Philanthropy On the Rise in Pakistan: Whither CSR?

Over the years, I have been struck by the inability of a segment of the corporate sector in Pakistan and almost all the bureaucrats, to distinguish between philanthropy and corporate social responsibility (CSR). While one can expect bureaucrats to be lost betwixt the two (as they are with most other things), I find myself flummoxed for an answer as to why otherwise smart corporate managers do the same. Discussions on CSR often immediately veer off into talk of donations to one charity or the other; or this madrassa or another. This tendency to equate donations and charitable giving with CSR is stronger amongst local and smaller companies and can perhaps be linked to the ingrained religious concepts of giving and sharing of wealth, but it is also evident in some managers at MNCs and larger local firms. More importantly, in my view at least, it has clouded both the dialogue and the practice of CSR in Pakistan.

To my mind, this represents--and stems from--a failure of education and awareness about CSR. As a result, while philanthropy in general has doubled in value from Rs. 70b in 2000 to Rs.140b this year and as corporate philanthropy has seen a similarly impressive growth--touching Rs. 1.67b in 2007 from a low base of Rs. 228m in 2000--the growth of CSR in Pakistan does not compare favorably. One measure of this is that membership in the Pakistan Global Compact network comprises only 83 members. The number drops to only 55 if the local network's own website is to be trusted.

While there is nothing wrong with corporate giving, it is a subset of the broader notion of CSR. And as the global turmoil caused by irresponsible behaviour of managers across the world points to, the need of the hour is for corporate responsibility, not giving alone. Judging from the evidence, it appears Pakistani businesses may be taking the easy way out by doling out large sums of money, rather than adhering to ethical and more responsible modes of corporate action, right from sourcing to fair wages to better working conditions and occupational safety and health practices to using cleaner,environment-friendly production technologies.

The fact that this is not done, makes one wonder: is the rise in corporate philanthropy due to mere ignorance? Or is it a sort of corporate qisas and diyat--or blood money?