29 Nov, 20231 min read

PCB Develops a Corporate Social Responsibility (CSR) Harmonization Policy

PCB Develops a Corporate Social Responsibility (CSR) Harmonization Policy

[Photo Credit: HDC (Urbanco)] PCB, in partnership with Transparency Maldives, has formulated a draft Corporate Social Responsibility (CSR) policy. This collaborative effort is designed not only to enhance the efficiency and competitiveness of privatized entities but also to contribute to sustainable development, social equity and justice, and environmental stewardship. The measure of success for privatization and corporatization, as emphasized in this initiative, extends beyond economic indicators to include the positive impact on communities and environments associated with these entities. CSR policy will also be aligned with ESG pillars and promotes sustainability.

In pursuing privatization and corporatization of state-owned enterprises, the lack of a standardized CSR framework can result in inconsistent practices among different entities. Recognizing this challenge, there is a growing acknowledgment of the necessity for comprehensive CSR harmonization policies. These policies aim to establish a cohesive and transparent approach to corporate responsibility, ensuring that privatized and corporatized entities play a positive role in society.

During the drafting phase, these policies primarily focus on facilitating the smooth and transparent operations of the entities involved. While acknowledging that some State-Owned Enterprises (SOEs) already have existing CSR policies, the emphasis is on creating a unified and standardized framework to guide all entities undergoing privatization and corporatization.

The development of this policy follows an extensive study involving in-depth interviews with SOEs, analysis of laws and regulations, and a review of international best practices related to CSR. The suggested approach for SOEs includes establishing a CSR strategy or policy that clearly articulates the company's commitment to social and environmental sustainability. This policy should align with the broader business strategy, goals, and values of the company, and it should be developed through a participatory process that takes into account the perspectives of stakeholders. Furthermore, the policy or strategy should be viewed as a dynamic document, subject to regular updates through consultation with both internal and external stakeholders. It is intended to make this CSR policy effective from January 2024 onwards.