EuRA Spring Summit Day 5: Sustainability

On the 14^th of May 2021, Relocation Africa’s CEO Rene Stegmann joined the European Relocation Association (EuRA) Spring Summit Day 5 as a panellist. The moderator, Ben Ivory, Senior Vice President, Global Initiatives was joined by panellists, Lloyd Townsend, Supply Chain Manager, EDF (Corporate), Rico Lopes – Graebel (Supply Chain Management) and Beverly King – Graebel (Business Development).

The topic of Day 5 of this summit continuing the conversation of sustainability and provide perspectives from a leading UK energy sector client professional, a progressive DSP provider and a global relocation management company. The presentation was set to present a level of understanding of sustainability/ Environmental, Social, and (Corporate) Governance, (ESG)/ Corporate Social Responsibility (CSR) and establish a foundation for what is a multi-year or even multi-generational effort.

First on the agenda for discussion was the topic on the 2030 Agenda for Sustainable Development, the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries. The vision for 2030 is setting a vision for a world free of poverty, hunger, disease. A world that elevates human social justice and human rights, and an accessible world to all regardless of background, race, gender and sexual orientation. Stegmann aptly states that we can no longer greenwash and pay lip service, that to achieve these 17 SGDs, we need to act and walk in the terms of sustainability in both our personal lives and business environment. She further to explains how Diversity, Equity and Inclusion (DEI) is an appropriate model to include in the SDG goal, especially the SDG Gender Equality, or SDG 10 reduced inequality. The insertion of DEI will help stakeholders and humanity at all levels reach an understanding of the importance of these 17 goals. The world needs to understand these goals from the DEI root level, understanding its intricacies and complexities, and its intersections. When we understand from this point, we are able to operate from a place of consideration of differences.

Lloyd Townsend shared his sustainability EDF commitment, Helping Britain Achieve net-zero initiative which is made up of five pillars: net-zero environmental impact, increasing energy efficiency, the elimination of single-use enhanced social value and also innovation. Townsend states that taking a leading role in Britain’s race to net-zero will hopefully translate into other businesses and companies being equally honest with themselves to ensure they are contributing appropriately based on their business activities.

Townsend says, “I think businesses need to play a key part in this race as well. They need to create a diverse and inclusive environment which allows their employees to feel safe and to flourish being exactly who it is that they”.

Beverly King makes a remarkable point, stating that “Understanding the background of the organization their corporate strategy of sustainability and if DE&I really seem to be at the forefront. Then you can probably understand that there will be some of those initiatives that will help in the background drive, you know the pro the procurement process, the RFP process and be a factor that is included.” Soon, employees will measure a companies progressiveness based on their DEI and CSR initiative. Why? In recent times, companies are being held accountable and called into question about their contribution to eradicating social and environmental problems. It is almost necessary for companies to make a declaration or have policies in place as means of remaining accountable to the people and the planet.

Stegmann continues the sustainability conversation voicing that businesses need to self-examine the environment in which they operate and how business impact sustainability, and the balance of the triple bottom line approach of people and profit. She goes to speak on the #Payin30 initiative as a Small Medium Enterprise (SME) business. #Payin30 is an initiative aimed at helping SME suppliers become sustainable in the future. Stegmann has managed to reach an agreement with over 50 Relocation Africa clients, to pay Relocation Africa within 30 days. Stegmann has been a pivotal leader in driving the campaign across the corporate and SME sector, highlighting the importance of #Payin30 as an integral part of Corporate Sustainability (CS).

An important highlight that Stegmann makes, “We believe in working in partnership vertically horizontally with our competitors because we’re all working to the same goal.” Indeed, a collaborative approach towards a world we all share is needed. Using all our expertise and resources to combat a problem we all face saves time and the planet. She further highlights the need to make information on the broad topic of sustainability available such as making a library of articles available for your own network. King further augments this point by asserting the need for sustainability to become a way of life, a part of our everyday life. She aptly highlights the need to understand that we cannot operate outside the triple bottom line. “We have the responsibility of looking after the planet for the next generation”, Townsend adds.

One day a man was walking along the beach, when he noticed a boy hurriedly picking up and gently throwing things into the ocean. Approaching the boy, he asked, “Young man, what are you doing?”

The boy replied, “Throwing starfish back into the ocean. The surf is up, and the tide is going out. If I do not throw them back, they’ll die.” The man laughed to himself and said, “Don’t you realize there are miles and miles of beach and hundreds of starfish? You can’t make any difference!”

