In whose name? The accountability of corporate social responsibility

Abstract

Stakeholder dialogue, participation, and partnership have become mainstream concepts in international development policy, in particular in the field of corporate social responsibility (CSR). However, the accountability of multi-stakeholder initiatives on CSR to their intended beneficiaries in the global South is increasingly questioned. This paper looks at how the agendas of some initiatives in the areas of ethical trade and sustainability reporting are driven by what Western NGOs push for, what large companies consider feasible, and what consultants and accountants seek to provide. It describes how the resulting practices and discourse restrict change and marginalise alternative approaches developed by Southern stakeholders. It is argued that enthusiasm for stakeholder dialogue, participation, and partnership in CSR matters, and beyond, needs to be reconceived with democratic principles in mind. ‘Stakeholder democracy’ is offered as a conceptual framework for this endeavour, and some recommendations are made for NGOs, companies, and governments.

Acknowledgements

I would like to thank Virginia Rodríguez and Desirée Abrahams for research assistance and the Aspen Institute's Non-profit Sector Research Fund for supporting my doctoral research. Some of my findings are incorporated in this paper.

Notes

1 In August 2000 the AAMA merged with the Footwear Industries of America and the Fashion Association to become the American Apparel and Footwear Association.

2 The statements quoted in this section are from www.wrapapparel.org/infosite2/index.htm (retrieved 18 October 2002).

3 See www.cawn.org/newsletter/16/us_monitoring.html (retrieved 28 October 2004).

4 Carolina Quinteros has also contributed an article, titled ‘Corporate responsibility and the US–Central America Free Trade Agreement (CAFTA): are they compatible?’, to this issue.

5 For more information on the SA8000 standard and workers' rights, see Kearney and Gearhart (2004).

6 See www.cityoflondon.gov.uk/living_environment/sustainability/ (retrieved 18 January 2005).

7 See www.stakeholderdemocracy.org (retrieved 12 July 2004).

8 Programme of the 2nd Annual ICCSR Symposium, ‘Stakeholder Democracy—Perspectives from across the Business Disciplines’, ICCSR, Nottingham, 28 November 2003.

Additional information

Notes on contributors

Jem Bendell

Nottingham University Business School in the UK and Adjunct Professor at Auckland University of Technology in New Zealand. For over ten years he has been involved in, analysed, and written about various initiatives promoting corporate responses to development challenges. An author of two books on relations between the voluntary and corporate sectors, and a columnist on corporate responsibility, he works with a number of UN agencies on related issues.