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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
170
REVISITING CSR AND THE GOVERNMENT’S STANCE IN THE
CONTEMPORARY SCENARIO
* Dr. Dr.M.M.Munshi, **Mrs. Shaheeda Banu S
* Professor and Head (R&D), Department of Management Studies and Research, Gogte Institute of
Technology, Udyambag, Belgaum. (Karnataka)
** Associate Professor, Department of Management Studies, RYME College, Bellary (Karnataka)
ABSTRACT
Corporate Social Responsibility (CSR) has always been a contentious issue. Though there
have been umpteen debates between experts ‘for and otherwise’ on the subject, there is no proof of
complete denial or shirking of obligations towards the society, at least, by major corporates of the
world. The role of governments as promoters or drivers of CSR has gathered steam since the early
1990s (Moon and Sochaki 1996; Aaronson and Reeves 2002a, 2002b; Fox et al. 2002; Zappal 2003).
Several policy initiatives stand testimony of the government’s resolve to act positively on the issue,
However Governments have to take overall responsibility for ensuring that ‘conduct
failures’,(whether market or non-market failures) - are regulated appropriately, taking into account
each of the three pillars of sustainable development viz the economic, social and environmental
pillars
Understanding the potential role of CSR in companies is important to design a regulation in
this regard. At one level it interfaces with ideas of self-regulation and co-regulation, and at another it
challenges the basis of the modern liberal market economy. Personal and moral responsibilities of
directors and employees are also to be considered alongside the role of the corporation in meeting the
legitimate expectations of its investors and shareholders.
Amidst all the dichotomy and contradictions the significance of CSR can never be undermined. The
aim of this article is to comprehend the changing role of modern governments in promoting CSR.
Over the last decade, governments have joined other stakeholders in assuming a relevant role of
catalyst to foster ‘CSR endeavours’ by companies. Today Governments are working together with
intergovernmental organizations, human right organizations and environmentalists thereby
recognizing that public policies are indispensible in encouraging a greater sense of CSR.
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
Volume 4, Issue 4, July-August (2013), pp. 170-179
© IAEME: www.iaeme.com/ijm.asp
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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
171
INTRODUCTION
CSR is “a concept whereby companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary basis”. The main
idea behind CSR is also known as the triple bottom line principle, implying that businesses (should)
not only serve economic purpose, but it should also meet social and environmental ends (Elkington
1994). For some scholars, this view of the corporation stands in stark contrast with the neo-classical
shareholders view, asserting that a firm’s only responsibility is to do business and make a profit
(Friedman 1970; Henderson 2001a, b).
Some managers may overspend on CSR issues for cheap popularity and tend to forget the
shareholders and the goal of value maximization. Peter Drucker says that there can be more sustained
and concrete social commitment only when the company successfully focuses on the attainment of
its business goals. He says bankrupt businesses are no good they are in fact a burden to the society.
He further says a company which cannot do its first task well can do nothing else better.
However there is a consensus amongst most of business ethics scholars on the issue of CSR
they feel that CSR is in the interest of businesses in the long run though initially it may sound like a
burden on the company. There have been have been extensive discourses on the role of businesses in
society and the concept of CSR seems to be dynamic and evolving all throughout these years.
GLOBAL INITIATIVES ON CSR
The CSR related disclosures and reporting on behalf of a company are voluntary, however,
the importance of environmental concern and social accounting was highlighted in both the London
and Pittsburg summits of the G20 leaders in 2009. The G20 leaders reinforced the influence of
International Financial Reporting Standards (IFRS) in which they called for the implementation of
global accounting standards by 2011.By the end of 2008, there were over 100 countries that had
adopted IFRS (Cabrera. 2008; Barth. et al 2008).
Another parallel summit was the United Nations special summit on the environment which
was held on 22 September 2009. The United Nations’ summit underscored the link between
environment and finance in the said summit.
A recent development of much promise was the Brazil summit that resulted in the Rio
Accord. In the years since the summit, some action has been taken by accounting bodies to protect
the environment or to report on the social responsibility of businesses and governments that are
polluting the environment
The Companies Bill, 2012 (India) is a monumental step in this regard.. The Bill which was
approved by Lok Sabha on 18th December 2012 is also approved by Rajya Sabha on 08th August
2013 and will become an Act (Replacing the companies Act of 1956) post President’s assent and
notification in the Gazette of India. The new legislation promises to bring easy and efficient way of
doing business in India, better governance, improves levels of transparency, enhance accountability,
inculcating self-compliance and making corporates socially responsible. It mandates the companies
to set aside at least 2% of its profits for CSR related activities. This has not been defined as a tax or a
levy which means that the companies are not expected to deposit or pay this amount to any
government agency, in fact the companies are free to utilize the profits for CSR in the way they
deem it fit, thus this act gives the company the autonomy to function plus tries to fulfill the social
obligation also.
There are a good number of curriculums-overhauling being undertaken in several universities
and colleges of the world in order to promote the understanding and significance of flora and fauna
and the eco system amongst the budding managers and leaders.Given the management focus and
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
172
widely accepted voluntary character of CSR, why do governments care about the concept at all? This
question can be answered by the following five literature-based propositions:
First, governments are interested in CSR because such initiatives not only help the
government to attain its policy objectives relating to sustainable development and environmental
protection, but also to meet foreign policy goals such as human development and development
assistance. (Haufler 2001, 29). It is rightly stated by Liston-Heyes and Ceton (2007) that CSR is
concerned with redistributing corporate resources to public causes.
Second, CSR policies are regarded as an attractive complement for hard-law regulations in
cases where new regulations are politically not desirable or infeasible (in particular at the
international level; for examples see Haufler 2001). Compared to hard-law regulations, the soft-law
character of CSR and CSR policies implies comparatively low political costs in terms of resistance
by special interest groups (Moon 2002, 399f; 2007, 302).
Third, governments inevitably define CSR negatively with conventional social and environ-
mental regulations because the ‘voluntary business contribution to sustainable development’ starts
where the legal framework ends (McWilliams & Siegel 2001). In addition, governments seek to play
a more active role in defining the concept and also fostering the respective practices positively with
softer, non-binding initiatives.
