CSR Matters

7/31/2019 CSR Matters

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CSR matters in the development of

Mauritius

Roshni Deepa Gokulsing

Abstract

Purpose Rethinking developmentalong thelines of corporatesocial responsibility (CSR) is a new and

exciting area of research and development practice. Newly emerging forms of global governance are

now relying on private actors (business, non governmental organizations (NGOs)) rather than states.

Therefore, CSR policy and programmes are necessary steps in securing responsible corporate

behaviour in support of development. The objectives of this paper are to identify the areas of

interventions for CSR activities and examine the rationale behind the CSR activities in Mauritius. It aimsto analyse the relation between business and poverty reduction and also the successes and failures of

CSR initiatives and how the programmes are delivering to the companys business objectives. In short,

how is CSR redefining development?

Design/methodology/approach Both primary and secondary data have been collected for this

study. Qualitative methods of data collection were privileged to address complex issues such as the

relationship between CSR and development. In-depth interviews were carried out and seen as an

appropriate research technique in order to explore and capture the perspectives of the stakeholders,

namely private sector and the NGOs on CSR. Secondary sources in the form of company publications,

annual reports, press cuttings, web sites of companies and survey reports were consulted.

Findings Although CSR initiatives go quite a long way back in Mauritius, it is still believed that CSR is

not embedded in its corporate culture. However, in some cases, CSR is merely being used as

window-dressing, for the gallery as a sideshow since it is a trendy issue and that everyone is doing it

alongside with the wide media coverage. For CSR to become the national development tool, it is

important that coordinated and concerted efforts be undertaken at the private sector level, in the civil

society and at government level in achieving equitable, inclusive and sustainable development.

Originality/value This work contributes to the scarce literature on CSR in Mauritius as well as in the

African continent, investigating the relationship between CSR and development in the Mauritian context.

It also provides an extensive and critical literature review on CSR and CSR activities in Mauritius.

Keywords Corporate social responsibility, Research and development, Private sector organizations,Non-governmental organizations, Poverty, Mauritius

Paper type Research paper

Introduction

Corporate social responsibility (CSR) is not a new phenomenon. It is one of the important

and pressing issues confronting the global business landscape. Rethinking development

along the lines of corporate social responsibility is a new and exciting area of research anddevelopment practice. The relationship between CSR and development has recently

become the focus of scholars concerned with the relationship between business and

society. Efforts, in this regard, have been instrumental both in contributing to the maturation

of the contemporary CSR agenda and in the emergence of a critical CSR-development

research agenda aimed at highlighting the potential and limitation of CSR efforts geared

towards development. CSR is a means by which businesses are managed. The drivers of

the CSR engagement are therefore many and varied in terms of internal and external

initiatives. CSR has been defined by various institutions such as the International Labour

PAGE 218 j SOCIAL RESPONSIBILITY JOURNAL j VOL. 7 NO. 2 2011, pp. 218-233,Q Emerald Group Publishing Limited, ISSN 1747-1117 DOI 10.1108/17471111111141503

Roshni Deepa Gokulsing is

Lecturer in Sociology in the

Department of Social

Studies, Faculty of Social

Studies and Humanities,

University of Mauritius,

Reduit, Mauritius.


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Office (ILO), the European Commission, the United Nations Research Institute for Social

Development among others.

CSR can be defined as a concept which suggests organizations, especially (but not only)

corporations, have an obligation to consider the interests of customers, employees,

shareholders, communities, and ecological considerations in all aspects of their operations.

CSR is closely linked with the principles of sustainable development, which argues that

enterprises should make decisions not only based on financial factors such as profits or

dividends, but also based on the immediate and long-term social and environmental

consequences of their activities. This paper may be a starting point for a debate on CSR anddevelopment in Mauritius.

Since Mauritius is a small island developing state, it is exposed to vulnerabilities under the

reins of powerful global forces and government is adopting new discourses: calling for

public/private partnership to address key developmental issues. Fighting poverty has been

on the agenda of successive governments in Mauritius. The Budget Speech 2009, enacted

in Parliament through the Finance Act 2009 announced that all companies are now required

to spend 2 per cent of their profits on CSR or transfer these funds to be used for social and

environmental projects. Government is exercising more and more pressure on the private

sector to combat poverty in all its forms aiming in becoming a sustainable island.

