Defining Corporate Social Responsibility for Developing and Developed Countries

Author(s):  
Duane Windsor

This chapter proposes a conceptual framework for comparing enterprise and governmental approaches to corporate social responsibility (CSR) for developed and developing countries. An enterprise approach is voluntary. A governmental approach provides either requirements or guidance, strong or weak, for enterprise CSR. Focus is on multinational enterprises (MNEs), for two reasons. First, MNEs may operate across quite different conditions. Second, a major MNE concern has to do with fair trade and sustainable development supply chains. The chapter considers three approaches found in the extant literature. One approach asserts autonomy of developing countries from developed countries, and thus divergence of enterprise and governmental CSR by type of context. A second approach examines global convergence as highly context path-dependent and perhaps cosmetic. A third approach emphasizes “glocality” combining global thinking with local action. The author proposes an alternative understanding of how to compare CSR for developed and developing countries using theory versus context.

Author(s):  
Duane Windsor

This chapter proposes a conceptual framework for comparing enterprise and governmental approaches to corporate social responsibility (CSR) for developed and developing countries. An enterprise approach is voluntary. A governmental approach provides either requirements or guidance, strong or weak, for enterprise CSR. Focus is on multinational enterprises (MNEs), for two reasons. First, MNEs may operate across quite different conditions. Second, a major MNE concern has to do with fair trade and sustainable development supply chains. The chapter considers three approaches found in the extant literature. One approach asserts autonomy of developing countries from developed countries, and thus divergence of enterprise and governmental CSR by type of context. A second approach examines global convergence as highly context path-dependent and perhaps cosmetic. A third approach emphasizes “glocality” combining global thinking with local action. The author proposes an alternative understanding of how to compare CSR for developed and developing countries using theory versus context.


2016 ◽  
Vol 4 ◽  
pp. 340-345
Author(s):  
Katarína Moravčíková ◽  
Elena Gregová

Fair Trade connects developed countries, where greater sustainability and justice is being sought, with the needs of developing countries where economic and social changes are needed most. It enables citizens who are consumers to favor the producers of poorer countries. This is a manifestation of humanity that helps producers to escape acute poverty and lead dignified lives. Fair trade is becoming a very “hot” topic, not only for businesses but also for consumers, who are trending towards buying Fair Trade products. By buying such products, customers express solidarity with the producers of Fair Trade products. This article aims to identify the importance of Fair Trade. Methods of analysis, synthesis, deduction, and comparison are used to establish the current situation of Fair Trade in Slovakia and the Czech Republic, as well as the perception of Fair Trade held by Czech and Slovak customers. 


2019 ◽  
Vol 17 (4) ◽  
Author(s):  
Selma Alves Dios ◽  
José Paulo Cosenza

This paper presents theoretical reflections whose purpose is to discuss the performance of Multinational Enterprises (MNEs) and the fact that the impacts of their activities are the result of their management, despite their focus on Corporate Social Responsibility (CSR). For this purpose, we reviewed some of the main CSR concepts and reference documents to identify in which way this type of organization could be contributing to global inequality. Additionally, we describe the characteristics of the general orientation of CSR in these companies. The main results indicate that when moving to less developed countries, MNEs take advantage of the existing unequal conditions of income and precariousness of labor and environmental rules. The construction of a favorable image through CSR contributes to MNEs success, but at the cost of a complex and intense process of concentration of wealth and deepening of social inequality and poverty.


Author(s):  
A. Orazayeva ◽  
M. Arslan

Purpose of research. The aim of this systematic review is to develop a general framework which is applicable for analysis of corporate social responsibility (CSR) in developing economies. This framework is further applied to transitional economy such as Kazakhstan.Methodology. This study presents a systematic review of existing CSR literature on developing economies. The study used the content analysis approach and identified the relevant studies by searching the keywords. Based on existing literature, the study developed a general framework which summarizes mostly noted motives and limitations relevant for CSR discussion in the context of developing countries.Originality / value. The most of existing studies aimed on developed countries and limited research is conducted in the context of developing countries that are characterised by weak institutional environment and have different socio-economic factors, compared to their counterparts. The study adds value to existing CSR literature by developing the framework which summarizes motives and limitations of CSR for developing countries.Findings. We identified that most of existing studies have reported the barriers of undertaking CSR research and documented the factors such as corruption, weak stakeholder activism and lack of government controls as main constraints. On the other hand, existing studies reported that religious traditions, historical background, globalization, and government institutional voids are the main drivers of CSR studies. Subsequent application of the framework to Kazakhstan shows that these constraints and motives are also true for the country.


2018 ◽  
Vol 10 (10) ◽  
pp. 3675
Author(s):  
Holger Görg ◽  
Aoife Hanley ◽  
Adnan Seric

The disconnect between the lofty aspirations of firms claiming Corporate Social Responsibility (CSR) and their shortcomings in practice have caused some observers to question its usefulness. The fallout from events like the Rana Plaza catastrophe has highlighted some of these shortcomings—namely, deficiencies in how multinational enterprises (MNEs) transact with suppliers in developing countries. Specifically, our paper aims to investigate whether or not MNEs behave hypocritically by examining the alignment of CSR to business practices in MNE affiliates in developing countries. To answer this question, we apply standard ordinary least squares (OLS) techniques to data for over 1000 MNEs that claim to have a CSR ethos. We find that CSR-active enterprises report significantly higher worker wages, ceteris paribus. Local African suppliers benefit from CSR through knowledge transfer, but only when MNEs make tangible investments in supplier development.