Fourth, a look into the governance literature of recent years shows that the soft approach of
CSR policies coincides with a broader transition of public governance altogether, which leads away
from hierarchical regulation towards more network-like and partnering modes of self- and co-
regulation (Kooiman 1993; 2003; Pierre 2000; Rhodes 1997; see also section 5). In this respect,
“CSR is not simply a feature of the new global corporation but is also increasingly a feature of new
societal governance” (Moon 2007, 302). CSR in fact became two complementary concepts, both
implying (and prompting) that the steering of societies is no longer a sole matter of governments, but
rather one of all three societal domains working together through new governance arrangements (see
also Knill & Lehmkuhl 2002; Moon 2002; Midttun 2005).
Fifth and finally, since CSR is all about managing business relations with a broad variety of
stakeholders, the concept obviously reshapes not only management routines but it also tends to
indirectly prescribe the role of business, governments, and civil society, which is otherwise hard to
mandate.
CSR AND SUSTAINABLE DEVELOPMENT
CSR is characterised by the integration of social and environmental concerns into business
conduct on a voluntary basis. However Clarkson, a scholar, states that managers do not think or act
in terms of concepts such as “responsibility” or “integration”, they actually focus on the claims of
stakeholders who are perceived as powerful, legitimate, and urgent (Clarkson 1998, 250; Mitchell
1998). This implies that CSR efforts emerged neither because of legal requirements nor were they
completely voluntary, but rather because of increasing stakeholder demands and pressures.
The European Commission (2001, 4) adds to its definition of CSR as quoted above, “An
increasing number of European companies are promoting their corporate social responsibility
strategies as a response to a variety of social, environmental, and economic pressures”. If
corporations do not respond adequately to these pressures they may in turn suffer economically. In
this sense, the shareholder and stake-holder view of the corporation are not necessarily conflicting
approaches. Managers have increasingly recognised that businesses are open entities, confronting the
world as “an arena of opportunities and constraints in relation to organizational goals” (Cragg &
Greenbaum 2002, 327). While shareholders provide capital to benefit from these opportunities and
constraints, it is up to stakeholders to actually define and control them.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
173
It is to be noted that stakeholder pressure alone does not move companies unitarily towards
CSR or sustainable development; they do so because they are under scrutiny by stakeholders and
others. Further different companies respond differently to similar pressures due to different corporate
cultures, values, structures, and strategies (Post et al. 2002). While some businesses use CSR rhetoric
for “social window dressing” or “green wash”, others integrate the triple bottom line principle more
thoroughly in their business strategy and management routines with considerable social and
environmental effects, and still others meander somewhere between business ethics rhetoric and CSR
as a strategic management approach. Over the last two decades, the overarching societal guiding
model that is relevant for all societal sectors has been drilled down to the levels of companies and
individuals. In the course of this conceptual differentiation, Corporate Accountability and CSR were
linked to the sustainable development discourse. While Corporate Accountability stands for
compliance with the mandatory legal standards, CSR is often framed as the voluntary “business
contribution to Sustainable Development” that goes beyond what laws actually require (European
Commission 2002; see also Dyllick & Hockerts 2002; Steurer et al. 2005). In delivering CSR, many
companies make use of a variety of management tools (including sustainability reporting), and they
reach out to the societal and political contexts of the firm with stakeholder management and political
lobbying.
REASONS WHY GOVERNMENTS SHOULD TAKE CSR SERIOUSLY
Governments in many developed and developing countries have begun to adopt CSR agenda
to encourage organizations in taking initiatives towards positive social development. At the national
level, the role of CSR has been put forward as both a mechanism to address welfare deficits, and a
means of promoting national competitiveness. At the international level, CSR is understood as the
mechanism for companies to contribute to sustainable development. For example, CSR is considered
to be the strategic solution for socio-environmental challenges in developed economies and was
officially adopted by member governments at the European Commission 87. Recently, the agenda
has been endorsed by member states within ASEAN aimed at developing viable public policy or
legal CSR instruments for reference by ASEAN Member States by 2010.
There are at least four essential reasons why governments should take a CSR agenda
seriously, along with implementing the necessary measures to support companies in practicing
responsible conduct.
Firstly, citizen groups, civil society organizations, as well as international development
agencies have all advocated for inclusive and sustainable development; and governments are
expected to play a key role in promoting the economic, social and environmental conditions that
favour more inclusive and sustainable development. Governments are under pressure with the
challenge of facilitating the transition to a more efficient economy, in conjunction with a fairer and
more sustainable society. CSR is widely accepted by many governments around the world as the
business sector’s contribution to inclusive and sustainable development. Thus, government can
utilize a CSR agenda in pursuit of this goal.
Secondly, CSR is considered to play an important role in contributing to the competitiveness
of a country. The European Commission stresses the need to link CSR with the competitiveness of
companies and national and regional economies, which in turn has been described as fundamental for
a nation’s sustainability. Responsible competitiveness can be attained when an economy’s
productivity and overall competitiveness is enhanced by businesses taking a holistic account of their
social, economic and environmental performance. According to analysis presented in the State of
Responsible Competitiveness 200790 which assessed 108 countries across the world, the correlation
between the Responsible Competitiveness Index and the World Economic Forum’s Growth
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
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Competitiveness Index indicates a strong relationship (R2 = 0.85) between responsibility and the
most authoritative measure of country competitiveness. This highlights that responsible business
practice can and does reinforce competitiveness for countries at all levels of development. It also
presents a challenge for governments, which need to find ways of designing and implementing
policies that encourage CSR practices throughout the business community to promote
competitiveness at the national level.
Thirdly, financial crises and fiscal deficit have forced many governments around the world to
look for a new approach for developing and funding collective action to deal with social demands
that cannot be met by the government alone due to paucity of funds. The collaborative actions
between governments and other sectors (in both the business and civil sectors) are a response to the
limitations of government. In addition, business taking an active role in addressing some social
causes is seen as a solution to current government financial crises.
Finally, although CSR is widely viewed as voluntary actions that companies take above and
beyond regulatory requirements to improve their ethical, socio-environmental and economic
performance, there is growing recognition that governments can and should contribute to shaping
enabling conditions in order to see CSR more widely conducted.
Pascal Lamy, Director General of the WTO and former European Commissioner for Trade,
has observed, “The societal benefits of corporate responsibility practices will remain limited unless
they can be incorporated into broader strategies, and public policies certainly have a role to play in
this respect”.91 Government therefore plays an essential role in policy development to promote CSR
practice. There are a variety of public policy instruments that governments can use to promote this
agenda. The following two sections introduce the roles that governments can play and some broad
areas of focus where governments can take action to promote the CSR agenda in their respective
countries.
WHAT ROLE CAN GOVERNMENT PLAY?
