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CSR in Developing Countries

Corporate Social Responsibility in Developing Countries

Chapter by Wayne Visser

Extract from The Oxford Handbook of Corporate Social Responsibility

The challenge for corporate social responsibility (CSR) in developing countries is framed by a vision that was distilled in 2000 into the Millennium Development Goals—‘a world with less poverty, hunger and disease, greater survival prospects for mothers and their infants, better educated children, equal opportunities for women, and a healthier environment’ (UN, 2006: 3). Unfortunately, these global aspirations remain far from being met in many developing countries today. The question addressed by this chapter, therefore, is: What is the role of business in tackling the critical issues of human development and environmental sustainability in developing countries?

To begin with, it is worth clarifying my use of the terms developing countries and CSR. There is an extensive historical and generally highly critical debate in the development literature about the classification of countries as developed and less developed or developing. Without reviving that debate here, suffice to say that I use developing countries because it is still a popular term used to collectively describe nations that have relatively lower per capita incomes and are relatively less industrialized.

This is consistent with the United Nations Developments Program’s (2006) categorization in its summary statistics on human development and is best represented by theWorld Bank’s classification of lower and middle income countries. It should be noted, however, that the UNDP’s classification of high, medium and low development countries produces a slightly different picture than the World Bank’s list of which countries are developed and developing.

CSR is an equally contested concept (Moon, 2002b). However, for the purposes of this chapter, I use CSR in developing countries to represent ‘the formal and informal ways in which business makes a contribution to improving the governance, social, ethical, labour and environmental conditions of the developing countries in which they operate, while remaining sensitive to prevailing religious, historical and cultural contexts’ (Visser et al., 2007).

The rationale for focusing on CSR in developing countries as distinct from CSR in the developed world is fourfold:

  1. developing countries represent the most rapidly expanding economies, and hence the most lucrative growth markets for business (IMF, 2006);
  2. developing countries are where the social and environmental crises are usually most acutely felt in the world (WRI, 2005; UNDP, 2006);
  3. developing countries are where globalization, economic growth, investment, and business activity are likely to have the most dramatic social and environmental impacts (both positive and negative) (World Bank, 2006); and
  4. developing countries present a distinctive set of CSR agenda challenges which are collectively quite different to those faced in the developed world.

The latter claim is explored further in the sections which follow and is summarized at the end of the chapter. The chapter begins by proposing different ways to categorize the literature on CSR in developing countries. It then reviews the research which has been conducted at a global and regional level, before considering the main CSR drivers in developing countries. Finally, a model of CSR in developing countries is proposed, before concluding with a summary and recommendations for future research …

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[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/corporate-citizenship-in-africa”]Page[/button] Corporate Citizenship in Africa (book)

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Cite this chapter

Visser, W. (2008) Corporate Social Responsibility in Developing Countries, In A. Crane, A. McWilliams, D. Matten, J. Moon & D. Siegel (eds.), The Oxford Handbook of Corporate Social Responsibility, Oxford: Oxford University Press, 473-479.

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Partnerships for Sustainable Development

Partnerships for Sustainable Development:

An Inclusive, Cross-Sector Approach

Paper by Ruth Findlay-Brooks, Wayne Visser and Thurstan Wright

Abstract

Cross-sector partnerships are increasingly being seen as a key development approach for the 21st Century, with many governments and international agencies viewing them as the most effective way to deal with complex and intractable development problems that have defeated single-sector interventions.

However, partnerships are not a straightforward option. Some see them as merely a “phase of policy experimentation” (Geddes, 2000, p797) – a short-term response to rapid global change. There can also be issues of accountability and power imbalance, when un-elected corporations and NGOs have influence in states where governments are weak or failing.  Even where they are the best solution, there can be real obstacles in both the development and management of partnerships which are too easily ignored.

This research draws on the University of Cambridge Programme for Industry’s (CPI’s) many years’ experience of partnership work – and in particular on the experiences of those running and participating in the Postgraduate Certificate in Cross-sector Partnership (PCCP) course.

