Corporate social responsibility and developing countries

Abstract

This is an accepted version of a paper published in Corporate Social Responsibility and Environmental Management. This paper has been peer-reviewed but does not include the final publisher proof-corrections or journal pagination.Citation for the published paper: Dobers, P., Halme, M. (2009 Abstract: This article gives attention to several CSR questions in developing countries: 1) Illustrations from e.g. South America and Africa, including African voices critical to foreign aid, show that societies are different in many respects. This implies different capacities of organizations and their managers to understand and address pressing CSR issues in different cultural contexts. 2) Weak institutional environments, such as in developing countries, often harbor illicit financial outflow from poor countries to rich ones. This strips developing nations of critical resources and contributes to failed states, a point hardly ever discussed in the CSR literature. We argue for corporate actions in areas such as enhancing capacity in detecting tax fraud, antitrust and the unveiling of corruption cases. Obviously legislation is a task of politicians, governments and international governmental bodies. However, if business enterprises can 'legally misuse' the system, then the matter should be seen as a CSR issue also. There is thus an urgency for concerted efforts by the private sector, public sector and NGOs to develop structures and institutions that contribute to social justice, environmental protection and poverty eradication.

The power of the fish is in the water

“…An EC perspective on CSR is also sorely needed because of limited research available on CSR in ECs. CSR debates and discussions to date have been dominated by European and US perspectives and interests, to the exclusion of ECs (Dobers & Halme, 2012).…”

“…market competition rules and regulations) (Layer 3, Figure 1); and, ultimately, actual, everyday actions (Layer 4, Figure 1) (Agbakoba, 2004;Bernstein, 2010;Geldenhuys & Veldsman, 2010;Thirlwall, 2011). This normative, foundational ambiguity and fluidity also provide fertile ground for corruption and fraud to germinate, flourish, and become endemic (Dobers & Halme, 2012;Iheriohanma, 2011;Moghalu, 2014).…”

“…One has to work around situations and inadequate (and/or deteriorating) infrastructure (Layer 2, Figure 1) to get things done (Layers 3 and 4, Figure 1). Alternatively, one has to use one's "contacts" to expedite decisions and actions (Dobers & Halme, 2012;Guillén & García-Canal, 2013;Moghalu, 2014); e.g. the economy requiring skills that the debates and fiercely defended divides.…”

“…This situation gives rise to socio-economic class divides and significant income disparities that are fiercely contested as being unfair and discriminatory (see also Feature 6, below) (Chironga et al, 2011;Dobers & Halme, 2012;Thirlwall, 2011;Ukpere, 2011). Consequently, in ECs, a highly active informal economic sector exists parallel to the formal economy, as an escape valve for the high percentage of unemployed/semi-employed to earn an income.…”

“…This implies having an explicit, visible, and robust organisational identity and ideology, resulting in an unambiguous ethical position, especially with respect to fraud and corruption (Dobers & Halme, 2012;Iheriohanma, 2011;Moghalu, 2014).…”