No doubt, government actions are essential in creating an enabling environment for private
sector development that diminishes risks, lowers costs and barriers of operation, and raises rewards
and opportunities for competitive and responsible private enterprises. The challenge for
governmental agencies in promoting a CSR agenda is to identify priorities, raise awareness, create
incentives and support, and mobilize resources from cross-sectoral cooperation that are meaningful
in the national context, as well as building on existing initiatives and capacities. For many
developing countries, especially in Asia, there is a significant opportunity for governments to harness
current enthusiasm for CSR among enterprises and assist businesses in taking on a bigger role in
social development, particularly under the global demands for responsible business practice.
Some key roles which a government can actively choose to engage to support a CSR agenda,
include (but are not limited to) the following: regulating, facilitating, brokering, and warranting.
• Regulating
While CSR is normally seen as voluntarily going beyond local requirements, governments
can “raise the bar” through stricter regulation. This can come in the form of laws, regulations,
penalties, and associated measures to control aspects of business investment or operations.
Governments at different levels can regulate the behaviour or practice of business by defining
minimum standards for business performance embedded within the legal framework; establishing
targets for business to achieve; setting up enforcers and inspectorates to oversee business conduct;
promulgating codes or laws to confine undesirable business conduct; or imposing license of
operation or mandatory environmental friendly industrial systems. Examples of this include
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
175
establishing a minimum age for labour forces, emission limit values for particular categories of
industrial productions, or requirements for companies to publicize corporate social responsibility
reports.
• Facilitating
Through facilitation, governments enable or incentivize companies to engage in CSR to drive
social and environmental improvements. In many of the approaches reflected under this role,
government plays a secondary or supporting role. For example, government may provide tax
incentives and penalties to promote responsible business; ensure business can access information
needed; facilitate understanding of minimum legal requirements for issues relating to responsible
business practice; include CSR elements in related policy areas (such as industrial policy, trade
policy, environmental policy, and labour policy); offer capacity building, business advisory services
and technical assistance to business when needed; or, support supply chain initiatives and voluntary
certification.
• Brokering
Governments can combine public resources with those of business and other actors to
leverage complementary skills and resources to address issues within a CSR agenda. Government
can act as a broker in partnering public sector agencies, businesses, civil society organizations and
other stakeholder groups in tackling complex social and environmental challenges. Government can
do this by initiating dialogue in multi-stakeholder processes; supporting joint government-industry
collaboration in capacity building and developing sectoral CSR guidelines; engaging stakeholders in
standards-setting processes; promoting public-private partnerships for community development; and
mobilizing resources. In this role as broker, government can also stimulate the engagement of key
factors in a CSR agenda by, for example, providing funding for research or leading campaigns,
information collaboration and dissemination, training, or raising awareness.
• Warranting
Lastly, government can provide political support and public warrant of a CSR concept. In
particular, this can be done for specific types of CSR-related initiatives in the marketplace.
Warranting can take various forms, including commitment to implement international principles;
education or awareness raising programmes; official policy documents; publicity of good CSR
practice conducted by other leading companies; specific CSR related award schemes (such as a
National Green Business Award); or, endorse specific pro-CSR indicators, guidelines, systems and
standards. Government can also lead by example, through things like public procurement or public
sector management practices, or direct recognition of the efforts of individual enterprises through
CSR award schemes.
There are often no clear-cut boundaries separating these roles. For example, there may be
cases where government acts as broker, but the incentive for partnership derives from the possibility
(explicit or implied) that legislation may follow if a partnership is unsuccessful. Equally, the lines
between “facilitating,” “brokering,” and “warranting” are not always clear. Governments may choose
to address different CSR themes through actions which utilise a variety of roles. For example, it is
quite feasible for a government to seek to increase and improve the level of corporate sustainability
reporting by using any one or a combination of various mandatory (legislative), facilitating
(guidelines on content), brokering (engagement with multi-stakeholder processes), and warranting
(publicity) effort.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
176
CREATING AN ENABLING ENVIRONMENT
There is substantial evidence that governments around the world have begun to take on a
CSR agenda. Some studies emphasize the influence of public policy as a critical factor in
establishing a context within which CSR practice can flourish. Public policymakers can thus initiate
policies and measures enabling CSR to flourish using several means. Some key means used to
introduce an enabling environment for CSR in a country include the following initiatives:
• creating awareness and raising public support
CSR cannot be imposed against the will of enterprises, but can only be promoted together
with them under involvement of their stakeholders. The first step to promote CSR in a country is
necessarily to fill the knowledge gaps about the significance and contribution of CSR to business
success and sustainability, as well to increase awareness and acceptance among relevant actors. The
government can play a crucial role in establishing CSR value and knowledge among the business and
the general public through recognition for CSR achievement and spreading CSR information to
attain a better understanding of CSR among the public. Initiative can come in the form of publicity,
awarding success, campaigning for awareness, networking opportunities, and funding. In the
Philippines, a presidential decree promulgated in 2002 designated the first week of July as CSR week
for the country. The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listed
public companies since 2006. SET also set up a CSR day on 19 March each year to present awards to
successful companies, recognize achievement, and promote the practice and publicize examples of
innovative and good models of CSR implementation. Government leaders also play a vital role in
educating the public, private and non-profit sectors on how to tackle social problems from the CSR
perspective. The former Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi gave his full
backing in the fact that he was a patron of the Prime Minister’s CSR Awards launched in 2007 in
Malaysia aimed at recognizing companies that have made a difference to the communities in which
they operate through their CSR programmes.
• Establishing a Specialized CSR Agency
Because CSR agendas are often cross-cutting issues which broadly encompass human rights,
labour, the environment, anti-corruption issues, a single agency within a Ministry working in a
traditional ‘silo’ fashion would be incapable of effectively managing a CSR agenda. Governments in
many countries have thus decided to set up specific agencies with a specific mission to promote CSR
practice in their respective countries. In Thailand, the CSR Institute (CSRI) was established in 2007
under the SET to promote CSR practices among its listed public company members. CSRI aims to
become a focal point for the public companies in promotion of the CSR undertaking. Later, the CSR
Centre was launched under Thailand’s Ministry of Social Development and Human Security in 2008.
While there is no explicit CSR public policy in Viet Nam, the government of Viet Nam developed its
2004 Strategic Orientation for Sustainable Development (Viet Nam Agenda 21 or VA21) based on
the Global Agenda 21 to be a national framework and legal foundation for national sustainable
development in Viet Nam. VA 21 covers many CSR related components such as labour practice,
gender equality, environmental protection and the development of local and regional communities.
