Mr Speaker, I just want to highlight some of the concerns that they have raised in their writing, so that this Parliament is guided. With your permission, I beg to quote:
2. 40 p.m.
“What do we want to build as corporate values? To create an organisational culture that promotes openness, which does not focus solely on self-interest and adopt other regarding sentiments”?
Mr Speaker, only last month, I was in Tamale when the Vice President of the Republic, Dr Mahamudu Bawumia came to Tamale Secondary School (TAMASCO), his alma mater, to commission a girl's dormitory. This was a voluntary corporate social responsibility undertaken by MTN. However, if we go to legislate and we are even thinking of additional corporate tax, does Government policy support that? And would the money go into CSR?
Mr Speaker, however, in commending the Hon Member who moved the Motion, we also need a policy guidance and a legal framework to guide CSR, and I have no difficulty with it. In Ghana, when we take all the major mining
companies into consideration, the Newmont Corporation in Kenyasi, for instance, is struggling. In Kenyasi, there are no schools and no proper or quality drinking water. The AngloGold Ashanti Mining Company, for instance, is in Obuasi, but the town is deprived. It is same for The Goldfield Mining Company, which is in Dunkwa-On-Offin area. That is why I support the thought behind this Motion but not the construct of it.
Mr Speaker, therefore, we are beginning to wake these corporate entities up to do more. One can be born generous but others are not generous, so, we cannot legislate on generosity, but that is what we are coming to do. Corporate social responsibility is corporate generosity that considers the reputation of the company beyond the sale of their products. That is what CSR is about, so, do we legislate on the generosity of corporate entities? I have a difficulty with it, but to guide it with policy, I wholeheartedly and fully support it, and I believe that the appropriate Minister to be in charge of it should be the Hon Minister for Trade and Industry.
As I said, as far back in the year 2013, I believe that after launching the competition policy, I held the first major stakeholder consultation on a CSR Policy for Ghana. That must be
the first step, but to legislate and to think of two per cent --
Mr Speaker, today, we are happy, and I must pay royalties by way of commendations to Professor Mike Oquaye, the former Hon Speaker of this House that today, an Hon Member can rise and move a Private Member's Motion. However, it was not ever his thinking that in the use of this procedure, we would not respect the provisions of the Constitution under article 108 of the 1992 Constitution. Article 108 of the 1992 Constitution states and with your permission, I quote:
“Parliament shall not, unless the bill is introduced or the motion is introduced by, or on behalf of, the President --
(a) proceed upon a bill…” [Interruption] --
Hon Member, when it suits you, you would agree --
Again, article 108(i) reads, and I quote:
“the imposition of taxation or the alteration of taxation otherwise than by reduction; or…” [Interruption] --
Mr Speaker, however, if one proceeds with a Bill -- [Interruption] -- yes, one can come through a Bill, so, you should hear me right. If you let the Bill be spearheaded by the Minister for Trade and Industry in the name of the President, then you would be walking right, but to come with a Private Member's Bill, no! I disagree because that would be constitutionally repugnant.
However, a Minister in the name of the President can bring a Bill, and that is why I am saying that we should let the Ministry of Trade and Industry and the Minister for Finance consult and come further. This House cannot, on its own, wake up and start imposing two per cent corporate taxes. We cannot. We have the power to impose taxes but by the construction in the 1992 Constitution, it says that it must be one which is introduced and on behalf of the President.
Mr Speaker, indeed, this is what scared the late Hon Peter Ala Adjetey and company from giving meaning to the Private Member's Bill. When we go back to his ruling on this matter, we realised that they were afraid of the constitutionality of accepting Private Member's Motion on the imposition and initiation of taxes. However, as I said, I have gone to do some reading and would still want
to quote from my research document. It says:
“This emerging recession features both conceptual development and empirical investigation, and it asks the question; what is it that we would want to achieve with Cor- porate Social Responsibility?”
So, this is the reason I support the movers of the Motion but not the construct of it.
Mr Speaker, many a time, corporate entities in Ghana give funeral and outdooring donations and behave as if that is corporate social responsibility. That cannot be a CSR. When a corporate body provides a bus to go to the funeral of an employee, they cannot equate that to CSR. But we must also be mindful that CSR is a function of the profitability of the corporate entity. How well they do and how much they give would depend upon the extent to which they are profitable. Accept it or not, tax is a cost to them, and that can undermine their ability to be able to perform that role.
Mr Speaker, I have also gone further again, and I would conclude with it. As I said, I decided to do some
small research while sitting here. This is corporate social responsibility by Adam Lindgreen of the University of Hull Business School. He was now concentrating on just supply chain and he says:
“Organisations voluntarily choose to behave in a more responsible manner, beyond what the law stipulates. Some of these reasons appear defensive whereas others are strategic or even altruistic”.
Then he quotes Baron, 2001 and Vogel, 2005. So, I would want the Hon Leader to know that I am not against the thought.
Mr Speaker, I conclude with my research again. Formulation of CSR and its deployment must be based on - if we assume that business firms should be socially responsible, then in what ways should this be exercised? So, we agree with the thinking of the Hon Annoh-Dompreh and his Hon Colleagues that businesses and corporate entities in Ghana must be socially responsible, but how it should be exercised is what this Parliament must guide him on. However, I do not think that his Motion must be for a law.
As I have said, private member's law manifesting in a Private Member's