BLOG | MAR 10, 2022
CORPORATE SOCIAL RESPONSIBILITY IN DEVELOPING COUNTRIES
Corporate social responsibility (CSR) has emerged as a priority for organisations in today’s globalised world but CSR in developing countries has been neglected in certain areas. CSR practices can be difficult to implement in developing countries, but it has never been more important to get this discipline right.
WHAT IS CSR?
This term refers to practices and policies undertaken by corporations that are intended to have a positive influence within the working environment that they are involved. The key idea behind CSR is for corporations to pursue other pro-social objectives, in addition to maximizing profits. Examples of common CSR objectives include minimising environmental damage, promoting volunteerism among company employees and donating to charity.
An organisation whilst employing a comprehensive CSR model in a developing country, would look to embolden and empower the local area that they are operating in by employing local nationals, becoming involved in local infrastructure projects and helping enable social mobility measures such as education. In essence, CSR places the local community in the middle of the interactions of an organisation, within a certain area, and should provide agency in line with sustainable development objectives.
WHAT IS GOING WRONG?
However this can be hard to achieve and although multinationals usually have a CSR process as a 'front and centre policy', there are organisations that view CSR suspiciously, and that certain companies overstate their compliance in this area.
In addition, other companies view the efficiency of making capital over CSR policies. For example a Chinese company, would rather employ only Chinese employees in an African country as they are viewed as being more efficient. Indeed, one of the key issues already established within the CSR process of Chinese companies in Africa is the poor record of workers’ welfare and labour abuse. Chinese firms in Angola and Ethiopia have been criticised for being reluctant to hire local labour, preferring to bring labour from China. Other accusations have included transparency/corruption issues, environmental governance, respect for local laws and customs amongst others.
Another criticism of CSR programmes in Africa is the lack of engagement with the local populace around the implementation of CSR, for example in the construction industry.
CSR has been viewed as largely one-sided, viewed from foreign perspectives and outsider influences, with a significant lack of local stakeholder engagement.
RECOMMENDATION
Key population engagement studies in the form of interviews be conducted with local communities where organisations are due to undertake work in developing countries. If not before an organisation deploys, then after and during operations. It is important to capture the thoughts and sentiments of locals regarding the impact an organisation would or could have on the local population and environment, and to understand what sort of CSR programmes could be implemented, not only to benefit locals but the company as well. At the end of the day reputation is important.
Organisations need to be smart about this - there are horror stories, especially in the oil and gas industry of foreign companies moving into rural African areas, not listening to local knowledge and refusing to help or employ local nationals or engage in the local area. This has led to violence and in some cases the force majure of organisations, with lives lost.
By getting CSR right, everyone can benefit.