The Viet Nam 21 Agenda Office was set up as a national authority to deploy VA 21 and help the
country to reach its goal of sustainable development. The VA 21 Agenda Office organizes
sustainable development activities nationwide, cooperates with concerned ministries, and coordinates
with national and international institutions. Support for business provided by the CSR specialist
agency can focus on specific activities (information, advisory services, counselling and training
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
177
funding, as for instance) within a particular issue (for example, human rights, child care, youth work,
labour, environment, or customer protection).
• Reforming Regulatory Framework to Meet CSR-Related Standards
Government plays an important role in setting standards that reflect a minimum standard of
good CSR practice or performance requirements. The government is thus in a position to determine
if any legal requirement is needed to ensure compliance with these minimum social and
environmental standards. It also can make necessary changes to regulatory frameworks in cases
where laws, tax and administrative compliance may hinder the development of responsible business
practice. Legislation that supports pro-CSR industrial investment within businesses – for example,
pollution charges associated with implementation of the “polluter-pays principle” – can also
contribute to pro-CSR production processes. It should be noted that the government role of defining
minimum legal requirements on environmental or social issues can be accompanied by access to
justice for individuals who are affected by the misconduct of business.
Although CSR agendas are giving rise to new demands for a ‘level playing field’ of
minimum environmental and social standards to protect free and fair competition, the minimum
mandatory standards cannot create a level playing field that allows the market to reward higher
standards without penalties for failure to comply. Lack of capacity to enforce minimum standards
may lead to the collapse of these types of attempts. Government needs to pay attention to this
concern. Furthermore, international collaboration may be needed to avoid distortion of competition
between enterprises of different countries through different standards.
• Providing Support to Increase Capacity and Effectiveness for Business in CSR Initiatives
Other interventions by governmental agencies in some developing countries have included
capacity building activities designed to help domestic producers meet CSR standards. Outlines of a
broadly complementary initiative in India serve as a good example. The Indian Textiles Committee,
part of the Ministry of Textiles, has taken up a national campaign to sensitize the textile and clothing
industry, particularly in the SME sector, to address emerging challenges resulting from the
forthcoming liberalization of the Indian textile and clothing industry. The Committee is working with
the Ministry of Commerce, state governments, and local industry and trade associations on the
campaign. Approximately 7,500 company representatives will have taken part in 25 workshops. The
aim is to disseminate information on various standards and compliance mechanisms including ISO
9000 QMS, ISO 14000 EMS, and Social Accountability (SA8000) standards, as well as offer
technical assistance to encourage implementation.
Regarding the international trade-related aspect of implementing a CSR agenda, governments
in many countries now are recognizing the potential for a CSR agenda to open up new market access
opportunities for exports of sustainably produced goods and services and to tackle potential
exclusion from existing markets as CSR conditions are introduced. Government-led export
promotion of “green” goods and services can build international market access opportunities for
domestic enterprises and encourage a more pro-CSR goods and services. In this case, government
can provide knowledge and technical support, including capacity building for domestic producers to
enable them to meet CSR standards, and engagement in CSR standard-setting initiatives to ensure
they do not create unfair market access barriers.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
178
CONCLUSION
There is a strong link between CSR and inclusive and sustainable development. CSR
provides a strategic and competitive opportunity. It is considered a cross-governmental issue, with a
broad agenda related to social, environmental and international issues. Government should therefore
seek to develop frameworks within which to assess local or national priorities as they relate to a CSR
agenda. Government can help by mapping existing needs, opportunities and constraints in the local
or national context in order to define appropriate modes of intervention within an overall national
strategy. However, capacity constraints within the government itself should not be overlooked,
particularly given the resource implications. Therefore, the CSR strategy of any government should
go through a development process wherein locally appropriate modes of intervention are utilized
rather than simply copying models from other countries. International cooperation may address the
risks of reinventing the wheel and creating different levels of competition distorting requirement.
Such cooperation can also mitigate capacity constraints such as by setting up a community of
practice.
REFERENCES
1. Albareda, L. et al. (2006): The government's role in promoting corporate responsibility: a
comparative analysis of Italy and UK from the relational state perspective, in: Corporate
Governance, 6/4, 386-400.
2. Albareda, L.; Lozano, J.M. & Ysa, T. (2007): Public Policies on Corporate Social Responsibility:
The Role of Governments in Europe, in: Journal of Business Ethics, 74, 391-407.
3. Albareda, L., Lozano, J. M., Tencati, A., Midttun, A. & Perrini, F. (2008) the changing role of
governments in corporate social responsibility: drivers and responses, in: Business Ethics: A
European Review, 17, 347-363.
4. Andrews, R.N.L. (1998): Environmental regulation and business ‘self-regulation’, in: Policy
Sciences, 31, 177-197.
5. Carroll, A.B. (1999): Corporate Social Responsibility: Evolution of a Definitional Construct, in:
Business & Society, 38/3, 268-295.
6. Dyllick, T. & Hockerts, K. (2002): Beyond the Business Case for Corporate Sustainability, in:
Business Strategy and the Environment, 11, 130-141.
7. Swift, Tracey and Zadek, Simon (2002). Corporate social responsibility and the competitive
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8. European Commission. (2007). Corporate social responsibility – National public policies in the
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9. Visit
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10. MacGillivray, Alex, Begley, Paul and Zadek, Simon (eds.) (2007). The State of Responsible
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responsibility and the competitive advantage of nations, p. ii.
12. Tom Fox, Halina Ward and Bruce Howard. (2002). Public sector roles in strengthening corporate
social responsibility: A baseline study.
13. Bertelsmann Stiftung and GTZ (2007). The CSR navigator: Public policies in Africa, the
Americas, Asia and Europe.
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14. Laura Albareda and Josep Maria Lozano, Antonio Tencati and Francesco Perrini and Atle
Midttun (2009). ‘The role of government in corporate social responsibility’ in Laszlo Zsolnai,
Zsolt Boda and Laszlo Fekete (Eds.). Ethical prospects: Economy, society and environment, pp.
103-149.
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Asia and Europe.
16. Eva Maria Nag (2007). ‘India’ in The CSR navigator: Public policies in Africa, the Americas,
Asia and Europe.
17. Zadek, S. (2004): The Path to Corporate Responsibility, in: Harvard Business Review, December
2004, 125-132.
