The View from the Boardroom - UNDP Trinidad and Tobago

The View from the Boardroom - CEO Study on Corporate Social Responsibility in Trinidad and TobagoCHAPTER 2Government, Consumers and Employees – The Drivers of CSRGovernment, Consumers andEmployees – The Drivers of CSRCHAPTER 2Senior managers recognise the important role that national governments can playin the development and promotion of enabling frameworks for CSR. 51.5% of allCEOs interviewed for this survey mentioned governments as the second mostimportant stakeholder group driving CSR within the local business communityand raising the profile of corporate sustainability in Trinidad and Tobago. Whilethis figure represents just about half of all respondents, a remarkable 75.8% ofCEOs would even welcome government intervention thus embracing the idea of asignificantly stronger and more intrusive configuration for public involvement inregulatory affairs. This suggests a rather radical shift away from the traditionallyskeptical attitude of members of the business community with respect togovernment involvement in the sustainability-relevant aspects of the markets. Italso seems to point at a change in the widespread conviction of entrepreneurs andbusiness owners that companies should be able to voluntarily determine the levelof their social and environmental commitment.Generally, the way by whichgovernments can drive corporateresponsibility rests on both voluntaryand mandatory approaches andencompasses roles as enabler,exemplar, enforcer and partner. 21While voluntary buy-in for the ideaand concept of CSR appears to bethe least confrontational and hastherefore often been the preferredmode of action for managers, theestablishment of binding legislativeframeworks allows for compatibilitywith international norms, creates alevel playing field for competitionand determines governmentalexpectations for corporate behaviour.In the words of the authors of a recentstudy on the role of governments inCSR, “voluntary initiatives – whichby definition are not legally binding– should never be a substitute foreffective regulation, but can be apowerful complement.” 22 WhileWillard P. Harris, Managing Directorof COLFIRE makes more generallythe point that “the government is afacilitator”, Govind Maharaj, CEO ofEastern Commercial Lands Ltd. prefersa more balanced approach when hesays that “a bit of moral suasion, abit of government intervention and abit of partnering with government isrequired”. In Trinidad and Tobago, thegovernment itself seems to increasinglyrealise the value that its involvementWould you welcome government intervention as adriver for CSR?24.2%75.8%YesNo21 See UNDP Report Caribbean Regional Conference ‘Corporate Social Responsibility – Creating value through Public-Private Partnership’, UNDP Trinidad and Tobago, p.12.22 The Role of Governments in Promoting Corporate Responsibility and Private Sector Engagement in Development, United Nations Global Compact and Bertelsmann Stiftung, p.17.37