Corporate Social Responsibility & International Development: Is Business the Solution?

Citation

Dzisah, J. (2008), "Corporate Social Responsibility & International Development: Is Business the Solution?", Critical Perspectives on International Business, Vol. 4 No. 4, pp. 422-424. https://doi.org/10.1108/17422040810915448

Corporate Social Responsibility & International Development is a daring attempt at integrating two worlds: international business and development. Once a peripheral concept, corporate social responsibility (CSR) has, in recent times, become a central albeit debatable and messy notion explaining the rapidly changing international business world. In this groundbreaking book, Hopkins provides a detailed, albeit sympathetic explication of multinational enterprises (MNEs) through the lens of CSR. The main argument of the book is that, through CSR, the immense wealth and power of MNEs can be unleashed to derive prosperity through development.

Through 12 interrelated chapters, Hopkins explores how the global adoption of CSR rather than corporate responsibility or philanthropy is embedded within the context of international development. He utilises global examples to show the successes and failures of CSR, and the failures of international development. The book outlines the enormity of the United Nations (UN) mandate, the limitations imposed by the organizational structure and the size of its budget. However, it argues that governments and their international agencies, grouped under the umbrella of the UN, have not been successful in making underdevelopment and poverty history. In a nutshell, the book is a bold attempt to merge the policy and practice of CSR with international development. It is a departure from the typical concerns that have dominated the international development literature over the last few decades, namely, the development of underdevelopment tensions.

Hopkins examines both the supply and demand aspects of corporations and development and concludes that if development is the objective, then the solution and the responsibility lies with the private sector, particularly through the CSR programmes of MNEs. While noting that the business of business is business, he argues that MNEs have been at the receiving end of people's frustration over the lack of development. Hopkins indicated that MNEs are taking the lead in issues of international development as they can no longer be content with paying taxes to corrupt and mostly unaccountable governments in the less‐developed world. Consequently, some MNEs have plunged neck‐deep into the development arena by insisting on seeing tangible investment in their theatres of operation. Hopkins detailed three broad types of corporate involvement in development: charitable donation; development inside the company that initiates new products for developing countries; and, the CSR route through activities that promote sustainable development and anti‐poverty initiatives.

The author argues in favour of CSR, as it demands a broader approach to business by linking how profits are made to the general state of development. It reflects the way stakeholders are treated in a socially responsible manner and is also linked to improving a company's bottom line. The book is consistent in indicating that the only social responsibility of a company should not be profits at any cost, but how profits are made. Thus, through the lens of CSR, which addresses economic and environmental concerns as well as social ones, MNEs are urged to engage fully with their stakeholders and explore options to contribute to development.

The themes presented in the book suggest that for development to move faster than it has to date, the power and wealth of MNEs need to be harnessed in positive development efforts within the framework of CSR rather than through philanthropy. This new mantra is not a call for MNEs to replace the UN or government's efforts, but rather to take the lead and engage more actively in partnerships with these traditional development actors. This is necessary since the profits of MNEs dwarf the entire operational budget of the UN and the development assistance budgets of donors and governments. The limitations of the UN and the strong negative influence of the USA will, according to Hopkins, continue to hinder the Global Compact Initiative[1] from truly becoming global, even with the large companies involved. He insists, however, that there is a way out of the poverty trap through CSR, which provides a revolutionary basis for the way in which the main problems of world poverty and under‐development can be tackled.

Corporate Social Responsibility & International Development is notable for self criticism and insightful assessments. The author candidly argues that while the CSR concept may not disappear entirely, it has a bleak future. The likelihood is that it will be transformed into different concepts, as the debate over definitions detailed in chapter two suggests. The signs are that the CSR as an independent concept may end up becoming part and parcel of a company's culture and organizational profile or be subsumed either under corporate responsibility or global citizenship.

Hopkins has concisely accomplished the task of systematically explaining and evaluating how CSR can bring stakeholders back into international development. The book provides a comprehensive introduction to the main themes of CSR and international development. Its approach is global and the ideas cut through several disciplines including international businesses. In broad strokes, the book spells out what corporations are doing on development, what more they could do and how CSR can be a useful tool to promote development.

However, it is baffling that a tobacco company was included as a best practice example of CSR in development. No matter the amount of money invested back into development through CSR, the impact on the health system and society is damaging enough and outweighs any claim to CSR. The same may be said of some other big businesses which exploit poor workers in developing countries by paying dehumanising wages and by‐passing environmental regulations.

Since the UN is a toothless bulldog, and within the context of fierce global competition, it is probable that most developing countries would rather have the MNEs doing business as usual than losing them altogether by insisting that they religiously follow the contours of CSR. As such, it is difficult to fathom how and within which organizational ambit these broad CSR changes will be put into action. However, the book should be seen as a further contribution to what promises to be a long and arduous task and debate. Hopkins has made his case. He cannot be criticised for daring to stir the international development minefield by flaunting business as the solution for poverty and underdevelopment.