18. Jyotsna Ghildiyal Bijalwan, “Corporate Governance System in India” International Journal of
Management (IJM), Volume 3, Issue 2, 2012, pp. 260 - 269, ISSN Print: 0976-6502, ISSN
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19. Dr. S. K. Doifode and Dr. A. G. Matani, “Advanced Environment Protection Techniques by
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Revisiting csr and the government’s stance in the contemporary scenario

  • 1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 170 REVISITING CSR AND THE GOVERNMENT’S STANCE IN THE CONTEMPORARY SCENARIO * Dr. Dr.M.M.Munshi, **Mrs. Shaheeda Banu S * Professor and Head (R&D), Department of Management Studies and Research, Gogte Institute of Technology, Udyambag, Belgaum. (Karnataka) ** Associate Professor, Department of Management Studies, RYME College, Bellary (Karnataka) ABSTRACT Corporate Social Responsibility (CSR) has always been a contentious issue. Though there have been umpteen debates between experts ‘for and otherwise’ on the subject, there is no proof of complete denial or shirking of obligations towards the society, at least, by major corporates of the world. The role of governments as promoters or drivers of CSR has gathered steam since the early 1990s (Moon and Sochaki 1996; Aaronson and Reeves 2002a, 2002b; Fox et al. 2002; Zappal 2003). Several policy initiatives stand testimony of the government’s resolve to act positively on the issue, However Governments have to take overall responsibility for ensuring that ‘conduct failures’,(whether market or non-market failures) - are regulated appropriately, taking into account each of the three pillars of sustainable development viz the economic, social and environmental pillars Understanding the potential role of CSR in companies is important to design a regulation in this regard. At one level it interfaces with ideas of self-regulation and co-regulation, and at another it challenges the basis of the modern liberal market economy. Personal and moral responsibilities of directors and employees are also to be considered alongside the role of the corporation in meeting the legitimate expectations of its investors and shareholders. Amidst all the dichotomy and contradictions the significance of CSR can never be undermined. The aim of this article is to comprehend the changing role of modern governments in promoting CSR. Over the last decade, governments have joined other stakeholders in assuming a relevant role of catalyst to foster ‘CSR endeavours’ by companies. Today Governments are working together with intergovernmental organizations, human right organizations and environmentalists thereby recognizing that public policies are indispensible in encouraging a greater sense of CSR. INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 4, Issue 4, July-August (2013), pp. 170-179 © IAEME: www.iaeme.com/ijm.asp Journal Impact Factor (2013): 6.9071 (Calculated by GISI) www.jifactor.com IJM © I A E M E
  • 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 171 INTRODUCTION CSR is “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”. The main idea behind CSR is also known as the triple bottom line principle, implying that businesses (should) not only serve economic purpose, but it should also meet social and environmental ends (Elkington 1994). For some scholars, this view of the corporation stands in stark contrast with the neo-classical shareholders view, asserting that a firm’s only responsibility is to do business and make a profit (Friedman 1970; Henderson 2001a, b). Some managers may overspend on CSR issues for cheap popularity and tend to forget the shareholders and the goal of value maximization. Peter Drucker says that there can be more sustained and concrete social commitment only when the company successfully focuses on the attainment of its business goals. He says bankrupt businesses are no good they are in fact a burden to the society. He further says a company which cannot do its first task well can do nothing else better. However there is a consensus amongst most of business ethics scholars on the issue of CSR they feel that CSR is in the interest of businesses in the long run though initially it may sound like a burden on the company. There have been have been extensive discourses on the role of businesses in society and the concept of CSR seems to be dynamic and evolving all throughout these years. GLOBAL INITIATIVES ON CSR The CSR related disclosures and reporting on behalf of a company are voluntary, however, the importance of environmental concern and social accounting was highlighted in both the London and Pittsburg summits of the G20 leaders in 2009. The G20 leaders reinforced the influence of International Financial Reporting Standards (IFRS) in which they called for the implementation of global accounting standards by 2011.By the end of 2008, there were over 100 countries that had adopted IFRS (Cabrera. 2008; Barth. et al 2008). Another parallel summit was the United Nations special summit on the environment which was held on 22 September 2009. The United Nations’ summit underscored the link between environment and finance in the said summit. A recent development of much promise was the Brazil summit that resulted in the Rio Accord. In the years since the summit, some action has been taken by accounting bodies to protect the environment or to report on the social responsibility of businesses and governments that are polluting the environment The Companies Bill, 2012 (India) is a monumental step in this regard.. The Bill which was approved by Lok Sabha on 18th December 2012 is also approved by Rajya Sabha on 08th August 2013 and will become an Act (Replacing the companies Act of 1956) post President’s assent and notification in the Gazette of India. The new legislation promises to bring easy and efficient way of doing business in India, better governance, improves levels of transparency, enhance accountability, inculcating self-compliance and making corporates socially responsible. It mandates the companies to set aside at least 2% of its profits for CSR related activities. This has not been defined as a tax or a levy which means that the companies are not expected to deposit or pay this amount to any government agency, in fact the companies are free to utilize the profits for CSR in the way they deem it fit, thus this act gives the company the autonomy to function plus tries to fulfill the social obligation also. There are a good number of curriculums-overhauling being undertaken in several universities and colleges of the world in order to promote the understanding and significance of flora and fauna and the eco system amongst the budding managers and leaders.Given the management focus and
  • 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 172 widely accepted voluntary character of CSR, why do governments care about the concept at all? This question can be answered by the following five literature-based propositions: First, governments are interested in CSR because such initiatives not only help the government to attain its policy objectives relating to sustainable development and environmental protection, but also to meet foreign policy goals such as human development and development assistance. (Haufler 2001, 29). It is rightly stated by Liston-Heyes and Ceton (2007) that CSR is concerned with redistributing corporate resources to public causes. Second, CSR policies are regarded as an attractive complement for hard-law regulations in cases where new regulations are politically not desirable or infeasible (in particular at the international level; for examples see Haufler 2001). Compared to hard-law regulations, the soft-law character of CSR and CSR policies implies comparatively low political costs in terms of resistance by special interest groups (Moon 2002, 399f; 2007, 302). Third, governments inevitably define CSR negatively with conventional social and environ- mental regulations because the ‘voluntary business contribution to sustainable development’ starts where the legal framework ends (McWilliams & Siegel 2001). In addition, governments seek to play a more active role in defining the concept and also fostering the respective practices positively with softer, non-binding initiatives. Fourth, a look into the governance literature of recent years shows that the soft approach of CSR policies coincides with a broader transition of public governance altogether, which leads away from hierarchical regulation towards more network-like and partnering modes of self- and co- regulation (Kooiman 1993; 2003; Pierre 2000; Rhodes 1997; see also section 5). In this respect, “CSR is not simply a feature of the new global corporation but is also increasingly a feature of new societal governance” (Moon 2007, 302). CSR in fact became two complementary concepts, both implying (and prompting) that the steering of societies is no longer a sole matter of governments, but rather one of all three societal domains working together through new governance arrangements (see also Knill & Lehmkuhl 2002; Moon 2002; Midttun 2005). Fifth and finally, since CSR is all about managing business relations with a broad variety of stakeholders, the concept obviously reshapes not only management routines but it also tends to indirectly prescribe the role of business, governments, and civil society, which is otherwise hard to mandate. CSR AND SUSTAINABLE DEVELOPMENT CSR is characterised by the integration of social and environmental concerns into business conduct on a voluntary basis. However Clarkson, a scholar, states that managers do not think or act in terms of concepts such as “responsibility” or “integration”, they actually focus on the claims of stakeholders who are perceived as powerful, legitimate, and urgent (Clarkson 1998, 250; Mitchell 1998). This implies that CSR efforts emerged neither because of legal requirements nor were they completely voluntary, but rather because of increasing stakeholder demands and pressures. The European Commission (2001, 4) adds to its definition of CSR as quoted above, “An increasing number of European companies are promoting their corporate social responsibility strategies as a response to a variety of social, environmental, and economic pressures”. If corporations do not respond adequately to these pressures they may in turn suffer economically. In this sense, the shareholder and stake-holder view of the corporation are not necessarily conflicting approaches. Managers have increasingly recognised that businesses are open entities, confronting the world as “an arena of opportunities and constraints in relation to organizational goals” (Cragg & Greenbaum 2002, 327). While shareholders provide capital to benefit from these opportunities and constraints, it is up to stakeholders to actually define and control them.
