CSR Research in Africa

Research on Corporate Citizenship in Africa:

A Ten-year Review (1995-2005)

Chapter by Wayne Visser

Extract from Corporate Citizenship in Africa

This paper provides a brief analysis of Hence, there is great scope for expanding the amount of research on corporate citizenship in Africa, as well as improving the diversity of its content and its geographic coverage.

Introduction

Corporate citizenship in Africa is a critical area of scholarly enquiry, driven by the legacy of colonialism and apartheid, the human needs of the continent in the face of widespread poverty, and the trend towards improved social responsibility by multinationals in a globalising economy. Despite this growing importance, however, very little research has been done on corporate citizenship in Africa. In his introduction to the Business Ethics: A European Review special issue on Africa, Rossouw (2000) claims that “the first signs of academic life in business ethics on the African continent can be traced back to the 1980s” (225), but concedes that it remains fragmented and limited.

One of the reasons that this academic discourse is both interesting and important is that corporate citizenship in Africa has its own unique features, distinctive from other regions in the world. Rossouw (2000) suggests three areas that characterise business ethics in Africa: 1) On the macro-level, the influence of Africa’s colonial and neo-colonial past; 2) On the meso-level, the moral responsibility of business towards the reconstruction of African societies; and 3) On the micro-level, the way in which individual businesses deal with affirmative action to overcome the consequences of historical racism, sexism and economic exclusion.

Visser (2005) argues that, in terms of Carroll’s (1991) pyramid model of corporate social responsibility, in which the layers denote relative emphasis assigned to various responsibilities, Africa exhibits a different ordering to the classic model. Specifically, economic responsibilities still get the most emphasis, but philanthropy is given second highest priority (as opposed to legal responsibilities in the classic Carroll pyramid), followed by legal (as opposed to ethical) and then ethical (as opposed to philanthropic) responsibilities. Furthermore, he suggests that, given the ethical dilemmas faced by companies in Africa, a more dynamic and sophisticated model of corporate responsibility may be more appropriate, such as one drawing on complexity theory (McIntosh 2003).

In the first study of business ethics as an academic field in Africa, Barkhuysen and Rossouw (2000) found 77 courses and seven centres located in six countries, namely Egypt, Ghana, Kenya, Nigeria, South Africa and Uganda. Furthermore, they identified 167 relevant publications, including 130 articles and 26 books. The majority of articles were written by South African authors, followed by authors residing outside Africa, as well as some from Kenya, Uganda and Nigeria. The content was heavily focused on descriptive and normative ethical issues.

In a review of academic research on corporate citizenship in South Africa, Visser (2005) found that, of the pre-1994 publications, most deal with the ethical investment issues relating to apartheid, while, of the post-1994 articles, many focus on the individual ethics of South African managers. Other areas of focus have included specific South African sectors (most notably mining and chemicals), socially responsible investment, stakeholder theory, small and medium sized enterprises, corporate environmental management, sustainability reporting, corporate governance, and general CC corporate citizenship …

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Visser, W. (2006) Research on Corporate Citizenship in Africa: A Ten-year Review (1995-2005), In W. Visser, M. McIntosh & C. Middleton (eds.), Corporate Citizenship in Africa: Lessons from the Past; Paths to the Future, Sheffield: Greenleaf, 18-28.

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Introduction to Corporate Citizenship in Africa

Corporate Citizenship in Africa:

Lessons from the Past; Paths to the Future

Chapter by Wayne Visser

Extract from Corporate Citizenship in Africa

2005 saw a renewed interest in development and Africa, both regionally and internationally, most notably with the publication of Our Common Interest, the Commission for Africa’s Report chaired by the British Prime Minister with representatives from across Africa. This led to Africa being a specific focus at that summer’s G8 Summit at Gleneagles in Scotland, and, amongst other initiatives, the USA agreeing to reform, to some extent, its aid budgets to poor countries. This was, of course, prior to hurricanes Rita and Katrina that later in the year hit the Southern States of the US: exposing significant levels of poverty and neglect within the world’s richest country.  The G8 meeting was preceded by Live8 which was seen globally by some three billion people, making it the world’s single largest event. Prior to this concert thirty million people signed a petition to the G8 leaders. As this book goes to press discussions are taking place on reform of the United Nations, one of the issues being how Africa could be better represented on the Security Council and other UN bodies.

