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Home » LEGAL MATTERS: Harnessing PVOs to enhance CSR goals

LEGAL MATTERS: Harnessing PVOs to enhance CSR goals

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THE Covid-19 pandemic has drawn attention to a number of socio-economic issues bedevilling Zimbabwean society.
Issues to do with mental health, food insecurity and access to basic amenities such as potable water have gained new significance in the wake of the pandemic.
This is a perfect opportunity for those looking to participate in humanitarian endeavours to do some of their best work.

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This is also a good opportunity for companies seeking to deepen their Corporate Social Responsibility (CSR) imprint to step to the fore. In Zimbabwe, those seeking to establish entities that do sustainability or social outreach work are mandated by the law to register Private Voluntary Organisations (PVOs) in terms of the Private Voluntary Organisations Act [Chapter 17:05].
Who should register as a PVO?
Corporates looking to expand their CSR footprint should generally register PVOs before they can do any social work.
Non-governmental organisations seeking to be established must also do the same.
Further, entities that are currently doing charitable and other social impact work that is governed by the PVO Act have to register PVOs, if they have not already done so.
This includes entities currently established in terms of notarial deeds of trust. As a matter of law, if one is engaged in a formal process of doing charitable work, they must be operating under the umbrella of a PVO.
The Act defines a PVO in part as any body or association of persons, corporate or unincorporate, or any institution, the objects of which include the rendering of charity to persons or families in distress and the prevention of social distress or destitution of persons or families.
In short, any person or entity looking to do charitable work, including NGOs must register as a PVO.
Why would a corporate register a PVO?
Research has shown that engagement in CSR activities has a significant positive impact on financial performance.
It therefore, makes business sense to engage in philanthropy.
The benefit of registering a PVO is that the company’s strategic thrust can be clearly outlined in the PVO constitution, doing away with the need to craft and re-craft CSR policies.
At the very least, a PVO constitution helps streamline CSR policies with company objectives by using the constitution as a source of terms of reference.
Should there be any significant changes to a company’s philanthropic objectives, the constitution can simply be amended.
A number of Zimbabwean corporates have a vibrant CSR presence. In order to administer their CSR obligations, they associate themselves with reputable philanthropic organisations through donations.

Registering as PVOs affords corporates the opportunity to engage in philanthropic efforts in their own right.
This allows them the latitude to engage in projects that are fully aligned to their goals and not only to those of affiliate philanthropic organisations. Also, direct engagement in philanthropic efforts is, in my view, a better marketing resource then simply donating money. It is also more impactful.

Further, apart from the obvious opportunity to contribute to sustainable development in Zimbabwe, corporate brands can use philanthropic work as a strategic method of enhancing their goodwill.
This strategy is normally adopted by multinational corporations in the manufacturing industry that have a high impact on the environment or the way of life of locals.
To this end, it might not be a bad idea for mining companies, producers of cement products and manufacturers in general, to temper the impact of their operations on the surrounding communities though philanthropic acts governed by a PVO.

Registering a PVO signifies a certain level of intent and commitment to sustainability and socio-economic justice that a lot of corporates often fail to exhibit.
Even if a corporate may not gain direct benefits from registering a PVO, such as certain tax deductions, the goodwill generated from such an endeavour, if exploited strategically, stands to contribute immensely to the public’s conception of a corporate’s brand.
This positive public opinion has been shown to translate to improved financial performance.
How to register a PVO
PVO registrations are handled by the Department of Social Welfare under the ministry of Public Service, Labour and Social Welfare.
Applicants must submit a copy of a constitution together with curricula vitae for all board members, who must be a minimum of seven in number. Further, vetted fingerprints must be submitted together with minutes of a board meeting resolving to establish a PVO and outlining its core functions.
A support letter from the relevant local authority in charge of the area in which the PVO is to operate should also be submitted. After that, a newspaper advertisement should publicise the intent to establish a PVO. All of the foregoing documentation is filed together with the relevant forms, which are to be filled on submission.
The application is then considered and determined by the PVO Board established in terms of the Act. Corporates intent on digging deeper into their CSR goals are well served in registering PVOs. They regulate in fine detail the company’s CSR objectives and outline how philanthropic engagement is to be conducted.
This serves companies in enhancing their CSR footprint while nurturing goodwill with the transacting public.

Muza is an admitted legal practitioner, conveyancer and notary public. He writes in his personal capacity and is reachable at hilarykmuza@gmail.com and at 0719 042 628.

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