‘The business of business is business’, said Milton Friedman, who advocated the notion that the role of corporations is solely for the purpose of creating wealth and maximising shareholder profit.  Recent corporate scandals, however, have led to an increase in shareholder pressure, deeper scrutiny of corporate governance and ethics as well as a wider recognition of the impact businesses have on a community.  All of which has increasingly focused attention on the practice of corporate social responsibility (CSR).

For Africa’s developing economies, irresponsible business practices and policies can have devastating social and environmental effects.  Many corporations operating in Africa now take proactive steps to mitigate the potential risks posed by their products. The development of CSR benchmarks and socially responsible investment indices demonstrate how the issue of responsibility has now become a critical factor in investment decisions.

Realising that CSR makes for good business relations and, therefore, makes business sense, many multinationals in Africa recognise that the pursuit of profit alone is not enough and have moved well beyond the sphere of business to tackle a number of social challenges including health, education and the environment.  As Africans rebuild their economies and institutions, the active participation of local and international business – whether for genuine reasons of partnership, enlightened self-interest, or both – is vital in providing opportunities and resources.