Through exploring the experiences of these partnership practitioners, together with current thinking on the topic, the paper concludes that, if we are relying on partnerships to bring about structural change and long-term development impacts, then they need to be firmly tied into genuinely inclusive consultation processes, operate within accountability frameworks, be properly supported and evaluated, and where appropriate lead ultimately to policy change.

Introduction

Following the perceived shortcomings of the 1980s Structural Adjustment Programmes in developing countries, public/private partnerships or tri-sector partnerships are perceived as a more sustainable option, with donor agencies giving direct budget support to governments, along with the encouragement of partnership between development agencies, national governments and business. Tennyson asserts (2004, p3) that “only with comprehensive and widespread cross-sector collaboration can we ensure that sustainable development initiatives are imaginative, coherent and integrated enough to tackle the most intractable problems.”

The increasing popularity of partnership as a development solution, however, makes it all the more important to take a realistic view and to test the assumptions made about it. Two common pitfalls need to be avoided:

  1. that the act of setting up a partnership is seen in itself as having taken action on a problem, irrespective of its appropriateness or outcomes; and
  2. that cross-sector partnership is seen as a friendly, straightforward solution to development issues, resisting efforts to problematise, question or test its effectiveness.

Unless a more robust and realistic approach is taken to partnering as a development approach, then it risks suffering a backlash from unmet, unrealistic expectations which could result in its positive potential being lost. For this reason, we have endeavoured to take a critical approach to the findings of this study and look at ways in which partnership can, if it is to offer a successful way of aiding inclusive development, be supported through planning and policy …

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[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/the-age-of-responsibility”]Page[/button] The Age of Responsibility (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.cpsl.cam.ac.uk”]Link[/button] Cambridge Programme for Sustainability Leadership (website)

Cite this article

Findlay-Brooks, R., Visser, W. & Wright, T. (2007) Partnerships for Sustainable Development: An Inclusive, Cross-Sector Approach Cambridge Programme for Sustainability Leadership Paper Series, No. 4.

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Developing Countries

Developing Countries

Chapter by Wayne Visser

Extract from The A to Z of Corporate Social Responsibility

CSR in developing countries incorporates the formal and informal ways in which business makes a contribution to improving the governance, social, ethical, labour and environmental conditions of the developing countries in which they operate, while remaining sensitive to prevailing religious, historical and cultural contexts.

The category of ‘developing countries’ is used broadly to include countries that have relatively lower per capita incomes and are less industrialised. For a listing of countries that might fall into this grouping, see the World Bank’s classification of lower and middle income countries.

Far from being a unified field, debate on CSR in developing countries is extremely diverse, ranging from optimistic views about the role of business in society to highly critical perspectives. However, there seems to be an emerging consensus that developing countries provide a socio-economic and cultural context for CSR which is, in many ways, different from developed countries.

In particular, CSR in developing countries has the following distinctive characteristics:

  • CSR tends to be less formalised or institutionalised in terms of the CSR benchmarks commonly used in developed countries, i.e. CSR codes, standards, management systems and reports.
  • Where formal CSR is practised, this is usually by large, high profile national and multinational companies, especially those with recognised international brands or those aspiring to global status.
  • Formal CSR codes, standards and guidelines that are most applicable to developing countries tend to be issue specific (e.g. fair trade, supply chain, HIV/AIDS) or sector led (e.g. agriculture, textiles, mining).
  • In developing countries, CSR is most commonly associated with philanthropy or charity, i.e. through corporate social investment in education, health, sports development, the environment and other community services.
  • Making an economic contribution is often seen as the most important and effective way for business to make a social impact, i.e. through investment, job creation, taxes, and technology transfer.
  • Business often finds itself engaged in the provision of social services that would be seen as government’s responsibility in developed countries, e.g. investment in infrastructure, schools, hospitals and housing.
  • The issues being prioritised under the CSR banner are often different in developing countries, e.g. tackling HIV/AIDS, improving working conditions, provision of basic services, supply chain integrity and poverty alleviation.
  • Many of the CSR issues in developing countries present themselves as dilemmas or trade-offs, e.g. development versus environment, job creation versus higher labour standards, strategic philanthropy versus political governance.
  • The spirit and practice of CSR is often strongly resonant with traditional communitarian →values and religious concepts in developing countries, e.g. African humanism (ubuntu) in South Africa, coexistence (kyosei) in Japan and harmonious society (xiaokang) in China.

