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Table of Contents
Introduction................................................................................. 3 1.1 1.2 Background information ........................................................3 Structure of the Report .........................................................3 Data collection: secondary data review ...................................4 Data collection: CSR review survey.........................................4
2.2.1 2.2.2 2.2.3 2.2.4 Planning activities .............................................................. Design of survey................................................................ Sampling .......................................................................... Conduct of survey..............................................................
Methodology ................................................................................ 4 2.1 2.2
4 4 5 9
2.3 2.4 2.5 3 4
Discussion forums and working sessions..................................9 Interviews ..........................................................................9 International benchmarking................................................. 11
Overview of CSR ........................................................................ 12 Findings – large organisations ................................................... 22 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 Strategic approach to CSR................................................... 22 Internal CSR ..................................................................... 27 Framework for external CSR activities ................................... 31 Evaluation of implementation of CSR activities ....................... 40 Philanthropic and sponsorship activities................................. 44 Partnerships with other organisations ................................... 46 Corporate views on NGO ..................................................... 48 Potential partnerships......................................................... 53 Interest in policy dialogues.................................................. 58 Concluding comments......................................................... 59 Summary of key findings .................................................... 61 Strategic approach to CSR................................................... 64 Internal CSR ..................................................................... 65 Framework for external CSR activities ................................... 67 Evaluation of implementation of CSR activities ....................... 71 Philanthropic and sponsorship activities................................. 74 Partnerships with other organisations ................................... 76 End word .......................................................................... 81 Summary of key findings .................................................... 82
Findings - SMEs.......................................................................... 64 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8
Findings – Rodrigues ................................................................. 84 Legal review .............................................................................. 85 7.1 Existing regulatory framework ............................................. 85
7.1.1 7.1.2 7.1.3 7.1.4 Fundamental Rights ..........................................................85 Labour ............................................................................88 Environment ....................................................................90 Trading ...........................................................................93
Business..........................................................................95 Security ..........................................................................99 Joint Economic Council – Model of Conduct ......................... 100 Mauritius Code of Ethics................................................... 101 Code of Corporate Governance ......................................... 102 United Nations Global Compact ......................................... 105 OECD Guidelines............................................................. 107 Sustainability Reporting Guidelines (GRI Guidelines) ............ 109
Local voluntary codes of conduct and ethical standards ......... 100
7.2.1 7.2.2 7.2.3 7.3.1 7.3.2 7.3.3
International codes and guidelines...................................... 105
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
Recommendations ....................................................................115 8.1 8.2 8.3 Overview ........................................................................ 115 An enabling framework for partnerships .............................. 116 Initiatives at individual sector level ..................................... 117
8.3.1 8.3.2 8.3.3 8.3.4 8.4.1 8.4.2 8.4.3 8.5.1 8.5.2 8.5.3 8.5.4 Overview ....................................................................... 117 Private sector initiatives................................................... 117 Government initiatives..................................................... 119 Reform at NGO level ....................................................... 123 Government and private sector dialogue ............................ 127 Private sector and NGO sector dialogue.............................. 127 Government and NGO sector dialogue................................ 131
Joint partnership initiatives................................................ 127
Towards a three-sector partnership model ........................... 131
Mission.......................................................................... 133 Membership ................................................................... 133 Specific objectives .......................................................... 134 The modus operandi........................................................ 134
8.6 9 10
The Rodrigues case .......................................................... 137
Thematic areas of potential partnerships..................................140 Conclusion ................................................................................144
Section 10 closes with the conclusion. The objectives of the project are: ♦ 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 undertake a review of Corporate Social Responsibility (CSR) in Mauritius Republic.1 Introduction Background information Kemp Chatteris Deloitte (KCD) was commissioned by the Government of Mauritius. conduct of survey.1 1. and To identify potential areas of strategic partnerships between the Private Sector and the NGO sector. SMEs and in Rodrigues respectively. views on.2 Section 2 details our multifaceted methodology adopted to review CSR in Mauritius including the data review. To assess the relation between the Private Sector and the NGO sector. with attempting a definition of the term. Section 9 identifies thematic areas of potential partnerships. international codes and guidelines and goes on to analyse the adequacy of the mechanisms of control from the state and from civil society. 5 and 6 present our findings on large organisations. 3 . local voluntary codes of conduct and ethical standards. participatory discussion forums and working sessions. This assignment is part of an overall program set to reinforce the NGO sector both in Mauritius and Rodrigues. Section 7 focuses on the existing regulatory framework. in partnership with the Mauritius Council of Social Service (MACOSS) and the United Nations Development Programme (UNDP). Sections 4. It then proceeds to look at the advantages of CSR. reviewing the history of. analyse the impact of law on CSR and provide examples of CSR in the workplace. key drivers and evolution of CSR. Structure of the Report ♦ ♦ 1. Section 8 sets out our recommendations. Section 3 presents an overview of CSR. interviews with authorities and relevant opinion leaders as well as international benchmarking.
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.2 Data collection: CSR review survey 2. the internet. The literature review englobed the Deloitte network. 2.1 Methodology Data collection: secondary data review Extensive and critical literature search Our team members engaged in a literature review on CSR. 2.2. and Set out quality of work expected and frequency of monitoring of the assignment. work plan: ♦ ♦ ♦ The Provided the necessary information to assist in establishing the assignment charter. and Descriptive research.2 Design of survey For this study.1 Planning activities Rationale A work plan was prepared for approval by the Project Management Unit (PMU). Helped in the preparation of contingency plans (if necessary).2. This was essential for the exploratory research and design of the questionnaire. boundaries and execution approach. we conducted informal interviews with professionals from various organisations. Simple questions were put to them such as: ♦ ♦ ♦ ♦ ♦ How do you define CSR? Does your organisation have a formal policy towards CSR? Which resources do you devote to CSR activities? What does CSR activities encompass in your organisation? Does your organisation have a team/employee looking after CSR? 4 . given the unique research objectives we engaged in: ♦ ♦ Exploratory research. academic and business sources.2 2. and the media.
A questionnaire was designed to collect the primary data. now Small Enterprises & Handicraft Development Authority (SEHDA). The sampling unit consisted of all international corporations present in Mauritius. This compilation was a good starting point as it provided valuable information such as turnover. International corporations. organisations in major industries of the economy and SMEs were investigated. 5 .2. 2. the sampling aimed at addressing: ♦ ♦ ♦ Major national organisations. sector of activity etc. We proposed 3 sampling variables (for the first two segments). and SMEs. We referred to the list of SMEs registered with the defunct Small and Medium Industries Development Organisation. which we believe. International corporations. profit. 2 3 International corporations SMEs Selection of sampling variables The sampling frame addressed the 3 segments identified by the Strengthening of the NGO Sector in Mauritius (SNSM): ♦ ♦ ♦ Major national corporations. More specifically.3 Sampling Segment identified 1 Major national corporations Sampling unit We referred to the “Top 100 Companies 2006” to obtain the sampling frame for the major national corporations in Mauritius.Descriptive Research A descriptive study was undertaken to find answers for the research objectives. and SMEs. and Whether organisation is engaged in CSR or not Retained by SNSM Project Manager Retained Retained Not retained Sampling process For this study. were pertinent to our survey: Sampling variable 1 2 3 Sector of activity Turnover.
these organisations have been categorised along 2 major variables namely (i) sector of activity (ii) turnover. Major National and International Corporations For major national and international corporations. Shipping and Transport Construction Consumer Business Energy Investment and Financial Services Manufacturing Technology.For the purpose of this assignment.2000 1 2 3 4 5 6 7 8 9 Agriculture Aviation. 7 4 7 34 4 12 20 2 10 58 18 24 100 6 . Moreover. Hospitality and Leisure 5 3 4 17 7 16 1 5 1 2 9 1 1 1 3 >2000 1 1 1 8 3 4 3 1 2 No. as summarised below: Target 1 2 Major National and International Corporations SMEs Sampling Frame Top 100 Companies SME Directory Sampling Variables Sector of Activity Turnover Sector of Activity Sampling Method Probability Sampling Non-Probability Sampling 1. Media and Telecommunications Tourism. 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. both the probability and non-probability sampling methods have been used. We stratified the organisations with the following results: Sectors Turnover (RsM) <1000 1001 .
000 >10. if not all.2000 >2000 No. Media and Telecommunications Tourism. The Top Hundred Companies has also been used as the sampling frame for banks. 4 3 5 20 1 6 10 2 8 59 We considered the banking sector separately given that most.000 Number 6 5 7 18 Sample 2 1 1 4 7 . We classified banks on the basis of total assets and took a sample of 4 banks proportionately stratified as follows: Total Assets (RsM) <5. distributed as follows across the sectors: Sample Turnover (RsM) Sectors 1 2 3 4 5 6 7 8 9 Agriculture Aviation. of them indulge in CSR.000 5.For major national and international corporations. we considered a sample size of 63. Shipping and Transport Construction Consumer Business Energy Investment and Financial Services Manufacturing Technology.10. Hospitality and Leisure 3 9 1 5 39 2 7 1 <1000 4 2 3 12 1 3 1 1 5 1 2 1 1 1 13 1001 .001 .
8 .2. 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. Rubber and Plastic Pottery and Ceramic Jewellery and Related items Fabricated Metal Products Others Number 221 166 205 100 84 6 73 169 151 1175 7 4 7 3 3 2 5 4 37 Summary of sample used A summary and detailed description of the sample used is as follows:Total sample size 100 Large national and international corporations In Mauritius and Rodrigues 63 SMES in Mauritius and Rodrigues 37 Large organisations 59 Banks 4 Contact method We used the face-to-face interview to administer the questionnaire because this technique: ♦ ♦ ♦ Enables the interviewer to establish rapport with the respondent. SMEs For SMEs. Allows the interviewer to observe as well as listen. and Permits the respondent to get clarification from the interviewer. Sample Sector 1 2 3 4 5 6 7 8 9 Food and Beverage Leather and Garments Wood and Furniture Paper products and Printing Chemical.
the private sector (private companies. The Steering Committee comprised representatives from: ♦ the Government (e. Trust Fund for Social Integration of Vulnerable Groups. and SCW & RI Ministry of Social Security. the Ministry of Social Security.g. Organisations met are as follows: Body Ministry of Social Security. 2. and bodies such JEC. and MEF). Ministry of Finance and Economic Development. Teams of 2 interviewers administered the questionnaires with Heads of the organisations. Centre de Solidarité pour une Nouvelle Vie etc). National Solidarity. and how to interpret body language of respondent. and the CSR Task Force.4 Conduct of survey We conducted the survey once our pilot test was over and the questionnaire and/or the approach to administering same was/were vetted by SNSM. SOS Femmes. Prime Minister’s Office.4 We also conducted interviews with representatives of major stakeholders to obtain their views on various aspects of CSR. National Solidarity and Senior Citizens Welfare & Reform Institutions. International Trade & Cooperation).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. Ministry of Foreign Affairs. 2. & SCW and RI Ministry of Finance and Economic Development Ministry of Finance and Economic Development National Economic and Social Council (NESC) National Economic and Social Council (NESC) Decentralized Corporation Programme Trust Fund for Social Integration of Vulnerable Groups NGO Trust Fund Law Reform Commission Whom we met Permanent Secretary Assistant Secretary Financial Secretary Director Financial Policy Analysis Chairperson Research Coordinator International Expert Co-coordinator Officer in Charge Chief Executive Officer 9 . National Solidarity.3 Discussion forums and working sessions We facilitated consultative working sessions with the Steering Committee on the CSR project. Ministry of Social Security and MACOSS.2. and the civil society (Fondation Medine Horizons. Prévention Information et Lutte contre le SIDA. Interviews ♦ ♦ 2.
de Recherche. de Formation Indiaocéanique (CEDREFI) Centre de Documentation. de Recherche. de Formation Indiaocéanique (CEDREFI) Befrienders Mauritius Prevention Information et Lutte contre le SIDA Fondation Tamriv Fondation Tamriv Director Director Research Officer Communication and Media Specialist Vice President Responsible CSR Director Social Implementation Manager Administrator Director Communication Chief Executive Officer Officer Responsible CSR President Secretary President Director Secretary Director Administrative Director Field Coordinator 10 .Body National Committee on Corporate Governance United Nations Development Programme (UNDP) United Nations Development Programme (UNDP) Whom we met Chairperson Resident Representative Senior Programme Manager Project Coordination Officer International Consultant United Nations Development Programme (UNDP) International NGO Training and Research Centre (INTRAC) Joint Economic Council (JEC) Mauritius Employers Federation (MEF) Mauritius Employers Federation (MEF) Mauritius Commercial Bank British American Investment Group of Companies (BAI) British American Investment Group of Companies (BAI) T-Printers Fondation Médine Horizons Fondation Nouveau Regard ANAHITA (Ciel Group) Association des Hoteliers et Restaurateurs – Ile Maurice (AHRIM) Association des Hoteliers et Restaurateurs – Ile Maurice (AHRIM) Mauritius Council of Social Service (MACOSS) Mauritius Council of Social Service (MACOSS) Centre de Documentation.
11 .5 International benchmarking We have also carried out internet-based international benchmarking to collect data on best practices in other countries.Body Fondation Tamriv Institute for Consumers Protection (ICP) Right Now Mouvement Autosuffisance Alimentaire (MAA) Priorité Enfants Force Vive Poudre d’Or Village Whom we met Field Coordinator President Secretary President Psychologist President 2.
3 Overview of CSR Concept The conduct of business has been an increased concern for society and subject to continuous criticism over the years. appropriate. In short. legal. but also from the perspective of the greater good. being a steward of the needs of society is a socially responsible. Definition The definitions provide some insight into the ideal of CSR. 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. 2003). According to Caroll (2003). it is also argued that organisations should take steps to protect and improve the welfare of society. “The social responsibility of business encompasses the economic. Furthermore." ♦ ♦ 12 . Against this background of rights and obligations. Some have even suggested that organisations exist to serve the needs of society. ethical and discretionary (philanthropic) expectations that society has of organisations at a given point in time. CSR is the "continuing commitment by business to behaving ethically and contributing to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large" (R. Some of the well-known definitions of CSR are as follows: ♦ “Corporate social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources” (Kotler & Lee. 2005). organisations must evaluate their decisions and actions not merely from the perspective of organisational effectiveness. Therefore. 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. Sims. and natural act.
CSR has rapidly grown in the last 20 years. Moreover. moving up the boardroom agenda of even the most hard-headed companies. there is the 'hands-off' approach. often in conjunction with the not-for-profit sector. 2005). comparing companies in the FTSE 250. following the Enron. provides strong evidence that “those clearly committed to ethical behaviour perform better financially over the long term than those lacking such a commitment” (Alison Maitland. according to Business in the Community. It is also argued that CSR strategy can help manage the effects of globalization. Furthermore. Andersen and WorldCom scandals. 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. 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. cut environmental cost. Many companies now back and organize specific schemes. “Traditions of corporate philanthropy date back to the Victorian era with the activities of Quaker families such as the Cadburys. with the belief that this will contribute to both the medium-and long-term success of their business. But increasingly there is support for more active CSR involving a range of stakeholders. Rowntrees and Hersheys who sought to improve their employees' standard of living as well as enhancing the communities in which they lived” (Hancock. more than 70 per cent of business leaders believe that integrating responsible business practices makes companies more competitive and profitable. there is a greater recognition by businesses that CSR can help to restore public trust in the corporate world. Financial Times. Moreover. At its most passive.History Elements of corporate social responsibility (CSR) are not a new phenomenon nor indeed are the business practices associated with it. 3 April 2003). research published by the UK's Institute of Business Ethics. raise productivity and improve staff recruitment and retention rates. 13 . The current world business climate is positive for CSR.
CSR is important in counteracting allegations of corporate greed. and especially the vulnerable. fulfils its mission. ♦ Utopian view The utopian view of CSR reflects the idea that companies have a prior duty to any-one touched by their activity. it is also about the integrity with which a company governs itself. lives by its values. engages with its stakeholders. ♦ Lower equity risk premium: A comprehensive CSR programme. a utopian view and a realist view. The Key Drivers There are many drivers of CSR programmes namely: ♦ 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. ♦ Realist view The view that gathers the greatest following is the realist view. 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”. ♦ Influence of the corporate disasters: The corporate scandals affecting Enron. measures its impacts and reports on its activities. will lower a company's equity risk premium. According to this view. frustrating business focus on its purpose of wealth creation.Views on CSR According to Hancock (2005). there exist 3 views on CSR namely: a sceptic view. As a result. in the US as in the UK there has been a 14 . who may be exploited by the company's operation. CSR is not simply about whatever funds and expertise companies choose to invest in communities to help resolve social problems. as argued by some ratings agencies. WorldCom and the like have undoubtedly increased the perception of greed among senior business officials in the corporate world. ♦ Sceptic view According to this view. 2005). their stakeholders rather than their shareholders. the notion of CSR is inimical to democracy and freedom. ♦ Reputation management: A model designed by the global public relations company Bell Pottinger illustrates a direct correlation between reputation and financial outcome measures – share price and credit rating (Hancock.
♦ ♦ ♦ As shown above. focused on one-way disbursement of charitable funds. CSR is no longer confined to one-off philanthropic activities. with full-fledged department overseeing CSR activities. to efforts aimed at engaging the core competencies of the company and building mutually beneficial partnerships between the company and NGOs. Any dialogue engaged in allows companies to understand their stakeholders. 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. Some of the key trends are illustrated below. 15 . including shareholders. better. ♦ 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. CSR evolution Organisations have moved away from traditional philanthropic approaches.shift away from philanthropy in approaches to CSR and a movement towards the greater alignment of CSR to business strategy and corporate governance. it is now integrated into corporate strategy. ♦ Further investment case: A strong investment case exists for the avoidance of expensive action suits and the ability to attract.
Wastes can also be reduced and materials can be recycled. in annual reports and in the news” (Kotler & Lee. investors. For example.Moreover. Using corporate responsibility and sustainability approaches within business decisionmaking can result not only in reduced costs but can also lead to recognizing new 16 . It appears that such participation looks good to potential consumers. do better. 2005). operational efficiencies can be achieved through reducing energy and materials as input factors for production. 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. There are many who say that participation in corporate social initiatives has similar potential benefits. feel better. Managing potential risks and liabilities more effectively through CSR tools and perspectives can also reduce costs. These sorts of actions from eco-efficiency can produce concurrent environmental and economic benefits for the company and thereby contribute to stronger financial performance and more positive profitability. CSR proffers a number of advantages to organisations namely: ♦ Stronger financial performance and profitability Businesses can use CSR and corporate sustainability to produce direct benefits for the bottom line. business colleagues. and live longer. 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. financial analysts.
