To gain goodwill, companies engage with the public and their customers using various platforms and strategies, one of which is the execution of Corporate Social Responsibility (CSR) projects and programs. Many Nigerian organizations have embraced CSR initiatives.
However, public relations and CSR experts argue that many corporate CSR efforts are more about boosting profitability than genuinely addressing community issues. They often classify such projects as philanthropy rather than true CSR. Companies frequently execute programs that provide immediate returns and media coverage, and they tend to withdraw resources when these efforts do not yield the expected benefits.
At a recent event recognizing companies dedicated to CSR in Nigeria, the award promoter highlighted the significant increase in CSR spending, noting a 1000% growth over the past decade. Mr. Ken Egbas, speaking at the SERAs Awards, mentioned that Nigerian firms spent about N47.8 billion on CSR programs last year, a stark contrast to the N600,000 spent when the awards began eight years ago. Egbas emphasized that CSR has become essential for businesses to survive and thrive in society.
Despite this increase in CSR spending, consumer complaints about poor services and product satisfaction have risen. True CSR should start within the organization, reflecting in the quality of services and products offered to the market. Ini Onuk, Lead Consultant/CEO of ThistlePraxis Consulting Limited, observed that many organizations, though well-intentioned, are misguided and still focus on philanthropy rather than integrating CSR into their core strategies. She noted that while some companies are retroactively adopting CSR, they avoid reporting their activities to escape increased scrutiny and stakeholder demands. Onuk stated, “There are very few organizations that are retroactively integrating CSR but do little or nothing to report their activities. This is because they want to shy away from a false perception of increased scrutiny and expectations, which may be accompanied by more demands from stakeholders.”
Onuk argued that without regulation on CSR practices and reporting, the impact remains limited. “CSR is yet to attain the needed level of compliance to drive widespread impact,” she said. She called for a national framework to guide organizations across all sectors in compliance and reporting standards to maximize the sector’s potential and contribute significantly to sustainable development.
Bolaji Abimbola, Principal Consultant at Integrated Indigo, emphasized that CSR should not come at the expense of quality goods and services. He argued, “There is no amount of CSR project that could help project good public perception and image for any company offering poor services to its customers. I think it is a case of misplaced priority for organizations to neglect their core responsibility to their customers or consumers by delivering poor value and quality service and spend heavily on CSR.”
Lekan Babatunde, another public relations practitioner, highlighted the incongruity of rising CSR spending amid declining primary service quality. He warned, “For me such situation will always have an adverse effect on the company in the long run. This becomes evident at the brand’s moment of truth. This is the critical time when the consumer takes the decision because he experiences what the brand is or offers first hand, unmediated.”
He stressed that customer service is a primary responsibility, while CSR is secondary, and businesses must prioritize the former to ensure long-term success and meaningful CSR impact. Babatunde concluded, “Customer service is a primary responsibility expected from organizations to its customers while CSR is secondary. You do not put a cart before the horse. It can’t and would never work that way.”