The drivers for CSR in developing countries include …

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Cite this chapter

Visser, W. (2007) Developing Countries, In W. Visser, D. Matten, M. Pohl & N. Tolhurst (eds.), The A to Z of Corporate Social Responsibility, London: Wiley, 154-157.

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Policy Dialogue on Sustainability

Policy Dialogue on Sustainability:

A New Model – The Case of the Corporate Leaders Group on Climate Change

Paper by Wayne Visser and Margaret Adey

Abstract

Dialogue is often loosely touted as an approach to tackling sustainability challenges and resolving sustainability dilemmas or conflicts, especially through the process of stakeholder dialogue. However, the literature is more sparse on the role of companies in pro-active, pro-sustainability policy dialogue, as opposed to the practice of corporate lobbying against proposed sustainability regulation. This paper seeks to address this gap by analysing a particularly innovative case study, The Corporate Leaders Group on Climate Change. The paper follows the structure of introducing the concept of dialogue, reviewing the literature on sustainability dialogue and describing and evaluating the case study.

Dialogue

Ellinor and Gerard (1998) describe dialogue as a foundational communication process that assists in creating environments of high trust and openness, with reflective and generative capacities.

The word dialogue stems from the Greek roots ‘dia’ (i.e. through) and ‘logos’ (i.e. word or meaning). Although relatively new to modern-day organisational practices, dialogue can be traced to ancient Greece, as described in The Dialogues of Plato (1898) and to forms of communication used by Native Americans and other indigenous peoples. Aspects of dialogue can also be found within Quaker spiritual and business practice, in counselling models such as those of Carl Rogers, as part of certain Eastern meditation practices, and in the philosophical works of Martin Buber (Gerard & Teurfs, 1996).

There are numerous approaches to dialogue. For example, Slotte and Hämäläinen (2003) contrast the Bohmian dialogue, as developed by physicist David Bohm (1996) and championed by Senge (1990) and Isaacs (1999), with Socratic dialogue, inspired by Socrates but developed as specific approach by the philosopher and educationalist Leonard Nelson (1965). The Center for Creative Learning (1996) identify a broader range of perspectives on dialogue, based on the work of Chris Argyris (around organisational learning), David Bohm (around developing shared meaning), David Johnson and Roger Johnson (around cooperation and productivity), Jack Mezirow (around the conditions for rational discourse), and Paulo Freire (around educational transformation).

Among its more modern organisational applications, dialogue can form an integral part of continuous learning, diversity management, conflict exploration, problem solving, leadership development, team-building, organizational planning and culture change (Ellinor and Gerard 1998). Some of these applications adopt a very specific approach and set of techniques, such as the Decision Structuring dialogue method, which uses an agenda or topic as a starting point, focusing both on content (i.e. the issue under discussion) and process (i.e. the way the issue is discussed) and following a series of prescribed steps led by a facilitator (Slotte and Hämäläinen 2003).

Dialogue and sustainability

It would appear, however, that little or none of these perspectives and approaches on dialogue have been applied directly by sustainability scholars. Rather, dialogue most often appears in the sustainability literature in a looser sense as “stakeholder dialogue”, incorporating business ethics (Garcia-Marza, 2005), corporate social responsibility (Jonker & Nijhof, 2006), corporate accountability (Rasche & Esser, 2006) and environmental management (Perret, 2003) …

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[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/the-age-of-responsibility”]Page[/button] The Age of Responsibility (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.cpsl.cam.ac.uk”]Link[/button] Cambridge Programme for Sustainability Leadership (website)

Cite this article

Visser, W. & Adey, M. (2007) Policy Dialogue on Sustainability: A New Model – The Case of the Corporate Leaders Group on Climate Change, Cambridge Programme for Sustainability Leadership Paper Series, No. 3.

