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Applying Strategic Management to ESG: Relevance of a Multipronged Approach Through the African PESTLE Analysis (APA)

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Demystifying Environmental, Social and Governance (ESG)

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Abstract

In this chapter, we present the African PESTLE Analysis (APA), an innovative strategic management framework, based on the values of the African woman and deriving from the structure of the traditional PESTLE Analysis. We take the reader through the application and we show how it can be used at the organization and personal levels. We further demonstrate the relevance to ESG.

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Notes

  1. 1.

    This was elaborated in Karamo N. M. Sonko, “Debt in the Eye of a Storm: The African Crisis in a Global Context,” Africa Today, Vol. 37, No. 4 (4th Qtr., 1990): 15–28.

  2. 2.

    For very basic explanations of repercussion, backwash or feedback effect the interested reader may refer to Smriti Chand, “Foreign Trade Multiplier: Meaning, Working, Assumption, Explanation, Effects and Criticisms”, YourArticleLibrary at https://www.yourarticlelibrary.com/macro-economics/theories-macro-economics/foreign-trade-multiplier-meaning-working-assumption-explanation-effect, last visited 26 October 2021; or advanced debates see, for example Paul Krugman, “Growing World Trade: Causes and Consequences,” Brookings Papers on Economic Activity, Vol. 1 (1995); and the benefits of trade to both industrial and developing countries now, IMF Staff, “Global Trade Liberalization and the Developing Countries,” IMF, Washington, DC, November 2001; and for an overview of global trade see, for instance, Esteban Ortiz-Ospina and Diana Beltekian, “Trade and Globalization,” Our World in Data, Oxford Martin School, University of Oxford, revised October 2018.

  3. 3.

    Pressures from some of these sources might have existed much earlier, but not with the same intensity and in a world as interconnected as it is today.

  4. 4.

    Discipline is defined here as orderly or prescribed conduct or pattern of behaviour (Merriam-Webster), https://www.merriam-webster.com/dictionary/discipline, visited February 28, 2022.

  5. 5.

    According to Kotler (1967), in his review of Aguilar (1967)’s pacesetting work, of all the resources that make up the modern business enterprise—money, materials, machines, men, and information—only information begs for systematic attention from management and business scholars. Despite its increasing cost and value, he observed that most firms have never looked at how to acquire and use external information in a planned manner through “systematic” or strategic management. Philip Kotler, “Review: Scanning the Business Environment. by Francis Joseph Aguilar,” The Journal of Business, Vol. 40, No. 4 (October, 1967): 537–539.

  6. 6.

    Other strategic management and marketing frameworks or tools, sometimes referred to as theories, the interested reader may refer to include Ansoff Matrix, Balanced Scorecard, Marketing Mix, Stakeholder Mapping, Porters Five Forces, GE Matrix, Maslow’s Hierarchy of Needs, Boston Consulting Group Matrix.

  7. 7.

    For studies on personal/employee needs and organizational goals the interested reader may refer to A. H. Maslow, “A theory of human motivation”, Psychological Review (July 1943): 370–396; W. J. Dickson (1973). “Hawthorne experiments,” in The Encyclopedia of Management, ed. C. Heyel, 2nd ed. (pp. 298–302). New York: Van Nostrand Reinhold; Harpaz, I. “The Importance of Work Goals: An International Perspective,” Journal of International Business Studies, Vol. 21 (1990): 75–93; F. Herzberg, B. Mausner, and B. B. Snyderman, The Motivation to Work. New York: John Wiley & Sons, 1959; J. M. Higgins, The Management Challenge (2nd ed.). New York: Macmillan, 1994; and K. A. Kovach, “What Motivates Employees? Workers and Supervisors Give Different Answers,” Business Horizons, Vol. 30 (1987): 58–65; and James R. Lindner, “Understanding Employee Motivation,” Journal of Extension, Vol. 36, No. 3 (June, 1998).

  8. 8.

    Kiesha Frue, “Who Invented PEST Analysis And Why It Matters,” May 8, 2017. https://pestleanalysis.com/who-invented-pest-analysis/.

  9. 9.

    F. J. Aguilar, “Scanning the Business Environment,” MacMillan Co., New York, 1967.

  10. 10.

    p. 211.

  11. 11.

    For a simple but useful narration of the origins of PESTLE Analysis visit https://pestleanalysis.com/who-invented-pest-analysis/.

  12. 12.

    We are referring to Karamo here.

  13. 13.

    For works on the causes and effects of divorces see, for example, Piet F. Bracke, Elien Colman, Sara A. A. Symoens, and Lore Van Praag, “Divorce, Divorce Rates, and Professional Care Seeking for Mental Health Problems in Europe: A Cross-Sectional Population-Based Study,” BMC Public Health (April 29, 2010); Paul R. Amato and Spenser James, “Divorce in Europe and the United States: Commonalities and Differences Across Nations,” Family Science, Vol. 1, No. 1 (2010); Stephanie Coontz, “The Origins of Modern Divorce,” Family Process, Vol. 46, No. 1 (March, 2007); and P. C. McKenry and S. J. Price, “Chapter 10. International Divorce,” in Families in Global and Multicultural Perspective, Sage Thousand Oaks, CA, 2006.

