Conceptualising corporate social responsibility (CSR) and corporate social investment (CSI): the South African context

Abstract

PurposeWith globalisation pressures and increasing burdens on governments to provide comprehensive social services, there is now a need to better understand how firms play their part in sharing these burdens. Views vary from those who believe that CSR and CSI are distractions from profit maximisation to those who argue that participation in such activities contributes to positive social transformation and also benefits participating firms themselves. This paper seeks to conceptualise these debates.Design/methodology/approachThe paper largely utilises a literature review to derive the research conclusions. Specifically, it examines how CSR, CSI and the socially responsible investment (SRI) index has been used to evaluate corporate behaviour in South Africa, as a novel way of addressing pressing development problems.FindingsCSI has emerged from the specificities of South African historical development, and it has arguably been driven primarily by legislation and industry charters. It is in this context that CSI, with its paraphernalia of the SRI Index and social capital market, promises to present a new and radical way of addressing developmental problems.Originality/valueThis paper is one of the few studies examining the phenomenon of corporate social investment from a developing economy context.

Market orientation and corporate social responsibility: towards an integrated conceptual framework

“…Even in difficult times or slow periods of growth, CSR is still recommended as a strategic tool for firms' growth. This is even more important for developing economies, especially in sub-Saharan Africa where the poverty level is high (Hinson and Ndhlovu 2011). In such economies, organisations are expected to provide some social services and welfare programmes in addition to their normal economic activities (Hinson and Ndhlovu 2011).…”

“…This is even more important for developing economies, especially in sub-Saharan Africa where the poverty level is high (Hinson and Ndhlovu 2011). In such economies, organisations are expected to provide some social services and welfare programmes in addition to their normal economic activities (Hinson and Ndhlovu 2011). Firms balancing their economic and social goals would be able to achieve their business objectives and address societal concerns at the same time.…”

Antecedents to transformational community engagement in South Africa

“…The metals and mining company listed legislation, such as the requirements of the mining charter, as an enabler, because it clarifies the expectations of how the mine should contribute to the local community, thus reducing issues like business buy-in and stakeholder identification. Concern is raised around tick-box exercises (Hamann, 2006;Hinson & Ndhlovu, 2011) but we find that voluntary CSR is not sufficient to bring about a move to transformational community engagement (Bowen et al, 2010).…”

“…Tragic events, such as the uprising in Marikana in October 2012, are a result of these issues (Chapple & Barnett, 2012). Over and above social imperatives, CSR in South Africa has been legislated (Arya & Bassi, 2011;Hamann, 2006) through the Broad-Based Black Economic Empowerment scorecards (Hinson & Ndhlovu, 2011;DTI, 2007). This has been both hailed as proactive and forward-thinking and criticised for benefiting only a certain elite (Hamann, 2006;Patel & Graham, 2012;Ponte, Roberts & Van Sittert, 2007).…”

Csr, Nilai Perusahaan Dan Kinerja Keuangan Perusahaan Pada Industri Pertambangan Dan Manufaktur Di Indonesia

“…Hinson & Ndhlovu (2011),Chen & Wang (2011) dan Waddock & Graves (1997dalam penelitiannya menemukan bahwa hubungan antara CSR dan kinerja keuangan merupakan suatu lingkaran yang tidak terputus, sehingga hubungan antara CSR dan kinerja keuangan bekerja dalam dua arah. Perusahaan yang berkinerja baik akan memiliki kas yang berlebih, hal ini memberikan kesempatan kepada perusahaan untuk dapat menerapkan CSR, dan penerapan CSR ini dapat mengarahkan perusahaan untuk memiliki kinerja keuangan yang lebih baik.Pendapat Hinson & Ndhlovu (2011), Chen & Wang (2011) dan Waddock & Graves (1997mendukung The Slack Resource Theorydimana kinerja keuangan yang lebih baik akan memotivasi perusahaan untuk berinvestasi pada area yang bersifat sosial, secara teoritis semakin tinggi tingkat profitabilitas yang dicapai perusahaan maka semakin kuat pula pengaruh pengungkapan sosial terhadap penciptaan nilai perusahaan. Teori pendukung yang lain mengatakan bahwa sistem manajemen yang baik akan mengembangkan hubungan dengan lingkungan sosial, dan akan menyebabkan kinerja keuangan menjadi lebih baik (Olowokudejo & Aduloju, 2011).…”