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Sustainability Innovation

Sustainability Innovation:

Mapping the Territory

Paper by Michael Blowfield, Wayne Visser & Finbarr Livesey

Abstract

Innovation is a well-studied area of business behaviour, and is increasingly seen as a crucial element in the private sector’s responses to the challenges of sustainability.  However, what exactly is meant by innovation in a sustainability context is not very clear.  This paper makes the case for a more reflexive and structured approach to understanding innovation for sustainability in order to understand what it shares in common with innovation more broadly, where it is unique, what the gaps are in our current knowledge, and what might be the consequence of these gaps.  In building this understanding, we draw on theoretical and empirical studies, normative and non-normative approaches, and descriptive and instrumental analyses.  We employ a framework that distinguishes between the enablers of sustainability innovation (SI), the different types of agent that influence innovation for sustainability and the intra-organisational processes that take place (especially within companies).

Introduction

Increasingly, business is referred to as an essential element in meeting the challenges of sustainability: not only to amend its behaviour so as to reduce negative impacts, but also to use its strengths to overcome barriers more effectively than other sectors of society are able to do.  Innovation is one such area of perceived business strength, and now business and government are encouraged to think in terms of sustainability innovation to meet such demands as green technology, energy efficiency and social enterprise.  It is often claimed that the challenges of sustainability require different approaches to (and perhaps new models of) business.  Yet there has been little rigorous analysis of if and how sustainability requires new ways of thinking about innovation.  The main purpose of this  paper is to examine what we know about sustainability as the determinant of a genuinely different form of innovation, and to set out a framework for a more reflexive and structured approach to sustainability innovation in future.

To understand if sustainability innovation (SI) differs from other models of innovation, let us first consider what innovation means.  When discussing whether innovation (in its broad sense) is qualitatively different from innovation applied for sustainability, it is important to have a clear sense of the boundary of the terms being used. One of the broadest definitions of innovation states that it is “… the successful exploitation of new ideas” (DTI 2003). Unsurprisingly, exploitation in this context has become synonymous with introduction to market and so this definition is one that presupposes a market-based assessment for the outcomes of the innovation process. The bias in most discussions of innovation towards a commercial, for-profit setting with a market mechanism for price signalling and managing distribution should be acknowledged. Equally, this may be where innovation for sustainability distinguishes itself from innovation more broadly.

In terms of market led or company-based innovation there has been an acknowledged shift in recent years towards more dynamic and networked models of innovation (Chesbrough 2003) away from old linear models. This is well described by Rothwell in his five generations of innovation models (Rothwell quoted in Tidd, Bessant et al. 2001).

None of the models of innovation, either descriptive or analytical, presuppose the set of goals which the process is trying to achieve. In that sense, there is no immediate difference between SI and innovation in its broadest sense. However, it is the context for sustainability that implies biases towards different types of innovation …

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[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.cpsl.cam.ac.uk”]Link[/button] Cambridge Programme for Sustainability Leadership (website)

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Blowfield, M., Visser, W. & Livesey, F. (2007) Sustainability Innovation: Mapping the Territory, Cambridge Programme for Sustainability Leadership Paper Series, No. 2.

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Corporate Sustainability and the Individual

Corporate Sustainability and the Individual:

A Literature Review

Paper by Wayne Visser

Abstract

This paper introduces the literature and theories of corporate sustainability and how these have been applied at the level of the individual. It begins by defining corporate sustainability, reviewing the concept origins, demonstrating that it is an essentially contested concept (overlapping with related terms like corporate social responsibility, business ethics and corporate citizenship) and exploring some of the underlying principles. The paper then gives an overview of academic research that has been conducted on corporate sustainability generally and on the role of the individual in corporate sustainability in particular. In term of the latter, five themes are explored: the importance of values congruence of managers and employees with organisational values; the instrumental association between individual concern, knowledge and commitment and corporate social and environmental responsiveness; narrative accounts by sustainability managers of corporate “greening”; the role of sustainability managers as champions, entrepreneurs or agents of change in their organisations; and the application of psychology to understand individual responses to sustainability issues. Finally, conclusions are drawn.