After listening politely, the boy bent down, picked up another starfish, and threw it into the surf. Then, smiling at the man, he said,

“I made a difference to that one.” –

As the session ends, Ben Ivory makes an important point. He says, to tackle the topic of sustainability, the first step is making it a topic on your agenda. The following step is to be critical of yourself, making the journey to being sustainable a measurable one by placing real objectives in place. Let us all remember the story of the starfish. In our capacity, we have the power to make a difference.

Africa, Europe, France, News, Worldwide

Paris Summit on Financing African Economies

On the 18^th of May, several African heads of states and several European leaders held the Paris Summit to discuss and find ways to boost financing in Africa to counter the detrimental economic effects of the coronavirus pandemic and a hampered vaccine rollout.

French President Emmanuel Macron called earlier for a new deal for Africa. The outlined objectives for the summit included doubling COVID-19 vaccination targets under the COVAX vaccine-sharing scheme; to sway International Monetary Fund (IMF) member states into allowing Africa to produce and distribute COVID-19 shots in their home country, and triple so-called special drawing rights monetary reserves for Africa to $100 billion.

President Macron reported that the summit had agreed to work towards getting wealthier nations to reallocate (€81 billion) in International Monetary Fund’s (IMF) special drawing rights monetary reserves to African states by October. Furthermore, a debt-servicing freeze was extended to aid developing countries deal with the COVID-19 consequences.

The IMF has confirmed that it will issue $33 billion for the African continent this year in special drawing rights. Africa’s economic growth is projected to grow at just over 3 percent compared to the 6 percent of the world average. The African Development Bank projects that approximately 39 million people could fall into poverty this year, with African states being at risk of debt due to the pandemic.

IMF Chief Kristalina Georgieva stated, “There is no durable exit from the continent’s economic crisis without beating the health crisis.”. As reported in our previous article, many African countries have been affected by India’s COVID-19 crisis, which has slowed down Africa’s vaccine rollout plan. Georgieva states that boosting the vaccination campaign will generate trillions of dollars that will be beneficial to Africa but also wealthier economies.

African countries manufacturing and supplying COVID-19 vaccines will certainly assist many African countries in overcoming the shortage but also in combating the reluctance of being vaccinated with western vaccine shots, said Democratic Republic of Congo and African Union President Felix Tshisekedi.

“I can’t stress enough the need to build the productive economy, that would ensure growth and job creation, as creating jobs for our young people is one of the most important priorities. We would like to create those opportunities for our young talent to stay in the country and build it with us” said Sudanese Prime Minister, Abdalla Hamdok.

The summit coined the “New Deal for Africa” seems to be a good win for not only Africa’s economy but Africa’s COVID-19 vaccine rollout.

News, South Africa, United Kingdom, Worldwide

Payin30 – Addressing Corporate Sustainability in The Corporate Sector

Addressing Corporate Sustainability in The Corporate Sector through Payin30

The #Payin30 initiative in South Africa has been largely driven and supported by the private/corporate sector. Corporate Social Responsibility (CSR) is a management concept or a business model, that consolidates topics of social and environmental concerns into their business policies, operations and their conduct. It is a way in which the company becomes socially accountable, not only to itself and the stakeholders but also to the public. Corporate social responsibility is the approach a company undertakes to enact a balance of the Triple Bottom Approach (TPL) – “People. Planet. Profit” while holding itself accountable to stakeholders.

CSR is a conscious effort to address the capitalistic nature of the business but being cognisant of the environment in which it exists – understanding that people, profit and the planet cannot operate in isolation.

The Corporate Social Responsibility (CSR) diagram: Photo courtesy of Getty Images

THE ROLE OF GOVERNMENT IN CSR AND PAYIN30

Although the business sector lies at the centre of CSR, the government as an authoritative power can play a catalyst role – yielding their power and voice to raise awareness of what CSR truly embodies. The government can a vital role in mediating between social agents (business sector and the public).

The United Kingdom (UK) government and the South African (SA) government have been exemplary in calling for action against 90-, 60-, and 45-day payment terms. On the 19^th of January, the United Kingdom government announced that it has re-examined the Prompt Payment Code (PPC) to renounce delayed invoices owed to SMEs. Under the new reconstructed terms, companies are obliged to now pay SMEs within 30 days – which is half the time defined by the current Code. The UK government is looking to strengthen the rules, by increasing Small Business Commissioner powers as a post-covid19 economic strategy.

During the South African Investment Conference in Soweto, President Cyril Ramaphosa called for the government to ensure that SMEs suppliers are paid within 30 days. The Public Service Commission (PSC) is an independent and overseeing institution, ensuring the effectiveness and efficiency of public service performance. The PSC aptly states that “The non-payment of suppliers is in contravention of the Treasury Regulations and constitutional principles such as efficient, effective and economic use of resources, accountability and transparency”. The PSC will continue monitoring compliance with 30-day payment terms, announcing that they [PSC] will view non-compliance as financial misconduct.