  • 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 173 It is to be noted that stakeholder pressure alone does not move companies unitarily towards CSR or sustainable development; they do so because they are under scrutiny by stakeholders and others. Further different companies respond differently to similar pressures due to different corporate cultures, values, structures, and strategies (Post et al. 2002). While some businesses use CSR rhetoric for “social window dressing” or “green wash”, others integrate the triple bottom line principle more thoroughly in their business strategy and management routines with considerable social and environmental effects, and still others meander somewhere between business ethics rhetoric and CSR as a strategic management approach. Over the last two decades, the overarching societal guiding model that is relevant for all societal sectors has been drilled down to the levels of companies and individuals. In the course of this conceptual differentiation, Corporate Accountability and CSR were linked to the sustainable development discourse. While Corporate Accountability stands for compliance with the mandatory legal standards, CSR is often framed as the voluntary “business contribution to Sustainable Development” that goes beyond what laws actually require (European Commission 2002; see also Dyllick & Hockerts 2002; Steurer et al. 2005). In delivering CSR, many companies make use of a variety of management tools (including sustainability reporting), and they reach out to the societal and political contexts of the firm with stakeholder management and political lobbying. REASONS WHY GOVERNMENTS SHOULD TAKE CSR SERIOUSLY Governments in many developed and developing countries have begun to adopt CSR agenda to encourage organizations in taking initiatives towards positive social development. At the national level, the role of CSR has been put forward as both a mechanism to address welfare deficits, and a means of promoting national competitiveness. At the international level, CSR is understood as the mechanism for companies to contribute to sustainable development. For example, CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission 87. Recently, the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010. There are at least four essential reasons why governments should take a CSR agenda seriously, along with implementing the necessary measures to support companies in practicing responsible conduct. Firstly, citizen groups, civil society organizations, as well as international development agencies have all advocated for inclusive and sustainable development; and governments are expected to play a key role in promoting the economic, social and environmental conditions that favour more inclusive and sustainable development. Governments are under pressure with the challenge of facilitating the transition to a more efficient economy, in conjunction with a fairer and more sustainable society. CSR is widely accepted by many governments around the world as the business sector’s contribution to inclusive and sustainable development. Thus, government can utilize a CSR agenda in pursuit of this goal. Secondly, CSR is considered to play an important role in contributing to the competitiveness of a country. The European Commission stresses the need to link CSR with the competitiveness of companies and national and regional economies, which in turn has been described as fundamental for a nation’s sustainability. Responsible competitiveness can be attained when an economy’s productivity and overall competitiveness is enhanced by businesses taking a holistic account of their social, economic and environmental performance. According to analysis presented in the State of Responsible Competitiveness 200790 which assessed 108 countries across the world, the correlation between the Responsible Competitiveness Index and the World Economic Forum’s Growth
  • 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 174 Competitiveness Index indicates a strong relationship (R2 = 0.85) between responsibility and the most authoritative measure of country competitiveness. This highlights that responsible business practice can and does reinforce competitiveness for countries at all levels of development. It also presents a challenge for governments, which need to find ways of designing and implementing policies that encourage CSR practices throughout the business community to promote competitiveness at the national level. Thirdly, financial crises and fiscal deficit have forced many governments around the world to look for a new approach for developing and funding collective action to deal with social demands that cannot be met by the government alone due to paucity of funds. The collaborative actions between governments and other sectors (in both the business and civil sectors) are a response to the limitations of government. In addition, business taking an active role in addressing some social causes is seen as a solution to current government financial crises. Finally, although CSR is widely viewed as voluntary actions that companies take above and beyond regulatory requirements to improve their ethical, socio-environmental and economic performance, there is growing recognition that governments can and should contribute to shaping enabling conditions in order to see CSR more widely conducted. Pascal Lamy, Director General of the WTO and former European Commissioner for Trade, has observed, “The societal benefits of corporate responsibility practices will remain limited unless they can be incorporated into broader strategies, and public policies certainly have a role to play in this respect”.91 Government therefore plays an essential role in policy development to promote CSR practice. There are a variety of public policy instruments that governments can use to promote this agenda. The following two sections introduce the roles that governments can play and some broad areas of focus where governments can take action to promote the CSR agenda in their respective countries. WHAT ROLE CAN GOVERNMENT PLAY? No doubt, government actions are essential in creating an enabling environment for private sector development that diminishes risks, lowers costs and barriers of operation, and raises rewards and opportunities for competitive and responsible private enterprises. The challenge for governmental agencies in promoting a CSR agenda is to identify priorities, raise awareness, create incentives and support, and mobilize resources from cross-sectoral cooperation that are meaningful in the national context, as well as building on existing initiatives and capacities. For many developing countries, especially in Asia, there is a significant opportunity for governments to harness current enthusiasm for CSR among enterprises and assist businesses in taking on a bigger role in social development, particularly under the global demands for responsible business practice. Some key roles which a government can actively choose to engage to support a CSR agenda, include (but are not limited to) the following: regulating, facilitating, brokering, and warranting. • Regulating While CSR is normally seen as voluntarily going beyond local requirements, governments can “raise the bar” through stricter regulation. This can come in the form of laws, regulations, penalties, and associated measures to control aspects of business investment or operations. Governments at different levels can regulate the behaviour or practice of business by defining minimum standards for business performance embedded within the legal framework; establishing targets for business to achieve; setting up enforcers and inspectorates to oversee business conduct; promulgating codes or laws to confine undesirable business conduct; or imposing license of operation or mandatory environmental friendly industrial systems. Examples of this include
