Corporate Social Responsibility (CSR): The Role of Government in promoting CSR

Abstract

This paper examines corporate social responsibility (CSR) and the role government can play in promoting CSR. Corporations are an integral part of the large economy of any given society or country whereby these corporations operate. The government’s role is critical in promoting CSR activities or agendas because CSR is voluntary without mandatory legislation. The method used in this paper is a normative literature review and secondary data procedures. The research results show the need for developed and developing countries to share CSR’s best practices and build human institutions capable of enhancing CSR agendas by creating awareness, soft laws, partnering, and mandating business enterprises to be transparent in solving society’s problems wherever they operate. Governments in some developed nations have taken a far-reaching agenda in promoting CSR, especially the UK, European Union, the USA, and other developing countries in East Asia. However, developing countries are lagging behind in developing CSR agendas but should not simply copy from developed countries but adopt CSR’s agenda susceptive to their multiple nations’ sustainable and equitable developments. The result also shows that the lack of good governance and transparency in abundant natural resources in developing countries in the south has led to corrupt elites diverting CSR activities funds for their self-interest and not their local communities. Some developing countries still see CSR as an act of philanthropy, not as means for sustainable and equitable development for economic growth, hence the lack of transparency surrounding CSR by the various government and their elites.