  14. 14.

    For studies and statistics on suicide internationally, for example Tanya Navaneelan, “Suicide Rates: An Overview,” Statistics Canada (July, 2012); Danuta wasserman, Qi Cheng, and Guo-Xin Jiang, “Global Suicide Rates Among Young People Aged 15–19,” World Psychiatry, Vol. 4, No. 2 (June, 2005): 114–120; and A Shah, R. Bhat, S. MacKenzie, and C. Koen, “A Cross-National Study of the Relationship Between Elderly Suicide Rates and Life Expectancy and Markers of Socioeconomic Status and Health Care,” International Psychogeriatrics (May 16, 2007) at https://www.cambridge.org/core/journals/international-psychogeriatrics/article/abs/crossnational-study-of-the-relationship-between-elderly-suicide-rates-and-life-expectancy-and-markers-of-socioeconomic-status-and-health-care/EC7C16B051B0DC63B321A5BAF048C344, last visited October 26, 2021.

  15. 15.

    Karamo N. M. Sonko and Mariama Sonko, “Badea in a New African Economy: Facing the Challenges with PESTLE & Mortar,” Presentation to BADEA, May 31, 2016; and Mariama Sonko, “ESG: Relevance and Applicability in Africa,” Presentation to BADEA, July 5, 2021.

  16. 16.

    Karamo NM Sonko & Sonko, Mariama, “Al Dhabi Investments Ltd: Facing the Management Challenges with Arabian PESTLE & Mortar,” December 8, 2019.

  17. 17.

    Karamo N. M. Sonko and Mariama Sonko “Samil Industrial Co. Ltd: Facing the Challenges with African PESTLE & Mortar,” December 26, 2019.

  18. 18.

    Karamo N. M. Sonko and Mariama Sonko, “Strategic Management in your Company or Organization: Facing the Challenges with the African PESTLE Analysis,” Pilot Session, Etisalat Academy, December 30, 2020.

  19. 19.

    Karamo N. M. Sonko and Mariama Sonko, “Strategic Management at Corporate & Personal Levels: Facing the Challenges with the African PESTLE & Mortar,” Online Presentation to FUFC, Abu Dhabi, Wednesday, July 27, 2020.

  20. 20.

    Karamo N. M. Sonko and Mariama Sonko, “The African PESTLE Analysis,” Online Presentation to the OACPS, Brussels, Belgium, March 26, 2021.

  21. 21.

    Karamo N. M. Sonko and Mariama Sonko, “Strategic Management: African PESTLE Analysis for African Governments & Regional Organizations,” Presentaiton to ACBF, Harare, Zimbabwe, March 19, 2021.

  22. 22.

    Karamo N. M. Sonko and Mariama Sonko, “Strategic Management in your Company or Organization: Facing the Challenges with the African PESTLE Analysis,” Presentation to UNIDO AICEI, Bahrain, May 31, 2021.

  23. 23.

    Karamo N. M. Sonko, “The African PESTLE for Meyas Sand Minerals Company Ltd,” Presentation to Senior Managament Team,, Khartoum, Sudan, February 6, 2020.

  24. 24.

    Karamo N. M. Sonko and Mariama Sonko, “NextEnergy Capital: Facing the Challenges with PESTLE & Mortar,” London, Presentation on March 10, 2020.

  25. 25.

    Karamo N. M. Sonko and Mariama Sonko,”The African PESTLE Analysis,” Presentation to GRAS, Ministry of Minerals, Khartoum, Sudan, May 25, 2021; Karamo N. M. Sonko and Mariama Sonko,”Promoting Domestic and Foreign Investment in the Sudanese Mining Sector,” Presentation to SMRC, Ministry of Minerals, Khartoum, Sudan, August 11, 2021.

  26. 26.

    Karamo N. M. Sonko and Mariama Sonko, “Doing Business in Africa: Opportunities, Risks and Strategies,” Presentation to the Abu Dhabi Islamic Bank, Khartoum, Sudan, October 11, 2021.

  27. 27.

    Karamo N. M. Sonko and Mariama Sonko, “Islamic Finance Institutions in an Environment of Fierce Competition and Acute Poverty: Online Strategic Management Presentation to the Islamic Development Bank,” December 15, 2021.

  28. 28.

    Any video depicting the African village woman’s industry through the pestle and mortar may be usable. Such a video can be viewed, for example, at https://www.youtube.com/watch?v=x9f2PAz94rw.

  29. 29.