Despite this progress, much of the literature on Africa remains problem-focussed, seeing Africa either as a moral dilemma for the rest of the world or as a waste of good aid money poured down the drain. This attitude is propped up by a plethora of statistics that show how Africa remains a marginal region in global terms: With 12% of the world’s population (around 750 million people) in 53 countries, Africa accounts for less than 2% of global gross domestic product (GDP) and FDI, and less than 10% of FDI to all developing countries. Of the 81 poorest countries prioritised by the International Development Association, almost half are in Africa. And even within Africa, there is highly skewed development, with the largest ten economies accounting for 75% of the continent’s GDP.

But there is also a growing desire to develop a better understanding of the world’s second largest continent and to celebrate the life of its people, literature, poetry, music, sport and social structures. And despite generally negative press, there has been significant progress on the continent over the past decade. Fifteen countries, including Uganda, Ethiopia and Burkina Faso, have been growing on average more than 5% per year since the mid-1990s. And foreign direct investment (FDI) rose to $8.5 billion in 2004, up from $7.8 billion the previous year. At the same time, Africa’s new generation of leaders, through initiatives like the New Partnership for Africa’s Development (NEPAD), the African Union and the East African Community, are taking responsibility for development.

Higher quantities and quality scholarly research is obviously needed, but so too is changing media perceptions outside Africa so that its richness is reflected on television screens around the world. Our Common Interest pointed out that Africa is different, that Africa’s development must follow a different path because of its history. For instance a snapshot of Africa in 2005 tells us that …

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Cite this chapter

Visser, W. (2006) Corporate Citizenship in Africa: Lessons from the Past; Paths to the Future, In W. Visser, M. McIntosh & C. Middleton (eds.), Corporate Citizenship in Africa: Lessons from the Past; Paths to the Future, Sheffield: Greenleaf, 10-17.

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CSR Pyramid for Africa

Revisiting Carroll’s CSR Pyramid:

An African Perspective

Chapter by Wayne Visser

Extract from Corporate Citizenship in Developing Countries

This chapter explores the nature of corporate social responsibility (CSR) in an African context, using Carroll’s CSR Pyramid as a framework for descriptive analysis. Carroll’s CSR Pyramid is probably the most well known model of CSR, with its four levels indicating the relative importance of economic, legal, ethical and philanthropic responsibilities respectively. However, the exploration of CSR in Africa is also used to challenge the accuracy and relevance Carroll’s CSR Pyramid. If Carroll’s basic four-part model is accepted, it is suggested that the relative priorities of CSR in Africa are likely to be different from the classic, American ordering. However, it is also proposed that Carroll’s CSR Pyramid may not be the best model for understanding CSR in general, and CSR in Africa in particular. Anglo American is used as a case study to illustrate the debate.

The African Context

The debate over Africa’s future has taken centre stage recently, with the publication of Our Common Interest, the report of the Commission for Africa (2005). The report calls for improved governance and capacity building, the pursuit of peace and security, investment in people, economic growth and poverty reduction, and increased and fairer trade. It is not hard to see that business has a key role to play in this transformation process, with much of its contribution capable of being to be framed in terms of CSR.

Despite generally negative press, there has been significant progress on the continent over the past decade. Fifteen countries, including Uganda, Ethiopia, and Burkina Faso, have been growing on average more than 5% per year since the mid-1990s. And foreign direct investment (FDI) rose to $8.5 billion in 2004, up from $7.8 billion the previous year (World Bank, 2005a). Africa’s new generation of leaders, through initiatives like the New Partnership for Africa’s Development (NEPAD) , the African Union  and the East African Community , are taking responsibility for development (Lundy & Visser, 2003).

Nevertheless, Africa remains a marginal region in global terms: With 12% of the world’s population (around 750 million people) in 53 countries, Africa accounts for less than 2% of global gross domestic product (GDP) and FDI, and less than 10% of FDI to all developing countries (African Development Bank, 2003, 2004). Of the 81 poorest countries prioritised by the International Development Association, almost half are in Africa (World Bank, 2005a). And even within Africa, there is highly skewed development, with the largest ten economies accounting for 75% of the continent’s GDP (African Development Bank, 2004).

