Subject
Outlook for corporate social responsibility.
Significance
Through regulation or incentives, the public sector encourages private companies to channel resources into programmes with a societal benefit. These programmes reflect the company's value system as a social actor and are encompassed under the umbrella of corporate social responsibility (CSR). Traditionally, the decision to initiate CSR was within the company's purview. This is changing, as legislation incentivises private companies to develop corporate social investment (CSI) programmes, bringing benefits above those directly associated with core business activities. CSI is the actualisation of the company's CSR.
Impacts
The growing number of companies engaged in CSR will need to be supported by advisory services and financial guidance.
In developing countries, more programmes will empower women as economic drivers and not merely as assistance recipients.
As CSR matures in developing countries, the stakeholders' scope of activities will broaden to include policy and governance.
CSI may increase the fragmentation of efforts, as bilateral and multilateral coordination among companies will take time and resources.