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Raphael Wanjaria Njararuhi

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Coporate Social Responsibility in Developing Countries
April 10, 2007 - 08:05 AM

Concept: The World Business Council for Sustainable Development (WBCSD) defines CSR as “…the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. CSR is about capacity building for sustainable livelihoods. It’s about business giving back to society". (CSR: Making Good Business Sense, WBCSD, 2000). CSR goes beyond charity and requires that a responsible company take into full account its impact on all stakeholders when making business decisions. CSR aims for responsible and ethical business practices to the advantage of all these stakeholders.
Models of CSR: The most commonly found models of CSR are the following. In the Social Investment model a company funds investments or programmes that seek to improve the general welfare of the community, such as health, infrastructure, education, or various forms of capacity building. It is a strategy that can seem indistinguishable from philanthropy and does not necessarily institutionalize the transfer of non-financial assets between the private sector and target communities. The Economic Linkages model is based on development initiatives that aim to integrate communities into the business activity of the private enterprise. This may include job training, direct employment, technical skills training, building microfinance institutions, capital formation, or developing new supply bases and creating supply chain linkages.

Understanding trends in CSR:
The pressure exerted on companies in industrialized countries by government, civil society and consumers led many of them to introduce CSR principles in their business strategies. With globalization, social responsibility expectations were extended to global supply chains of transnational corporations (TNCs), trickling down on companies within the TNC’s supply chains in developing countries.

Many companies in developing countries find that CSR is good for business and have scaled it up. However, for the majority of enterprises (SMEs) in developing countries, the costs to introduce these “western concepts” can be very high.

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Prince Charles Jiduwah

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Re: Coporate Social Responsibility in Developing Countries
April 10, 2007 - 10:06 AM

Its a welcome idea. Giving something back to the people is a way of saying we care.


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Rania Ramadan

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Re: Coporate Social Responsibility in Developing Countries
April 11, 2007 - 06:32 AM

Developing countries faces many challenges that requires new visions and strategies to be able to sustaiin their lifes in an equitale way. one of the most important issues is obtaining water as a human right issue , and the Coporate Social Responsibility is palying a significant role in achieveing its goals in this issue in particular


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Joel Ngatia

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Re: Coporate Social Responsibility in Developing Countries
April 11, 2007 - 01:18 PM

The concept is definately well in line with moral and ethical standards but the practise is especially in the developing countries a great concern. It has been viewed by countries as giving back to thier consumers whereas this demeans its importance. It shouldn't be viewed as previldge that is extended to the consumers but an obligation to the cooperates.
In developing countries it has been reduce largely to publicity stunts. It has become another model of advertisement which seems to sell highly. It is good thing to do noble thing but then intention matters well to some extent the receiver would not mind whatever the reasons behind it, but then due to this fact when it is reduced to publicity you find that what is input as CSR has little impact since it was determined to create the highest level of publicity rather the higest impact.
It is pity that you will find companies doing deeds in which in thier books would be reffered as CSR at places where there is less need. If you critically look some of this are directed at popular places i.e. you will three or four companies assisting the same institution as if it was the most deserving other than hundreds of others.
Whereas you will see companies being allowed to operate in areas where there are doing more harm than good just because of their CSR budjects.
My input is sthat is the concept was used in the right and postive manner it would be of much more benefit. Companies should put thier enviroment, and long term benefit to thier consumers first rather than the amount of publicity thier can gain.

This post was edited on: 2007-04-11 at 01:22 PM by: joepetersir


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Ben

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Re: Coporate Social Responsibility in Developing Countries
April 13, 2007 - 09:51 AM

Recently I was working with an NGO in India where much of our funding came from corporations, through their corporate social responsibility (CSR) programs. While there was no doubt that the CSR programs being put in place were in some way beneficial to the communities in question, I often questioned the motives behind these actions. As I learned more, I realized that these CSR programs were often being introduced in areas where a company was facing a great deal of local pressure from the community due to unethical labor/environmental practices, or because they had kicked people off good land to set up their business. I started seeing CSR as a tool of pacification; It looks good on the outside, and may provide some services to certain members of the community(and actually gives the company in question a tax break in direct proportion to their CSR investment), but at the same time it undermines critical grassroots resistance to oppressive policies without examining those policies themselves.

