EthiopiaArticleInvestment
Supporting Company Clusters to Improve their Responsible Business Conduct (RBC)
Responsible business conduct (RBC) and community engagement are critical components of sustainable business practices. However, for many companies, implementing effective RBC and community engagement initiatives can be a challenging task. This was the case for three cutting companies that approached TRAIDE for guidance on how to improve their RBC and community engagement practices.
The problem faced by the cutting companies was a lack of collaboration and understanding of the needs and concerns of their surrounding communities. They recognized that to enhance their RBC and community engagement practices, they needed to work together and establish a governance structure that facilitated their collaboration. They also needed to recruit a dedicated CSR manager, undergo necessary due diligence processes, and develop a prioritized action plan to guide their efforts.
TRAIDE stepped in to provide guidance and support to the cutting companies in their efforts to improve their RBC and community engagement practices. The solution presented by TRAIDE focused on establishing a structured and effective CSR management system that prioritized community engagement and stakeholder communication.
The first step in this process was to establish a governance structure that enabled the cutting companies to work together as a cluster. This governance structure helped to facilitate communication and collaboration between the companies, allowing them to pool their resources and expertise to better address community needs.
TRAIDE also assisted the companies in recruiting a dedicated CSR manager who was responsible for overseeing their CSR initiatives. This manager was trained in stakeholder engagement and community needs assessment, allowing them to effectively engage with community members and identify their needs and concerns.
In addition, the cutting companies underwent necessary due diligence processes to identify and address any potential risks associated with their operations. This helped to ensure that their CSR initiatives were aligned with international standards and best practices, and that they were operating in an ethical and sustainable manner.
The next step was to develop a prioritized action plan that guided the cutting companies’ CSR initiatives. This plan focused on addressing the specific needs and concerns of the surrounding communities, and included initiatives such as environmental sustainability, health and safety, and community development.
Through their efforts to enhance their RBC and community engagement practices, the cutting companies were able to better understand the needs and concerns of their surrounding communities. They also improved their external communication and transparency, promoting accountability and trust with their stakeholders.
As a result of their efforts, the cutting companies were able to improve their social and environmental impact, build stronger relationships with their communities, and operate in a more sustainable and responsible manner. The establishment of a community representatives committee to work with the companies was a particularly positive outcome of the initiative, as it allowed for ongoing communication and collaboration between the companies and the community.
Overall, the case of the cutting companies at Koka demonstrates the importance of collaboration, governance, due diligence, and communication in enhancing RBC and community engagement practices. The solution presented by TRAIDE helped to establish a structured and effective CSR management system that prioritized community engagement and stakeholder communication, leading to positive social and environmental impacts and sustainable business practices. By prioritizing RBC and focusing on the needs of their stakeholders, the cutting companies were able to create a sustainable and mutually beneficial business model.