♦ 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. motivate employees to develop skills. retain employees. 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. a company’s stock market valuation. involves. employees. productivity and innovation A key potential benefit from CSR initiatives involves establishing the conditions that can contribute to increasing the commitment and motivation of employees to become more innovative and productive. Domini Social Equity Fund. the FTSE4 Good indices. 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. regions or markets. To the extent that stakeholder engagement and collaboration involve maintaining an open dialogue. being prepared to form effective partnerships. ♦ Enhanced employee relations. non-governmental organisations. These conditions can serve to help to recruit employees. debtholders. and may also translate into marginally less demands for higher wages. This information is being translated into action within the investment community (e. and 17 . Thus. a CSR approach by a company can improve the stature of the company in the perspective of the investment community.g. to find innovative ways to not only reduce costs but to also spot and take advantage of new opportunities for maximizing benefits. and governments. EcoValue 21). and its capacity to access capital from that community. 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. and encourage employees to pursue learning. with creation of funds such as Socially Responsible Investment. customers. There is growing evidence (through indices such as the Dow Jones Group Sustainability Index (DJGSI).market opportunities such as when new manufacturing processes are developed that can be expanded to other plants. ♦ Stronger relations within communities through stakeholder engagement A key feature of CSR involves the way that a company engages. suppliers. communities. Companies that employ CSR related perspectives and tools tend to be businesses that provide the pre-conditions for increased loyalty and commitment from employees. reduce absenteeism. and collaborates with its stakeholders including shareholders.
While there are many questions about how far a company’s responsibilities extend into communities relative to the roles of governments and individual citizens. hopes. CSR is often viewed as acts that stretch beyond what is prescribed by the law. CSR as a concept with various tools can help a company to position itself in the marketplace as a company that is more responsible and more sustainable than its competitors. Indeed. “Thinking about legality and responsibility identifies four distinct organisational approaches to social responsibility: illegal and irresponsible. and reporting practices). circumstances into their corporate views and decision-making. Corporate Social Responsibility and the Law The issues of "social responsibility" and "legality" are not one and the same. there is a strong argument that CSR can effectively improve a company’s relations with communities and thereby produce some key features that will improve business prospects for its future. 2003) 18 . enhances their prospects to be supported over the longer term by the community. many believe that certain existing laws do not promote socially responsible behaviour. accounting. illegal and responsible. Companies can use stakeholder engagement to internalize society’s needs.demonstrating transparency (through measuring. the relationship between the business and the community in which it operates is likely to be more credible and trustworthy. irresponsible and legal. This is a potentially important benefit for companies because it increases their "licence to operate". ♦ Improved reputation and branding A potential benefit of CSR is that it can improve a company’s reputation and branding and this in turn improves the prospects for the company to be more effective in the way that it manages communications and marketing in efforts to attract new customers and increase market share. and improves their capacity to be more sustainable. and legal and responsible” (Sims.
Ben & Jerry's gives 7. Illegal and responsible Greenpeace has on many occasions engaged in illegal acts in an effort to protect the environment. 3. and the Nature Conservancy. while the Hallmark Corporation for the past 80 years has donated more than 5 percent of its corporate pretax profits to charitable causes. Illegal and irresponsible Examples (Sims. These charitable acts on the part of Patagonia. during the mid-1990s. 4. 2. For example. they attempted to block French nuclear tests in the South Pacific by illegally occupying French territory and harassing French military operations. 19 . These organisations are acting within the letter of the law but not the spirit of the law. Dumping this type of material into the river is prohibited by law. Ben & Jerry's. and Hallmark are both legal and highly socially responsible. Irresponsible and legal For example.Approaches 1. Legal and responsible Since 1984 Patagonia has given 10 percent of its pretax profits to such groups as the Wolf Fund.5 percent of its pre-tax profits to charity. and it was clearly irresponsible to further contaminate the water. beer companies produce commercials that appeal to underage drinkers. the Audubon Society. 2003) An investigation was launched to examine claims that some companies took advantage of the catastrophic Pennsylvania Ashland Petroleum tank collapse by dumping their own toxic wastes into the already polluted Monongahela River. and casinos sometimes make special offers that encourage people to trade their Social Security checks for gambling chips.
Social responsibility area of impact Helping employees with family responsibilities Providing employees a safe. humanitarian. Supporting educational. waste reduction and sustainability ♦ ♦ ♦ ♦ ♦ 20 . (iii) environmental protection. Obeying all applicable laws and regulations. waste reduction. donations. and societal involvement and philanthropy. cultural and societal involvement and philanthropy ♦ ♦ ♦ ♦ 3. and service contributions and protections. social responsibility can be categorized into four major areas of impact or performance: (i) human resources—development and protection of people. Human resources: development and protection of people ♦ ♦ ♦ ♦ 2. Just wearing the CSR badge does not necessarily mean that an organisation is responsible. Community. or other contributions. consumer. standards to Some examples of Policies and practices 1. restore biodiversity. Environmental protection. and enhance sustainability Adoption of recognized environmental guidelines Seek to introduce environmentally friendly processes and practices though continuous improvement policies Identifying and reducing in every way possible the overall damage the organisation does to the environment Purchase only energy saving and recyclable equipment and materials Applying environmental and sustainability purchasing and vendor relationships. support human rights. Participate in community environmental programs and forums that seek to protect the environment. clean. Generally speaking.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. Some organisations use being responsible simply as a marketing ploy. volunteerism. healthy. cultural. and sustainability. Giving back to the community. and (iv) product. foundations. and/or environmental causes with financial donations or volunteer assistance or other socially responsible investments. in which the organisation resides. does business or impacts on stakeholders in terms of philanthropy. and pleasant work environment Providing equal opportunities in hiring and promotion Provide employees with adequate training and educational opportunities in a timely manner that enhances organisational and personal career goals. (ii) community.
Product. ♦ ♦ 21 . Provide truthful information on the known environmental impacts of the organisation and its products and services. service contributions and protections ♦ ♦ Provide guidelines and means for consumer protection in accordance with applicable laws and regulations.Social responsibility area of impact Some examples of Policies and practices 4. Design products and services for the environment that use fewer raw materials and less energy in production or implementation. including reduction in packaging requirements. consumer. Design products to minimize consumption of energy and production of wastes.
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. strategy and operations across frontiers. Involvement in CSR has started at varying points in time for the companies surveyed. At that time. CSR activities were mainly confined to compliance with prevailing laws and regulations. Chart 1 History of the company's engagement in CSR Others (include vague answers and undisclosed answers) 19% Since start-up 39% Recently (~3 years) 25% About 10 years back 10% About 20 years back 7% CSR initiatives go quite a long way back in Corporate Mauritius as well.4 4. up to 20 years back. Since then. In order to assess the history of CSR and its trend over time. It is interesting to note that the highest percentage of respondents (39%) have started CSR activities since their starup.1 Findings – large organisations Strategic approach to CSR History of CSR in Mauritius CSR across the modern world traces its origin back to governmental regulation shaping personnel and environmental issues back in the 1970s. companies were surveyed on their engagement in CSR activities. 22 . CSR has become embedded into the organisational culture.
These codes: ♦ Set forth norms for corporate behaviour and behaviour to be observed by each director and employee. In its most basic application.3% 15. Others may wish to make strategic forays into particular areas.3%) and (ii) the external community (54%). preservation of jobs. Evolution of CSR There is. 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.0% Enhance image vis-à-vis internal co mmunity 60. overwhelming evidence that private sector firms across the world and in Mauritius and Rodrigues are aware that they have to balance. if not reconcile.Introduction of CSR in Mauritian companies Chart 2 Why did you start at all? Enhance image vis-à-vis external co mmunity 54. their obligations to shareholders with explicit contributions to the external community. compulsory banking guidelines. thus. the way they make these contributions differs greatly. Most organisations initially engaged in CSR activities mainly to enhance their image vis-à-vis (i) the internal community (60. Multinationals engaged in CSR not only to enhance their image but also because they have to abide by their global policy. which will dictate the contents of their strategy: some may decide to adopt a "minimum necessary" stance. The CSR adoption was thus mainly for image building. employee retention and loyalty. However. Other reasons put forward by organisations include: transparency. 23 . corporate reputation and image.9% Glo bal P o licy 0% 10% 20% 30% 40% 50% 60% 70% CSR seeped into Mauritian enterprises for various reasons. Different firms may be at different stages of awareness of and work on CSR.
It sets the direction and scope over the long term with regard to CSR. their approach will not be planned and formal. This is evidence that CSR is not yet embedded in the culture of many organisations in Mauritius and Rodrigues. Yes Does your company have a formal policy towards CSR? Engagement in Strategic CSR Partnership at community level Engagement in Strategic CSR Partnership at national level 22% 85% 64% No 78% ♦ ♦ Out of the 22% of respondents that have a formal CSR policy. The survey has revealed that more than 73% of large organisations have a code of conduct/ethics/corporate governance. Hence. As such. in the future. This implies a strong positive correlation for existence of a 24 . more than 80% of them engage in strategic CSR partnership at community level while more than 60% do so at national level. while many organisations will continue to engage in CSR. and Shape organisational behaviour towards employees and society at large. Despite the long history of CSR in Mauritius & Rodrigues. However. only 22% of organisations surveyed have a formal policy towards CSR.♦ ♦ Set the rules for outlining the responsibilities of or proper practices for all in the organisation. 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. CSR policy A CSR strategy is a road map for moving ahead on CSR issues. allowing the organisation to be successful by using its resources within its unique environment to meet market needs and fulfil stakeholder objectives. there is no formal framework for CSR initiatives in Mauritius and Rodrigues. The majority of organisations do not realise the importance of a coherent and systematic CSR undertaking on their organisational performance. This finding conveys other strong messages such as: ♦ A proper CSR structure is not a priority for many organisations in Mauritius and Rodrigues. 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. 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.
Organisations with CSR policy/policies have had to adapt such policy/policies over time as shown below. 14% aim to enhance the general well-being of the society. 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. to achieving social objectives. ♦ Motives behind developing a CSR policy The organisations which have developed a formal CSR policy were asked about the real motives driving this policy adoption. Out of these. from originally to improve corporate image. Other reasons include welfare of employees and stakeholder value as shown in the above chart. 62% have reviewed their policy/policies Out of these 85% of the organisations developed their own policies and the rest having recourse to external consultants ♦ ♦ Yes 30% Firms having a formal CSR policy No 70% Out of these 54% have a designated person to ensure compliance with law and international codes 25 . It is clear that there has been a shift in CSR motives.formal CSR policy and an engagement in strategic CSR partnership at community and national level. Chart 3 Motives behind developing CSR policy Others 14% Image of company 14% Enhancement of society 14% Social reponsibility 58% ♦ More than 50% of companies have done so (either formal or informal) in order to be socially responsible. 14% to enhance the image of their organisations.
26 .Coupled with CSR policies. fraud amongst others. This confirms the belief that CSR is still in its most basic application: compliance with laws. It is encouraging to note that a majority. Furthermore. 65%. of companies surveyed have risk management policies. Risk management is a positive indication that large companies are well geared to protect themselves against risks such as money laundering (predominantly in the financial sector). This clearly shows that a lot of companies may not really understand what CSR encompasses and are underestimating its importance. As mentioned earlier in the literature review. organisations surveyed were prompted on the existence of any risk management policies. unethical behaviour by employees and clients. However the remaining 35% of companies not having risk management policies shows that there is still room for improvement in this area. and thus fail to see CSR as a key tool for risk management. some rating companies have argued that an organisation’s equity risk premium may be lower with the implementation of a comprehensive CSR programme. The current Mauritian business community wants to be known by its international counterparts as a clean jurisdiction to do business. only 52% of the companies surveyed were able to appreciate the bearing CSR may have on risk management.
the survey revealed that all companies surveyed engage in one way or the other in internal CSR as depicted in chart 4 below. Strategic approach to internal CSR The approach to internal CSR is somewhat similar to CSR in general with 65% of organisations without any formal policy on internal CSR. Occupational health and safety. created standards for responsible corporate business practices which became thresholds for minimal internal CSR behaviour. External behaviours refer to a corporation’s engagement outside of its direct business interest. The current business trend is to establish codes of corporate governance and codes of ethics as well as inculcating shared values at the corporate level and engaging fully in internal CSR initiatives. which has a fundamental bearing on organisational performance.4. traditionally defined as a corporation’s giving program. equal opportunity and environment protection measures. These dimensions range from the regular conduct of training to the less regular employee satisfaction surveys or social climate surveys. Internal behaviours refer to the way an enterprise conducts the day-to-day operations of its core business functions. Dimensions of internal CSR Internal CSR encompasses a vast range of dimensions pertaining to good modern human resources practice. 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. The issue of internal CSR pertains to “people management”.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. to name a few. Despite the fact that few companies have an internal CSR policy. 27 . This confirms that internal CSR is yet to be integrated in the management culture of companies in Mauritius.
training and development has the highest rating (87%) followed by occupational health and safety (76%) and incentive programs (76%). employee satisfaction surveys and collective bargaining score relatively low (37%.Chart 4 What does internal CSR encompass for the company? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 87% 73% 56% 43% 37% 41% 76% 67% 76% Employee Participation in decisionmaking Profit sharing/share options When companies surveyed were asked what internal CSR encompass for them. Workplace diversity (73%) is another Profit sharing/share options. important dimension of internal CSR. 41% and 43% This indicates that employers tend to arm their employees with the necessary tools in order to become more productive. respectively). Benefits of internal CSR Chart 5 How do y ou benefit from internal CSR? Higher pro ductivity B etter staff retentio n Higher staff mo rale 70% 75% Training/Career Advancement 80% 85% Occupational Health & Safety 90% Employee satisfaction surveys Collective Bargaining Workplace Diversity Incentive Programs Work-Life Balance 95% 28 .
internal CSR has a positive impact on human resource and should be considered as an investment for companies and not a cost. The majority of respondents (96. Therefore. better staff retention and higher staff morale as illustrated in the above chart. 29 . commitment of employees. The organisations benefit in multifold ways: higher productivity.8%) believe that commitment of top management is fundamental for inculcating CSR in the organisational culture of companies.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. employee participation in CSR activities and communication of CSR undertakings within the organisation. these organisations stress that the promotion of CSR is dependent on several factors. Other key factors that are important to promote internal CSR include: integration of internal CSR in the core values of organisations. which would cascade down the organisation. it is very important for top management of companies to be sensitised to the benefits of internal CSR in order to have their support. in that it contributes to organisational performance. Thus. Whilst there is a general consensus amongst organisations that benefits are indeed reaped from CSR.
Induction is a key activity in that it is the process of receiving and welcoming employees when they first join a company. As for top management. Disclosure of CSR during induction may lead new employees to developing a favourable attitude to the company. Indeed. they do show concern about CSR undertakings of their organisations. CSR framework.Chart 6 Does CSR form part of the induction program and/or training? Yes 30% No 70% Chart 7 Are employees evaluated upon their CSR undertakings during their performance appraisal? Yes 21% 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. the survey has revealed that 87% of organisations have This consolidates the finding that the majority of organisations do not have a solid internal 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. 4.3 Framework for external 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: - how is it carried out? - who is involved and responsible? - how much is spent on CSR? - what time frame is considered? - what is being devoted, what is being done? - with whom is CSR being carried out? - is there any control? - are CSR activities communicated? The organisations have been assessed on the above framework.
Approach (how) Chart 8
Do you carry out CSR activities in a formal or informal way?
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. Responsibility and involvement (who) 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.
Who oversees C SR activities?
Others (Board, top management, finance) 12% Dedicated team/person 16%
No answers 5% HR, Personnel, Administration 39%
C ompliance 5% Marketing, C ommunications, External Affairs, Business Development 23%
Whilst a majority of organisations do have a designated person for CSR, it is interesting to note that for a significant percentage, that person is in human resource (39%) and marketing/communications (23%) departments respectively. This is one indication that to many organisations, compliance with laws and regulations is the primary concern of CSR. There is someone who is fully involved in CSR activities on a daily basis in only a few companies. Almost all companies interviewed have demonstrated that their management team engage more substantially than their employees in CSR undertakings as shown in the chart 10. This shows that employees in companies do not take initiatives to conduct CSR which is rather driven by Management.
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. despite the fact that organisations conduct CSR in an informal way.Chart 10 Who is/are actually involved in the CSR activities? Emplo yees M anagement 0% 25% 50% 75% 100% Budget (how much) However. 70% of companies surveyed set budgets for conducting CSR activities. 34 .
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.Timeframe (when) Chart 11 Which time frame do you devote to such activities? Ad Hoc 71% Full Time 10% Limited 16% Others 3% When it comes to the frequency of CSR activities. Resource allocation (what) Chart 12 Which resources do you devote to your CSR activities? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Funds Products Skills Premises People 33% 17% 54% 60% 90% 35 .
A majority of companies (90 %) allocate funds to CSR.7% 60. These various resources may be linked to demand by NGOs.1% 66.3% 52. This triggers a positive signal that companies are indulging in CSR activities.6% 27.0% 38. More than 90% of companies carry out internal CSR activities and external CSR activities to the community and broader society.7% 92. 36 . especially in priority areas.Internal CSR 20. A substantial percentage (60%) also provides employees for organisation and participation in CSR activities.4% 93.6% 28. Types of CSR undertakings (what) Chart 13 What are the activities that you conduct? Suppliers Stakeholder Engagement Shareholders Public Reporting Environment Governance / Code of ethics Customers Community & Broader Society Employees . More than 60% of respondents carry out CSR activities in areas of environment and governance/code of ethics.1% 0% 20% 40% 60% 80% 100% Nearly all companies surveyed engage in internal and/or external CSR as illustrated in chart 13. Companies carry out various CSR activities.