Now I realize that this is just my own limited experience and I believe that CSR could be a great initiative, but does anyone else see the contradiction in a company imposing itself on a community, radically changing its environment and economic situation, and then being lauded for some token CSR initiative?

Can a corporation utilize socially irresonsible practices and tout the horn of corporate social resonsibility?

This post was edited on: 2007-04-13 at 11:38 AM by: bensaifer


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Amelia Namanya

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Re: Coporate Social Responsibility in Developing Countries
April 19, 2007 - 05:17 AM

It is the duty of Multi National and National Organisations to help the needy communities they they are geting profits. this helps in improving the standards of living for thge rural poor and the needy personnalities like the Aged and the children to access basic social services. thanks to these organisations for the great package you have given to these areas in Developing countries.


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Mike Ter.Songu

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Re: Coporate Social Responsibility in Developing Countries
September 19, 2007 - 10:37 AM

Coporations in developing countries have not yet begun to view the CSR aspect of business ethics as an obligation. Indiginous coporations are the most guilty here. But foriegn ones are not also totally vindicated. Most coperations in the developing world tend to view giving back to society as a favour and even use it as a means of gaining market place popularity. Even at this, most do it out of pressure from local communities and, if they are fortunate to find themslves in localities where corruption is enshrined in societal values, they make do with bribing influential figures of the society to wade off the pressure.


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Ben Warner

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Re: Coporate Social Responsibility in Developing Countries
September 21, 2007 - 06:42 AM

In the 1970s, the USA passed a Community reinvestment Act requiring banks to invest a portion of the money that they were lending out in the communities in which they served.

Some did it out of obligation. Some tried to find creative ways to avoid responsibility. But now, 30 years later, we're able to get a significant amount of social good accomplished through the CRA.

I suspect CSR efforts will follow a similar trend line. Some will act initially just with enough of a show to reduce public pressure and improve marketing position. Others will create efforts that have little real impact. But over time, as CSR becomes an industry standard, much good can come of it.


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Maissan Hassan

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Re: Coporate Social Responsibility in Developing Countries
September 29, 2007 - 04:23 PM

Although corporate social responsibility can be a major source for funding NGOs in developing countries, in Egypt, from my experience, the activities of corporations are very limited. Currently, I work at an NGO that is based in Cairo. And while browsing in the major Egyptian corporations' websites, I figures out that the majority of them do not pay attention at all to corporate social responsibility or they perceive it in a similar way to their perception of short- term small scale charity activities. And just a small number of corporations that offer funding to advocacy organizations or research oriented programs. It is hard in a country like Egypt to convince big corporations to support human rights or research institutions that are not direct service providing agencies.


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Maissan Hassan

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Re: Coporate Social Responsibility in Developing Countries
September 29, 2007 - 04:23 PM

Although corporate social responsibility can be a major source for funding NGOs in developing countries, in Egypt, from my experience, the activities of corporations are very limited. Currently, I work at an NGO that is based in Cairo. And while browsing in the major Egyptian corporations' websites, I figures out that the majority of them do not pay attention at all to corporate social responsibility or they perceive it in a similar way to their perception of short- term small scale charity activities. And just a small number of corporations that offer funding to advocacy organizations or research oriented programs. It is hard in a country like Egypt to convince big corporations to support human rights or research institutions that are not direct service providing agencies.


