Corporate responsibility in the global economy: a business case

Abstract

Purpose

To develop the self‐interested, business rationale for the export of socially responsible business behavior by multinational firms to developing economies.

Design/methodology/approach

Review the rationale for the ascendance of corporate social responsibility (CSR) in the developed economies, the skepticism that emerged regarding CSR and the proliferation of codes to guide CSR conduct. From this perspective build a parallel case for the development of a business rationale for CSR in the developing economies and how multinational firms can play a transformative role.

Findings

Corporations typically have a self‐interested approach to adopting CSR values; either for marketing purposes, or to sustain acceptance among socially conscious investors, consumers, competitors, etc. This same approach should be adopted in the developing world: because consumers and investors transfer these same expectations globally; because businesses in developing countries want acceptance; and because multinationals can test performance‐based rather than regulatory‐based approaches to CSR behaviors.

Research limitations/implications

Measurements of on the ground progress in implementing CSR standards abroad are limited both by lack of empirical data, and accepted understanding of measurement yardsticks. This should be the subject of additional research and analysis.

Originality/value

Corporations and stakeholders might find common ground in developing acceptable codes of conduct for CSR behavior in the developing economies and non‐governmental organizations (NGOs) might serve as credible, third‐party auditors of conduct.

Citation

Prout, J. (2006), "Corporate responsibility in the global economy: a business case", Society and Business Review, Vol. 1 No. 2, pp. 184-191. https://doi.org/10.1108/17465680610669852