Chart 15 What form do your activities take? Both individual and colletcive actions 46% C ollective actions only 19% Individual actions only 35% 37 .Forms of action (with whom) Chart 14 What form do your activities take? Collective actions only 19% Individual actions only 35% Both individual and collection actions 46% 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: ♦ ♦ ♦ Other private firms. NGOS. and Governmental bodies. The survey revealed that around one third of respondents (35%) prefer to carry out their CSR activities on an individual basis. This may be due to the fact that they carry out those activities on an adhoc basis at their own pace and convenience.
function of control to ensure that objectives have been met efficiently and effectively. This is in line with their objective of enhancing their image vis-à-vis the external community as previously mentioned./Committee. The majority of A few companies surveyed (68%) communicate about their CSR activities mainly through their annual report and Newspaper/Magazine. The attention devoted by management gurus. Indeed. Communication about CSR Communication is yet another aspect of a proper organisational framework for CSR undertakings. Such communication is common practice in Mauritius as well. No full-fledged CSR Department.The remaining 65%% conduct CSR either (i)through collective actions only (19%) or (ii) through both individual and collective action (46%). organisations even publish regular CSR reports or social reports. though often neglected. and CSR is done in an informal way and on an ad-hoc basis. by informing the general public about their social responsibilities. Controlling CSR activities A proper organisational framework comprises the essential. This may be explained by the following: ♦ ♦ ♦ Absence of CSR policy. can be enhanced. It is also observed that only 9% of respondents that communicate their CSR activities do so through a social report as shown in the following chart 38 . the theses and academic papers and the columns in corporate newsletters allotted to CSR undertakings all indicate that there is currently much written material on the subject. This shows that partnerships between NGOs and companies do exist and work and. Private sector – NGO partnership may be developed using existing ones as showcases. The survey has confirmed that this crucial function is often neglected in corporate Mauritius in their CSR undertakings. 65% of companies do not measure the impact of their CSR activities.
Chart 16 How has your organisation benefited from conducting CSR? Better public relations 79% Better relations with clients Better relations with suppliers Better motivation amongst employees 0% 10% 20% 30% 40% 27% 48% 79% 50% 60% 70% 80% 90% Companies which have benefited from CSR enjoy enhanced employees motivation (79%) and better public relations (79%). This is in line with the finding that a majority of respondents do not measure the impact of their CSR activities. the impact of CSR on their trading partners was less apparent. Absence of proper measurement does not reassure and convince organisations of the benefits proffered by CSR. lack of audit). companies are achieving their desired objectives by carrying out both internal and external CSR activities.g. However.g. lack of proper partnership or coordination) or after implementation (e. organisations face a number of constraints and challenges. In other words. 29% are not sure that they have benefited by undertaking CSR activities. most of the companies (69%) surveyed have reported having benefited from CSR activities.4. in corporate Mauritius is insightful in that organisations have come to recognise the many benefits which can be derived from such undertakings. However. Indeed. 40 . This may be a motivation to further engage in CSR activities and encourage others to follow suit. as a reality. lack of information) or during the implementation (e. These may crop up before the start of the CSR activity (e. Challenges Despite the multifold advantages attached to CSR.4 Evaluation of implementation of CSR activities Benefits The way CSR has seeped. if not as an imperative.g.
as previously mentioned. thus be dealt with at root source. In fact. 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. Lack of information No proper partnership 41 . and should. from their perspective and that of the targeted group. deterred by the practical challenges faced before. The next important challenge is lack of audit after implementation of CSR (22%). faced by as many as 33% of companies. The way these two opposing forces would interact and dealt with would greatly influence the future of CSR undertakings.Chart 17 Did you encounter the following challenges when implementing your CSR activities? 35% 30% 25% 20% 15% 10% 5% 0% 1 9% 22% 1 9% 33% Lack of audit after implementation Lack of coordination The survey has reported that the lack of information on specific areas where CSR activities had to be conducted is an important challenge. This is the result of conducting CSR in an unstructured way. The challenges faced by organisations obstruct the evolution and expansion of CSR. Future of CSR undertakings Organisations are. the majority of companies do not measure the impact of CSR activities. on one hand allured by the multifold benefits derived from CSR undertakings and. during and after carrying them out. on the other hand.
one should address the identified challenges in order to entice other organisations on CSR board and thus creating a snowball effect. 42 . or engage into new activities in the future. The prospective surge in CSR undertakings would benefit both internal and external stakeholders. continue the same CSR activities). These are clear indications that companies are increasingly sensitised to the importance and impact of CSR. Whilst the survey has indicated a favourable response for CSR activities in the future. Factors promoting CSR The above results convey a strong message that companies would maintain the status quo (i.e.Chart 18 Do you foresee to continue conducting CSR activities? Expand C SR activities 51% Engage into new C SR activities 11% C ontinue C SR activities 38% C ease C SR activities 0% C urtail C SR activities 0% Given these opposing forces. the survey tried to investigate into the foreseeable trend of CSR activities. None would curtail or cease their 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. or expand their activities.
actual policy are other factors which would promote CSR. Thus. 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. a forum whereby pressing needs are identified and a revision of the 43 . More information on NGOs. vested interests in whatever CSR undertakings they carry out and seek some rewards. Role of government The role played by the government impacts directly on CSR. social etc) can be identified The guarantee that targeted groups are indeed benefiting Transparency in implementation of activities at NGO level Partnership with other PS firms or NGOs A better information dissemination about NGOs A revision of the actual tax policy regarding CSR activities 0% 20% 40% 60% 80% 100% Very Important Important Somehow Important Not important at all When further prompted for factors which would encourage them to increase such activities. after all. 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. 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.Chart 19 Factors that would encourage your organisation to increase its CSR activities Positive outcomes for the organisation A forum whereby pressing needs (economic. This indicates that companies do have. it is impending to review the role of the government in CSR undertakings. Another important result is that all companies consider positive outcomes to them when deciding whether to expand CSR or not.
intermediary and regulator. as mentioned previously. Therefore.5 Philanthropic and sponsorship activities Philanthropic activities Many organisations have started their CSR journey by initially indulging in philanthropy. structure and operations. these two concepts are not the same. The former is the practice of performing charitable or benevolent actions. In fact. lack of information is one of the main challenges faced by companies in their CSR endeavour. Yes No Do you engage in philanthropic activities? 90%: health and safety. their approach has evolved and they have adopted a more strategic one. education and community (sports) Yes Are you satisfied with your philanthropic activities? No 10% 91% 9% 44 . The latter is more embedded in corporate strategy. 4. the government could assist in bridging that gap. Despite the use of philanthropy and CSR interchangeably by management gurus. A significant proportion of them (30%) mentioned that the government policy could encourage them in conducting CSR activities by way of fiscal incentives.Chart 20 How can the government assist companies in the implementation of CSR No answer 17% Others 6% By providing tax incentives 30% 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. Over time.
90%. It is a business tool used by many companies as part of their communications. and The organisation should engage in strategic CSR. The existence of philanthropy indicates an opportunity to develop and refine a CSR framework. however the method adopted may be wanting in that there are debates as to whether philanthropy is sustainable or not. with proper education and sensitisation.An overwhelming majority. advertising and public relations budget to associate the company name/brand/people with dynamic events and images for their media broadcast and audience. Sponsorship activities Yes Do you engage in sponsorship activities? No 83%: sports and education Yes Are you satisfied with your sponsorship activities? No 17% 94% 6% Sponsorship is another concept close to CSR and philanthropy. Nonetheless. This shows that these companies are achieving their philanthropic objectives. the majority of them (91%) are satisfied with their activities. of companies surveyed carry out philanthropic activities which tend to revolve around 3 main areas namely health and safety. The organisations are already participating in give-aways. Sponsorship usually requires a service. A matching study may be carried out in order to ensure that NGOs needs and requirements are really met. an organisation engaged in philanthropic activities represents a good opportunity to a natural move towards strategic CSR. 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. so this frequently has clear marketing benefits and is therefore directly linked 45 . the reasons put forward include: ♦ ♦ The organisation has the potential and resources to contribute more to CSR. For those organisations that are not satisfied with their philanthropic activities. to a company’s bottom line. or action. Among those companies that are involved in philanthropic activities. education and community (including sports). thus enhancing the chances of sustainable CSR initiatives. in return for financial support.
and ultimately global goals. Popularity of collective action Awareness about the multiple benefits to be reaped from collective actions has already arisen in corporate Mauritius as well. 46 .6 Partnerships with other organisations 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. The 8th MDG is to “develop a global partnership for development”. having achieved their set objectives. sustainable benefits to the community may be achieved. Those existing partnerships may prompt other companies to partner with others for CSR activities. very often more efficient vehicle to achieve national. Therefore. Among those companies that are involved in sponsorship activities. 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. Such partnerships may take multifold forms and involve different timeframes. 54% of companies surveyed partner up with other organisations in their CSR activities while 36% are not involved in any partnerships. 4.It is very encouraging to note that 83% of companies surveyed indulge in sponsorship activities. In view of the fact that the majority of collaborations are not just one-off. there is consensus around the world that partnership is a quicker. as much as 94% are satisfied with their activities. As such. The survey investigated into whether companies partner up with other organisations in their CSR activities. Indeed many international institutions are drivers of such integrated effort such as the UN Global Compaq and the Millennium Development Goals (MDGs). Among the priority sectors in which companies indulge in sponsorship activities. this is an opportunity of which both NGOs and the community at large could take full advantage. sports and education top up the list. Timeframe of partnership When prompted for the timeframe concerned.
Chart 21 Are you collaborating with this/these organisation/s? Long term (beyond 2010) 44% 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 How did that relationship begin? 76% The NGO approached us 24% My company approached them 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 47 .
4. Chart 23 Are you satisfied with that partnership? Yes 97% No 3% Almost all companies that partner with NGOs have reported that they are satisfied with their partnerships. and religious in Mauritius. important player in CSR undertakings. with clear objectives and transparency.7 Corporate views on NGO They have actively The proactiveness of NGOs has yielded many satisfactory partnerships. the NGOs. This is a compelling finding in that when partnerships do take place. to the benefit of the community. This sheds light on an Civil society engagement present since the 19th century now pervades most if not all spheres of activities: social. political. environmental. sought and found assistance and participation from the private sector. NGOs should thus be more proactive in looking for potential partnerships with companies and buying them in. Satisfaction derived from partnerships Whilst there are national and global efforts to promote partnership. 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. A 48 .000 voluntary organisations with non-profit making goals. or have resulted in incongruent goals and ultimately overall dissatisfaction. There are over 6. it is also imperative to evaluate such partnerships to assess whether they have brought satisfaction.This shows that there is a willingness of the private sector to partner with NGOs for a common cause. sports. and thus achieved common and desired goals. economic. cultural.
shelter or health services Focus on small scale. self-reliant local development Build capacities of local communities to meet needs through “ self reliant local action” Focus on sustainable systems development Try to advance changes in policies and institutions at a local. press work and activist events. ACIM . Major sources of NGO funding include membership dues. emergency aid. These NGOs have developed for a variety of purposes humanitarian issues. ♦ To raise and supply funds necessary for the conservation projects undertaken by the MWF and its associate organizations. aim ♦ Operational aim ♦ Advocacy aim Another important aspect when considering NGOs is the funding of these NGOs. ♦ To co-ordinate and administer these projects. encouraging the observance of human rights. M ental Health Association. the sale of goods and services. M auritius M arine Conservation Society A useful classification of NGOs is categorising them into advocacy and operational. M auritius. Lizié dans la M ain. Advocacy NGOs are set up to defend or promote a specific cause. acceptance and knowledge by lobbying. grants from 49 . The primary purpose of an operational NGO is the design and implementation of development-related projects. developmental aid. improving the welfare of the disadvantaged. educate and involve the Mauritian people in this vital work. PAWS. or representing a corporate agenda. 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 ♦ Operational/ advocacy territories. Friends in Hope. national and international level ♦ United Way. ♦ To inform. ♦ ♦ ♦ Evolutionary stages of development NGOs Focus on relief and w elfare Deliver relief services directly to beneficiaries Examples: distribution of food. APEIM . Befrienders ♦ ♦ ♦ Terre de Paix ♦ ♦ ♦ PILS. M auritius Wildlife Fund.majority of these are community-based whilst around 300 are termed “non-governmental organisations”. improving the state of the natural environment. For instance. These organisations typically try to raise awareness. The focus of the NGOs varies as well in that the ways the NGOs reach their target beneficiaries are different. sustainable development.
Bearing the ultimate objective of the survey in mind. the respondents have named at most 6 NGOs. RED CROSS 50 United Way NATRESSA CARITAS MACOSS . This may be due to a combination of factors such as the topical nature of the cause it defends. and private donations. a meagre response. Several EU-grants provide funds accessible to NGOs. when prompted to enumerate NGOs in Mauritius. ♦ ♦ ♦ Which are the popular NGOs in corporate Mauritius? How does corporate Mauritius view the NGO sector? Which characteristics do companies seek prior to entering into partnership/s with NGOs? NGO popularity Chart 24 NGO popularity 40% % of companies listing these NGOs 35% 30% 25% 20% 15% 10% 6% 6% 5% 3% 3% 3% 3% 3% 0% 6% 5% 5% 3% 5% 5% 5% 1 0% 8% 8% 1 0% 1 9% 1 9% 1 6% 1 3% 35% 5% 0% APEIM Blood Donors Association Lizié dans la main Mauritius Wildlife Foundation Save the children Rotary club SOS Femmes Les Enfants d'un rêve Friends in hope Étoile Esperance SOS Pauvreté Lois Lagesse SOS Village Terre de Paix Ti Diams MPRB APSA PAWS PILS Centre de solidarité NGO listed by companies Surprisingly. PILS is the most popular NGO amongst the respondents.international institutions or national governments. it becomes imperative to investigate into the following.
however noble. There is so little information available on all of them.its visibility due to its wide press coverage. NGO rating It was difficult to obtain a good rating of the NGO sector because of the following: ♦ ♦ ♦ ♦ ♦ ♦ The population is so big and disparate. when prompted to provide a rating of the overall NGO sector. Terre de Paix. 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 How would you rate NGOs in Mauritius? Performance towards goals Mobilisation of resources Membership and quality of resources C ommunication C ommitment and professionalism Structure and organisation Aims and mandate of the NGOs 0% 10% 20% 30% 40% 50% 60% Good 70% Fair 80% Poor 90% 100% Excellent Very Good A better evaluation of each of the above criteria can be made by analysing the mean score as shown below: 51 . the endorsement of Government to its cause and the stated achievements to combat AIDS and its stigma. SOS Village amongst others. However. thus. whilst not able to evaluate the big majority. in a position to assess them. Mauritius Wildlife Foundation. Activities of the NGOs. and They are not regulated. Companies know a few NGOs very well. are seldom reported in the media or when covered are often presented as matters of course. The NGOs function so differently. Other popular NGOs include: Association des Parents d’Enfants Inadaptes de l’ile Maurice.
e. fair).e. This implies that they are perceived as being fair to poor by the majority organisations surveyed. all the other criteria listed have means below 3 (i. their commitment and professionalism. the way NGOs are structured.Apart from the aims and mandate of the NGOs which achieves a mean of 3 (i. membership and quality of resources and performance towards goals are perceived to be below expected standards by Mauritian organisations. 52 . Perception is as good as reality – NGOs should reverse this perception by addressing the above dimensions. resources mobilisation. good). while the aims and mandates of NGOs might be noble and interesting. Hence. level and quality of communication.
respondents were invited to pick the characteristics of NGOs which count most in their partnership search decision. commitment and professionalism and performance towards goals are the most important factors that companies consider when partnering with an NGO. 4. civil society. and the government are very much in vogue currently and have become particularly powerful engines of change in recent years.0% 40.8 Potential partnerships Tri-sector partnerships that engage private sector.0% 100.0% 20.0% 50.0% 30. These multi-stakeholder partnerships have become an established form of actualising corporate commitments as shown in the following table: 53 . Chart 26 Which factors would you consider when partnering with an NGO? Performance towards goals Mobilisation of resources Membership & quality of resources C ommunication C ommitment & Professionalism Structure & Organisation C ommunity Outreach Brand C redibility Aims and mandate of the NGOs 10.0% 80.0 % Aims and mandate of NGOs.0% 70.0% 60.0% 90.NGO characteristics encouraging partnership Lastly. This may explain why PILS top up the popularity list of companies since they successfully satisfy the above dimensions.
54 .Multinational company BNP Paribas Sector of activity NGO/Company Banking GoodPlanet Agence de L’Environnement et de la Maitrise de l”Energie Pomozte detem Foundation (Czech Republic) SOS Children’s Village (Morocco) Cue Kids (Oceania) Plan International Partnership area Environment protection Accor Group Hotel Children’s welfare Ben and Jerry’s Consumer Business Dave Matthews Band SaveOurEnvironment. public and civil society contain the twin possibilities of both addressing pressing social. economic and environmental challenges as well as benefiting the partnership agencies.org IT Transportation Seedco (USA) UNICEF UN Office for the Coordination of Humanitarian Affairs Union Mondiale pour la Nature Environment protection IBM DHL Poverty Disaster management TOTAL Energy Environment protection Coca Cola Consumer Business United States Agency for International Development Manufacturing heavy Environmental Assistance Center Green Earth Center Environment protection Toyota Procter and Gamble Body Shop Consumer Business Children’s Safe Drinking Water Children health promotion Consumer Business British Union for the Abolition of Vivisection Animal protection MTV Network International Health promotion Consumer Business World Food Programme Poverty Unilever Wal-Mart Retail Red Cross Fighting AIDS Gap Inc Manufacturing (PRODUCT) RED Fighting AIDS NOKIA Electronic business UN Children’s Fund Children welfare L’Oreal Consumer Business CSR Europe Gender equality Singapore Airlines Aviation Singapore Chinese Orchestra Promotion of arts BBC Media Countryside Agency National Trust Forestry Commission Environment protection Indeed partnership models that link private.
Key to such an endeavour is: ♦ the assessment of whether the respondents possess adequate benchmarking information. NGOs and the Government. 55 . 75% of them were aware of such partnerships in Mauritius. and identification of areas of CSR where private firms lack information. and their level of satisfaction with such partnerships.This survey will ultimately have to recommend potential multi-stakeholder partnerships. Only then can they provide valuable and novel contribution to such partnerships. ♦ ♦ ♦ Awareness of private sector/NGO/government partnership Respondents were asked about their awareness of partnerships which exist between the private sector. the interest shown by Corporate Mauritius in such partnerships. locally and/or globally. the interest demonstrated by private companies in engaging in policy dialogues. almost half of them were not satisfied with them. This high rate of dissatisfaction may be due to the perceived standalone position of each stakeholder in CSR activities resulting in a lack of coherence and goal congruence. However.
