Abstract
PurposeThe purpose of this paper is to critically discuss the participation of sovereign wealth funds (SWFs) in the corporate social responsibility (CSR) programmes. Sovereign wealth funds in emerging economies are often involved in corporate social responsibility. However, the 1 Malaysian Development Berhad (1MDB) scandal illustrates the possible use of SWF as a vehicle for corruption and abuse.Design/methodology/approachThe primary objective is to develop good governance practices of CSR by SWFs that could limit corrupt practices. A case study approach is adopted to investigate the CSR involvement of two SWFs – Norway’s Government Pension Fund Global (GPFG) and Abu Dhabi Fund for Development (ADFD).FindingsThe finding shows that SWFs should not be directly involved in CSR. It is proposed that independent Non-government Organisations (NGOs), through a competitive funding model, could serve the CSR purpose of SWFs more effectively and bring socio-economic changes in emerging economies.Originality/valueThe funding model identifies the expected outcomes, priorities and uses of the funds. The funding committee should also be independent of the Board and transparent in its allocations.
Highlights
The Special Issue of Public Administration and Policy (Quah, 2020) highlights the extensive prevalence of systemic corruption in Asia
Most sovereign wealth fund (SWF) are involved in corporate social responsibility (CSR), but as the 1 Malaysian Development Berhad (1MDB) scandal illustrates that it can be a vehicle for corruption and abuse
The abuse of CSR has received very little attention in the SWF governance literature because the SWF governance literature has mainly focused on the regulation of foreign direct investments by SWFs
Summary
The Special Issue of Public Administration and Policy (Quah, 2020) highlights the extensive prevalence of systemic corruption in Asia. Many cases of corruption follow the frequently used methods of corruption, e.g., bribery, extortion, nepotism, fraud, and embezzlement, the 1 Malaysia Development Berhad (1MDB) scandal stands out because it. The full terms of this license may be seen at http://creativecommons. The full terms of this license may be seen at http://creativecommons. org/licences/by/4.0/legalcode
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
