Many Saccos have embraced Corporate Social Responsibility (CSR) which entails operating in an ethical and sustainable way and dealing with environmental and social impacts.
This means a careful consideration of human rights, the community, environment, and society in which it operates.
It’s incredibly important that a cooperative society operates in a way that demonstrates social responsibility. Although it’s not a legal requirement, it’s seen as good practice for the institution.
Research has shown that a staggering number of Sacco members expect their societies to operate responsibly to address social and environmental issues. Furthermore, majority say they seek out responsible products wherever possible.
CSR demonstrates that a Sacco takes an interest in wider social issues, rather than just those that impact profit margins which will attract members who share the same values. Therefore, it makes good business sense to operate sustainably.
The benefits of CSR speak volumes about how important it is and why Saccos should make an effort to adopt it in their businesses.
Members assess cooperative public image when deciding whether or not to join a Sacco. Something simple like staff members volunteering an hour a week at a charity shows that the Sacco is a brand committed to helping others.
Increased brand awareness and recognition. If a Sacco is committed to ethical practices, this news will spread hence more people will hear about its brand.
By embracing CSR, a Sacco will stand out from competitors in the sector and be able to establish itself as a company committed to going one step further by considering social and environmental factors.
If a society is using sustainable systems, they should shout it from the rooftops. Furthermore, they should show their efforts to local media outlets in the hope of some coverage. Members and would be members will follow this and engage with their brand and operations.
Similarly, Saccos also need to ensure that their employees know their CSR strategies. It’s proven that employees enjoy working more for a company that has a good public image than one that doesn’t.
Furthermore, by showing that a society is committed to things like human rights, they are much more likely to attract and retain the top members of staff.
There are also a range of benefits for Sacco employees when the organization embraces CSR. Their workplace will be a more positive and productive place to work.
By promoting things like volunteering, they encourage personal and professional growth.
The competition in the Sacco sub-sector is stiff hence it can be quite difficult for a Sacco to set itself apart in the eyes of members. However, Saccos that take social responsibility seriously can win members, as well as develop a platform to market and earn their clients’ attention.
Simply put, social responsibility can help people see a cooperative as a positive force in the society.
Now more than ever, there is a growing importance for Saccos to ramp up their focus on social responsibility.
By David Kipkorir
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