This is a key finding in that if such intent is materialised into meaningful and long-term partnerships. Chart 28 If yes.0% Private Firms 76. who would they wish to partner up with. then the state of CSR in Mauritius could drastically improve. Types of partners sought This high interest shown by large firms in future partnership triggered the following question. who? 54.0% 0% 20% 40% 60% 80% 100% 56 .Interest in partnership Respondents were asked whether they would be interested to partner up with other organisations to conduct CSR activities. with the result of an embedded CSR culture in Mauritius.0% Government NGOs 88. Chart 27 Would your organisation be interested to partner up with other organisations to conduct CSR activities? Yes 79% No 21% 79% of respondents have shown interest to partner up with other organisations to carry out CSR activities.
for NGO-private firm partnership. Chart 29 Is there an area(s) where you would like to conduct CSR activities but have limited information? No 56% Yes 44% 44% of companies surveyed would like to conduct further external CSR activities but have limited information in areas of need. as previously mentioned. Areas for potential private sector and NGO partnership 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. CSR Areas with limited information The respondents were then prompted to share areas where they would like to conduct CSR activities but have limited information. Mauritius Wildlife foundation amongst others. 57 . environment and poverty are the main areas where organisations are keen to engage in but lack information. Education. lack of information was one of the main challenges of companies in their CSR endeavour.Although there is a perception that NGOs have significant room for improvement. In fact. Hence. there is an urgent need to bridge this information gap. 76% with other private sector firms and only 54% with the government. In fact. 88% of companies are interested to partner with them. in general. they aspire to partner with certain specific NGOs which seem to perform well such as PILS.
education.g. e. Poverty is an area where companies would like to intervene. respondents were probed to identify any interest in engaging policy dialogues. Companies wishing to help children may wish to intervene in areas as diverse as education. hunger and homelessness). a firm may wish to engage in CSR to help women with drug problems. community and society.9 Interest in policy dialogues Engaging in policy dialogue is another form of activity which can shed light into various aspects of CSR: ♦ ♦ ♦ What should be done to promote a CSR culture.Areas of potential partnership Education Environment/wildlife Humanitarian Health Community and society Business training conduct. What should be the role of each stakeholder: the private sector. 58 . empowerment and Number of private sector (large) firms showing interest in this field* 17 15 12 11 10 6 4 4 3 3 2 2 2 1 1 Drug/alcohol Criminality Women Sports and culture Children Civic life Elderly people Animal welfare Development * These areas of interest are not necessarily mutually exclusive. etc Therefore. environment. civil society and the government. 4. What are the areas where resources should be devoted. dru/alcohol. The above table shows that certain areas interest a large number of respondents such as: humanitarian (poverty. health. and health. and poverty recurs both under “humanitarian” and “community and society”.
NGO and the Government. This could be a stepping stone for possible partnerships between the private sector. poverty. discussion forums.10 Concluding comments The respondents were invited to: ♦ ♦ Share the benefits that their engagement in CSR has brought about. the main criterion for partnership between private sector. violence. alcoholism. education. etc. NGOs and Government is congruence of ideas. Organisations willing to participate in such policy dialogues are of the view that areas of focus should be on the following: community.Chart 30 Would you be interested to participate in policy dialogues initiatives involving NGO/PS/Government? Yes 79% No 21% The majority of companies surveyed (79%) are interested to participate in policy dialogues initiatives involving NGO/Private Sector/Government. In other words. partnerships can best happen if there is a shared vision. and criminality) Moreover. Provide the trend that they foresee in CSR activities. health and safety. drugs. social flaws (AIDS. This can be achieved by bringing major stakeholders together at workshops. 4. 59 .
e. CSR trend The companies were invited to share their views on trends for companies with respect to adopting CSR practices.Benefits of CSR Chart 31 Main benefits reaped by engaging in CSR 40% 35% 30% % of Companies 25% 25% 20% 15% 10% 5% 0% Internal stakeholders External stakeholders Personal satisfaction Benefit category Other No answer 10% 8% 33% 35% Most companies mentioned that the main benefits of CSR undertakings are twofold: ♦ Affecting internal stakeholders. public at large.e. employees – there is better employee relations. government. Companies benefit directly in that employee productivity increases and indirectly by avoiding costs such as recruitment. Affecting external stakeholders. sense of belongingness. the corporate image is enhanced. attract more customers. Nearly half of the respondents (49%) surveyed believe that CSR trend will be increasing in Mauritius. ♦ This indicates that companies are achieving their objective of enhancing their image vis-à-vis both the external and internal community. customers. This may create a snowball effect to the benefit of the 60 . training. A few respondents have reported that they derive a sense of satisfaction for “doing good in society”. better employee retention. i. higher employee productivity and satisfaction. there is better brand recognition and awareness amongst others. i. team building sessions etc. Companies have cited that they are able to retain customers.
However. CSR policy ♦ CSR is not structured and formalised in terms of policy. procedures and planning in most organisations. Moreover. their approach will not be planned and formal. ♦ A proper CSR structure is not a priority for many organisations.community. 61 . ♦ The majority of organisations do not realize the importance of a coherent and systematic CSR undertaking on their organisational performance. need for the government to act as a facilitator. While many organisations will continue and/or expand their CSR activities in the future. 25% of respondents have started their CSR undertakings in the past 3 years only. Endword Chart 32 Endw ord The players should be more credible 6% 0% Government There should be should act as a more concrete facilitator commitment from 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. this reinforces the finding that the majority of companies will continue and/or expand their CSR activities. Other reflections and arguments included: more commitment from the private sector. Around 9% of the companies have however indicated that they anticipate CSR to remain stagnant or to decrease. 4.11 Summary of key findings CSR culture ♦ CSR culture is not yet embedded in Mauritius. there is an increasing interest and sensitisation to the CSR cause.
The majority of organisations conduct CSR on an individual level. Most organisations in Mauritius communicate about their CSR activities mainly through their annual report and/or newspaper/magazine. 70% of organisations surveyed set budgets for conducting CSR activities. ♦ Organisations have benefited from conducting internal CSR activities in terms of higher productivity. 62 . goodwill and corporate image. higher staff morale. 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. Framework for external CSR activities ♦ ♦ ♦ ♦ ♦ ♦ The majority of organisations in Mauritius conduct CSR activities in an informal way. ♦ Very few organisations have internal CSR dynamics embedded in their Human Resource systems.♦ 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. Evaluation of implementing CSR activities ♦ Most companies surveyed have reported having benefited from CSR undertakings in terms of goodwill. 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. better staff retention. intermediary and regulator. ♦ The majority of companies in Mauritius will continue and/or expand their CSR activities in the future. 68% of respondents have a person/team designated to overlooking over CSR activities. employee and client satisfaction. productivity. Internal CSR ♦ ♦ Internal CSR is yet to be integrated in the management culture of companies in Mauritius. ♦ 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 Government can help in the promotion of CSR by acting as a facilitator. A large proportion of organisations do not measure the impact of their CSR activities.
the way they are structured and governed are perceived to lack excellence and professionalism. and criminality). sports and wildlife. poverty. ♦ Organisations willing to participate in such policy dialogues are of the view that areas of focus should be on the following: community. humanitarian. Partnerships with other organisations ♦ ♦ 54% of respondents partner up with other organisations in their CSR activities. ♦ Fields of potential partnerships include: education. Policy dialogues ♦ The majority of companies surveyed (78%) are interested to participate in policy dialogues initiatives involving NGO/Private Sector/Government. health and safety. commitment and professionalism. violence. poverty. and empowerment and training. 79% of large companies surveyed have shown interest to partner up with other organisations to carry out CSR activities in the future. social flaws (AIDS. NGO in Mauritius ♦ While the aims and mandates of NGOs in Mauritius might be noble and interesting. alcoholism.Philanthropic and sponsorship activities ♦ 90% of respondents carry out philanthropic activities while 83% indulge in sponsorship activities. ♦ Organisations will lay much emphasis on aims and mandate of NGOs. structure and organisation and performance towards goals when partnering with NGOs in the future. health. education. 63 . drugs. environment.
1 Findings . ♦ ♦ ♦ One person may cumulate various. and 86% do not have risk management policies. History of CSR Chart 33 History of the com pany's engagem ent in CSR <10yrs 13% >10yrs 33% Since start up 54% The introductory question aimed at gaining information about the engagement of the SMEs in CSR. and 86% do not consider CSR as a key tool for risk management. When prompted further.5 5. Many SMEs are micro-businesses (often one-man show) so that aspects such as risk management are only considered. functions. and not formalised as policies and procedures. SMEs play a growingly significant part considering their economic role in creating employment and their social embedding. often ad-hoc. it emerged that most of them conduct CSR in an informal way: ♦ ♦ ♦ ♦ 97% do not have a CSR policy. 54% have not designated someone to oversee compliance with law and international codes. if not all. This is in harmony with the fact that in SMEs. The survey revealed that 54% of them have been carrying out CSR activities since start up. Work is carried out in an unstructured way. 64 .SMEs Strategic approach to CSR Overview Although CSR undertakings are generally attributable to large organisations and multinationals. 33% trace their CSR commitment to a long time back (more than 10 years) and the rest have started less than 10 years ago.
♦ Often carry out CSR as an integral part of their operations Chart 34 Why did you start at all? Global Policy Enhance image vis-à-vis internal community Enhance image vis-à-vis external community Others 0% 5% 10% 15% 20% 25% 30% 35% 40% Upon inquiring into the motives for engaging in CSR activities. SMEs have been probed for their internal CSR undertakings. Strategic approach to internal CSR Chart 35 Do you have an internal CSR policy? Yes 17% No 83% When asked whether they have an internal CSR policy in place. This is probably because they are too small and lack the means for implementing internal CSR policies. 5.2 Internal CSR As for large companies. these were mostly done for image building purposes. 65 . 83% of the respondents answered negatively.
it was evident that all the SMEs engage in at least one form of internal CSR. These dimensions are considered the basic ingredients for business success. The most popular form of internal CSR activities was provision of good occupational health and safety atmosphere for their employees (54%).Types of internal CSR Chart 36 What does internal CSR encompass for the company? 60% 50% 40% 30% 20% 10% 0% Occupational Health & Safety Incentive Programs Training/Career Advancement Profit sharing/share options Employee Participation in decision-making Employee satisfaction surveys Workplace Diversity Work-Life Balance Collective Bargaining 35% 27% 16% 11% 51% 51% 54% 32% 24% When asked about what internal CSR encompassed for them. written policies and procedures. This confirms that SMEs still operate in a very informal way. Benefits of internal CSR Chart 37 How do you benefit from internal CSR? Higher pro ductivity B etter staff retentio n Higher staff mo rale 0% 10% 20% 30% 40% 50% 60% 70% 66 . Training/career advancement of employees and Incentive programs are other forms of CSR adopted by SMEs. with little. not to say none.
3 Framework for external CSR activities Responsibility and involvement (who) Chart 38 Who overlooks CSR activities? 38% 31% 31% Owner Appointed person Appointed team 67 .g Newsletter) or informally (e.The survey inquired in detail about the benefits the SMEs reap from engaging in internal CSR. 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. formally (e. The most important benefit is higher staff morale for 65%. Communication about CSR commitment and people commitment surveys were brought up as less important factors. 68% of companies stated that “Commitment of top management to inculcating CSR in the organisational culture ” was a powerful promotional dimension in SMEs.g through emails) People commitment surveys 68% 59% 65% 62% 22% 22% 5. Important factors for the promotion of internal CSR Percent Commitment of top management to inculcating CSR in the organisational culture Having shared values emphasising an internal CSR culture Allowing and encouraging employees to participate in community CSR activities Commitment of employees to CSR Communication about CSR commitments.
38%. the management team is involved in CSR activities. Chart 39 Who is/are actually involved in the CSR activities? 16% Emplo yees 84% M anagement 0% 20% 40% 60% 80% 100% In the majority of SMEs surveyed (84%).The next question aimed at identifying who assumed responsibility for CSR in SMEs. In 31% of SMEs the owner assumed the CSR responsibility and in the remaining 31%. Employees generally are not involved in CSR activities. Resource allocation (what) Chart 40 Which resources do you devote to your CSR activities? 80% 70% 60% 50% 40% 30% 20% 10% 0% Funds Products Skills Premises People 76% 73% 30% 22% 68 . a team was allocated that responsibility. Most SMEs. It was also interesting to see whether there was a clear demarcation in involvement of management and employees in CSR. appointed a third party to conduct CSR. This is probably because SMEs are small by nature and they have limited resources for CSR endeavour.
skills. SMEs do not allocate their premises for CSR undertakings. It is interesting to note that SMEs contribute to CSR activities more in kind than in funds. they are less involved on topical issues such as the environment and governance/code of ethics. premises or people.The survey tried to identify resources which SMEs allocated to CSR: funds. Most SMEs contribute to CSR activities by funding activities and donating their products. Furthermore. NGOs may thus gear their demands accordingly. products. Forms of action Chart 42 What form does your activities take? Collective Action 14% Individual Action 86% 69 . Types of CSR undertakings (what) Chart 41 What are the activities that you conduct? Suppliers Stakeholder Engagement Shareholders Public Reporting Environment Governance / Code of ethics Customers Community & Broader Society Employees .Internal CSR 14% 0% 3% 0% 27% 5% 35% 89% 81% 0% 20% 40% 60% 80% 100% The CSR undertakings of most SMEs feature a strong focus on society and employees. It is noted that due to their sheer size. This confirms that SMEs have a great social embedding.
Chart 43 Collective Action C ollective Action with International Bodies C ollective Action with Governmental Bodies C ollective Action with NGOs C ollective Action with PS firms 0% 0% 3% 14% 16% 20% 40% 60% 80% 100% Controlling CSR activities Chart 44 Do you measure the impact of your CSR activities? Yes 19% No 81% Only 19% of SMEs ensure that the targeted groups have benefited from CSR activities. 14% carry out CSR activities by partnering up with NGOs and 16% with the private sector. This is explained by the fact that SMEs’ contribution to CSR is too minimal on one hand 70 . Out of the remaining 14% which do CSR through collective action. 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.SMEs were also asked whether they conduct CSR individually or by partnering up with other organisations.
conducting CSR. What challenges they face.4 Evaluation of implementation of CSR activities There are a number of areas pertaining to implementation of CSR activities requiring further probing: ♦ ♦ ♦ ♦ ♦ What benefits do SMEs reap. Which factors promote CSR according to them. Companies are thus achieving their desired objectives by carrying out both internal and external CSR activities. These firms were asked how they have benefited from Most companies surveyed reap benefits of CSR activities through enhanced employees motivation (59%) and better public relations (49%). 71 . 5. This would definitely encourage them to carry more of such activities. How they foresee the future of CSR undertakings.and on the other. SMEs lack the necessary personnel and time to go on site to evaluate the backdrop of their CSR undertakings. and What should be the role of the government? Benefits Chart 45 How has your organisation benefited from conducting CSR? Better public relations Better relations w ith clients Better relations w ith suppliers Better motivation amongst employees 0% 10% 20% 30% 40% 50% 11% 32% 49% 59% 60% 70% The engagement of SMEs in CSR activities clearly indicates that there are many benefits to be reaped.
during and after implementing CSR activities. .Challenges Chart 46 Did you encounter the following challenges when implementing your CSR activities? 16% 14% 12% 10% 8% 6% 4% 2% 0% Lack of audit after implementation Lack of coordination Lack of information No proper partnership 5% 8% 1 4% 1 4% It was also interesting to identify challenges facing SMEs before. Lack of coordination and information are the main challenges that the organisations have to face. Future of CSR undertakings Chart 47 Do you foresee to continue conducting CSR activities? Expand C SR activities 11% Engage into new C SR activities 16% C ontinue C SR activities 59% C urtail C SR activities C ease C SR11% activities 3% Respondents were required to indicate whether they foresee to continue conducting CSR activities. 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. More than 85% of the organisations are willing to further their This is positive as although the impact of their CSR 72 engagement in CSR activities.
the guarantee that targeted groups are indeed benefiting from CSR activities turned out to be the most important factor.undertakings is not significant. As regards to revision of tax policy regarding CSR. Factors promoting CSR Chart 48 Factors that would encourage your organisation to increase its CSR activities Positive outcomes for the organisation A forum whereby pressing needs (economic. this measure would be well appreciated and help to enlarge SMEs’ CSR activities. this would at least help to breed the CSR culture in the business community in Mauritius. social etc) can be identified The guarantee that targeted groups are indeed benefiting Transparency in implementation of activities at NGO level Partnership with other PS firms or NGOs A better information dissemination about NGOs A revision of the actual tax policy regarding CSR activities 0% Very Important Important 20% 40% 60% 80% 100% Somehow Important Not important at all When prompted to share what would encourage them to increase CSR. Role of government Chart 49 Required assistance from Government Acting as Supervisor and Facilitator 20% Assistance in kind or fund 18% Fiscal Incentives 32% 0% 5% 10% 15% 20% 25% 30% 35% 73 . during and after implementing CSR. partnership with external organisations does not hold much of importance. This may be due to the many challenges they have faced before. it is interesting to note that 14% of SMEs foresee to curtail or cease their engagement in CSR. On the other hand. However.
86% are involved in philanthropic activities. This demonstrates that the willingness for CSR endeavour is present among SMEs but they lack funding to carry out such activities. This is an opportunity which the community at large could take advantage. 5. have nevertheless reported that the government may play a more active role. Chart 51 Philantrophy: priority areas supported Social evils Community Environment Education Religious Poverty 0% 2% 45% 5% 29% 8% 27% 10% 20% 30% 40% 50% 74 .SMEs. having reported that they do not necessarily wish to partner up with others in their CSR undertakings. 32% of the SMEs surveyed welcome fiscal incentives from the government.5 Philanthropic and sponsorship activities Philanthropic activities Chart 50 Do you indulge in philanthropic activities? Yes 86% No 14% Respondents were also required to state whether they indulge in philanthropic activities.
we also investigated whether SMEs in Mauritius indulge in sponsorship activities. the general community and in religious activities. It is interesting to note that large companies have also earmarked these two areas as the most important to carry CSR activities.Community and Education are the two most common priority areas in which SMEs conduct CSR activities. 75 . Sports is the most common area which SMEs provide sponsorship. This may be with a view to enhance their visibility. Again this may be due to a quest for more visibility. Sponsorship activities Chart 52 Do you indulge in sponsorship activities? No 51% Yes 49% In addition to philanthropic activities. Only 49% of the SMEs surveyed undertake sponsorship activities. most probably due to lack of funds. 51% are not involved in sponsorship activities. Chart 53 Priority areas sponsored Community in general 24% Religious 16% Sports 27% 0% 5% 10% 15% 20% 25% 30% Priority areas sponsored by SMEs are mainly in sports.
