The Member of Parliament for Nsawam-Adoagyire Constituency in the Eastern Region, Frank Annoh-Dompreh, has called for the institutionalization of Corporate Social Responsibility (CSR) through legislative action in Ghana.

Speaking in Parliament, Mr. Annoh-Dompreh emphasized the importance of establishing a structured and binding CSR policy to promote sustainable economic growth, social equity, and environmental stewardship.

According to the MP, CSR should not be viewed merely as a philanthropic gesture but as a strategic imperative.

He cited global examples, including India, South Africa, Nigeria, Kenya, Brazil, and Denmark, where structured CSR legislation has led to measurable socio-economic improvements.

In India, the Companies Act of 2013 mandates CSR expenditure for corporations with significant net worth, leading to enhanced corporate reputation and social impact.

Similarly, South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) Act has significantly increased black ownership of companies and job creation.

Mr. Annoh-Dompreh also highlighted Nigeria’s NCDMB Act and Kenya’s Companies Act 2015, which require companies to invest in local content and disclose CSR activities, respectively.

He pointed out that while Ghana has made some progress in advancing CSR, especially in the mining sector, the absence of a comprehensive national CSR policy has resulted in a fragmented approach.

He noted that CSR engagement in Ghana remains largely voluntary, with no mandatory reporting requirements, leading to inconsistencies in corporate accountability.

Citing data from the Ghana Chamber of Mines, he revealed that the mining sector allocated over GHS 1.4 billion to CSR initiatives in 2020, an increase from GHS 1.1 billion in 2019.

However, despite these investments, CSR activities are often treated as discretionary rather than strategic corporate governance practices.

Mr. Annoh-Dompreh stressed that the lack of a standardized regulatory framework, coupled with weak enforcement mechanisms, has hindered the effective implementation of CSR in Ghana.

He cited the Ghana Environmental Protection Agency’s report, which highlights that corporate environmental infractions carry minimal penalties, insufficient to deter non-compliance.

The MP proposed a series of legislative measures, including mandatory CSR reporting, the establishment of clear CSR benchmarks, empowered regulatory bodies for enforcement, and mandatory stakeholder engagement.

He argued that enacting a national CSR policy would ensure that corporate contributions align with national development priorities, fostering sustainable development and corporate accountability.

In conclusion, Mr. Annoh-Dompreh urged Parliament to take decisive steps to institutionalize CSR legislation to enhance corporate responsibility and contribute to Ghana’s socio-economic advancement.