Defining “Corporate Sustainability”

A Synthesis Definition

In this paper, I point out that corporate sustainability is a contested concept, which to a greater or lesser extent (depending on the author) draws from and overlaps with notions of sustainable development, corporate citizenship, corporate (social) responsibility, environmental management, business ethics and stakeholder management.

I have been guided in my own synthesis definition of corporate sustainability by the practitioner perspective that I often encountered (and adopted) in my work as a consultant in the field and which my research participants generally embraced, namely that we should focus on the essence of commonality among these terms, rather than (as viewed by them) the pedantic differences.

Perhaps less acknowledged in practice, but clear from the literature and my philosophical position, corporate sustainability is in no way an objective, scientific or neutral concept, but rather a normative construct, which always contains a set of implicit or explicit values.

Hence, for the purposes of this paper, I define corporate sustainability as a values-laden umbrella concept, which refers to the way in which the interface between business, society and the environment is managed.

Concept Origins

Corporate sustainability evolved as a derivation of the concept of sustainable development, which was first introduced by the United Nations’ World Commission on Environment and Development (1987) and defined as “development that meets the needs of present generations without compromising the ability of future generations to meet their needs” (43). The ideas behind sustainable development are much older, traceable at least back to the preservation and conservation movements of the eighteenth and nineteenth century, but the Brundtland definition quoted above marks the concept’s entry into the modern lexicon …

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[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/making-a-difference”]Page[/button] Making a Difference (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.cpsl.cam.ac.uk”]Link[/button] Cambridge Programme for Sustainability Leadership (website)

Cite this article

Visser, W. (2007) Corporate Sustainability and the Individual: A Literature Review, Cambridge Programme for Sustainability Leadership Paper Series, No. 1.

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CSR Research in Africa

Research on Corporate Citizenship in Africa:

A Ten-year Review (1995-2005)

Chapter by Wayne Visser

Extract from Corporate Citizenship in Africa

This paper provides a brief analysis of Hence, there is great scope for expanding the amount of research on corporate citizenship in Africa, as well as improving the diversity of its content and its geographic coverage.

Introduction

Corporate citizenship in Africa is a critical area of scholarly enquiry, driven by the legacy of colonialism and apartheid, the human needs of the continent in the face of widespread poverty, and the trend towards improved social responsibility by multinationals in a globalising economy. Despite this growing importance, however, very little research has been done on corporate citizenship in Africa. In his introduction to the Business Ethics: A European Review special issue on Africa, Rossouw (2000) claims that “the first signs of academic life in business ethics on the African continent can be traced back to the 1980s” (225), but concedes that it remains fragmented and limited.

One of the reasons that this academic discourse is both interesting and important is that corporate citizenship in Africa has its own unique features, distinctive from other regions in the world. Rossouw (2000) suggests three areas that characterise business ethics in Africa: 1) On the macro-level, the influence of Africa’s colonial and neo-colonial past; 2) On the meso-level, the moral responsibility of business towards the reconstruction of African societies; and 3) On the micro-level, the way in which individual businesses deal with affirmative action to overcome the consequences of historical racism, sexism and economic exclusion.

Visser (2005) argues that, in terms of Carroll’s (1991) pyramid model of corporate social responsibility, in which the layers denote relative emphasis assigned to various responsibilities, Africa exhibits a different ordering to the classic model. Specifically, economic responsibilities still get the most emphasis, but philanthropy is given second highest priority (as opposed to legal responsibilities in the classic Carroll pyramid), followed by legal (as opposed to ethical) and then ethical (as opposed to philanthropic) responsibilities. Furthermore, he suggests that, given the ethical dilemmas faced by companies in Africa, a more dynamic and sophisticated model of corporate responsibility may be more appropriate, such as one drawing on complexity theory (McIntosh 2003).