Chart 55 unequal participation during previous partnerships with other NGO popularity 40% 35% 30% 25% 20% 15% 10% 5% 0% 35% 19% 10% 5% 10% 5% 13% 5% 76 . Those SMEs that collaborate with other organisations do it on a one-off basis. This is because they are not well structured and like to do their CSR activities in their own way and in their own pace.6 Partnerships with other organisations Chart 54 Are you collaborating with this/these organisation/s? 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. Many SMEs have also encountered organisations.5. This is probably because they carry CSR activities in an informal way and due to limited resources.
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 3.8 2. Very few rate NGOs as excellent/very good. SMEs consider PILS to be the most popular NGO. Perception is as good as reality – NGOs should reverse this perception by addressing the above dimensions.6 2. 77 . Mean Score Aims and mandate of the NGOs Structure and organisation Commitment and professionalism Communication Membership and quality of resources Mobilisation of resources Performance towards goals 2. It is important to note that PILS is also the most popular NGO among large companies. This implies that they are perceived by SMEs as being fair to poor.6 2.5 2. The mean score gives a better evaluation of each of the above criteria. the majority of SMEs rate NGOs in Mauritius as good/fair. just like for large companies.We also queried the respondents on NGO popularity.5 2. Chart 56 How would you rate NGOs in Mauritius? Performance towards goals Mobilisation of resources Membership and quality of resources C ommunication C ommitment and professionalism Structure and organisation Aims and mandate of the NGOs 0% 10% 20% 30% 40% 50% 60% Good 70% Fair 80% Poor 90% 100% Excellent Very Good Furthermore.5 2.
who? Government 38% NGOs 94% Private Firms 56% 0% 20% 40% 60% 80% 100% Those SMEs that are interested to do partnerships with other organisations are not keen to partner with the Government. hence substantiating the fact that SMEs are not prepared to devote significant funds and time to the provision of CSR activities. 78 . This is mainly due to their small size and limited resources. They prefer to partner with NGOs to carry out CSR activities.Chart 57 Would your organisation be interested to partner up with other organisations to conduct CSR activities? No 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. Chart 58 If yes.
Chart 59 Ares where organisations lack information Environment 13% Poverty 40% Education 47% It is also to be noted that SMEs favour education as an area for potential collaboration. Therefore. This is also the case for large companies. Moreover. private sector and the government are namely in Education. the majority of SMEs consider Education to be the most important area to have partnerships. Poverty and Health. but they lack information on this sector. 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. credibility of partners is the most important criteria for SMEs prior to partnering up. Just like for large companies. Chart 60 Areas for NGO/PS/Govt partnerships Poverty 38% Health 21% Education 41% The main areas which SMEs consider important to partner with NGOs. This is because SMEs funds are limited and they want to ensure that 79 .
Other criteria include: goal congruence. Public relations is considered to be the most important benefit for SMEs since they are small in size and thus lack visibility. This demonstrates that SMEs are adopting a positive approach to CSR activities. there will be an upward trend. Therefore. To an overwhelming majority of them. The findings reveal that the main benefits that SMEs have obtained from CSR undertakings are public relations.their partners will make good use of their funds. goodwill and personal satisfaction. communication and formal CSR structure. CSR activities have helped to make their name known to the general community and have thus enhanced their visibility. We also queried SMEs on CSR trend in Mauritius. 80 . Chart 61 Benefits derived from CSR undertakings Personal satisfaction Public relations Employee satisfaction Goodwill 0% 5% 10% 10% 22% 14% 10% 15% 20% 25% Our study also investigated whether SMEs in Mauritius are deriving benefits from CSR activities. employee satisfaction. An upward trend may also prompt other SMEs to indulge in CSR.
5.7 End word Chart 62 End word Increased commitment from Private Sector 53% Government should act as a facilitator 47% 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. 81 .
Philanthropic and sponsorship activities ♦ 87% of respondents carry out philanthropic activities while 60% indulge in sponsorship activities. NGO in Mauritius ♦ SMEs perceive NGOs in Mauritius to lack excellence and professionalism. Framework for external CSR activities ♦ 87% of SMEs surveyed prefer to carry out their CSR activities on an individual basis. Partnerships with other organisations ♦ ♦ 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. CSR policy ♦ 97% of respondents do not have a formal policy towards CSR Internal CSR ♦ ♦ 80% of SMEs surveyed do not have an internal CSR policy. 82 . the majority of SMEs in Mauritius indulge in internal CSR activities mainly in the form of training/career advancement and occupational health and safety. goodwill and personal satisfaction. The major benefits that SMEs have derived from CSR undertakings are public relation. employee satisfaction. Evaluation valuation of implementing CSR activities ♦ ♦ More than 75% of SMEs will maintain/increase/start CSR activities in the future. CSR culture and interest is very much present among SMEs in Mauritius.8 Summary of key findings CSR culture ♦ Though not formalised and structured. It is also worth noting that SMEs that are willing to partner up with other organisations are not keen to partner with the Government. However.5.
Policy dialogues and areas for potential collaboration ♦ 53% of SMEs are interested to participate in policy dialogues initiatives involving NGO/Private Sector/Government. health and environment. 83 . ♦ SMEs favour education as an area for potential collaboration. Other interest areas include poverty.
teenage pregnancy. The concept has not yet seeped into the vision and strategy of companies. poverty and health. education (lack of teachers). environment. 84 . ABRO. Red Cross. ♦ Current philanthropic and sponsorship activities by organisations in Rodrigues are concentrated on the following areas: environment. health. ♦ NGOs have reported lack of funding from Private Sector and Government as being a major cause for lack of integrated CSR projects in Rodrigues. ♦ Companies have not elaborated codes of conduct/ethics/corporate governance or risk management policies. unemployment. Engagements in CSR are mostly carried out through individual action. health care (lack of doctors. ACIR. pharmacy). ♦ CSR is carried out in an ad-hoc way: o o o o Responsibility for CSR is not assigned to anybody or team. alcoholism. juvenile delinquency. Shoals of Rodrigues. o ♦ Companies do not communicate about their CSR activities. sports. combat against teenage pregnancy. Despite the ad-hoc nature of CSR in Rodrigues. handicapped persons. big or SMEs. sports. ♦ Major problems in Rodrigues – water supply. equipment. ♦ Companies engage more readily in philanthropy and sponsorship than strategic CSR. and ♦ The well-known NGOs in Rodrigues include: Craft Aids. lack of leisure activities. ♦ ♦ None of the companies surveyed in Rodrigues have a formal CSR policy. education. companies intend to continue and/or increase their CSR undertakings in the future.6 ♦ Findings – Rodrigues CSR in Rodrigues is carried out in an informal way. Internal CSR practices are not common in Rodrigues showing that the concept of organisational development is yet to gain popularity. ♦ Areas of potential partnership include: education. Time is also allocated to CSR activities on an ad-hoc basis. No budget is set for CSR.
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. Strength ♦ The principles laid out in the Constitution of Mauritius take precedence over laws and are at the highest level of the legal hierarchy. Protection of freedom of expression. 85 . Protection of freedom of movement. Protection from slavery and forced labour.1. Protection of right to life. Protection of privacy of home and other property. Protection from deprivation of property. 7. Protection of freedom of conscience. Some of the principles laid out in the Constitution of Mauritius are namely: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ The right to freedom.1 Existing regulatory framework The applicable laws and regulations are listed hereunder: 7. and Protection from discrimination. The Constitution of Mauritius further contains provisions for the enforcement of those rights. Protection of right to personal liberty.1 Fundamental Rights 7. Provisions to secure protection of law. Protection from inhumane treatment.1. Protection of freedom of assembly and association.1.1 The Constitution of Mauritius The Constitution of Mauritius is a framework of fundamental human rights.
♦ The Ombudsman is there in theory. 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. In the execution of its duties. Recommendations ♦ There is a need to improve the system for reporting breaches of the Constitution.2 The Protection of Human Rights Act The Act puts into place a Commission to deal with any complaints pertaining to human rights violation. which are only left to persons of means or persons with considerable support behind them. improve substantially the help given to normal citizens who want to take redress for breaches of the Constitution and ease the system where breaches of the Constitution are dealt with. 86 . ordinary citizens are in practice often deprived of those remedies. 7. ♦ There is a set time limit of a maximum of 2 years within which the Commission will enquire. but ordinary citizens are not aware of same.Weaknesses ♦ The recourse to remedies for breaches of the Constitution of Mauritius is a heavy one as it necessitates a lot of efforts and funds and for the said reasons. adequate information campaigns must be done so that ordinary citizens are aware of the existence and mechanism of those systems. resolve any complaint/ matter subject of an enquiry. ♦ Once the above measures are in place. ♦ The Commission is also empowered to review any factor or difficulties that would inhibit the enjoyment of human rights. call for the production of documents.1. the Commission is empowered to visit places of detention.1. ♦ The Commission works quite independently but at the same time has to report each year to the President. summon witnesses and examine them on oath.
4 Other legislations There are also some specific legislative enactments for special situations such as the Child Protection Act 1994. child trafficking.3 Act Sections 96 and following of the Constitution and Ombudsman The above provide for the setting up of the office of an Ombudsman who shall. which provides for the protection of children against ill treatment.1. Strengths ♦ The Act provides for a definite set procedure to deal with complaints and sets up an amicable way of resolving same. ♦ Though the Commission has quite vast powers.1. 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. which provides for general safety requirements for consumers. have the responsibility to investigate any complaint made to it mainly regarding persons employed in the public sector. sexual offences. 7. and the Consumer Protection Act 1991. with his officers.1. 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. Recommendations ♦ The Ombudsman could be given powers to implement his decisions directly. The Commission should have powers to act immediately and without notice in case where celerity is needed.1. For example where a complaint deals with the commission of an offence. Weaknesses ♦ The Ombudsman has no sanctioning powers and no powers to implement his decisions.Weaknesses ♦ The Act is limited to complaints relating to acts or omission of anyone acting in the performance of any public function conferred by law or in the performance of the functions of any public office or public body only. He could also be given sanctioning powers. the legal power to revoke any of those safety regulations. the matter is referred to the DPP. 7. 87 .
This law also provides for internal working conditions such as hours of work. It also provides for the recognition of trade unions and relationships between the unions and management.1 Labour Act 1975 This Act governs all employer-employee relationships and deals with issues such as the payment of remuneration.1. Recommendations ♦ Provision for enforcement agent to verify and to sanction employment of children or any employment of young persons in a dangerous environment.2 This Act caters for aspects of good relationship between management and workers and contains a code designed to promote better relationship between the various players of the workplace. provides penalties against violence at the place of the work.1. ♦ Penalties against workplace violence are very low. Industrial Relations Act 1982 7. It includes provisions against discrimination.3 Sex Discrimination Act 2002 The Sex Discrimination Act 2002 provides for the elimination of all forms of gender discrimination and sexual harassment in certain areas of public activity. both normal and punitive and other related matters. ♦ Increase penalties against workplace violence.2. 7. employment. inter alia in.2. in 88 . any advances or deductions. conditions of work. it 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.1.7. services or facilities. the modes of payment of remuneration. Moreover. education. profession. measures against workplace violence and includes provisions on termination of employment as well as payment of severance allowance. trades or occupation. including overtime. provision of goods. Strength ♦ The Labour Act provides positive measures such as the prohibition of employing children or even young persons in dangerous environment.2 Labour 7.1.2.
4 The Training and Employment of Disabled Persons Act 1996 This Act caters for the training and employment of disabled persons. in clubs on grounds of sex. or pregnancy.2. seminars must be organised to cover the main provisions of the Sex Discrimination Act. It has to undertake research and educational programs and other relevant programs for promoting the objects of 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. ♦ Moreover. 89 . b) Cause such enquiries to be made into a complaint in such a manner it thinks fit. Weakness ♦ There is the need for the Sex Discrimination Division to promote understanding. partnerships or other associations. Strength ♦ The Act establishes a Sex Discrimination Division which : a) Receive and enquire into any written complaints related to alleged infringements of this Act. c) Endeavour by conciliation to effect a settlement of the matters to which the alleged. marital status. This may be by disseminating guidelines to the public starting from schools to work places. the above Act. 7. d) Make recommendations as it deems appropriate to any relevant authorities.1. ♦ The division must also play a more proactive role in the provisions of sexual education. in companies. 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. infringements relate. acceptance and compliance of the Act.accommodation.
1. Weakness ♦ The Training and Employment of Disabled Persons Act does not make any provisions in respect of enforcement agents at work places. 7.♦ 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. More specifically. The Act includes tax incentives or other incentives to employers to recruit disabled persons. 90 . ♦ ♦ Breaches of any obligations under the Act is considered to be an offence. The law includes: ♦ The provision of a “Police de l’Environnement”. ♦ The obligation to supply an Environment Impact Assessment (EIA) before undertaking works which are listed under the Act and can have an impact on the environment.1.3. to plan for environmental management and to coordinate the inter-relations of environmental issues. ♦ Seminar / campaigns should be organised to promote the awareness of the rights of disabled persons. the Act provides for the legal framework and the mechanism to protect the natural environment. Opponents can contest the project.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. and to ensure the proper implementation of governmental policies and enforcement provisions necessary for the protection of human health and the environment of Mauritius. Recommendations ♦ An enforcement body must be set up to verify any potential infringements of the Act and ensure that the rights of disabled persons in employment are safeguarded. environmental protection and sustainable development for the present and future generations.3 Environment 7. and appeal procedures before the Environment Appeal Tribunal are provided for. a unit of the Mauritius Police Force whose task would be to enforce environmental law.
91 . with more means given to the enforcement authorities. manufacturing. ♦ Obligations on a person responsible for an activity discharging a pollutant into the environment to provide for monitoring of such discharge and provide records of such monitoring. ♦ Fines should be substantially increased for instance large companies should be requested to pay fines of up to several million rupees in major cases. disposal of used oil and so forth. The frequent change in the Chairmanship of the Tribunal is often the cause of delays in the processing of appeals. Recommendations ♦ Prosecution of offenders should be facilitated. Strengths ♦ The obligation to supply an EIA compels big projects to adhere to environmental norms in various sectors such as hotels. Appeals before Environmental Appeal Tribunal are not efficient.♦ Powers of entry and arrest on its authorised officers in the enforcement of its objects. ♦ Regulations in relation to hazardous waste. water. ♦ Land management principles should be better adhered to. Weaknesses ♦ ♦ ♦ The enforcement aspect can be greatly improved. ♦ The impact of such projects on the environment is assessed prior to the carrying out of the project. etc. For example. effluent discharge. ♦ Fines under the Act are not severe. ♦ Appeals before the Environment Appeal Tribunal can be more efficiently dealt with. factories should not be allowed to be present in residential zones. air. and measures to mitigate any possible environmental effect are laid out in the EIA report. No proper Land Management. A clearer demarcation between the various zones is necessary.
92 .1. 7.2 Beach Authority Act 2002 The Beach Authority Act 2002 establishes a Beach Authority to ensure the proper control and management of public beaches in Mauritius and Rodrigues. Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction and to the Convention of the Prohibition of the Development.3. The Beach Authority has the duty to: ♦ Implement projects relating to • • • • • • The conservation and protection of the environment of public beaches Uplifting and landscaping works of public beaches Infrastructural development.1. including provision of amenities for the use of the public and their maintenance. This enables police officers who have reasonable grounds to believe that an offence has been. Production. on public beaches Provision of leisure facilities on public beaches The enhancement of the quality of sea water Day to day cleaning of public beaches ♦ Regulate activities on public beaches and ensure the security and safety of users of public beaches ♦ Issue beach traders' licence for activities at such places on public beaches as may be specifically reserved for that purpose ♦ Set standards and establish guidelines for beach management so as to enable users of public beaches to derive maximum enjoyment from clean.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.3. Stockpiling and Use of Chemical Weapons and on their Destruction.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. safe and well equipped beaches whilst safeguarding the environment ♦ Advise the concerned Minister on all matters relating to the management and development of public beaches 7. 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.
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.7.1.1. By virtue of the said Act. ♦ Except as otherwise provided by any enactment or as approved by the Minister. their rights and obligations under any consumer transaction. It confers the powers of search on the enforcement agency where it suspects that there is imminent danger to the public health.3. The Act protects consumers by prohibiting misleading or deceptive conduct in trade . to be so adverse to them as to be detrimental to their interests.1 The Fair Trading Act 1979 The Fair Trading Act is one of the cornerstones of our consumer protection law. agreement. c) subjecting consumers to undue pressure to enter into any consumer transaction. d) causing the terms or conditions on which consumers enter into any consumer transaction. 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. 93 . no trader shall enter or induce another trader to enter any undertaking. or withholding from them adequate information as to. ♦ Some consumer trade practices are prohibited.4. 7. 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 a) misleading consumers as to.1.4 Trading 7. establishing or observing any exclusive sales agreement or monopoly in connection with the production and supply of goods branded or otherwise. contract or other instrument which has the effect or is likely to have the effect of preventing. public safety or environment. Two of the main provisions of the Act are that. b) otherwise misleading or confusing consumers with respect to any matter in connection with any consumer transaction. members of the public and the environment against dangerous chemicals. or of services. restricting or distorting competition or of promoting.
We are a small country. and an adaptation of the norms prevailing in other countries is necessary.The Act also : ♦ ♦ provides for Codes of Practice to be introduced. limited resources. ♦ Specific codes of practice may be prepared and regulated by the Minister or his designated officers. ♦ Any goods which is the subject matter of an offence under the Act may be seized and detained. gives powers to officers of the Minister to make searches to ensure compliance with the Act. Weaknesses ♦ An adaptation of the concept of “fair competition” and of norms prevailing in other countries to the local context is necessary. restrict or distort competition. whilst expressly providing for traders not to mislead or confuse customers . No channel of complaint or any powers of the consumer is expressed for the protection of the consumer to operate. General views The issue of competition cannot be viewed in Mauritius in the same way as it is viewed in large countries. 94 . ♦ The Codes have not been published. ♦ 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. ♦ The Act provides for the protection of consumers but in too general terms. Failure to make such an adaptation will be detrimental to the country. no direction is available to customers as to the form or tenor of their respective complaints. Strengths ♦ The Act prohibits unlawful consumer trade practice and upholds consumer protection. with a limited market. This may cause prejudice to customers in as much as in case of non compliance with the Act. ♦ Section 6 promotes the spirit of fair competition and restricts any unlawful and prohibited agreements made with a view to prevent.
