In doing research for my chapter entitled “CSR in Developing Countries”, published in The Oxford Handbook of CSR, I identified 10 drivers for Corporate Sustainability and Responsibility (CSR), which I summarise below.
CSR Drivers
NATIONAL DRIVERS
Political reform
Cultural tradition
Socio-economic priorities
Crisis response
Governance gaps
International standardisation
Market access
Supply chain
Investment incentives
Stakeholder activism
INTERNATIONAL DRIVERS
National (or internal) drivers refer to pressures from within the country, while international (or external) drivers tend to have a global origin.
National Drivers
Description
Cultural tradition
CSR often draws strongly on deep-rooted indigenous cultural traditions of philanthropy, business ethics and community embeddedness.
Political reform
CSR cannot be divorced from the socio-political policy reform process, which often drives business behaviour towards integrating social and ethical issues.
Socio-economic priorities
CSR is often most directly shaped by the socio-economic environment in which firms operate and the development priorities this creates.
Governance gaps
CSR is often seen as a way to plug the “governance gaps” left by weak, corrupt or under-resourced governments that fail to adequately provide various social services.
Crisis response
CSR responses can be catalysed by economic, social, environmental, health-related or industrial crises.
Market access
CSR may be seen as an enabler for companies in developing countries trying to access markets in the developed world.
International Drivers
Description
International standardization
CSR codes, guidelines and standards are a key driver for companies wishing to operate as global players.
Investment incentives
CSR is given an incentive by the trend of socially responsible investment (SRI), where funds are screened on ethical, social and environmental criteria
Stakeholder activism
CSR is encouraged through the activism of stakeholder or pressure groups, often acting to address the perceived failure of the market and government policy.
Supply chain
CSR activities among small and medium-sized companies are boosted by requirements imposed by multinationals on their supply chains.