Africa Business Leaders Urge Continent’s Firms To Adopt Shared Value For Sustainability

By Jean Pierre Afadhali

On Tuesday 4 July African business leaders from some of the continent and global companies have called on fellow business leaders and companies to embrace Shared value for their businesses’ sustainability and impact on societies and environment where they operate.

A gathering known as CEO Connect Forum brought together business leaders from various companies at Strathmore Business School in Nairobi, Kenya to discuss ways to embrace Shared value, a business practice that involves policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates.

According the forum organisers (Strathmore Business School and Shared Value Africa Initiative) traditional models of Corporate Social Responsibility (CSR), Citizenship, and Sustainability often relegate social and environmental issues to the periphery of corporate strategy.

“This approach undermines both the business's potential for positive societal impact and the significance of social conditions for economic success,” The organisers said in a news release.

Several CEOs and business leaders from Africa discussed the importance of adopting shared value practice in their businesses and how it leads to sustainability and creates social progress. Business leaders also talked how their companies practice shared value in their operations.

According to Dr Barbara Jansen Vorster, Communication and stakeholders and stakeholders Advisor, Gautrain Management Agency from South Africa noted that shared Value is in African culture. She added it is part of Ubuntu Philosophy popularly known in South Africa. “We can only prosper if our neighbor prosper,” she explained during a panel discussion.

Geoffrey Odundo, CEO of Nairobi Security Exchange noted the financial firm champions sustainability and and society’s inclusion in the company’ business. “We believe that for a company to succeed they have to be with community,” said Odundo

While business leaders explained the importance of shared values, some observers noted that inequality is one of the results if companies don’t create values for all. Dr Amit Kapoor from Shared Value India Initiative noted that the main reasons for Bexit was inequality. Dr Kapoor further noted in his speech that some of multinational companies operating in Africa rarely embrace shared value as a small part of their profit remain in Africa.

According Dr. Kapoor only 7 percent of money generated by a Swiss multinational drink and food processing conglomerate it come to Africa. This publication did not name the company because the statement has not been independently verified. “Farmers will always feel left out,” Dr Kapoor stated adding “We need to change business models.”

Speaking on a panel Steve Kiptinnes, Chief Corporate Affairs Officer, Safaricom PLC noted that running a responsible business involves turning “our social challenges into business opportunities”. He cited M-pesa as one of products that many people have benefited and explained it is used to offer others products that the society benefits.

Despite importance of Value creation of all and shared value business role in sustainability, it has been noted that Medium and Small Businesses are lagging behind in embracing shared values amid challenges they face that prevent them for adopting policies and practices that promote shared value.

African Business leaders have urged companies operating in Africa to adopt shared value to solve the problems the continent is facing and build sustainable businesses in Africa.

Kenya is set to host Africa Shared Value Summit in October 2024, the last physical forum took place before Covid-19 Pandemic in 2019.

“We need to find more opportunities to not just share but also lobby and influences more businesses to do this [ shared value] and across the continent,” Said Vuyo Lutseke, Executive Director, Shared Value Africa Initiative.