Can business make decisive contributions to development? Towards a research agenda on corporate citizenship and beyond

Figures & data

Table 1. The UN Global Compact principles

The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption:

On human rights

1) businesses should support and respect the protection of internationally proclaimed human rights; and

2) make sure that they are not complicit in human rights abuses.

On labour standards

3) businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

4) the elimination of all forms of forced and compulsory labour;

5) the effective abolition of child labour; and

6) the elimination of discrimination in respect of employment and occupation.

On environment

7) businesses should support a precautionary approach to environmental challenges;

8) undertake initiatives to promote greater environmental responsibility; and

9) encourage the development and diffusion of environmentally friendly technologies.

On anti-corruption

10) businesses should work against all forms of corruption, including extortion and bribery.

Source: www.unglobalcompact.org.

Table 2. Sample definitions of corporate citizenship, CSR or related terms

Definition of corporate citizenship, CSR, or related terms	Source
‘The economic, legal, ethical, and discretionary expectations that society has of organisations at a given point in time.’	Carroll (1979: 500)
‘A concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis.’	European Commission (2001: 8)
‘Being a good corporate citizen means treating all of a company's stakeholders (and the natural environment) with dignity and respect, being aware of the company's impacts on stakeholders and working collaboratively with them when appropriate to achieve mutually desired results.’	Waddock (2003: 3)
‘The commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life.’	WBCSD (2002: 2)
‘Corporate citizenship is about the contribution a company makes to society through its core business activities, its social investment and philanthropy programmes, and its engagement in public policy.’	World Economic Forum (www.weforum.org/corporatecitizenship)

Table 3. Examples of the business case for corporate citizenship in Africa, according to IFC et al. (2002)

Example	Business case
Investments in prevention, treatment and care of HIV/AIDS by companies operating in southern Africa (such as Eskom) have led to reduced incidence of the disease and improvements in workers' quality of life.	Reductions in the cost of benefit payments, employee training, overtime and casual wages, insurance premiums, supervision and management; increases in productivity and employee motivation, and retention of trained employees.
Fairtrade chocolate, which provides a market for initiatives such as Kuapa Kokoo, a cooperative involving 35 000 farmers in Ghana farming according to social and environmental principles.	The Fairtrade movement is based on consumers' willingness to pay a premium on products that are produced with high social and environmental standards, thereby providing more secure income to the cooperative's members.
During the 1980s and early 1990s, UK-based company Thor Chemicals' mercury reprocessing plant in South Africa gave rise to severe pollution and health impacts on employees, including the death of two workers in 1993.	The company's blatant pollution and health offences gave rise to numerous protest and legal actions. Business partners discontinued their relationship with the company. In 1993, the company and three of its directors were charged by the South African state (though charges were dropped after the payment of a small fine). In 1994, the plant was closed down by the government. The company was subsequently sued both in South Africa and in the UK, with settlement payments totalling over $3 million.
The Nairobi-based Serena Group of Hotels has built a number of lodges and tented camps in East Africa. It has implemented extensive environmental management, community involvement, and enterprise development programmes.	The acceptance of the Group's activities amongst local populations has significantly reduced theft incidents. The Group has also won a prestigious ‘Green Globe’ award, thereby improving its reputation in the travel industry. Sensitive siting, protection of resources, and good community relations add to their visitors' ecotourism experience.
In an electrification project involving ABB, a transmission line was re-routed to minimise social impacts, significantly decreasing the number of people to be resettled. The company and its partners have also established a social committee to facilitate interaction with affected communities and to implement social investment projects.	Resettlement costs were significantly reduced due to the lower number of people to be moved. The social committee and related initiatives also reduced the potential for community grievance and protest, which might have led to project delays and various extra costs.

Table 4. Public sector roles in strengthening CSR

Mandating – laws, regulations, and penalties and associated public sector institutions that relate to the control of some aspect of business investment or operations

Facilitating – setting clear overall policy frameworks and positions to guide business investment in corporate responsibility; development of non-binding guidance and labels or codes for application in the marketplace; laws and regulations that facilitate and incentivise business investments in corporate responsibility by mandating transparency or disclosure on various issues; tax incentives; investment in awareness raising and research; facilitating processes of stakeholder dialogue

Partnering – combining public resources with those of business and other actors to leverage complementary skills and resources to tackle issues within the corporate responsibility agenda – whether as participants, convenors, or catalysts

Endorsing – showing public political support for particular kinds of corporate responsibility practice in the marketplace, or for individual companies; endorsing specific metrics, indicators, guidelines or standards or award schemes, and ‘leading by example’, for example through public procurement practices

Source: Fox (2004: 32).

Table 5. Existing corporate citizenship initiatives relevant to South African companies in the rest of Africa

Initiative	Impact
The NEPAD Business Foundation Covenants and Declarations on Business in Africa (signed by almost 200 companies, most of which are from South Africa)	The content of the declaration is relatively sparse, imposing low standards; implementation is limited due to lack of awareness and monitoring
International initiatives, including the UN Global Compact, the Global Reporting Initiative, and the ISO14000 series of environmental management standards	These initiatives' impact is limited because they are relevant primarily to the largest South African companies or those with international supply chains; furthermore, their content may not be sufficiently responsive to African contexts
The second King Report on Corporate Governance	This is focused on corporate governance and does not provide guidance on broader CSR issues; furthermore, its influence beyond South Africa's borders is uncertain
The JSE Socially Responsible Investment Index	This is pertinent only to a selection of companies and there is no monitoring of company performance; furthermore, it excludes some issues of particular concern in the African context, such as affirmative procurement
South African government policies and regulations, including BEE	Apart from some exceptions (such as corruption), these policies' extra-territorial relevance is limited, despite the widespread expectation that elements of BEE should inform companies' policies beyond South Africa's borders

European Commission . 2001 . Promoting a European framework for corporate social responsibility – Green Paper , Luxembourg : Office for Official Publications of the European Communities .

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World Business Council for Sustainable Development (WBCSD) . 2002 . “ Responsibility: the WBCSD's journey ” . In Corporate Social , Geneva : World Business Council for Sustainable Development .

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International Finance Corporation (IFC), Sustainability & Instituto Ethos . 2002 . The business case in emerging economies , Washington : International Finance Corporation .

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Fox , T . 2004 . Corporate Social Responsibility and development: in quest of an agenda . Development , 47 ( 3 ) : 29 – 36 .

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