The extent of the challenge for CSR in Africa becomes even clearer when we are reminded of the scale of social needs that still exist, despite decades of aid and development effort …

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Visser, W. (2006) Revisiting Carroll’s CSR Pyramid: An African Perspective, In E.R. Pedersen & M. Huniche (eds.), Corporate Citizenship in Developing Countries, Copenhagen: Copenhagen Business School Press, 29–56

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Corporate Social Responsibility

Corporate Social Responsibility:

An Agenda for the Future

Article by Wayne Visser

This article deals with the crucial debate that is beginning to emerge about corporate social responsibility (CSR), which acknowledges that the sophistication of stakeholder challenges and corporate responses has gone up a gear, but questions whether CSR itself is too little too late, or even a red herring.

Developing the Agenda

Geographically, there has been a recent emphasis on the challenges of corporate citizenship in the developing world, including issues of the Millennium Development Goals (MDGs) and the “Bottom of the Pyramid” concept about servicing lower income markets, and CSR in the Pacific Rim, the Middle East, Eastern Europe and Africa. We think this focus accurately portrays the current shift in CSR concerns towards the global South, where despite the scale and urgency of development needs, determining the best way for business to respond to poverty remains extremely complex.

Although the Asian tsunami disaster in December 2004 focused attention on humanitarian relief efforts, which many companies contributed to, it is also encouraging to see corporate leaders engaged in a wider discussion about how normal business influences the poor and disadvantaged around the world and what business models could be more supportive of development. However, our analysis is that current debates about the opportunities for corporate contributions to the MDGs often lack a full understanding of processes of “development”.

Much of the profitable business with lower-income markets involves products such as mobile phones, not the provision of basic nutrition, sanitation, education and shelter, so the current expansion of profitable business in the global South does not necessarily imply poverty reduction. In addition, the type of development that is promoted by marketing consumer products to the poor can be questioned, and claims about empowering people by providing means for them to consume cannot be taken at face value. The environmental impacts of changing consumption patterns also need to be looked at, without assuming that such problems will be solved just through technical and financial advancement. And we need to assess, if more foreign companies do come to serve lower income markets, might they not displace local companies and increase the resource drain from local economies?

Exploring Relationships

How large corporations might bring their financial, technical and management resources to help local entrepreneurs improve and scale their businesses, and avoid exploitative local middlemen, is important to explore and will become a significant part of the corporate responsibility agenda. However, exploitative North-South supply chains, tax avoidance, and anti-competitive practices are fairly typical of international corporations, undermining their economic contribution to development. These economic issues have been overlooked by mainstream work on corporate responsibility, and we suggest such economic issues will become more central in future.

From an institutional perspective, various relationships in the CSR debate have been critically examined, especially the status and acceptability of partnerships between business and NGOs on the one hand, and business and the UN on the other. This examination reflects a sharp rise in the demand for organisations to demonstrate their accountability and transparency, not only business, but NGOs and intergovernmental organisations as well. The ethics of institutional engagement is …

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Adapted from: Visser, W. & Bendell, J. (2005) Introduction. Lifeworth Annual Review of Corporate Responsibility.

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Corporate Citizenship

Corporate Citizenship:

Is South Africa World Class?

Article by Wayne Visser

At the 2003 World Economic Forum, a global CEO survey on corporate citizenship was launched, representing companies with headquarters in 16 countries (including South Africa) and covering 18 industries. The report of findings identified ten key messages for engaging successfully with the corporate citizenship agenda. In this article, I use these ten messages as a framework for questioning South Africa’s progress in the corporate citizenship field. I also subjectively score South Africa on each issue, based on their relative global performance.

The Power of Personal Leadership

The global CEO survey highlighted the important role of the chief executive as a champion of corporate values and a consensus builder on issues of corporate citizenship. Who are South Africa’s corporate citizenship executive champions? Who has taken it upon themselves to be an active campaigner for business’ contribution to society? South Africa certainly had such leaders in the past. For example, Pick ‘n Pay Chairman, Raymond Ackerman, was one of the 50 global executives that formed the Business Council for Sustainable Development and issued its report entitled Changing Course: A Global Business Perspective on Development and the Environment to the 1992 Earth Summit.