7. The Act further imposes obligations on traders. petroleum products. Penalties apply if traders do not comply with the Act or with the Regulations. The Minister has quite wide enforcement powers. etc. which is frequently applied. Strengths The law provides for powers of search and prohibition notices. such as milk.5. Several traders interviewed complain about the effects of this law and of the regulations passed thereunder. The Consumer Protection (Price and Supplies Control) Act This Act. the obligation to keep goods in specific places and the obligation to sell gods exposed or kept for sale. like.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 ♦ ♦ ♦ The exercise of powers of directors in relation of employees Indemnity and insurance relating to directors Measures against the falsification of records 95 .1. one for toys and another for laser pointers. gives wide powers to the Minister of Commerce to fix maximum prices. Many regulations have been fixed in relation to several products.5 Business 7. fix maximum mark-ups and recommend maximum prices.4. 7. fertilizers. second hand motor vehicles. the Ministry’s position being that the regulations are justified. The Act further provides that the Minister may make regulations under the Act. the obligation to display goods traders have on sale. Only two regulations have been published. for example. the scope of the Act is limited.1.1. bread. Weaknesses Only two regulations having been passed under the Act.2 The Consumer Protection Act The purpose of the Act is to promote protection of safety and quality of goods supplied.
although the breaches are more frequent than the number of actions against directors and officers. better facilitation of measures to enable victims to take actions against directors. There is also a need to improve awareness of the public on the importance of the Companies Act. ♦ The poor results tend to cause victims to be very reluctant to take actions against directors and officers. Weaknesses ♦ There are very limited practical recourses for breach of duties under the Companies Act 2001. better enforcement of prohibition to act as directors or officers. Recommendation ♦ Better enforcement methods are necessary.♦ Framework for the protection of minority shareholders Strength ♦ It is a well-drafted piece of legislation which covers the major areas of Company law. for instance prosecution of directors and officers for breaches of duties must be enhanced. Very few directors and officers are prosecuted. 96 .
♦ The Act also provides for mutual assistance with overseas bodies in relation to money laundering and for matters connected therewith and incidental thereto. inter alia. ♦ imposes specific duties on banks. ♦ The Act provides for a series of measures such as reporting obligations. The said persons must report any case in which they consider that there has been money laundering.1. exchange and dissemination of information and exchange of information. The penalties set out in the Act appear quite stringent and in our view constitute a strong deterrent. put into place to combat the offences relating to money laundering. reporting of suspicious transactions and so on. and prosecutions do not bring the desired results. but also where the person suspects or has reasonable grounds to suspect that the property represents the proceeds of a crime. and imposes on them an obligation to take all necessary precautions to prevent money laundering. limits payment in cash to a fixed amount. ♦ ♦ The Act penalizes individuals as well as financial institutions.5. Recommendation 97 . ♦ 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. ♦ 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.2 The Financial Intelligence and Anti-Money Laundering Act 2002 The Act. ♦ ♦ punishes all persons who are involved in money laundering. Weakness ♦ Very few offenders are prosecuted. The prosecution side can be improved. in order to avoid money laundering Strength ♦ The Act penalizes not only instances where a person deals with property which represents the proceeds of a crime.7. financial institutions and cash dealers. issues of money laundering and transactions related to terrorism financing.
♦ In our view. of inspection as well as to waive penalty to the Commissioner. The Act provides for protection to a borrower who is unable to meet his obligations under a credit agreement as a result of illness. Weakness ♦ Tax deductions in respect of donations to charitable institutions are no longer available. 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.4 The Borrower Protection Act 2007 This Act regulates credit agreements for a sum not exceeding 2 million rupees and to provide for the establishment of the Office of the Commissioner for the Protection of Borrower. for frauds involving several jurisdictions). loss of employment. effects are mitigated with the fall in income tax rate to 15% for both corporates and individuals. 7. Recommendation ♦ Incentives could be granted on an ad hoc basis in relation with expenditure made on specific CSR projects of national importance.5. However.5.3 The Income Tax Act 1995 The Act caters for individual and corporate taxation policies as well as the international aspects of income tax. 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. It puts into place the PAYE system of taxation. 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.1. 98 . injury. the inquiries so far have not been carried out at the right places.1.g. An improvement of the prosecution side is necessary to improve the deterrent effect. Better methods of collaboration between Mauritius and foreign States are necessary. rebates for projects prompting a better environment or inversely heavier taxes should be levied on projects which are not environment-friendly. 7. and the legal framework for such international collaboration can be improved (e.
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 188.8.131.52 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. This encompasses acts such as:
Seriously intimidating a population Unduly compelling a Government or an international organisation to perform or abstain from performing any act
Seriously destabilising or destroy the fundamental political, constitutional, economic or social structures of a country or an international organisation
♦ ♦ ♦ ♦ ♦
Influencing such government, or international organisation Attacking upon a person's life which may cause death Attacking upon the physical integrity of a person Kidnapping of a person Extensive destruction to a Government or public facility, a transport system, an infrastructure facility, including an information system, a fixed platform located on the continental shelf, a public place or private property, likely to endanger human life or result in major economic loss
The seizure of an aircraft, a ship or other means of public or goods transport.
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
The release of dangerous substance, or causing of fires, explosions or floods, the effect of which is to endanger human life
Interference with or disruption of the supply of water, power or any other fundamental natural resource, the effect of which is to endanger life.
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. 184.108.40.206 The Convention For The Suppression Of The Financing Of Terrorism Act 2003 This Act provides that any person who by any means whatsoever, wilfully and unlawfully, directly or indirectly, provides or collects funds with the intention or knowledge that they will be used, or having reasonable grounds to believe that they will be used, in full or in part, to commit in Mauritius or abroad terrorist activities shall commit an offence. 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. 7.2 Local voluntary codes of conduct and ethical standards
7.2.1 Joint Economic Council – Model of Conduct The code provides for observance of the laws of Mauritius, whilst at the same time providing for straight, fair, honest and efficient dealings in business. Disclosure of unauthorized company information and non observance of rules could result in disciplinary action. Shareholders will benefit from Company growth and profits and the financial records should be true, accurate and up to date. Generally, the code covers aspects of the personal conduct of directors and employees, relations with suppliers and contractors, relations with customers and consumers, responsibilities to shareholders and the financial community, employment practices and responsibilities to the community. 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.
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.
Directors and employees are encouraged to participate in community activities in charitable organizations.
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.
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.
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.
7.2.2 Mauritius Code of Ethics The code provides for the standards of correct conduct expected of public officers. It emphasizes the importance of a responsible, responsive and caring public service and is intended to promote effective administration and responsible behaviour. The code applies to all officers irrespective of grade or rank. It rests on a number of values and
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.
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.
Principles contained in the code should be more disseminated in the public service.
7.2.3 Code of Corporate Governance The Code of Corporate Governance for Mauritius is a major advancement in modern business life and has brought several major changes in boardroom day to day life.
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 : 220.127.116.11 Risk Management
Risk Management includes systematic identification and evaluation of risks pertaining to the organisation. According to the Code of Corporate Governance, companies in Mauritius are called upon to have sound risk-management policies. The objective of risk-management is not to completely eliminate risk but to reduce it to an acceptable level, having regards to the objects of the company. Risk-management should include reporting, consideration and taking of appropriate action on risk exposure of the organisation in the following areas: (1) Physical; (2) Operational; (3) Human Resources; (4) Technology; (5) Business Continuity; (6) Financial; (7) Compliance; and (8) Reputational 18.104.22.168 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. Companies are also required to select appropriate accounting policies supported by reasonable judgements.
The Code can introduce the requirement of a new full time officer. Corporate Governance should be viewed in the local context. do not comply ♦ It is open to debate as to whether it is necessary to render the Code legally binding. and changed quite substantially the day-to-day life of boardrooms. a CSR officer.7. Many companies with turnover exceeding Rs250M.3. 104 . Every company should report regularly to its stakeholders on: ♦ ♦ ♦ ♦ Ethics. and Social Issues. whether its legal effect should not be restricted to a certain category of companies only. and if it is made legally binding. for all companies of a certain size or of a certain turnover.2. Recommendations ♦ At any rate. Weaknesses ♦ The enforcement of the Code is not really effective. Health and Safety. Environment. Strengths ♦ The Code introduced several new principles. ♦ Additional CSR principles can be introduced in the Code for example the obligation to introduce a report on CSR activities. some principles contained in the Code should be rendered compulsory.3 Integrated Sustainability Reporting It is in the long-term economic interest of a company to conduct itself as “a responsible corporate citizen”. with the Code since it is not legally binding. especially state-owned enterprises. strategies and policies in the annual report. and some principles applied internationally may be adapted to the local context.
2000.7. companies are brought together with UN agencies. Under the Compact. and was officially launched at UN Headquarters in New York on July 26. and 105 . Principle 4: Principle 5: the elimination of all forms of forced and compulsory Labour. 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. the United Nations Development Programme. labour. The Global Compact’s ten principles in the areas of human rights.3 International codes and guidelines 7. the United Nations Environment Programme. and the United Nations Office on Drugs and Crime. labour groups and civil society. Labour Standards Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.1 United Nations Global Compact The United Nations Global Compact is an initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies.3. 1999. and to report on them. and Principle 2: make sure that they are not complicit in human rights abuses. the environment and anti-corruption enjoy universal consensus and are derived from: ♦ ♦ The Universal Declaration of Human Rights The International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work ♦ ♦ The Rio Declaration on Environment and Development The United Nations Convention Against Corruption The ten principles include: Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights. the effective abolition of child labour. the United Nations Industrial Development Organisation. the International Labour Organisation. The United Nations Global Compact Office is supported by six UN agencies: the United Nations High Commissioner for Human Rights.
such as Greenpeace. believe that in the absence of any effective monitoring and enforcement provisions. these organisations argue that companies can misuse the Global Compact as a public relations instrument for bluewash. ActionAid. Moreover. including extortion and bribery. The Global Compact is not a regulatory instrument. and civil society organisations. the Global Compact fails to hold corporations accountable. Principle 8: undertake initiatives to promote greater environmental responsibility. Strengths ♦ Human Rights: 1) Businesses should support and respect the protection of internationally proclaimed human rights and make sure they are not complicit in human rights issues. SOMO and Berne Declaration. CorpWatch. whose actions it seeks to influence. 106 . However many NGOs. as an excuse and argument to oppose any binding international regulation on corporate accountability. and Principle 9: encourage the development and diffusion of environmentally friendly technologies. representing its stakeholders. companies and labour. Global Policy Forum. The Compact’s goals are intentionally flexible and vague. ♦ Labour Standards: 2) The freedom of association and the effective recognition of the right to collective bargaining must be upheld by businesses. but can promote local networks and policy dialogues. Anti-Corruption Principle 10: Businesses should work against corruption in all its forms. and as an entry door to increase corporate influence on the policy discourse and the development strategies of the United Nations. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges.Principle 6: the elimination of discrimination in respect of employment and occupation. but rather a forum for discussion and a network for communication including governments.
♦ Moreover. these organizations argue that companies can misuse the Global Compact as a public relations instrument for 'bluewash'. and is not known by most companies of Mauritius. ♦ the Global Compact has no legal effect in Mauritius. 5) Discrimination in employment and occupation must be upheld in businesses. ActionAid. ♦ Environment: 6) Businesses should support a precautionary approach to environmental challenges. as an excuse and argument to oppose any binding international regulation on corporate accountability.3) Elimination of all forms of forced labour and compulsory labour must be a primary aim.2 OECD Guidelines The OECD Guidelines are recommendations to enterprises made by the governments of OECD member countries. CorpWatch and Berne Declaration believe that. Weaknesses ♦ Many NGOs. 107 . ♦ Transparency and Anticorruption: 8) Businesses should work against corruption in all its forms. and as an entry door to increase corporate influence on the policy discourse and the development strategies of the United Nations. 7. including extortion and bribery. the Global Compact fails to hold corporations accountable. even though the general principles contained in the Global Compact are known to most Mauritian businesses. without any effective monitoring and enforcement provisions. 4) Child labour must be effectively abolished. 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. 7) Businesses should undertake initiatives to promote environmental responsibility and encourage the development and diffusion of environmentally friendly technologies. such as Greenpeace.3.
♦ The guidelines are supported by OECD governments. Combating Bribery. ♦ They are designed to prevent misunderstandings and build an atmosphere of confidence and predictability between business. labour. to support and uphold good corporate governance principles. several Governments have committed themselves to promote their observance and effective implementation. governments and society as a whole. Consumer Interests. and to abstain from any improper involvement in political activities. Science and Technology. including te need to protect human rights. to encourage human capital formation.and compliance with company policies. supply chain responsibility. Environment. The Guidelines contain a set of Concepts and Principles. multilaterally endorsed code of conduct for multinational enterprises. to promote employee awareness of . to have sustainable development. as well as several non-governmental organisations. to cooperate with the local community. as well as several nonmember countries and are supported by businesses and labour organisations. The Guidelines contain provisions on Disclosure of Information. The guidelines address private parties. to refrain from seeking or accepting exemptions not contemplated in the statutory or regulatory framework. enterprises and not the government themselves. General Policies The General Policies: contain the first specific recommendations. ♦ ♦ They establish principles covering a broad range of issues in business ethics The guidelines are non binding for enterprises. Employment and Industrial Relations. to refrain from discriminatory or disciplinary action against employees who make bon fide reports to management. not legally enforceable. Nonetheless. 108 . Competition. This however.The Guidelines are voluntary and consequently. and Taxation. to encourage (where applicable) business partners to apply principles of corporate conduct compatible with the Guidelines. to develop and apply effective self-regulatory practices and management systems. does not imply less commitment by OECD governments to encourage their observance. i e. General comment on the Guidelines ♦ The guidelines are the only comprehensive.
Strengths ♦ The guidelines provide a holistic framework that addresses broad performance social. Weaknesses The OECD guidelines are not legally enforceable and do not contain any penalties in case of breach. GRI is used widely internationally as a generally accepted reporting framework and as such provides a method for increased comparability. Management can use GRI indicators to encourage employees to make good progressive performance. ♦ Organisations can use the GRI reporting to help measure and benchmark performance. environmental and social performance. 109 .3 Sustainability Reporting Guidelines (GRI Guidelines) The Sustainability Reporting Guidelines are not a code or set principles of conduct. assist organizations in presenting a balanced and reasonable picture of their economic.as to how an organization is reporting to stakeholders. promote comparability of sustainability reports. support benchmarking and assessment of sustainability performance with respect to codes. ♦ ♦ They guide an organization’s approach to 'proving' its impact. environmental . economic. 7.3. performance standards and voluntary initiatives and serve as an instrument to facilitate stakeholder engagement. many with extensive and geographically dispersed operations. ♦ The Guidelines are flexible and can be used in different sectors and geographical contexts. environmental and social performance. 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. They are a framework for reporting on an organization’s economic. while taking into account the practical considerations related to disclosing information across a diverse range of organizations. The guidelines present reporting principles and specific content to guide the preparation of organizational-level sustainability reports.Strengths With Mauritius moving into the global sector. both against their own targets and externally.
Enforcement provisions and mechanism of control There are a myriad of provisions for penalties in the Environmental Protection Act (EPA) for infringement of environmental laws. Labour. ♦ Their main focus is 'sustainability' for example. reporting external impact but not necessarily focusing on positive outcomes or impacts. such as an assurance standards. that addresses all the environmental problems encountered by the public in general and 110 .4 Mechanisms of control from the State and civil society 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. 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. Women.1 Ministry of Environment and National Development Unit The Ministry of Environment is primarily responsible for the administration of the environmental protection legislations and the design and development of environmental guidelines and standards for the country.4. ♦ They provide guidance. the Registrar of Companies and the Office of Ombudsmen. but not accreditation. 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. ♦ 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. a mark or external evaluation unless combined with other tools. 7. 7.Weaknesses ♦ Adhering to the Guidelines may be labour intensive and full reporting may represent a challenge for smaller organizations. “Police de L’environment’ authorised officers of the Ministry have powers to prosecute offenders. There is a unit at the Ministry of Environment.
♦ The “Police de L’Environnement” must be spread throughout the country through the recruitment of additional manpower. Regular payroll checks are conducted to ensure that salaries are paid according to the applicable renumeration order. 111 . they must be present in some pertinent police stations. salary and health and safety of employees. For instance. Officials of the Ministry also interview employees of Companies in respect of their working conditions. Recommendations ♦ A manifold increase in fines is required in order to prevent business organisations from damaging the environment and sensitise the public in general.2 Ministry of Labour and Industrial Relations One of the core duties of the Ministry of Labour and Industrial Relations is to ensure that the rights of workers are respected.Issues ♦ There is a lot of abuse on behalf of business organisations in respect of non conformance to local environmental regulations since fines in the EPA are not severe enough and do not therefore act as a deterrent.4. Enforcement provisions and mechanism of control The compliance department of the Ministry does regular checks in companies to ensure that the rights of workers are not infringed. ♦ There is a dire lack of sentisation campaigns on environmental issues especially in the business community. 7. ♦ The Ministry of Environment must invest more in sensitisation campaigns on the protection of the environment so that this may be embedded in their work culture. Issues ♦ ♦ The Ministry of Labour lacks legal assistance to the detriment of prosecutions The penalties in the labour Act are too lenient and the legal procedures are not user-friendly for employees. ♦ The ‘Police de L’environment” unit of the Ministry lacks visibility throughout the country. The ministry handles issues such as working conditions.
