CSR should contribute to business development: ILO

Lalitpur, July 19: The International Labour Organization (ILO) has said that the Corporate Social Responsibility (CSR) should contribute to the business development, not on social philanthropy.

“The true CSR should be focused on job creation, local economic development, technology transfer, human capital development and business linkages. These elements support in making both the business and the society better,” said Yukiko Arai, senior specialist of Multinational Enterprises (MNEs) and Enterprise Engagement Unit of Enterprises Department at the ILO, Geneva.

Addressing a seminar on ‘Labour dimension of CSR’ organised by the Confederation of Nepalese Industries (CNI) here on Wednesday, she said that the CSR should have ‘business sense’.

According to her,poor foreign direct investment (FDI) could erode human capital.

Saying that some MNEs might not contribute to local economy as they don’t procure locally and hire local people, she maintained that through the global supply chain, many developing economies are integrated into the global economy.

ILO country director for Nepal Dr. Richard Howard urged the government to create better environment for small and medium enterprise (SME) development and inclusive business for the sustainable economic development.

“The government and private sector should work hand in hand for this,” he said.

CNI president HariBhakta Sharma said the large businesses in the country wanted to work with the SMEs to create a better value chain and sustainable business, and engage more youth.