Here we explore the most ethical companies in Nigeria which are working to contribute to a more sustainable business and socio-economic environment in the country. The African continent is facing great dangers as a result of climate change, and a significant portion of the continent has already warmed by more than one degree Celsius since 1901.
Best Ethical Companies in Nigeria Revealed (2022):
The building and manufacturing behemoth Dangote adheres to environmentally responsible practices throughout every stage of each project cycle. The community, the economy, and the environment will all benefit from the measures it implements.
This is an unusual case, considering that, on the whole, the sector is to blame for vast amounts of pollution and the exhaustion of natural resources.
So, in a nutshell, what services does the organization provide? The Dangote Group is dedicated to sustainable development through environmentally conscious practices, also known as “green growth.” It places a strong emphasis on maintaining a sustainable business culture.
The staff uses Microsoft SharePoint to collect data in order to guarantee its accuracy. A unique perk that the company offers its staff members is paid time off to devote entirely to academic pursuits. In 2018, it offered training to about 10,000 of its employees across all of its locations and headquarters.
One more illustration is the business’s emphasis on a risk-free working environment. It results in fewer instances of accidents and dangerously close calls. In the meantime, employees delivering customer service are dedicating themselves to excellence across value chains.
The organization provides assistance to small and medium-sized businesses. Over three billion nairas were spent on 125 trucks for the company’s distributors, and they were given a payback period of five years.
Finally, the most important component of the corporation, Dangote Cement, engages in a variety of activities that are environmentally friendly.
In the first place, it recycles its own waste by turning it into fuel for the generator that powers the kiln. In the second step of the manufacturing process, fractional mineral traces extracted from trash are utilized rather than primary minerals.
Sterling Bank is able to avoid credit theft and minimize its own carbon footprint as a direct result of the implementation of sustainable measures.
They consist of management systems for the environment as well as management systems for social risks. The organization is working on a variety of fronts to reduce its energy consumption.
The recycling of the bank’s waste is accomplished through collaborative efforts with a recycling organization and the waste management services of Lagos. It complies with the Declaration of Human Rights issued by the United Nations.
In the course of the campaign, creative businesspeople will compete in several challenges centered on the utilization of recycled materials. The prize for the winner is one million nairas, which can be used to further develop their firm.
Because it uses renewable energy, the bank has significantly decreased its overall carbon footprint. Its offices in Nigeria and other countries use more environmentally friendly forms of power.
The business has participated in projects involving solar and hybrid power sources. At the present time, such policies have been put into effect by ten different branches.
The bank has made strides to improve not only its environmental sustainability but also its social and financial effect. All of the company’s stakeholders are kept up to date on a regular basis, and the corporation uses social media to increase involvement.
Both Sterling Bank’s deposit market share, which is 3.1%, and its capital adequacy ratio, which is 12.6%, are excellent.
The international bill of human rights is followed to the letter by Fidelity Bank. Additionally, it is in accordance with the tenets of the Central Bank of Nigeria about the viability of the banking system.
These include the advancement of financial inclusion, the empowerment of women through the creation of an inclusive work environment, and the reduction of negative effects on the environment.
The goal of the bank is to ensure that all types of customers can gain access to the bank’s financial services. The company’s operations help bring about a reduction in poverty in Nigeria and contribute to overall sustainable economic development. The Environmental and Social Implications
The governance procedures of the bank serve as the foundation for the policies of the bank, and the bank’s lending services and decisions are centered on three aspects: economic viability, environmental responsibility, and social relevance.
The actions of Fidelity Bank are consistent with both national and international norms. A few examples of these are the Equator Principles, the Nigerian Sustainable Banking Principles (NSBP), and the Standards for Performance Employed by the International Finance Corporation (IFC).
An overview of sustainable business practices in Nigeria
Achieving sustainability is satisfying the requirements of the here and now without jeopardizing the capacity of future generations to do the same for themselves. It is a strategy for adding genuine and substantial value to existing systems.
It is anticipated that Nigeria’s real GDP growth rate would rise to 3.3%, making it the largest economy in Africa. Nigeria is also home to a vast number of enterprises and investments from across the world.
Every company’s number one priority should be to ensure its profitability and long-term survival while also living up to the requirements of its various stakeholders. The management of firms has a responsibility to engage in activities and corporate strategies that will assist in the achievement of the going concern objective.
Companies and organizations are making efforts to become part of the universal arena by adhering to the demands of stakeholders and international organizations. They do this by conducting operations that reflect transparency and sustainability in their reports and activities.
The Nigerian economy is driven by the manufacturing and service sectors, and the incorporation of sustainability ethics to business approach and processes are gradually taking over higher positions on the itinerary of policymakers, market regulators, companies, and shareholders alike. Nigerian organizations are a subset of the international space.
Protecting brand value through stakeholder participation and support, including completing legal obligations, and selling to a specialized market of green consumers who are eager to buy products and services at a premium are all ways in which sustainability can be investigated.
However, many directors and non-executive directors have little experience in environmental issuers, which results in an insignificant impact on the disclosure of sustainability reporting. The expertise and education of the board of directors of a company have a significant impact on the company’s disclosure of its commitment to sustainability.
What do sustainable practices look like for Nigerian organizations?
Countries have witnessed rapid urban growth globally, increased economic and technological development in recent years; increasing industrial development coupled with a variety of forms of contamination of the earth’s physical and biological components.
In recent years, countries have also witnessed rapid industrial development. Annually, more than 150,000 metric tons of plastic bottles are produced in Nigeria, with the megacity of Lagos accounting for fifty percent of this total.
Organization leaders need to build procedures and structures to fulfill the needs of green practices while still focusing on accomplishing the strategic goals of the business in order to ensure sustainable business practices.
This is necessary in order to guarantee sustainable business practices. Businesses ought to steer clear of practices that have the potential to bring about alterations to the environment, hydro resources, and forestry, and instead embrace alternative sources of energy such as solar, energy-saving bulbs, and so on.
Disclosure of sustainable business practices helps maintain transparency on the threats and opportunities that a company faces. This helps mitigate adverse effects on the environment, society, and governance while also enhancing the reputation of the company’s brands.
Annual sustainability reports are made public by conglomerates such as Dangote Ltd., as well as commercial banks and manufacturing enterprises; as a result, shareholders and the general public are aware of the genuine value, assets, and practices of the organizations.
Ethical investing was formerly considered a niche investment approach; but, in recent years, it has been progressively gaining acceptance, and by 2019, 78% of asset owners included environmental, social, and governance (ESG) principles in their investment processes.
The ESG movement incorporates criteria that cover environmental factors (such as mitigating climate change, managing waste, and increasing energy efficiency), social concerns (such as improving working conditions, increasing stakeholder diversity, and protecting human rights), and qualities of governance (e.g., diversity of the board, transparency, narrowing pay gaps).
The COVID-19 epidemic was a defining milestone, as it resulted in an unprecedented influx of financial resources into organizations with the mission of advancing sustainability and social welfare.
A large number of economic centers and businesses in Africa face significant threats, with Lagos in Nigeria, the most populated city on the African continent, also being susceptible to increasing sea levels.
The effects of climate change have immediate financial repercussions for countries that are dependent on agriculture, as well as social repercussions, such as an increase in food poverty. Over the course of the last decade, there has been a 45.6% increase in the number of persons who are undernourished.