CSR in Trinidad and Tobago

Posted by Karel Mc Intosh
November 7, 2006
To whom much is given, much is expected
To whom much is given, much is expected; it’s an old yet regularly used line, and one that is especially pertinent to the concept of corporate social responsibility. Public relations theory credits the closer association between CSR and public relations to the increased strategic scope of the public relations function and its responsibility for representing stakeholders and managing relationships.

In Trinidad and Tobago, the discussion about corporate social responsibility (CSR) is still in its infancy. Similarly, a formal approach to CSR is relatively new, and it is primarily a private sector concern. Traditionally, oil and gas multinational companies, like British Petroleum of Trinidad and Tobago (bpTT) and British Gas of Trinidad and Tobago (BGTT), have been forerunners in establishing formal CSR programmes. However, their constant challenge is meeting communities’ and society’s expectations, especially since they reap high profits from the local oil and gas industry. Why? To whom much is given, much is expected.

Increasingly, large, local companies are making an effort to formalise CSR programmes. Private sector, CSR programmes are often geared toward socio-economic development, which include education, training, job creation and community development projects. Definitions of CSR focus on businesses’ obligation to ensure a positive relationship between organisations and society and to maximise organisations’ positive effects on society and to minimise adverse effects.

Growing expectations
In Trinidad and Tobago, CSR is largely considered as community relations. Some companies have moved from the narrow concept of CSR as sponsorship. Additionally, companies recognise that CSR is not only community relations. CSR demands placing priority on ethical behaviour and not just adherence to the law.

Over the years, Trinidadians and Tobagonians (Trinbagonians) have been showing more awareness of the need for businesses to operate in a way that enriches the lives of those within their immediate communities. According to a Trinidad Business Guardian article, dated February 3, 2005:

“An increasingly sophisticated public and shifting expectations of the role of business in society, has led to companies redefining their role in society and their responsibility to the environment and the communities within which they operate”.

While some businesses are making a serious effort to be socially responsible by going beyond mere sponsorship to developing programmes or financially supporting projects that will derive long-term benefits, sometimes the power structure in CSR decision-making is skewed. While companies may insist that they have balanced, two-way communication with communities, the reality is as a manager of a multinational, energy company says:

“Most companies would like to have one-way communication because it’s easier and less messy and they would do it under the pretext of giving information rather than asking for feedback.”

Although company-stakeholder interaction may have increased, it doesn’t always occur on equal terms. Sometimes, companies create projects based on what they think is best for the community rather than seriously contemplating the community’s sense of development.

Researching the Caribbean and Latin America
The Inter-American Development Bank (2004) states that:

“There is mixed evidence on the extent of corporate social responsibility in Latin America and the Caribbean. Data from some sources would suggest the existence of a fairly active private and social sector and of significant potential for the development of a vibrant social and environmentally responsible private sector. However, a more detailed analysis of these and other sources leads to the conclusion that CSR activity is very unevenly distributed in the region.”

The IDB is correct in stating that there is “significant potential for the development of a vibrant social and environmentally responsible private sector”. The truth may also be that CSR activity is unevenly distributed in the region. However, the IDB’s methodology for this study was somewhat flawed in that it heavily depended on information garnered from search engines on the Internet. The reality of Caribbean and Latin America does not necessarily shine through on the Internet. Therefore, valid and reliable research on corporate social responsibility in these regions depends on thorough fieldwork. Until that occurs, assumptions or conclusions based on scarce information are just that, guesses.

Research must be conducted to gain accurate insights to the Caribbean CSR environment. What my limited research on the role of public relations practitioners in CSR has shown me is that – at least for large-sized businesses – some companies - like the National Gas Company of Trinidad and Tobago, Atlantic LNG Limited, Republic Bank Limited, Scotiabank Trinidad and Tobago Limited, RBTT Limited, BHP Billiton, BGTT and bpTT – are making concentrated efforts to contribute to communities in a sustainable way through education, job creation, construction, sports and cultural and arts projects. This does not mean that their CSR or public relations efforts are perfect or that they guarantee a spotless reputation with Trinbagonians. However, these efforts provide examples and are a source of best practice.

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