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Re: Coporate Social Responsibility in Developing Countries
October 13, 2007 - 10:54 PM

Although, there is no universally accepted definition of corporate social responsibility (CSR), it simply refers to a concept that encourages organizations to consider the interest of society by taking responsibility for the impact of the organizations activities on customers, employees, shareholders, communities and the environment in all aspects of its operations. In essence, CSR is an obligation that goes beyond the mere observance of statutory legislations but entails a voluntary and disinterested step by the organization to improve the quality of life for employees and their families as well as for the local community and society at large.
The above is the expected and unfortunately differs from what is obtainable. There have been wide condemnation of CSR based on charity or its dismissal as an anomaly; yet it seems even mild when juxtaposed with CSR efforts that are nothing but mere bribes to stifle corporations’ unethical practices.

Another unfortunate idea is the believe that SMEs in developing countries cannot afford the cost of CSR. But CSR is not dependent on cost alone. CSR goes beyond paper currency to embrace ideas that are essential for the stakeholders’ welfare. A good practice of CSR in small and medium sized companies entail practical effort aimed at extending the progress of the business to the door step of the stake holders in the community where the business is located and to the society at large


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GSimon

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Re: Coporate Social Responsibility in Developing Countries
October 19, 2007 - 09:22 PM

Multinational corporations have community programs in place, make donations to NGO's and we see more and more partnerships between the "third sector" and the private sector. These are good news. Those partnerships are of crucial importance and some companies engage to dedicate 1% of their revenues to donations; however my point is that companies must ensure first that their operations do not harm people before, or respect the environmental, social and human rights of people within communities. Let's take example of mining companies. Sometimes, stakeholders are not involved in the pre-assessment phase of a project. Otherwise for me it can be considered as "greenwashing" . That is why disclosure is so important for companies to be primarily accountable of what they actually do.
I think companies have already a lot of "regular" duties to fulfill within the community where they operate: paying taxes, respecting labor rights, ensuring that the workplace standards are as good as in the developed countries, and promoting dialogue with stakeholders. This is a priority before a company makes financial donations.
In a more realistic perspective here is what I think wink What do you think? mad


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Bob

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Re: Coporate Social Responsibility in Developing Countries
October 22, 2007 - 10:42 PM

I think corporate responsibility is a great ethos to reward, but I am sceptical of it's potential siginificance in altering absuive corporate practices in today's global economy. In an economy where such a significant amoutn of global trade goes through large multinationals and where purchasers are so far away and disconnected from the production process, voluntary corporate responsibility is a fairly unimpressive carrot.

The modern coporation has a legal obligation to it's shareholders in most countires to maximise share value - all other concerns are almost illegal given the reigning governance frameowork. Hence, only those corporations whose profits are increased by pandering to consumer demand for more ehtical practices will engage in "responsible" practices. Most tohers seem not to.

In Nigeria, Shell oil supplies money to a brutal ditatorship that murders any acitvists who question the companie's atorciious environmental and human rights practices. In Columbia, Coca Cola owns contorlling mmnorites of local botlting plants that murder their trade union activists in collaboration with rightist death squads.

Think of coca-cola's many philanthropic exercises, or Shell's well publicized initiatives on efficiency and global warming. Clearly these are smokescreens, and leads me to believe we must compel multinationals, not count on their good graces.


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Kevan Cameron

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Re: Coporate Social Responsibility in Developing Countries
October 24, 2007 - 03:50 AM

The modern coporation has a legal obligation to it's shareholders in most countires to maximise share value - all other concerns are almost illegal given the reigning governance frameowork.
So Corporate Social Responsiblity would only ever take place if and when it becomes profitable for a corporation to act in a 'socially responsible' fashion. The idea of a corporation 'giving back' to the community is oxymoronic at best.

Take money money, take money money money!!!


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GSimon

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Re: Coporate Social Responsibility in Developing Countries
November 17, 2007 - 12:49 AM

It is also a problem of corporate governance and fiduciary duty. In a company sharholders & management are often disconnected. Some shareholders really want their corporations to do better for the society, especially 1960's generations. However, communication and voting power is not often as transparent as it should be.


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