In the first study of business ethics as an academic field in Africa, Barkhuysen and Rossouw (2000) found 77 courses and seven centres located in six countries, namely Egypt, Ghana, Kenya, Nigeria, South Africa and Uganda. Furthermore, they identified 167 relevant publications, including 130 articles and 26 books. The majority of articles were written by South African authors, followed by authors residing outside Africa, as well as some from Kenya, Uganda and Nigeria. The content was heavily focused on descriptive and normative ethical issues.

In a review of academic research on corporate citizenship in South Africa, Visser (2005) found that, of the pre-1994 publications, most deal with the ethical investment issues relating to apartheid, while, of the post-1994 articles, many focus on the individual ethics of South African managers. Other areas of focus have included specific South African sectors (most notably mining and chemicals), socially responsible investment, stakeholder theory, small and medium sized enterprises, corporate environmental management, sustainability reporting, corporate governance, and general CC corporate citizenship …

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Visser, W. (2006) Research on Corporate Citizenship in Africa: A Ten-year Review (1995-2005), In W. Visser, M. McIntosh & C. Middleton (eds.), Corporate Citizenship in Africa: Lessons from the Past; Paths to the Future, Sheffield: Greenleaf, 18-28.

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Introduction to Corporate Citizenship in Africa

Corporate Citizenship in Africa:

Lessons from the Past; Paths to the Future

Chapter by Wayne Visser

Extract from Corporate Citizenship in Africa

2005 saw a renewed interest in development and Africa, both regionally and internationally, most notably with the publication of Our Common Interest, the Commission for Africa’s Report chaired by the British Prime Minister with representatives from across Africa. This led to Africa being a specific focus at that summer’s G8 Summit at Gleneagles in Scotland, and, amongst other initiatives, the USA agreeing to reform, to some extent, its aid budgets to poor countries. This was, of course, prior to hurricanes Rita and Katrina that later in the year hit the Southern States of the US: exposing significant levels of poverty and neglect within the world’s richest country.  The G8 meeting was preceded by Live8 which was seen globally by some three billion people, making it the world’s single largest event. Prior to this concert thirty million people signed a petition to the G8 leaders. As this book goes to press discussions are taking place on reform of the United Nations, one of the issues being how Africa could be better represented on the Security Council and other UN bodies.

Despite this progress, much of the literature on Africa remains problem-focussed, seeing Africa either as a moral dilemma for the rest of the world or as a waste of good aid money poured down the drain. This attitude is propped up by a plethora of statistics that show how Africa remains a marginal region in global terms: With 12% of the world’s population (around 750 million people) in 53 countries, Africa accounts for less than 2% of global gross domestic product (GDP) and FDI, and less than 10% of FDI to all developing countries. Of the 81 poorest countries prioritised by the International Development Association, almost half are in Africa. And even within Africa, there is highly skewed development, with the largest ten economies accounting for 75% of the continent’s GDP.

But there is also a growing desire to develop a better understanding of the world’s second largest continent and to celebrate the life of its people, literature, poetry, music, sport and social structures. And despite generally negative press, there has been significant progress on the continent over the past decade. Fifteen countries, including Uganda, Ethiopia and Burkina Faso, have been growing on average more than 5% per year since the mid-1990s. And foreign direct investment (FDI) rose to $8.5 billion in 2004, up from $7.8 billion the previous year. At the same time, Africa’s new generation of leaders, through initiatives like the New Partnership for Africa’s Development (NEPAD), the African Union and the East African Community, are taking responsibility for development.

Higher quantities and quality scholarly research is obviously needed, but so too is changing media perceptions outside Africa so that its richness is reflected on television screens around the world. Our Common Interest pointed out that Africa is different, that Africa’s development must follow a different path because of its history. For instance a snapshot of Africa in 2005 tells us that …

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Cite this chapter

Visser, W. (2006) Corporate Citizenship in Africa: Lessons from the Past; Paths to the Future, In W. Visser, M. McIntosh & C. Middleton (eds.), Corporate Citizenship in Africa: Lessons from the Past; Paths to the Future, Sheffield: Greenleaf, 10-17.

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