♦ The Ministry of Labour must invest more on sensitisation campaigns. Its main objectives are as follows : ♦ ♦ ♦ To protect the rights of consumers To educate consumers of their rights and responsibilities To settle disputes between traders and consumers Enforcement provisions and mechanism of control The CPU ensures that imported products (steel. The CPU lacks visibility. Issues ♦ The absence of a legal person acts as a constraint to the effective prosecution of infringers. ♦ ♦ The Ministry of Women Rights is not the appropriate Ministry for the CPU. They also ensure that retailers do not sell stale products. 7. Penalties must be increased substantially to act as a deterrent to labour law infringement. 112 .♦ 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. Family Welfare & Consumer Protection The Consumer Protection Unit (CPU) has the responsibility of enforcing the various consumer legislations. of providing overall consumer satisfaction and security and probing on consumer complaints. etc) are safe for consumers and are in line with local and international standards. fire crackers. Child Development.4. 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. toys. The CPU also indulges in information campaigns by distributing brochures on consumer rights to the general public.3 Ministry of Women’s Rights.
4 Registrar of Companies The core function of the Registrar of Companies is to enforce companies to comply with company law requirements. ♦ 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. ♦ The CPU must make more use of the Media in order to show more visiblity and provide insightful advices to both retailers and consumers. 7.5 The Office of the Ombudsman The role of the Ombudsman in Mauritius is to ensure that the human rights of all citizens of the country are respected. 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. 7. Issues ♦ ♦ ROC lacks prosecution powers ROC needs to sensitise more the business community (especially the family businesses) about the legal implications of non-compliance with their statutory obligations.4.Recommendations ♦ ♦ The CPU could be assisted by a full time legal person to improve prosecutions. Companies that do not comply with the Registrar of Companies are automatically struck off the companies register. Enforcement provisions and mechanism of control The compliance department of the Registrar of Companies(ROC) has a monitoring system that ensures that companies fulfill their statutory obligations such as payment of annual registration fees. 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.4. filing of annual return. etc. 113 .
♦ 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.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 lacks prosecution powers. 114 . Recommendations ♦ The office of Ombudsman must have prosecution powers in order to slash bureaucracy and speed up legal cases. The Office of Ombudsman and his powers are not sufficiently known and userfriendly.
8 8. making them partners in the construction of a fair sustainable society. exchange of experiences and development of tools that can help companies to analyze their management practices and deepen their commitment with corporate responsibility. shareholders. Ethos Institute is a center for mobilization.of sustainable development. public power. Case 3: NGO Forum .2 million people. It is today an international reference in the issue and develops projects in partnership with several bodies worldwide." 115 . Conceived by businessmen and executives from the private sector. social and environmental . The Forum is sponsored by the Department of Health and is managed by the Royal Society of Health. The base level of responsible behaviour for any organisation is legal compliance and the Government has a role to play in setting standards in areas such as environmental protection.economic. 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. Its 907 members comprise companies of different segments and sizes. Their main characteristic is their interest in establishing ethical patterns for the relationship with employees. social and environmental impacts of their activities. sensitizing and helping companies to manage their businesses in a socially responsible manner. health & safety and employment rights. which account for annual revenues of approximately 30% of the Brazilian GDP and employ roughly 1.The UK Government has a vision for UK businesses to consider the economic. customers. 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. suppliers. community.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. organization of knowledge.1 Recommendations Overview Partnership models for CSR initiatives Case 1: Ethos Institute – Business and Social Responsibility is a nongovernmental organization created with the mission of mobilizing. Case 2: UK Government . and the environment. wherever they operate in the world and has set a role in promoting continuous improvement in the business contribution to the three pillars .
The above findings are strong signals that there is a missing enabling framework to bring these three stakeholders together. 8. 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.2 An enabling framework for partnerships The survey has revealed that 79% of companies have demonstrated interest in diverse partnerships for CSR initiatives. Thus. facilitating and supporting CSR initiatives within a broader social and economic integration so as to address national development challenges. ♦ Partnerships with other companies and/or NGOs (by more than 60% of companies). However. Interest in partnership with private sector Interest in partnership with Government 43% 2% 30% 22% 11% 2% 53% Interest in partnership with NGOs In addition.The main finding of the survey was that CSR is not embedded in corporate culture. companies have reported the following factors as very important to important in encouraging CSR: ♦ A forum whereby pressing needs can be identified (by more than 75% of companies). 116 . CSR has been gaining momentum gradually in Corporate Mauritius as companies engage more and more into multi-stakeholder initiatives. and ♦ A better information dissemination about NGOs (by more than 75% of companies). crucial initiative which should be envisaged should be to elaborate a policy framework with representatives of all three stakeholders with the aim of promoting. the initial. encouraging.
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. The survey has revealed that around three quarters of the companies would wish to team up with other private sector companies in conducting CSR. it is imperative that reform be initiated on an individual player level and on an individual sector level. and they are more compatible in terms of culture and work ethics. care and diligence.3 Initiatives at individual sector level 8. 8. Indeed. Government and NGO sector.2 Private sector initiatives Coordinated CSR activities “A vision of development that leaves out the private sector is only vision.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. However. the private sector is playing a vital role through the CSR endeavours to address national development issues at the national and/or community level.3. sector CSR initiatives offer a number of benefits: Coordinated private 117 . private sector and NGO sector). ♦ At joint partnership level by ensuring a Private Sector NGO sector better liaison between the various stakeholders (between Government and private sector. Companies would hold similar expectations from partnerships.” said a UNDP official. at at the Government the civil society level Government level.This policy framework will provide the required impetus to CSR by addressing issues at various levels: ♦ At Mauritius and Corporate level. coordinated and concerted actions by the private sector may be more fruitful than individual actions and CSR initiatives. and ♦ By providing a platform for the three-sector partnership. 8.
their project implementation capacity. implementation and best practices. Allowing promotion of implementation synergies by combining support and common services. It should also be able to promote the link between corporate citizenship . 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 would benefit from adopting a more strategic approach by mainstreaming CSR into management practice. both management and employees. Designating a dedicated person or team to carrying CSR activities. The organisational vision and mission call for inclusion of the CSR concept so as to demonstrate commitment to overall national development. 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. Incorporating an aspect of CSR in employee induction and performance appraisal so as to promote employee initiatives in CSR. c. Agreeing on a set of criteria for potential partnership. and human and financial resources devoted to philanthropy. wealth. CSR design. productivity and creation of The time. their accountability. ♦ Allowing information sharing on experiences. in CSR. and strategise about such partnerships by : a. 118 . ♦ ♦ Allowing joint formulation of CSR thematic strategies. sponsorship and ad-hoc CSR can fruitfully be translated into more meaningful strategic CSR by: a. Agreeing on a budget at the start of the calendar year. ♦ Private companies may partner up with NGOs in their CSR activities. b. ♦ Sharing information on NGOs.♦ Rationalising resource utilisation and improve projects' complementarities while reducing intervention overlap by ensuring coordination amongst the various counterparts through joint programming. and knowledge sharing on technical issues. and d. Involving more people.
c.whether market or non-market failures .are regulated appropriately. 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. According to Peter Vass “governments have to take overall responsibility for ensuring that conduct failures . regroups the main business organisations of the country: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ Mauritius Chamber of Commerce and Industry. Establishing a partnership charter so as to establish the roles. The report also identifies ten government 119 . and Association of Mauritian Manufacturers. The Joint Economic Council (JEC). Establishing key performance indicators (KPIs) for each project so as to be able to monitor performance.b. Mauritius Insurers’ Association Asociation des Hôteliers et Restaurateurs de l’île Maurice . social and environmental pillars. Mauritius Bankers’ Association. Mauritius Export Processing Zone Association. The JEC qualifies as an appropriate organisation to take on the CSR promoter responsibility.3 Government initiatives The Government plays a vital role in CSR. Mauritius Employers’ Federation. and d. Mauritius Chamber of Agriculture. taking account of each of the three pillars of sustainable development: the economic. “the coordinating body of the private sector in Mauritius”. partnering and endorsing. Mauritius Sugar Producers’ Association. activity areas to support CSR: A World Bank report on CSR has identified four roles for governments (Fox. facilitating. 2002): mandating.” Other schools of thought preach that governments should do nothing and allow market forces to dictate the world and national order. 8. responsibilities of each party for more accountability and better coordination of effort.3. & Howard. Ward. Communicating more about their past and forthcoming CSR activities – this may attract eligible NGOs.
Furthermore. and Multilateral processes. conventions. education. directives. regulation guiding private sector practices and these soft laws include a myriad of national. 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. guidelines and conventions. philanthropy and community development. operation and reporting). Responsible investment. agreements and standards. 120 . and Best practice demonstration. industrial laws amongst others. “beyond compliance” standards and management systems. health and safety. Pro-CSR certification. In the Mauritian context. 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. the intervention of the government could have a three-tier focus: ♦ ♦ ♦ Regulation and legislation. if not all. Stakeholder engagement and representation. The need for more regulation of corporate behaviour is caught in the debate of voluntarism versus regulation. ♦ ♦ Pro-CSR reporting and transparency. areas that are focal points of CRS agenda. Regulation and legislation (mandating) The Government already possesses various legislative instruments that regulate corporate behaviour in most. Non-regulatory activitism. if not missing. Corporate governance. labour. regional and international codes.♦ ♦ ♦ ♦ ♦ ♦ ♦ Setting and ensuring compliance with minimum standards. Please refer to Section 7 for more information. Public policy role of business. “soft laws” bring in additional. such as the environment. Pro-CSR production and consumption.
Fund research into corporate citizenship. limit its role to being a facilitator in supporting the development of CSR. 30% of companies have stated that the Government assistance should be in terms of fiscal incentives. and Create a range of “soft” or “enabling” legislation of relevance to corporate citizenship. ♦ ♦ ♦ Raise the profile of CSR and corporate citizenship. In addition. following public policy framework: ♦ Ensure coordination of CSR and corporate citizenship policies and activities across the whole of government. Non-regulatory activities (facilitating and partnering) The survey and discussions with stakeholders have revealed that CSR should remain as a voluntary activity. despite the abolishment of this incentive. Promote the link between corporate citizenship and productivity.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. The 3-day (26-28 October 2007) training sessions on CSR by experts from Business of Social Responsibility from the U. with the recent introduction of a lower corporate tax rate. provided a forum to stakeholders to share experiences on CSR design. The government can however. Activities which may promote CSR include: ♦ Having recourse to key resource persons facilitating working sessions aimed at corporate leaders. for the Government this measure should not be interpreted as a deterrent to CSR. As such. 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. almost 70% of companies surveyed reported that a revision of the actual tax policy would encourage them to increase their CSR activities.S. getting internal commitment (from top management) and external The British government’s approach may be one of the best example of non-regulatory activism model with the 121 . and in fact should. However. companies have more to spend. 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.
♦ Organising information and awareness campaign for a period of time long enough to allow stakeholders to appreciate the business case for CSR on a national level with heavy media coverage. the Government may: ♦ ♦ ♦ Adopt principles of triple bottom line reporting. on a website devoted to the subject in the local context with the possibility of links to international websites for best practice and quick and easy benchmarking. exchange and disseminate best practices and tools on CSR – studies and reports .g. Best practice demonstration (endorsing) The Government should “lead by example” and act as demonstrators of best practice in corporate citizenship. For instance. from the vision to the action plan. or through their empirically researched ideas assist in improving such initiatives. ♦ Producing CSR guides providing practical advice on how to introduce CSR in the organisation. Young graduates joining the labour market may more easily start and implement CSR activities. Apply procurement and tender policies in all instances requiring same. ♦ Encouraging targeted workshops by business groups (e. benefits reaped from CSR. ♦ Offering information resources to collect. challenges faced. 122 . through their thesis.g. implementation issues including monitoring of CSR activities. the Mauritius Banking Association. ♦ Organising telecast debates regrouping all stakeholders (e. ♦ ♦ Introducing national awards for big companies and SMEs on CSR. and stakeholder participation.commitment (other stakeholders). amongst others. the Mauritius Employers Federation. ♦ Introducing a module on CSR at degree-level courses at the University of Mauritius (as is the case for MBA programs). the various Chambers of Commerce. the Joint Economic Council). and Encouraging researchers through grants to do more research. on CSR. Business Watch) or a series of documentaries on the subject. and Promoting public-private partnerships (PPP) amongst others.
Aims and mandates of NGOs. companies provided average ratings for all charateristics. ♦ ♦ Its members. 8. Commitment and professionalism. 3. This advisory group could operate under the aegis of the Ministry of Social Security. However.4 Reform at NGO level Whilst this study has not surveyed NGOs.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 multistakeholder dialogues on the subject. with experts from other relevant Ministries and The UK government has gone one step ahead by conferring the responsibility of CSR to the Minister of State for Competitiveness and Consumer Affairs. there have been multi-stakeholder discussions whereby the major weaknesses and limitations of NGOs surfaced. NGOs cannot achieve proper communication to various stakeholders. when prompted for such a rating. This leads to a vast majority of NGOs being unknown. and Its activities. to assist and provide support in capacity building initiatives aimed at NGOs and private companies etc. Communication.3. 2. showing a need for 123 . should establish the following: ♦ Its objectives – to promote CSR at corporate level. amongst others. The survey itself revealed the following: ♦ Individuals responsible for CSR initiatives in companies can enumerate a select few NGOs at most (6). 5. albeit from the corporate viewpoint. there is so little information available on NGOs. Membership and quality of resources. This indicates that because of their lack of competences (how to communicate efficiently with modern means such as the internet and e-newsletters) and resources (human. financial and equipment). improvement: 1. ♦ Rating the whole of civil society was difficult because the population is so big. Structure and organisation. 4. these are not regulated.
g. In terms of how this capacity building can be implemented.. helping them develop grant proposals or reports). ♦ On the skill level: . The NGO sector should imperatively reform itself.Developing their financial management systems.Increasing their capacity to fundraise (e.Communication skills. there are several interconnected ways: ♦ some companies interviewed are doing such capacity building already for the NGOs they choose to work with (e. ♦ the UNDP and other international actors may take on this task within their range of competence.Project development and project management. NGOs need support to develop in several fronts but from the point of view of intersectoral cooperation.Reporting and other accountability mechanisms. . to move away from the “charity” approach of helping beneficiaries to a “social change” approach of empowering beneficiaries to take their lives into their own hands. and . ♦ On the knowledge level: more up-to-date knowledge in professional development they are concerned with (strongly related to the above two levels as well). their most urgent needs include: ♦ On the attitude level: to develop a deeper and more holistic understanding of social problems and possible responses. . and 7. Performance towards goals. ♦ All of these dimensions are taken into consideration by companies when they are solicited by NGOs for funding or partnerships. write a grant proposal).g. 124 . .6. 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. The logical step would be a review of civil society in Mauritius. Mobilisation of resources.
their aims and mandates and their specific projects. ♦ Extending target population reach by supporting activities of multiple community-based NGOs. and ♦ In addition. their specific organisational characteristics. knowledge sharing on technical and policy issues. The rationale for this network approach is that grouping allows: ♦ Rationalising resource utilisation and improve projects' complementarity while reducing intervention overlap by ensuring coordination amongst the various counterparts through joint programming. ♦ Buying in active support from the government and private sector for their integrated network activities. Allowing promote implementation synergies by combining support and common services. which if properly designed could lead to great and measurable benefits in the ability of NGOs to cater for social problems as partners to the corporate sector and to the government. the government could consider to embark on an NGO capacity building program. as in other countries. The major barriers to such network grouping are the unique program strategies of individual NGOs. Sensitising community/national leaders in the Government and private sector about the social issues. ♦ There are some NGOs already who possess one or another skill mentioned above and who could serve as a resource for others. ♦ ♦ Allowing joint formulation of sectoral/thematic strategies. ♦ ♦ Building management capacity and allowing organisational development.♦ 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. Networking of NGOs The multitude of NGOs in Mauritius could be more effective if organised in various networks and federations so as to avoid fragmented efforts and goal incongruence. Such networks are usually developed on the basis of thematic response. 125 . their wish to retain a certain level of autonomy and at time even rivalry. and ♦ Allowing sharing of standards for self-regulation. ♦ Allowing information sharing.
Training and human resource development. 126 . amongst its objectives. Health and quality of life. and Youth. MACOSS could encourage NGOs to initiate networks and build bottom-up representation. Elderly. MACOSS The umbrella organisation in Mauritius. Material help and support. ♦ Promote. Natural and other disasters.Representation body. Gender and family. seminars. Education. Community development. Environment and sustainable development. The MACOSS has already classified its existing members into the following 16 categories: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ Advocacy. encourage and undertake experimental work. ♦ Organise workshops. Disabled. Alternately. should be proactive in trying to increase its affiliation from the current 220 (approximate) member NGOs (the unofficial figure of some 6. Poverty alleviation. Religious and cultural.000 civil society organisation (CSOs) has been echoed regularly). Service clubs. the Mauritius Social Council (MACOSS). nongovernmental organisations and professionals to strengthen their organisational and managerial capabilities. personnel of voluntary organisations. Indeed. Children. conferences and training courses for voluntary social workers. the MACOSS should: ♦ Assist in the planning and coordination of the activities of Member Organisations.
Several stakeholders interviewed asserted that MACOSS should aim to become more effective in achieving its objectives. should explore: 127 . it could rationalise efforts of NGOs on a grouping basis and as mentioned above assist in their capacity building (project proposal writing. 8. fund raising activities. 8. Government and NGO sector.g.2 Private sector and NGO sector dialogue The private sector and the civil society.4. communications etc).1 Government and private sector dialogue Government and private sector. should engage in exploring opportunities to encourage more CSR. Two of JEC’s main objectives are: ♦ to provide for joint consultation among the various organisations of the Private Sector. E.4 Joint partnership initiatives There should be liaison and concerted efforts between the various stakeholders: between Government and private sector. 8. through the Advisory Body and the JEC. through the JEC and the MACOSS and other stakeholder groupings. In addition. private sector and NGO sector. In addition. Such two-stakeholder dialogues and coordination allow a better focus on specific needs of the stakeholders. financial management. and ♦ to liaise with Government and other bodies on matters relating to the socioeconomic development of Mauritius. 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 already exist formal and informal mechanisms of interaction between the two stakeholders: Formal ♦ ♦ ♦ Government/JEC meetings Tripartite wage negotiations Proposals for the National Budget Representation in a number of committees Informal ♦ ♦ ♦ Regular meetings between Private Sector organisations and relevant Ministries on sectoral issues Joint promotional activities Ad-hoc committees CSR could be taken in the agenda of the JEC as a major business endeavour to contribute to the socioeconomic development of Mauritius.4. project management..