But who has taken over the mantle? There certainly seems to be several contenders from the Anglo American stable: Perhaps someone like Michael Spicer, former Executive Director: Corporate Affairs and Executive Vice President of Anglo American plc, and now Chief Executive of the South Africa Foundation? He has taken high profile positions on corporate citizenship issues and seems to embody a heartfelt commitment. Or the tireless efforts of Chairman of Anglo’s Chairman’s Fund, Clem Sunter, who has championed both the HIV/Aids and sustainable development causes? Or do we look to Anglo’s Chairman, Sir Mark Moody Stuart, who managed Shell’s difficult transition towards embracing sustainability?

Who are the others? South Africa needs business leaders who are vocal champions for corporate citizenship. I am not referring to CEOs who simply embrace the rhetoric in their annual reports, but to individuals who are personally committed to the cause of social upliftment and ecological protection – leaders who lead the corporate citizenship movement from the front, with passion. We all need something to believe in, and our corporate leaders are in the unique position of being able to create a vision of how we can make a difference in South Africa. Who will stand up and be counted?

My score for South Africa: 5/10

Strength in Collective Action

The global CEO survey stresses that although personal leadership matters, there is also strength in collective leadership, especially when it comes to addressing public policy issues, industry-wide concerns, national development challenges, or global issues that are beyond the remit or capacity of any one company, but vital to long term commercial success. What is South Africa’s track record of collective action? This seems to me to be one of the areas in which South Africa has excelled, and may be regarded as truly world class (Fourie & Eloff 2005) …

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Cite this article

Visser, W. (2005) Corporate Citizenship: Is South Africa World Class? The Corporate Citizen, Trialogue: Johannesburg.

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Revisiting Carroll’s CSR Pyramid

Revisiting Carroll’s CSR Pyramid:

An African Perspective

Article by Wayne Visser

This article has two primary objectives: 1) To use Archie Carroll’s Corporate Social Responsibility (CSR) Pyramid to illustrate the nature of CSR in Africa; and 2) To use the context of Africa to demonstrate the limitations of Carroll’s CSR Pyramid as a framework for understanding CSR. Anglo American is used as a case study to illustrate the debate.

The African Context

The debate over Africa’s future has taken centre stage recently, with the publication of Our Common Interest, the report of the UK’s Commission for Africa. The report calls for improved governance and capacity building, the pursuit of peace and security, investment in people, economic growth and poverty reduction, and increased and fairer trade. It is not hard to see that business has a key role to play in this transformation process, with much of its contribution capable of being to be framed in terms of CSR.

Despite generally negative press, there has been significant progress on the continent over the past decade. Fifteen countries, including Uganda, Ethiopia and Burkina Faso, have been growing on average more than 5% per year since the mid-1990s. And foreign direct investment (FDI) rose to $8.5 billion in 2004, up from $7.8 billion the previous year. At the same time, Africa’s new generation of leaders, through initiatives like the New Partnership for Africa’s Development (NEPAD), the African Union and the East African Community, are taking responsibility for development.

Nevertheless, Africa remains a marginal region in global terms: With 12% of the world’s population (around 750 million people) in 53 countries, Africa accounts for less than 2% of global gross domestic product (GDP) and FDI, and less than 10% of FDI to all developing countries. Of the 81 poorest countries prioritised by the International Development Association, almost half are in Africa. And even within Africa, there is highly skewed development, with the largest ten economies accounting for 75% of the continent’s GDP.

The extent of the challenge for CSR in Africa becomes even clearer when we are reminded of the scale of social needs that still exist, despite decades of aid and development effort: Life expectancy in Africa is still only 50 years on average (and as low as 38 years in some countries), Gross National Income per capita averages $650 (and drops as low as $90 in some countries) and the adult literacy rate is less than 20% in some countries. At the current pace of development, Sub-Saharan Africa would not reach the Millennium Development Goals for poverty reduction until 2147 and for child mortality until 2165; and as for HIV/Aids and hunger, trends in the region are heading up, not down.

