‘Companies should not look at CSR as a cost’

There is varied understanding and application of corporate social responsibility (CSR), especially among organisations. In this interview, Audrey Joe-Ezigbo, executive director, Falcon Petroleum Limited, the company that recently empowered 58 women in different vocational skills, explains that CSR is how organisations embed themselves in a community while creating developmental plans for staff.

As an executive director in Falcon, what defines CSR?

Let me take it traditionally, because if you look at CSR, there has been evolution in thinking. We have gone through certain activities that companies claim as CSR to show presence. That is part of CSR, but does not qualify as full definition of CSR. The concept for Falcon Petroleum is saying we are embedded into the community. It is saying we are a citizen in a community, understand the challenges and try to involve it. CSR for us is building up the people and looking at how we can be part of the community. CSR is also looked at from internal perspective of how our staff is treated and not just that we are paying salaries. It means what kind of policies we have in place and developmental plans for the staff. The family of my staff is also part of the company. Most of what we call CSR is the manifestation of the understanding of what it should be.

Some think that your CSR would have been in the area of your operations, but recently you empowered some women in different vocations, what do you think?

It doesn’t have to be in the area of our operations. As gas distributors, we are enablers of other industrial sectors. Those industries are fed from the available manpower that is present in Ikorodu, and they are able to operate peacefully because the community is at peace with them. You are able to be at peace with a community if they understand that the companies are not there to milk them to invest back on them. Some think they are giving when they pack unused clothes and give out, but that is not actually giving because it is seen as giving out what you are not using. If we go to Ikorodu and get involved in CSR of training welders because we need them, that will be selfish.

What was therefore the objective of training the 58 Ikorodu women?

The objective was to actually empower the women in order to create an economic ripple effect. Some of those women will be able to contribute financially to the family and be able to empower the children. At the end, the whole society is benefiting from it because if you train one woman you train a nation. To a great extend, a person’s thinking is informed by his/her mother because most of the time men are in the field. Such influence in the development of the children psyche is equally influenced by the quality of the mother’s education. When a woman cannot think beyond a certain level, it affects the child.

Sustainability in CSR is critical, how do you therefore want to sustain the 58 women empowerment programme?

We have put in place a sustainability model because we recognise that if you just train them and give them packs, there is no guarantee that they would not abandon the training because of some other pressures. First, there is partnership with vocational institute to engage them in constant monitoring and secondly we have created a regular meeting forum with them with facilitators to teach them various angles of running businesses. Stanbic IBTC Bank has agreed to partner with us on the sustainability drive by providing resources and managing the projects with the women in order for them to take their efforts to the next level. One of the graduants said she had been able to engage other people in her business already. When we are having corporate events we could engage some of them in event management, decoration and catering.

Why was the CSR initiative devoted to women only and how did you select them?

The top management of the company is passionate about women. My CEO is passionate about the development of women and he is the only child. His mother was entrepreneurial in her skills and who was able to play a critical role in the development of the family. He has always said that the women are critical people that must be managed well to get the best out of them, because they have potential for greatness. When he mentioned that we should do something for women I quickly bought into it because I love the idea. On the selection of women, it was done in conjunction with the community. There was a criterion which includes women who had potential to grow in the business and those who were challenged. The selection was a representation of different tribes and not only Ikorodu indigenes, but those working and living in Ikorodu.

Could you let us into other areas of CSR Falcon Petroleum has been involved?

When we first came in Ikorodu, we had the first engagement with the community and we started with the children. In 2006, we renovated some dilapidated schools but the community also came up with a request to complete their town hall. We took if off from where they stopped and build an ultra-modern town hall for them. We have done some erosion control and road rehabilitation projects for them.

In every investment there is cost and benefits, what have been the costs and benefits to Falcon

In terms of cost, it cost several millions of naira, but at Falcon we don’t talk about cost. Talking about cost takes away the essence of the project. There is clear provision of our budget for CSR. This year we have exceeded the budget. On benefit, there is conducive and peaceful working relationship with the community. The community sees us as partners. When there is agitation, some people in the community come to our defence because we are part of them.

Would you say some companies are involved in CSR to protect themselves from possible community attack or it is really giving back?

When you do good works, good works come back to you. Whether that is a primary motivation for doing the good work is another case, but it will show because when challenges come and in attempt to resolve them, it will reflect the true intention of the projects.

Several billions of naira has been invested in CSR by various companies in Nigeria, there appears still to be a yawning gap, why is it so?

My view is that those who have invested are a fraction of those who have not. For instance, there are several millions well structured companies in Lagos State. How many of them are doing one thing for communities. Some smaller companies feel CSR is for big companies. When they realise that even at their smallness they could do something to give back. If every company thinks how it can add value to the society, it will make a difference. The ripple effect of the aggregate contributions by all companies will create great impact. There is lack of understanding of CSR by many companies, but the awareness is though growing in the last three years. Companies should not look at CSR as a cost effect, if it is handled well, there is always return of benefit which may not be in cash. At every level, there is something a company can do to make a positive impact on the environment even if it is legislated.

Could you let us in to the diversification programme of your company?

First Falcon Petroleum, a wholly indigenous gas distribution operator in the downstream sector came out of a dream in 1994 to start a business and make a difference. Traditionally, Falcon Petroleum has been a company that has been in the EPC sector. When we entered into venture capital in 2005, our partners asked us to focus on gas distribution. Going forward, we want to consolidate in our EPC project, which we had started in 2011. We are moving into the maritime sector and deepen our involvement in the gas sector both in terms of expanding the distribution to other areas. We are also looking into West African markets for new opportunities.

How compliant is Falcon to local content language?

We are a compliant before a compliant provision. The only challenge we have is in terms of infrastructure component where we import certain things. We have been in discussion with our international partners to see how we do a local assembly of some components. If we start with assembly we can look at the possibility of manufacturing them here.