 (Reform at NGO level) are valid
and applicable in Rodrigues as well:
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♦ More coordinated and concerted CSR actions leading to rationalisation of
resource utilisation and better projects’ complementarity, reduced
intervention overlap;
y Social Security
♦ Capacity building of NGOs at the attitude level, skill level and knowledge
level; and
Two sector partnerships can also be applied in Rodrigues as highlighted in Section 8.4.
Given the small size of the island and the close-knit communities, formal
representation at individual sector level would require rigid structures and deployment
of resources. A more informal approach may be warranted in Rodrigues, with regular
tripartite partnership working sessions to serve as a forum for discussion, experience
sharing, and need identification, coordination in project development and
implementation, and role sharing. Recommended informal representation may take
the following form:
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♦
Facilitator role
1. Facilitates:
- project development: based on needs assessment findings of NGOs, provide
assistance in developing an action plan and/or assist in matching NGOs needs
with privates sector CSR initiatives
- project implementation: assist NGOs and private sector to implement projects
in selected thematic areas
Government
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9 Thematic areas of potential partnerships
Findings
♦ There is general lack of information (about the area of focus, about NGOs
activies in such areas, government assistance in such areas, etc). The more
companies wish to intervene in one area, the greater the lack of information
they face. The two main areas where companies have reported lack of
information are education and environment and quality of life.
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Thematic areas - current areas of intervention, areas where there is a lack of information and areas of potential
partnership
45%
41%
40%
35%
30%
% of companies
25%
25% 24%
20% 19%
17%
15%
14% 14%
13% 13% 13%
10%
10% 8% 8%
6% 6% 6% 6% 6%6%
5% 5% 5% 5% 5% 5% 5%
5% 3% 3% 3% 3% 3%
2%2% 2% 2% 2% 2% 2% 2%2% 2% 2%
0% 0% 0%0% 0% 0%0% 0% 0% 0%0%
0%
resource development
development
Youth
Health and quality of
Environment and
Sports
Animal welfare
Advocacy
Criminality
Community
disasters
support
life
Thematic areas
Current areas of intervention Areas where there is a lack of information Areas of potential partnership
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♦ Large organisations carry out philanthropy in the following areas: health and
safety, education, and community (mainly sports).
Immediate actions
1. Education;
2. Environment;
3. Health and quality of life; and
4. Poverty alleviation.
During the first mission of the specialist in Rodrigues, there could be a national
workshop to match private sector initiatives and areas of interest and NGOs’ sector of
intervention. This “demand and supply” matching would allow a number of significant
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partnerships to take form and bear fruitful projects. Three major thematic areas of
interest have been noted as follows:
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10 Conclusion
CSR is not embedded in the corporate culture in Mauritius. It has yet to be integrated
in mainstream management whereby private sector firms adopt a strategic approach to
CSR from policy making to implementation to resource allocation. However, recent
corporate undertakings show the increasing awareness about the concept and
relevance and applicability of CSR to address national development challenges and the
gradual engagement in CSR. For CSR to become the national development tool, it is
important that coordinated and concerted efforts be undertaken at the private sector
level, in the civil society and at government level. This will allow rationalising resource
utilisation, reduce intervention overlap and facilitate information and experience
sharing. Partnerships, whether at a two sector level or a three sector level should be
well thought out.
A myriad of two-sector partnership models exist which can adopted immediately at the
following levels:
b. payroll giving;
f. corporate collections.
3. Government and NGO level – explore opportunities for provision of funds and
subsidies and capacity building support by Government.
Firstly, the three players should build on existing good practices and boost the
potential of already establish initiatives to advance three sector partnership.
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Secondly, the players may engage in a self-initiated platform and adopt an informal
policy round table and focus on one theme at a time.
Thirdly, the three sectors should institute a three-sector partnership model based on
sound representation and should aim at group synergy It is recommended that a
private-sector-driven body with representatives from the three sectors be set up to
promote CSR. It is also recommended that the NESC be designated temporarily as the
body with this responsibility initially, pending the institution of the more permanent
body to oversee CSR.
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