The Role of Business

The track record of big business in Africa is mixed at best. There is certainly no shortage of examples of corporate complicity in political corruption, environmental destruction, labour exploitation and social disruption, stretching back more than 100 years. Equally, however, there is …

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Cite this article

Adapted from: Visser, W. (2005) Revisiting Carroll’s CSR Pyramid: An African Perspective. In Corporate Citizenship in a Development Perspective, edited by Esben Rahbek Pedersen & Mahad Huniche, Copenhagen: Copenhagen Business School Press.

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Transforming Business

Transforming Business:

The Power of Perception

Chapter by Wayne Visser

Extract from Beyond Reasonable Greed

There is a growing body of literature on what could be loosely described as explorations in ‘new paradigm’ thinking. Included in this is an implicit belief about the nature of transformation. It is that revolutionary change is more often the result of new ways of thinking about things (i.e. changes in perception) than new ways of doing things.

This chapter attempts to apply this thinking to business, i.e. to explore more deeply the emerging new paradigm in business. What are the new perspectives which are beginning to challenge the old way of thinking about and doing business? And is there a common thread or theme which runs through the heart of these new insights?

So what are these basic assumptions about business which have come on trial of late? There are many but this article will focus on only three of the most important, namely profit, competition and rationality. Discussion of each will be prefaced by a belief statement from the old paradigm and concluded with a suggested new paradigm belief statement.

Profit

The old paradigm belief statement is: The ultimate and sole function, goal and responsibility of business is to make a financial profit.

Although this belief has been tempered by a growing awareness of social responsibility since the 1960s, the mindset of the vast majority of business leaders still places exclusive profit making firmly at the apex of the business pyramid. Everything else is regarded as peripheral to this core process.

This emphasis on short-term individual gain all too often results in the long-term wellbeing of employees, the community, society and the environment being sacrificed as pawns in a ruthless game of corporate chess. This approach – with its tacit assumption that people are primarily motivated by conquest and material acquisition – has been a major limiting factor in managers’ ability to tap the human potential of their organisations in any significant way.

The call now being sounded therefore is for what US futurist Willis Harman would call a new “central project” in business. This transformed focus could include service to society as the key goal of business. Enhanced quality of life could be its guiding principle and a strong set of ethics and values its foundation. Further, the search for meaning and creativity in the work place as well as holistic personal and collective learning could become the key measures of performance within an organisation.

This image may not be as far-fetched as many would suppose. UK business commentator Francis Kinsman for example, cites evidence from an SRI International study which suggests that a growing proportion of British society (currently more than a third) is becoming ‘inner directed’ in nature. These are people whose behaviour is typically driven by non-materialistic factors and whose emphasis is more on the esoteric and qualitative than the material and quantitative …

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Cite this chapter

Visser, W. (2005) Transforming Business: The Power of Perception, In W. Visser, Business Frontiers: Social Responsibility, Sustainable Development and Economic Justice, Hyberabad: ICFAI University, 5-10.

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Home

Home

Prose by Wayne Visser

~ Home is wherever we feel we most belong ~

Where is home for you?
What place do you feel most drawn to?
Is there somewhere that longs for your return?
 
Perhaps home speaks to you of roots, of the place where you were born or grew up?
If you close your eyes, you can probably still conjure up the familiar sights and sounds and smells of your youth.
Or perhaps it is somewhere you have visited that felt strangely like home?
 
The attraction to our home – to that place where we feel we most belong – is like the irresistible pull of gravity.
Home is our centre of gravity, where we are in balance, content, not feeling like we should be somewhere else.
It is where we feel centred, grounded, like the bush trail sign for home – a circle with a dot in the middle.
Home is that place we return to and know for the first time, where we come full circle.
 
For some, this point of return, this place of belonging, is inseparable from the land – it is literally their homeland.
The land is the map of their heritage, the Rosetta stone for deciphering their history, the storybook of where they come from and where they are going.
It is their origin and their destination – the home of their ancestors is their home and the home of their descendants.
 
The urge to find our home and return there is as powerful as the vortex of a hurricane.
But it is not an ominous force.
We are drawn to our home because it is a place of rest, of refuge, a calm eye in the midst of the storm.
 
Home is where we feel most comfortable, where we can be ourselves, stripped of all our masks, without the pretensions we wear for the world outside.
We long for home because it is homely. It is the source of our energy, our identity, our self-esteem.
 