  • 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 175 establishing a minimum age for labour forces, emission limit values for particular categories of industrial productions, or requirements for companies to publicize corporate social responsibility reports. • Facilitating Through facilitation, governments enable or incentivize companies to engage in CSR to drive social and environmental improvements. In many of the approaches reflected under this role, government plays a secondary or supporting role. For example, government may provide tax incentives and penalties to promote responsible business; ensure business can access information needed; facilitate understanding of minimum legal requirements for issues relating to responsible business practice; include CSR elements in related policy areas (such as industrial policy, trade policy, environmental policy, and labour policy); offer capacity building, business advisory services and technical assistance to business when needed; or, support supply chain initiatives and voluntary certification. • Brokering Governments can combine public resources with those of business and other actors to leverage complementary skills and resources to address issues within a CSR agenda. Government can act as a broker in partnering public sector agencies, businesses, civil society organizations and other stakeholder groups in tackling complex social and environmental challenges. Government can do this by initiating dialogue in multi-stakeholder processes; supporting joint government-industry collaboration in capacity building and developing sectoral CSR guidelines; engaging stakeholders in standards-setting processes; promoting public-private partnerships for community development; and mobilizing resources. In this role as broker, government can also stimulate the engagement of key factors in a CSR agenda by, for example, providing funding for research or leading campaigns, information collaboration and dissemination, training, or raising awareness. • Warranting Lastly, government can provide political support and public warrant of a CSR concept. In particular, this can be done for specific types of CSR-related initiatives in the marketplace. Warranting can take various forms, including commitment to implement international principles; education or awareness raising programmes; official policy documents; publicity of good CSR practice conducted by other leading companies; specific CSR related award schemes (such as a National Green Business Award); or, endorse specific pro-CSR indicators, guidelines, systems and standards. Government can also lead by example, through things like public procurement or public sector management practices, or direct recognition of the efforts of individual enterprises through CSR award schemes. There are often no clear-cut boundaries separating these roles. For example, there may be cases where government acts as broker, but the incentive for partnership derives from the possibility (explicit or implied) that legislation may follow if a partnership is unsuccessful. Equally, the lines between “facilitating,” “brokering,” and “warranting” are not always clear. Governments may choose to address different CSR themes through actions which utilise a variety of roles. For example, it is quite feasible for a government to seek to increase and improve the level of corporate sustainability reporting by using any one or a combination of various mandatory (legislative), facilitating (guidelines on content), brokering (engagement with multi-stakeholder processes), and warranting (publicity) effort.
  • 7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 176 CREATING AN ENABLING ENVIRONMENT There is substantial evidence that governments around the world have begun to take on a CSR agenda. Some studies emphasize the influence of public policy as a critical factor in establishing a context within which CSR practice can flourish. Public policymakers can thus initiate policies and measures enabling CSR to flourish using several means. Some key means used to introduce an enabling environment for CSR in a country include the following initiatives: • creating awareness and raising public support CSR cannot be imposed against the will of enterprises, but can only be promoted together with them under involvement of their stakeholders. The first step to promote CSR in a country is necessarily to fill the knowledge gaps about the significance and contribution of CSR to business success and sustainability, as well to increase awareness and acceptance among relevant actors. The government can play a crucial role in establishing CSR value and knowledge among the business and the general public through recognition for CSR achievement and spreading CSR information to attain a better understanding of CSR among the public. Initiative can come in the form of publicity, awarding success, campaigning for awareness, networking opportunities, and funding. In the Philippines, a presidential decree promulgated in 2002 designated the first week of July as CSR week for the country. The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listed public companies since 2006. SET also set up a CSR day on 19 March each year to present awards to successful companies, recognize achievement, and promote the practice and publicize examples of innovative and good models of CSR implementation. Government leaders also play a vital role in educating the public, private and non-profit sectors on how to tackle social problems from the CSR perspective. The former Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron of the Prime Minister’s CSR Awards launched in 2007 in Malaysia aimed at recognizing companies that have made a difference to the communities in which they operate through their CSR programmes. • Establishing a Specialized CSR Agency Because CSR agendas are often cross-cutting issues which broadly encompass human rights, labour, the environment, anti-corruption issues, a single agency within a Ministry working in a traditional ‘silo’ fashion would be incapable of effectively managing a CSR agenda. Governments in many countries have thus decided to set up specific agencies with a specific mission to promote CSR practice in their respective countries. In Thailand, the CSR Institute (CSRI) was established in 2007 under the SET to promote CSR practices among its listed public company members. CSRI aims to become a focal point for the public companies in promotion of the CSR undertaking. Later, the CSR Centre was launched under Thailand’s Ministry of Social Development and Human Security in 2008. While there is no explicit CSR public policy in Viet Nam, the government of Viet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet Nam Agenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legal foundation for national sustainable development in Viet Nam. VA 21 covers many CSR related components such as labour practice, gender equality, environmental protection and the development of local and regional communities. The Viet Nam 21 Agenda Office was set up as a national authority to deploy VA 21 and help the country to reach its goal of sustainable development. The VA 21 Agenda Office organizes sustainable development activities nationwide, cooperates with concerned ministries, and coordinates with national and international institutions. Support for business provided by the CSR specialist agency can focus on specific activities (information, advisory services, counselling and training