    For food consumption patterns in West Africa, example, see OECD, Food System Transformations. Implications for People and Policies, OECD, Maps & Facts. No. 4, April 2021; and for African stable foods see Afrol News, African Stable Foods, http://www.afrol.com/archive/food_staples.htm, last visited October 26, 2021.

  30. 30.

    Research has shown that “all types of exercise can be beneficial for stress management” (Erica Jackson, Stress Relief. The Role of Exercise in Stress Management,” ACSM’s Health & Fitness Journal, Vol. 17, No. 3 (May/June, 2013): 14–19. Medical evidence has shown that pounding can be beneficial. See, for instance, Adetoyeje Y. Oyeyemi, Fati Jajimaji, Adewale L. Oyeyemi, and Abdul-Hameed A. Jabbo, “Cardiovascular Responses to Millet Pounding Activity among Women in a Rural Community in Northeastern Nigeria,” Annals of African Medicine, Vol. 16, No. 1 (January–March, 2017): 24–29—“This exploratory study suggests pounding activity is a moderately intense physical activity that is includible in exercise and physical activity prescription within the 4–6 METs category” (p. 28).

  31. 31.

    There can be many other terms in layman’s language but the main difference between them and the word “challenge” is that a “challenge” reflects a positive attitude and a readiness to face undesirable situations or difficult objectives. Thus, describing something as a challenge rather than a problem or danger implies means they should be expected or considered normal in a professional or professional setting and therefore they can and must be addressed.

  32. 32.

    Subjective decisions are encouraged in this process because of randomness which can hamper the management process. Therefore, if the decision-maker is not sure where to put a challenge the best thing is to ask for the opinion of his/her team.

  33. 33.

    In fact, Aguilar made it clear from the beginning of his book that he is concerned with the world outside the firm and not the internal environment.

  34. 34.

    World Health Organization. Suicide rates per 100,000 by country, year and sex, last accessed November 5, 2021: http://www.who.int/mental_health/prevention/suicide_rates/en/index.html; Rajiv Radhakrishnan and Chittaranjan Andrade, “Suicide: An Indian Perspective,” Indian Journal of Psychiatry, Vol. 54, No. 4 (October–December, 2012): 304–319.

  35. 35.

    Tosin Philip Oyetunji, M. Yasir Arafat, Stephen Oluwaseyi Famori, Timilehin Blessing Akinboyewa, Michael Afolami, Moyo Faith Ajayi, and Sujita Kumar Kar, “Suicide in Nigeria: Observations from the Content Analysis of Newspapers,” General Psychology (January, 2021).

  36. 36.

    WHO, “Suicide data,” 16 June 2021.

  37. 37.

    WHO (ibid.).

  38. 38.

    WHO, Suicide worldwide in 2019. Global Health Estimates. WHO, Geneva, 2021.

  39. 39.

    Boston Children’s Hospital, Suicide and teens,” https://www.childrenshospital.org/conditions-and-treatments/conditions/s/suicide-and-teens, last visited November 5, 2021.

  40. 40.

    Radhakrishnan and Andrade (ibid.).

  41. 41.

    Oyetunji et al. (ibid.).

  42. 42.

    WHO, “Suicide”, 17 January 2021.

  43. 43.

    The research results were published in: S. B. Scott et al., “Reasons for Divorce and Recollections of Premarital Intervention: Implications for Improving Relationship Education,” Couple Family Psychology, Vol. 2, No. 2 (2013); A. J. Hawkins et al., “Reasons for Divorce and Openness to Marital Reconciliation,” Journal of Divorce & Remarriage, Vol. 53, No. 2 (2012); “With This Ring…”, A National Survey on Marriage in America, National Fatherhood Initiative, 2005; X. P. Montenegro, “The Divorce Experience: A Study of Divorce at Midlife and Beyond,” AARP, 2004; P. R. Amato and D. Previti, “People’s Reasons for Divorcing: Gender, Social Class, the Life Course, and Adjustment,” Journal of Family Issues, Vol. 24, No. 5 (2003); L. Gigy and J. B. Kelly, “Reasons for Divorce: Perspective of Divorcing Men and Woman”, OSU Bureau for Social Research, 2001; C. A. Johnson et al., “Marriage in Oklahoma: 2001 Baseline Statewide Survey on Marriage and Divorce,” Journal of Divorce and Remarriage, Vol. 18, No. 1–2 (1993); M. Thurnher et al., “Sociodemographic Perspectives on Reasons for Divorce,” Journal of Divorce, Vol. 6, No. 4 (1983).

  44. 44.

    E. A. Gelten, “What Causes Divorce? 8 Common Reasons Marriages End”, https://www.divorcenet.com/resources/common-reasons-marriages-end.html, last accessed November 5, 2021.

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Sonko, K.N., Sonko, M. (2023). Applying Strategic Management to ESG: Relevance of a Multipronged Approach Through the African PESTLE Analysis (APA). In: Demystifying Environmental, Social and Governance (ESG). Palgrave Studies in Impact Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-35867-8_3

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