These two exemplary moves by the respective are indicative of how not only government institutions can set precedence on ethical practices but also yield their power for the good of the greater society. The ability of government institutions to recognise the importance of SMEs as job creators, but also as an integral part of the economic ecosystem. The government is held accountable and is responsible for its stakeholders – the people and acknowledging that SMEs are the microcosm of society and the economy. The government’s role is a prime example of the influence of corporate social responsibility.

THE ROLE OF CORPORATE AND THE PRIVATE SECTOR IN PAYIN30

As the economic and social unit of society, corporate must operate in accord with sustainable strategies endorsed by the economic system in which it operates. The highlight of this is that corporate and business do not exist in isolation and their existence is dependent on the people and planet, there is a responsibility to the planet and the people. In pursuit of a sustainable business strategy, “CSR emphasises on the maximisation of the utility of resources with minimum consumption, exploration of resources without exploitation and maintaining the surplus balance of resources for future generations.”

The #Payin30 initiative in South Africa has been largely driven and supported by the private/corporate sector. Business for South Africa (B4SA), the SA SME Fund, and Business Leadership South Africa (BLSA), and supported by, amongst others, Business Unity South Africa (BUSA), the Small Business Institute (SBI) and the Black Business Council (BBC) have all put their heads together to support SMEs. This serves as evidence that corporates are largely aware of the role and influence in the country’s economic ecosystem.

Paul Hanratty, Sanlam Group Chief Executive Officer, and member of the Risk and Compliance, and Social, Ethics and Sustainability (SES) Committees speaks on the importance of the #Payin30 campaign.

Paul Hanratty, Sanlam Group Chief Executive Office

Hanratty says, that the #Payin30 is a supportive mechanism to SMES navigating the Covid-19 pandemic and will help them become sustainable in the long term. He follows this, highlights how the #Payin30 is also an economic strategy to the pandemic, urging all big businesses to adjust their payment terms in support of SMEs. Hanratty says,

“Recovery will not happen exclusively through big national initiatives; it will happen bit by bit, in small but meaningful increments. The business sector in South Africa has the opportunity to play a profound role in the recovery of smaller entities.”

We cannot ignore the need for economic development and growth, but we must be cognisant that it needs to be done sustainably. We cannot grow the economy at the expense of the people or the planet. The progression of concepts like that of CSR is dependent on the partnership of the private sector and government.

CONCLUSION

In their article, ‘The Truth about CSR’, Kasturi et al note that there is an increasing pressure for corporate companies to “dress up CSR as a business discipline and demand that every initiative deliver business results.”. This takes away the essence of CSR is: “to align a company’s social and environmental activities with its business purpose and values.”. The authors of the article aptly advise that to maximise the positive impact of CSR, companies must depart from poor coordination of their CSR programs and the lack of logic connecting their various programs. Kasturi et al advise that maximising this means companies need to develop coherent CSR strategies by a) focusing on philanthropy, b) improving operational effectiveness, c) transforming the business model. Post the development of these three theatres, companies must develop a unified practice program through a four-step process. Step 1) Aligning Programs Within the Theatres, 2) Developing Metrics to Gauge Performance, 3) Coordinating Programs Across Theatres, and 4) Developing an Interdisciplinary CSR Strategy. Best-practices companies operate coordinated and interdependent programs across the CSR field.

We must understand the world from the triple bottom line: the social, environmental and financial – people, planet and profit. SMEs contribute immensely to the country’s sustainable growth and need the support of both government and corporations to ensure their survival and preservation. The global problems cannot be solved alone. The collaboration with entities like SMEs, NGOs and association can help them unleash the full potential of corporate social responsibilities. Payin30 is an important CSR initiative that serves as evidence of how government and corporate can work together to ensure the sustainability of SMEs.

News, United Kingdom

Relocation Africa’s United Kingdom Immigration Interview

Recently, we launched outbound immigration services to various locations, including the United Kingdom, which you can learn more about by visiting our website here, or viewing our outbound services brochure here.

Our Immigration Lead, Lynn Mackenzie, recently had the pleasure of speaking to Antonio, our United Kingdom immigration partner, about the immigration landscape in the UK.

To listen to Lynn and Antonio’s conversation about immigration in the current context, click here to view the recording, or view it below.

We would like to say a huge thank you to Antonio for his insights. We hope you enjoy the recording.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].