Implementing Corporate Social Responsibility: Punishment or Compliance?

Abstract

Purpose

The purpose of this paper is to extend the debate over the regulation of corporate behaviour in the area of health and safety to the question of implementing corporate social responsibility. Whereas the debate was based on the protection of workers, in particular, by health and safety regulations, the article focuses on another stakeholder; i.e. the local community which plays host to a multinational company in the extractive industry.

Design/methodology/approach

After an overview of the compliance versus punishment debate the paper looks at the dichotomy currently prevailing in the legislation. Using case examples this paper reviews options for improvement.

Findings

The article proposes a third approach for the protection of this group of stakeholders, i.e. the participatory approach which would allow the local community to play a role in the decision‐making processes of the company to protect their interests.

Originality/value

Emphasises the need to control multinational companies through international law in order to protect local communities.

Citation

Mujih, E. (2007), "Implementing Corporate Social Responsibility: Punishment or Compliance?", Social Responsibility Journal, Vol. 3 No. 3, pp. 79-85. https://doi.org/10.1108/17471110710835617