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. and ♦ The technical assistance NGOs can provide to companies in project implementation. NGOs as Consultant partnership model Characteristics ♦ NGO is contracted for identifying target group needs. Limitations ♦ ♦ The efficiency of the program would depend on the professionalism of the NGO. The project(s) impacts(impact) on targeted groups. 128 .♦ The funding support for projects and/or overheads private sector can provide to NGOs. aptly identified by NGOs. 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. Such mutual assistance may take the form of partnerships as follows: 1. project concept development. and technologies transfer. should the NGO service delivery be contractual and remunerated.
NGOs as Strategic Partners partnership model Characteristics ♦ ♦ ♦ A working group including NGO staff members and representatives from the private sector is established. Limitations ♦ ♦ The working group may lack structure and roles and responsibilities may not be explicitly spelt out so that the partnership may suffer. NGOs as Project Manager partnership model Characteristics ♦ The management of the project is outsourced to an NGO. The partnership allows efficient deployment of resources. The partnership allows efficient deployment of resources. Benefits ♦ ♦ ♦ Both the private sector and the NGO focus on their competitive advantage. should the NGO service delivery be contractual and remunerated. The group may include government at least on the local level. Both the company and the NGO gain recognition for service rendered in the external communities.2. Such partnership contributes to the fund generation activities of NGOs. Benefits ♦ ♦ ♦ ♦ ♦ Both the private sector and the NGO focus on their competitive advantage. 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. The role of the government is limited. 129 . aims and mandates and principles. 3. These groups work on concept development and/or project implementation. based on its sectoral expertise. The project(s) impacts(impact) on targeted groups. Large-scale projects can be implemented when more than one player from the private sector team up. aptly identified by NGOs.
Vodafone developed a whole program around this called World of Difference and they implemented it in several countries. The company lid. Other innovative forms of corporate –NGO partnerships: . . Western Power in Australia teams up with the National Heritage Trust in a volunteer-based revegetation project. packages specific products with a pink lid that consumers turn in. the US technology group. Under the Leadership Fellows programme. . e. Already one hour per week can already be of big help to an NGO but the World of Difference program even funds a Vodafone employee being “deployed” to an NGO for six months to a whole year to help the NGO develop and strengthen its capacities. Examples United Way and the Save the Children (UK). One example of cause-marketing would be the partnership of Yoplait's "Save Lids to Save Lives" campaign in support of the Susan G. Employee volunteering programs – when the company organises volunteer involvement for its employees with an NGO. with more than 1500 volunteers planting native tree and shrub seedlings.Cause related marketing – when the company co-brands a product with an NGO and a (small) percentage of each product sold goes to the NGO.g. is sponsoring employees who live in Louisiana and Mississippi to work on a 21st Century Schools initiative that is rebuilding and improving educational institutions in areas that were affected by Hurricane Katrina.Secondment – when the company sends usually a senior or middle manager to help an NGO. painting the school etc.4. to improve communications or financial management of the NGO. or just to help out with its work depending on skills and interest.). Cisco. Komen Breast Cancer Foundation. and in turn Yoplait donates 10 cents for each 130 .Payroll giving – initiatives when the employees agree that a small part of their salary will be directed by the company to an NGO. usually some kind of event which is fun and helping at the same time (cleaning the beach.
who have been working together for years to design and implement training of children and young adults in life-management. each selected NGO gets two months and during those two months T-Com actively promotes them to its clients to call in. .4.5 Towards a three-sector partnership model A three-tier approach is suggested for this three-sector partnership model. in Hungary T-Com (Deutsche Telecom owned Hungarian phone company) provides a fundraising hotline to NGOs throughout the year. Or in another example.Joint project implementation – similar to the “strategic partnership” model.3 Government and NGO sector dialogue Government and civil society. 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). 8. JA organizes it and local Citigroup companies provide not only financial support but also teaching expertise as needed. enterprise development etc.the company actively promotes the NGO either through its regular services or in other ways and sometimes even matches the funds collected. which was initiated by the government to create employment and bring social justice but both other sectors are increasingly involved in its operation.g. Similar campaigns are done to prompt people to send text messages to raise funds for NGOs.. 8. 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. Within the Empowerment Programme there is a chance to further explore and encourage solutions based on three sector partnership.Corporate collections – similar to the previous but even more flexible . not just 131 .. 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. should engage in exploring opportunities for provision of funds and subsidies and/or capacity building support by Government. A case in point is the Empowerment Programme. through the Advisory Body and the MACOSS. A very good example for this internationally is the Citigroup – Junior Achievement cooperation. E. In every country where this is run. financial management. First.
housing or extreme poverty.. government endorsed structure. The “division of work” would not necessarily resort to the classic roles of the partners in relation to each other (i. The Charter will clarify in detail the membership of the Body. a Body with a clear Charter enabling the three-sector partnership.two-way engagements as is the current trend (i. the various roles and responsibilities. it would likely address an issue outside the competence of the Empowerment Programme. reporting duties. A small three-sector policy planning expert group could be set up and work out new methods One successful existing partnership is the Zone d’Education Prioritaire which regroups the UNDP. government = regulator. and based on the data would devise strategies involving all three sectors to address the identified root problems. the NGO sector and the Government can meet to discuss about economic and social opportunities and issues. caters for the special needs of the pupils. The group would of course set up its own internal modus operandi. Second. elect its leadership etc. the modus operandi. and includes the provision of a midday meal of bread. such as education.) 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 then determine the need for research and needs assessment in this area. cheese and fruit/juice to every pupil. (See the examples above on strategic 132 . Its work would be aimed at one priority area (at least initially) to be determined by the participants. take part in conducting or commissioning the research. may be instituted to provide a forum for the three-sector participatory process whereby the private sector. (However. to help reach the objectives in implementing government policies. 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. partnerships. Third.e. 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. 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.e. and address national development challenges. This approach could be applied to other initiatives as well. company = funder. its mission. and donor and NGO review mechanisms. its specific objectives. a more concrete area where reform is needed and where the actors can deliver tangible results. but with considerably less cost and bureaucracy than a permanent. the government making separate partnerships with companies and with NGOs to realize the Fund’s goals).
Technical assistance in implementation 3.Key mechanisms: 1. 8. 133 . fund raising and partnership o increased accountability (vision and results) o coordination. Registration Accountability regulations 3. tax incentives? JEC GOVERNMENT ♦ Needs focus on: 1. achieving more transparency and efficiency in its relations to its partners Key mechanisms: 1. Representatives from the private sector. Funding support. Corporate Governance code 3.1 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. Funds and subsidie 2. Pooling of funds 8. 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.5. IRS 2.2 Membership The Body would be made up of the following members: ♦ ♦ ♦ Representatives from the Ministries. communication. networking and self-regulation MISSING Key mechanisms: 1. 2. support for overheads 2. and Representatives from the civil society. Capacity building MACOSS support PRIVATE SECTOR ♦ Needs focus on: o Assistance in CSR design and implementation especially in extending the CSR culture beyond the top level of the organization o Finding more information on NGOs and more accountable NGO partners o Coordination Policy Round Table NGO SECTOR ♦ Needs focus on: o Capacity strengthening in organizational development. Finding competent partners in the private sector and NGO sector.5.
Administration staff. 8. ♦ ♦ ♦ ♦ Capacity development for all stakeholders. Operations staff and support staff will have to be recruited.5.4 The modus operandi Structure and operations We propose the following structure for the Body: Executive Committee Secretary General Administration – Liaison. Identify and prioritise social projects and issues for tripartite action. Representatives from NGOs. 134 .♦ Another issue pertaining to membership may be the chairing or co-chairing responsibility. Representatives from the JEC. b.3 Specific objectives The specific objectives of the Body would be to: ♦ Engage in policy dialogue on broad issues pertaining to sustainable national development. Identify and seek funding. It is recommended that an independent person. chair the Body. trusted and respected by each stakeholder. 8. and c. ♦ A Secretary General. and Finance social projects. Documentation Operations – Research and Finance Support staff ♦ The Executive Committee should consist of representatives from all three sectors: a.5. Representatives from the Advisory Group.
with milestones for project monitoring and post project review. ♦ Adopting a pooling of funds approach. Evaluation proposals. The targeted beneficiary group. the main advantage would be to have a large fund available for many small scale projects or larger projects. The Body may adopt the call of funds during the initial phase.CSR project initiation The three-sector partnership would identify social issues and draw up a list of priority areas for intervention. Private companies contribute a set percentage of their profits to the fund. etc The Body will evaluate various projects for part or full funding. approved projects. and these may include: ♦ ♦ ♦ ♦ ♦ Whether the area of intervention is a priority area or not. the major disadvantage of this approach is that should many projects get approved simultaneously. the amount of funds that need to be collected may be colossal. However. However. Project funding The Body may select any of two modes of funding project: ♦ Proceeding by a call of funds as and when required. The advantage of this approach is that funds are collected only when required so that there should be fund administration only (no fund management issues). 135 . The credibility of the NGO. would be the selection of the fund manager. ♦ ♦ The amount of funds brought in by the NGO. Project selection criteria will be established. These funds are then applied to This approach would require the management of the Another issue Commission may be designated to evaluate A Project project the funds to optimise cash flows. The project proposal. The major disadvantage of pooling of funds might be the lack of trust shown by private sector firms. and once trust has been built and instilled move to a pooling of funds phase. The fund required.
pending the instituting of the Body and finalisation of its Charter. The NESC’s mission is to: ♦ promote dialogue as a means to achieving consensus for social integration to keep pace with economic development. Enabling Body Initially. human and technical resources with a view to evaluate whether funds allocated have been judiciously utilised.Monitoring and review mechanism During the survey. and ♦ express its opinions for the and make of appropriate social recommendations and to Government. and ♦ Identifying strengths and weaknesses of projects and making recommendations (post implementation). proper voucher system and relevant authorities have been obtained before payment and whether funds allocated have been judiciously utilised. Ascertaining that appropriate books of records. ♦ Monitoring financial. development. the NESC can provide a temporary platform for the three-sector partnership given its mission and objects. this may be carried out during project evaluation phase). clear signals were obtained that transparency and credibility at the NGO level were a major concern for private companies. Transparency can be ensured through: ♦ ♦ ♦ For operations at the Body level. For specific projects implemented by NGOs. ♦ ♦ Training and supporting NGOs to improve their practices in reporting. an independent body Auditing the accounts of the Body. ♦ Ascertaining whether projects are being implemented in accordance with the agreement between the Body and the NGO (during project implementation). promotion integration national 136 . a resource person from the Body ♦ Assessing the cost effectiveness of the projects and identifying possible constraints that could impede implementation (prior to disbursement.
Furthermore. as well as a commission for economic affairs. The reform at individual sector level highlighted in Sections 8. ♦ undertake such studies as it deems fit and give its opinions and recommendations.3. ♦ ♦ examine and express opinions on any proposed legislation. 8.6 The Rodrigues case The policy framework approach with representatives of all three stakeholders to promote. Difficult communication. with a different implementation though. a commission for infrastructure. build consensus through a permanent and sustained social dialogue for a greater participation of civil society in the democratic process with the aim of ensuring that social harmony keeps pace with economic development. and promote industrial relations at large to ensure social harmony. 8. environment and sustainable development and a commission for social affairs and human resource development. and 8. physical resources. encourage.3 (Government initiatives). Different areas of partnership from those identified in Mauritius. ♦ ♦ ♦ Limited resources.4 (Reform at NGO level) are valid and applicable in Rodrigues as well: 137 .3. the major functions of the Council are to: ♦ ♦ undertake studies on socio-economic issues of national importance. ♦ formulate its opinions and make recommendations to Government regarding economic and social policies. The specificities of Rodrigues ♦ A small economy. both infrastructural and human. and a small civil society.2 (Private sector initiatives). given the specificities of the island.3. a small close-knit business community. The NESC already has in place a Secretariat and a research team. facilitate and support CSR initiatives within a broader social and economic integration so as to address national development challenges is valid in Rodrigues as well.
formal representation at individual sector level would require rigid structures and deployment of resources. and need identification. the following form: ♦ NGOs represented by the Rodrigues Council of Social Service (which should aim to identify. reduced intervention overlap. with regular tripartite partnership working sessions to serve as a forum for discussion. reduced intervention overlap. Two sector partnerships can also be applied in Rodrigues as highlighted in Section 8. Recommended informal representation may take 138 . Three sector partnership Given the small size of the island and the close-knit communities. register and support NGOs in Rodrigues).♦ More coordinated and concerted CSR actions leading to rationalisation of resource utilisation and better projects’ complementarity. and ♦ Government representatives from the different Commissions to attend meetings as appropriate. skill level and knowledge level. and role sharing. ♦ Adoption of a strategic approach to implementing CSR by the private sector with private companies mainstreaming CSR in management practice.4. A more informal approach may be warranted in Rodrigues. coordination in project development and implementation. ♦ Private sector represented by one representative from a large company and one from a SME. ♦ More facilitation by the Government though the various Commissions in Rodrigues: Arts and Culture Social Security Education and Training Youth and Sports Health and Others ♦ Capacity building of NGOs at the attitude level. classify. and ♦ Networking of NGOs leading to rationalisation of resource utilisation and projects’ synergy. experience sharing.
Assist NGOs by building capacity Private Sector NGO sector Implementer role 1. Manage and implement projects 139 . and chart out a capacity building plan specifically for Rodrigues during regular missions to the island. Design CSR strategies and initiatives to contribute to development challenges 2. Facilitator role 1.2) 3. Assist NGOs to implement projects approved by relevant parties in various ways (Section 8. Facilitates: . Engage in needs assessment 2.project development: based on needs assessment findings of NGOs. the tripartite partnership would function as an independent cell in Rodrigues.project implementation: assist NGOs and private sector to implement projects in selected thematic areas Government Support role 1. It is specifically recommended that the specialists be those who have been engaged and active in the Mauritian context. The specialists would support and train interested parties from all three sectors. provide assistance in developing an action plan and/or assist in matching NGOs needs with privates sector CSR initiatives . Seek appropriate support from private sector 3.4.♦ It is recommended that specialists from Mauritius facilitate the tripartite partnership initially. Eventually.
environment and sustainable development. government assistance in such areas. about NGOs activies in such areas. etc). poverty alleviation. ♦ Companies have demonstrated interest in partnering up with other stakeholders in the future in a number of thematic areas among which the following come first: education. health and quality of life. the greater the lack of information they face. health and quality of life. The more companies wish to intervene in one area. . environment and sustainable development. ♦ There is general lack of information (about the area of focus. 140 . Popular thematic areas are: education. The two main areas where companies have reported lack of information are education and environment and quality of life. poverty alleviation and community development. community development and sports.9 Thematic areas of potential partnerships Findings The survey has revealed the following: ♦ Corporate Mauritius intervenes in a number of areas for CSR activities.
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% 21% 21% 24% 21% 19% 17% 21% 20% 15% 10% 6% 14% 13% 13% 14% 13% 10% 8% 6% 5% 2% 2% 0% 0%0% 5% 3% 2%2% 2% 0% 0%0% 2% 0% 0% 5% 3% 3% 2% 6% 5% 3% 2%2% 3% 2% 0% 2% 0%0% 6% 5% 5% 5% 8% 6%6% 5% 0% Training and human resource development Community development Religious and cultural Poverty alleviation Health and quality of life Drugs and alcohol Education Material help and support Environment and sustainable development Disabled Natural and other disasters Youth Gender and family Animal welfare Advocacy Children Elderly Thematic areas Current areas of intervention Areas where there is a lack of information Areas of potential partnership 141 Criminality Sports .Thematic areas .
Health and quality of life. Priority areas for sponsorship are sports. health. Areas where SMEs lack information are education. ♦ ♦ Sponsorship by large companies are mainly in sports and education. education. The survey has clearly indicated that the four areas in which companies. Areas of potential partnership are education. ♦ Areas of potential partnership include: education.♦ Large organisations carry out philanthropy in the following areas: health and safety. and religious activities. large and small. environment and poverty. etc). sports. education. Education. and health. there could be a national workshop to match private sector initiatives and areas of interest and NGOs’ sector of intervention. the companies conduct philanthropic and sponsorship activities in the following areas: environment. alcohol. The Rodrigues Case During the first mission of the specialist in Rodrigues. ♦ In Rodrigues. This may be carried out during the next national workshop where companies would meet with relevant NGOs. This “demand and supply” matching would allow a number of significant 142 . Priority areas for philanthropy are community. Environment. environment and social flaws (drug. and community (mainly sports). Immediate actions Immediate actions with respect to a matching of areas of CSR interest reported by companies to the needs of NGOs (matching demand and supply) could be envisaged pending the elaboration of the three-sector partnership model as developed in Section 8. environment. c.5. teenage pregnancy. poverty. 2. education. For SMEs. b. Poverty alleviation. poverty. 3. leisure. d. health. community. religious activities. poverty and health. have shown the utmost interest are: 1. and 4. priority areas are: a.
equipment. alcoholism. and 3. pharmacy) and quality of life (water supply). Education (lack of teachers) 143 .partnerships to take form and bear fruitful projects. Social ills – teenage pregnancy. juvenile 2. delinquency. Health (lack of doctors. interest have been noted as follows: Three major thematic areas of 1.
This will allow rationalising resource utilisation. For CSR to become the national development tool. Government and private sector level – exploring opportunities to encourage more CSR to contribute to the national socio-economic development. and f.10 Conclusion CSR is not embedded in the corporate culture in Mauritius. Firstly. Private sector and NGO level – exploring the following a. in the civil society and at government level. 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. 3. Government and NGO level – explore opportunities for provision of funds and subsidies and capacity building support by Government. corporate collections. Partnerships. employee (of private firms) volunteering programs. cause related marketing. c. the three players should build on existing good practices and boost the potential of already establish initiatives to advance three sector partnership. b. However. A myriad of two-sector partnership models exist which can adopted immediately at the following levels: 1. A three phased approach is recommended to implement three sector partnership bringing together the Government. funding support for projects and or overheads of NGOs. with NGOs as Consultant for thematic areas. secondment in private firms. reduce intervention overlap and facilitate information and experience sharing. it is important that coordinated and concerted efforts be undertaken at the private sector level. 2. 144 . or NGOs as Strategic Partner for long term joint project implementtaion. NGOs as Project Manager for specific projects. e. the private sector and NGOs . d. payroll giving. whether at a two sector level or a three sector level should be well thought out. 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.
pending the institution of the more permanent body to oversee CSR. 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. 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. 145 . It is also recommended that the NESC be designated temporarily as the body with this responsibility initially.Secondly.
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