  • 8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 177 funding, as for instance) within a particular issue (for example, human rights, child care, youth work, labour, environment, or customer protection). • Reforming Regulatory Framework to Meet CSR-Related Standards Government plays an important role in setting standards that reflect a minimum standard of good CSR practice or performance requirements. The government is thus in a position to determine if any legal requirement is needed to ensure compliance with these minimum social and environmental standards. It also can make necessary changes to regulatory frameworks in cases where laws, tax and administrative compliance may hinder the development of responsible business practice. Legislation that supports pro-CSR industrial investment within businesses – for example, pollution charges associated with implementation of the “polluter-pays principle” – can also contribute to pro-CSR production processes. It should be noted that the government role of defining minimum legal requirements on environmental or social issues can be accompanied by access to justice for individuals who are affected by the misconduct of business. Although CSR agendas are giving rise to new demands for a ‘level playing field’ of minimum environmental and social standards to protect free and fair competition, the minimum mandatory standards cannot create a level playing field that allows the market to reward higher standards without penalties for failure to comply. Lack of capacity to enforce minimum standards may lead to the collapse of these types of attempts. Government needs to pay attention to this concern. Furthermore, international collaboration may be needed to avoid distortion of competition between enterprises of different countries through different standards. • Providing Support to Increase Capacity and Effectiveness for Business in CSR Initiatives Other interventions by governmental agencies in some developing countries have included capacity building activities designed to help domestic producers meet CSR standards. Outlines of a broadly complementary initiative in India serve as a good example. The Indian Textiles Committee, part of the Ministry of Textiles, has taken up a national campaign to sensitize the textile and clothing industry, particularly in the SME sector, to address emerging challenges resulting from the forthcoming liberalization of the Indian textile and clothing industry. The Committee is working with the Ministry of Commerce, state governments, and local industry and trade associations on the campaign. Approximately 7,500 company representatives will have taken part in 25 workshops. The aim is to disseminate information on various standards and compliance mechanisms including ISO 9000 QMS, ISO 14000 EMS, and Social Accountability (SA8000) standards, as well as offer technical assistance to encourage implementation. Regarding the international trade-related aspect of implementing a CSR agenda, governments in many countries now are recognizing the potential for a CSR agenda to open up new market access opportunities for exports of sustainably produced goods and services and to tackle potential exclusion from existing markets as CSR conditions are introduced. Government-led export promotion of “green” goods and services can build international market access opportunities for domestic enterprises and encourage a more pro-CSR goods and services. In this case, government can provide knowledge and technical support, including capacity building for domestic producers to enable them to meet CSR standards, and engagement in CSR standard-setting initiatives to ensure they do not create unfair market access barriers.
  • 9. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 178 CONCLUSION There is a strong link between CSR and inclusive and sustainable development. CSR provides a strategic and competitive opportunity. It is considered a cross-governmental issue, with a broad agenda related to social, environmental and international issues. Government should therefore seek to develop frameworks within which to assess local or national priorities as they relate to a CSR agenda. Government can help by mapping existing needs, opportunities and constraints in the local or national context in order to define appropriate modes of intervention within an overall national strategy. However, capacity constraints within the government itself should not be overlooked, particularly given the resource implications. Therefore, the CSR strategy of any government should go through a development process wherein locally appropriate modes of intervention are utilized rather than simply copying models from other countries. International cooperation may address the risks of reinventing the wheel and creating different levels of competition distorting requirement. Such cooperation can also mitigate capacity constraints such as by setting up a community of practice. REFERENCES 1. Albareda, L. et al. (2006): The government's role in promoting corporate responsibility: a comparative analysis of Italy and UK from the relational state perspective, in: Corporate Governance, 6/4, 386-400. 2. Albareda, L.; Lozano, J.M. & Ysa, T. (2007): Public Policies on Corporate Social Responsibility: The Role of Governments in Europe, in: Journal of Business Ethics, 74, 391-407. 3. Albareda, L., Lozano, J. M., Tencati, A., Midttun, A. & Perrini, F. (2008) the changing role of governments in corporate social responsibility: drivers and responses, in: Business Ethics: A European Review, 17, 347-363. 4. Andrews, R.N.L. (1998): Environmental regulation and business ‘self-regulation’, in: Policy Sciences, 31, 177-197. 5. Carroll, A.B. (1999): Corporate Social Responsibility: Evolution of a Definitional Construct, in: Business & Society, 38/3, 268-295. 6. Dyllick, T. & Hockerts, K. (2002): Beyond the Business Case for Corporate Sustainability, in: Business Strategy and the Environment, 11, 130-141. 7. Swift, Tracey and Zadek, Simon (2002). Corporate social responsibility and the competitive Advantage of nations. 8. European Commission. (2007). Corporate social responsibility – National public policies in the European Union. 9. Visit http://www.14thaseansummit.org/pdf/Outcome_Document/ASEAN%20Socio%20Cul%20Com %20Blueprint.pdf 10. MacGillivray, Alex, Begley, Paul and Zadek, Simon (eds.) (2007). The State of Responsible Competitiveness 2007. 11. Pascal Lamy (2002). ‘Preface’ in Swift, Tracey and Zadek, Simon. Corporate social responsibility and the competitive advantage of nations, p. ii. 12. Tom Fox, Halina Ward and Bruce Howard. (2002). Public sector roles in strengthening corporate social responsibility: A baseline study. 13. Bertelsmann Stiftung and GTZ (2007). The CSR navigator: Public policies in Africa, the Americas, Asia and Europe.
  • 10. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 179 14. Laura Albareda and Josep Maria Lozano, Antonio Tencati and Francesco Perrini and Atle Midttun (2009). ‘The role of government in corporate social responsibility’ in Laszlo Zsolnai, Zsolt Boda and Laszlo Fekete (Eds.). Ethical prospects: Economy, society and environment, pp. 103-149. 15. Eva Maria Nag (2007). ‘China’ in The CSR navigator: Public policies in Africa, the Americas, Asia and Europe. 16. Eva Maria Nag (2007). ‘India’ in The CSR navigator: Public policies in Africa, the Americas, Asia and Europe. 17. Zadek, S. (2004): The Path to Corporate Responsibility, in: Harvard Business Review, December 2004, 125-132. 18. Jyotsna Ghildiyal Bijalwan, “Corporate Governance System in India” International Journal of Management (IJM), Volume 3, Issue 2, 2012, pp. 260 - 269, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 19. Dr. S. K. Doifode and Dr. A. G. Matani, “Advanced Environment Protection Techniques by Industries: Potential For Corporate Social Responsibility Activities” International Journal of Civil Engineering & Technology (IJCIET) Volume 4 Issue 1, 2013. Pp: 45 – 51, ISSN Print : 0976 – 6308, ISSN Online : 0976 - 6316