Many businesses pursue corporate social responsibility (CSR) that can best be termed pet projects. One big company that has made a bold move to improve the condition of its host community is LG Electronics, writes TONIA ‘DIYAN.
LG Electronics is a global leader and technology innovator in consumer electronics, mobile communications and home appliances. It is also one of the worlds’s leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and refrigerators.
Apart from vigoriously engaging in commercial activities, it is also involved in corporate social responsibility in its host communities to make life worth living. Some critics may have argued that the practice of Corporate Social Responsibility (CSR) by some organisations is one that primarily seeks to promote the interest of the business rather than their host communities, companies. Companies such as LG Electronics have sincerely put into consideration the developmental needs of the communities in which they operate and have taken concrete steps to address those needs. Such organisations go beyond the primary objective of making profits for their shareholders to build capacity for sustainable livelihoods in the communities.
They respect cultural differences and find business opportunities in building the skills of employees and that of their host communities. For such organisations, addressing the developmental challenges of their host communities is equivalent to sustainable business.
The technological revolution of the past 150 years has given people around the world easy access to everything from smartphones to life-saving medical devices. Despite the progress that has accompanied futuristic technology to so many homes, technological revolution has had a negative impact on the environment; our emerging markets still lag far behind their developed peers.
As a leading business in Korea and around the world, LG Electronics has long been dedicated to using its influence to bring attention to most pressing issues, particularly those that require global response. LG strives to contribute to inclusive growth and sustainable development everywhere that it does business. To realise its lofty goals, the company has invested in a number of corporate social responsibilities (CSR) activities, especially in efforts to protect the environment and expand access to education by leveraging the core strengths of its business model.
In line with its drive to contribute to raising the standard of education in Nigeria, LG Electronics recently opened a Commercial Air Conditioning Academy and awarded scholarships to 10 meritorious students of the faculty of Engineering of the University of Lagos (UNILAG). With the aim of enabling the students have up-to-date skills and training in commercial air conditioning. It has also provided Engineering students of the university with necessary skills and training .
In order to effectively respond to global issues, the company abides by three principles, which govern the operations of its corporate social responsibility initiatives. First, it strives to gain consumer trust and encourage stakeholder participation through CSR programmes that are specifically designed to address the specific local issues that are important in each market. Second, the company expands the impact and range of its contributions by utilising its unique products and technologies. Third, it seeks to engage communities and bring about change at the local level by promoting employee participation through the donation of time, talent, and money.
Yearly, LG electronics performs a thorough research to know the impact of its CSR initiatives on its business operations and the society at large. Based on these results, it continuously search for innovative ways in which it can effectively improve on the company’s core competences and strengths.
Throughout 2014, LG Electronics engaged in a wide range of initiatives designed to give back to communities where it operates. The company made a total of South Koprean Won Rates (KRW) 10.4 billion in philanthropic donations and earmarked approximately KRW 79.5 billion for CSR programmes. Charitable donations accounted for 11per cent of LG’s domestic philanthropic activities in the same year, while CSR programmes that were integrated closely with business projects made up 12 per cent. Community investment made up the remaining 77per cent. When broken down by development targets, 44 per cent of LG’s contributions were directed towards environmental protection, 19 percent towards supporting cultural programmes, and 16 per cent towards poverty eradication.
Also in 2014, an incredible 71 percent of the company’s overseas spending on social contribution programmes was directed towards CSR marketing. A bulk of this spending (61%) was allocated to local cultural programs. The company’s renewed focus on CSR activities over donations resulted in a worldwide net employee participation increase of 80,000 (out of 220,000 total employees).
The scholarship scheme, which is in its third year, is conducted annually by LG as part of its CSR activities with the sole aim of empowering young people as well as developing the educational sector, ensuring that youths who are the future leaders are adequately empowered with the required funds and assistance to enable them achieve their dreams and aspirations.
Speaking at the opening ceremony of the Academy, Managing Director, LG Electronics West Africa operations, Mr. Seonghak Kim said: “As a socially responsible and purpose driven organisation, LG Electronics believes that in order to get the best out of students, the right learning environment ought to be created, which is what informed the establishment of the LG Commercial Air Conditioning Academy in the University of Lagos.
Indeed, we believe this will go a long way to boost the intellectual and technical capabilities of the students.
“This scholarship is being awarded to 10 students of 400 and 500 levels from the Faculty of Engineering who emerged as best students after a careful selection by both the university authority and LG Electronics based on their Grade Points of 4.0 to 5.0, which made them stand out from their colleagues.”
Also speaking at the occasion, the Vice Chancellor, University of Lagos, Professor Rahamon Bello said: “on behalf of the University of Lagos, we are highly appreciative of this gesture from the people at LG Electronics- for counting us worthy to be the site for this iconic academy.’’