2019 ◽  
Vol 9 (1) ◽  
pp. 1-15
Author(s):  
Golrida Karyawati P ◽  
Mira Muliani ◽  
Prem Lal Joshi

 In a previous study on the firm size and corporate social responsibility (CSR) participation conducted by Golrida, et al (2017), different result is reported with Udayasankar’s hypothesis (2008) which states a U-shape relationship of firm size and CSR participation.  However, it is arqued that Udayasankar hyppothesis is better applicable in developed countries, while in developing countries an inverted - U shape relationship is found. But, Golrida et al (2017) can only prove the form of relationship using two perspectives stated by Udayasankar, which are operating scale and resourcess access.  The proxy of visibility could not capture the inverted U shape relationship due to measurement problem in the previous study. This study aims at re-examining the relationship between firm size and CSR participation from the visibility perpective by employing two proxies of visibility, which are analyst coverage and news coverage respectively.  Indonesian companies are chosen to capture the context of developing country. Content analysis is done in obtaining CSR data of 433 companies listed on Indonesian Stock Exchange on 2012, while the data of visibility proxies are  extracted from Thomson Reuters and selected news portal namely, Detik.com. The result of study shows that both visibility proxies, which are Analysts Coverage and Media Coverage form inverted U- shape relationship with CSR participation. The findings in this study contribute to the literature that, the form of firm size and CSR participation relationship in the context of developing countries is different than those in developed countries.


2016 ◽  
Vol 26 (3) ◽  
pp. 347-378 ◽  
Author(s):  
Lutz Preuss ◽  
Ralf Barkemeyer ◽  
Ante Glavas

ABSTRACT:The extant literature on cross-national differences in approaches to corporate social responsibility (CSR) has mostly focused on developed countries. Instead, we offer two inter-related studies into corporate codes of conduct issued by developing country multinational enterprises (DMNEs). First, we analyse code adoption rates and code content through a mixed methods design. Second, we use multilevel analyses to examine country-level drivers of differences in code content—specifically, elements of a country’s National Business System (NBS). We find that DMNEs are much more likely to adopt a code of conduct than their domestic counterparts; however, this does not translate into greater code comprehensiveness. We also find support for the ‘substitute view’ of CSR in developing countries, i.e. that MNEs from poorer countries and from countries with lower governance effectiveness tend to express more comprehensive commitments. However, this dynamic does not extend to a country’s labour system; instead, CSR appears here to match the efficiency of a country’s labour market, thus reflecting the ‘mirror view’ of CSR.


2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Tolossa Fufa Gulema ◽  
Yadessa Tadesse Roba

AbstractThe purpose of the study is to investigate the internal drivers and external determinants of corporate social responsibility (CSR) strategies practiced by multinational enterprises’ (MNEs) using institutional theory and the resource-based view. We propose that MNEs’ local business orientations and political behaviors are highly related to firms’ CSR selection as internal and external determinants, respectively, and we integrate the actual CSR practices from different characteristics to exploring and exploiting strategies. A multiple regression analysis was conducted by using survey data collected from MNE subsidiaries operating in Ethiopia. We found that firms who are oriented to raise competitiveness with collaborative attitudes toward host governments seek more exploring CSR practices. On the other hand, firms’ local orientation that is to build legitimacy with accommodative attitudes toward host governments has positive relations with exploiting CSR practices. Furthermore, contrary to the expectation the result revealed that exploiting CSR practices are positively related to both orientations, which implies that traditional CSR practices are treated fundamentally of importance in developing countries.


2021 ◽  
Vol 10 (2) ◽  
pp. 74-83
Author(s):  
Dina Hassouna ◽  
Rania Salem

Studies amongst developed countries have extensively investigated the link between corporate social responsibility (CSR) and financial performance. However, due to lack of research in the Middle East, especially in Egypt, the association between CSR and firm risk remains much less understood (Nguyen & Nguyen, 2015). Therefore, this paper is one of the very few studies that investigate the impact of CSR on firm risk amongst developing countries. A sample of 31 Egyptian listed companies was examined over four years, from 2011 to 2015. We test the impact of CSR on firm risk using fixed and random effects estimation models. We use operating leverage, financial leverage and the beta coefficient of the sample companies’ stocks as a proxy for the companies’ risk. Identified control variables are firm size, market-to-book value, return on equity, return on assets, and firm age. Other variables are used to control for corporate governance, board characteristics and audit committee characteristics. The results show that CSR affects operating risk, yet it does not have a significant impact on financial or market risks in Egypt, which in turn emphasizes that CSR in developing countries differs in characteristics from that in developed countries (Vo & Arato, 2020).


2020 ◽  
Vol 12 (13) ◽  
pp. 5255 ◽  
Author(s):  
Lucie Kvasničková Stanislavská ◽  
Ladislav Pilař ◽  
Klára Margarisová ◽  
Roman Kvasnička

Social media allow companies to engage with their interest groups, thus enabling them to solidify corporate social responsibility (CSR) policies. The concept of CSR is now well-established for companies in Western countries, and CSR is becoming an increasingly popular topic in developing countries. This study investigated differences in the perception of the term ‘CSR’ on Instagram between developing and developed countries. We analysed 113,628 Instagram messages from 38,590 unique users worldwide. The data were recorded between 19 November 2017 and 11 December 2018. In both developed and developing countries, charity and social good were common features. On the contrary, a difference was identified in the area of sustainability, which is an important part of communication in developed countries, and the area of education, which is an important part of communication in developing countries. Community analysis revealed four dominant communities in developed countries: (1) philanthropic responsibility, (2) environmental sustainability, (3) pleasure from working and (4) start-ups with CSR; and three in developing countries: (1) social and environmental responsibility, (2) philanthropic responsibility and (3) reputation management. These results could facilitate the strategic management of CSR to adapt communication to local environments and company contexts. Our findings could allow managers to focus CSR activities on relevant issues in developing countries and thus differentiate their CSR communication from competing organizations.


Sign in / Sign up

Export Citation Format

Share Document