Civic engagement

Senath Jayatilake

Several factors are at play behind Sri Lankan corporates often lacking civic mindedness with businesses inherently driven by profit motives, which often take priority over civic efforts, says Senath Jayatilake.

He adds that this profit centricity influences how businesses set priorities, allocate resources and perceive the importance of civic mindedness: “In recent history, Sri Lanka has faced myriad challenges including acts of terrorism, the repercussions of a global pandemic and economic downturns, each event intensifying pressure on businesses.”

Many businesses, especially startups and SMEs with limited resources, are forced to focus solely on their core operations to survive. This he says, leaves little room for investing in civic initiatives that do not immediately improve profitability.

While he acknowledges that commendable steps have been taken by the government to stabilise the country and address pressing social issues, there is room for improvement.

“A notable gap is the lack of an overarching national governance framework to regulate civic initiatives. The absence of a clear framework that embeds comprehensive policies, incentives and mechanisms for businesses to engage in socially responsible practices can divert attention away from civic initiatives,” he opines.

PRIORITY MISALIGNMENT The main challenge in meeting civic responsibilities is that many businesses fail to see the long-term value in engaging with communities by way of civic initiatives.

Jayatilake asserts that while it is increasingly recognised that progressive organisations should prioritise community well-being, it’s unclear whether this ideology has been fully embraced as yet.

“Businesses often prioritise delivering immediate returns to key stakeholders and this short-term focus can sideline long-term investments in community upliftment; it is akin to postponing something crucial because urgent matters demand immediate attention,” he asserts.

Resource constraints also exacerbate this issue, he points out, adding that effective civic engagement requires dedicated manpower and funding, which not every business can afford to allocate.

EMBEDDED RESPONSIBILITY The sense of civic duty and community involvement within organisations falls on leaders to align the company towards civic initiatives in its business model.

Jayatilake says that this alignment should be intrinsic to the company’s identity and not treated as an external add-on, to ensure lasting impact as a purpose driven business. And he believes that ideally, companies should focus on areas of engagement that are closely related to their core business, ensuring relevance and resonance with stakeholders.

In his opinion, it’s important to foster a culture of civic responsibility that goes beyond mere tokenism and is part of a company’s DNA.

Jayatilake explains: “It is about actually demonstrating that businesses can act as agents of positive change in the communities they operate. Once established, this commitment will permeate throughout the company, influencing every facet of its operations.”

This can be achieved by embedding this focus into the company’s performance and measurement systems, to facilitate accountability and progress.

LEADERSHIP IMPACT Jayatilake stresses that business leaders have numerous opportunities to create a positive impact by prioritising civic mindedness.

He believes that demographic shifts – especially among new generations like Gen Z – reveal their expectations for businesses to show greater engagement and accountability, both as part of the workforce and as consumers.

Jayatilake avers: “Recognising these evolving expectations, leaders play a pivotal role in integrating them into the organisation’s core values and practices. This often necessitates rethinking and reshaping the business model to benefit and create equitable value for all stakeholders.”

Such alignment not only meets evolving societal demands but sets a precedent for future corporate practices and strengthens the company’s sustainability, he affirms. Leaders should proactively review internal policies, practices and reward systems to ensure they reflect a robust commitment to civic impact.

He concludes that it is imperative for every aspect of the organisation – from operational strategies to corporate culture – to demonstrate a steadfast dedication to contributing meaningfully towards societal well-being.

Senath Jayatilake is the Chief Executive Officer of Union Assurance.