In one way or another, home is the tribe to which we belong.
Our tribe may be local, national, or increasingly, unlimited by geographical boundaries.
In today’s interconnected reality, we are free to seek out and find the group of people who most closely reflect our interests, passions, dreams and aspirations – our soul tribe.
 
Have you located your soul tribe yet?
Because on this web-linked planet, home can be wherever you lay your hat.
But, like the sorting hat in the Harry Potter stories, where you are placed is never random.
Your home must be where you experience the best fit, among a community of people who care about you because of who you really are.
 
What distinguishes a home from a house is people.
Relationships are the essential ingredient in the recipe for a good home.
Indeed, it is because home is where the heart is, that homelessness is so cruel and heartless.
The homeless are cut off from others, they have lost their connection to a supportive tribe, been left to wander in a desert of isolation.
Many more people are homeless than we see on the streets – people who are searching for their place of belonging in a bewildering world.
 
So how do we find our home?
It is not as difficult as we might first think.
We must simply follow the light.
 
What place makes us glow inside?
What tribe helps us to shine brighter?
Which relationships are full of the warmth of home fires burning?
Our answers will lead us to that special place that we can call home.
 
So as you venture out in the world today, be sure to carry your flame of belonging with you – your precious home from home.
 

Wayne Visser © 2005

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Generosity

Generosity

Prose by Wayne Visser

~ Generosity is sharing that which you can least afford to give ~

Who do you know that is particularly generous?
How would you describe them?
Do they give without expecting anything in return?
 
We all know people like that (perhaps you are even one of them) – people who are always there to help, who share what they have, no matter how little or much that may be.
They rightly deserve our admiration, for we live in selfish times, all caught up in the age of the individual – my needs, my rights, my wants, my desires – it’s all about “me”.
 
Seemingly, it is no longer fashionable for individual aspirations to play second fiddle to community responsibilities.
In fact, if the rhetoric of commercial advertising is to be believed, our pursuit of personal happiness through self-pampering is not only desirable, but it’s our God-given right.
 
It is easy to become cynical in such a world, especially when we secretly admit our own complicity in perpetuating the myth of self-centred fulfilment.
But then a disaster happens, a catastrophe strikes, and the outpouring of public generosity revives our faith in humanity again.
 
Why does it so often take a crisis to bring out the best in us?
People pull together to fight a common cause. There is a sense of camaraderie that is infectious.
Suddenly, we find ourselves tapping into one of the most powerful human drives – the desire to make a positive difference.
 
Somehow, dramatic events manage to penetrate our psychological armour of indifference, reaching through and touching our emotions.
Crises invoke empathy.
We find ourselves thinking: what if that had been me?
And often, it so easily could have been – there, but for fortune, go you or I.
 
But what happens when the calamity slips back out of the headlines?
Does our generosity go back into hibernation?
And what about the much larger, creeping disasters – the slow, insidious killers like Aids and cancer, poverty and climate change?
What will trigger our generosity when the needs seem so overwhelming, so persistent, so far away, so unlike to affect me?
 
It is clear that we cannot rely on melodrama and CNN to draw out the spirit of generosity that lies like a sleeping giant inside us all.
Perhaps reciprocity is a more reliable catalyst for giving – you reap what you sow, what goes around comes around.
 
This is the ancient law of karma and the modern law of physics – every action has a reaction.
It may seem rather selfish as a basis for generosity, to only give in the hope of receiving back in return.
But then again, bargaining for favours is more endemic than we are willing to admit.
Even religious injunctions to generosity are laced with promises of heaven’s reward – pay now, collect later.
 
Or maybe we are overcomplicating things.
Think of the last time you acted with generosity.
How did it make you feel?
Good, right?
So generosity is nothing but enlightened self-interest.
 
Even so, what does it really mean to be generous?
To be charitable, of course, but in what way?
 
Generosity is being willing to give what we have least of – be it money, or time, or patience.
You can be generous with your donations, your attention or your love.
Generosity is also giving fully what we have most of – especially our talents and skills. We should not underestimate the importance of sharing our highest potential.
 
Being the best we can be – finding our calling and following it – may be one of the most generous things any of us can do.
Because, ultimately, generosity is all about giving of yourself. 
 

Wayne Visser © 2005

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