Literature review

Concept and theories of CSR

CSR is associated with the conduct of corporations and in particular whether corporations

owe a duty to stakeholders other than shareholders. While the phrase corporate social

responsibility may be gaining momentum, the concept itself is not new (Kercher, 2007).

Some researchers have defined the concept of CSR in terms of a philosophical orientation or

as an ideology, or even leaving the concept fuzzy and open to conflicting interpretations.

Others have equated it to morality, environmental responsibility, stakeholders engagement,

corporate citizenship, social responsible investment and sustainability amongst others. All

these render CSR as multipurpose concept (Ojo, n.d.).

The European Commission has adopted a strategy on CSR as a follow-up to the Green

Paper on CSR published in 2001 (European Commission, 2010). The European Union (EU)

defined CSR as a concept whereby a company integrates social and environmentalconcerns in their business operations and in their interaction with their stakeholders on a

voluntary basis as they are increasingly aware that responsible behaviour leads to

sustainable business success. It can be argued that company management in the past

focused solely on maximising short-term profits. In this modern globalised economy, the

triple bottom line is increasingly seen as vital to business long-term success.

Historical evolution of CSR

The idea of social responsibility appeared in the USA around the start of the twentieth

century. According to Carroll (1999), there have been three critical turning points in the

evolution of social responsibility. The Entrepreneurial era has been the first one in which

American businessmen were building industrial empires and abused their power and were

found guilty of anti-social and anti-competitive practices. Since there were public outcriesagainst them, government had to enforce laws whereby business had a role to play in

society beyond profit maximisation.

The Depression era of 1929-1930s was the second turning point, during that period, the

economy of USA was dominated by large organizations and government passed laws to

protect investors and smaller businesses. In addition, social responsibility of organization

was more clearly defined. The third landmark in social responsibility came during the Social

era of 1960s and this period was characterised by social unrest in the United States.

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Government then looked closely at organizational practices, whereby it was clearly defined

whom the business is responsible to.

It should be pointed out that according to Bowen (1953), emphasis was placed on peoples

conscience rather on the company itself. The shift in focus led by a number of factors such

as managerial revolution, a growing hostility of people who experience social problems

demanding changes in the business landscape.

Content of CSR

Bowen (1953) known as the pioneering advocate of CSR (Carroll, 1999) has attempted todefine CSR in terms of [. . .] the obligations of businessmen to pursue those policies, to

make those decisions, or to follow those lines of action which are desirable in terms of

objectives and values of our society.

Further attempts have been elaborated on the obligations of the firm that go beyond the

economic and legal domains, thus including the employee, the community welfare, the

political and educational needs of society (McGuire, 1963). This gave rise to the modern

concept of corporate citizenship (Maignan et al., 1999). Furthermore, the Committee for

Economic Development (1971) viewed CSR as the service of a wide range of human values

to improve the quality of life. The managerial role in changing societal expectations has also

been articulated by the Committee.

However, Manne and Wallich (1972) pointed out that the businesses should not spoil society

and provide solutions through voluntary assumption of obligations. Caroll in 1979summarised the discussion by providing the following definition:

[. . .] socialresponsibility of business encompasses theeconomic, legal,ethical anddiscretionary

expectations that society has of organizations at a given point in time (Carroll, 1979).

Wartick and Cochran (1985) attempted to broaden the CSR concept to corporate social

performance, which included three components namely principles, processes and

policies. Wood (1991) has been able to connect the three interrelated themes. She explained

first, why industries, firms and managers should endeavour to engage in socially

responsible behaviour. Second, how socially responsible objectives might be formulated

and achieved and third, described what outcomes or results should be expected with

respect to the CSR domains was provided.

Management researchers such as Freeman (1984), Donaldson and Preston (1995) have

developed the stakeholder theory, which put forward that businesses are responsible tothose who can affect or are affected by its purposes. Constructs of corporate citizenship

(Maignan et al., 1999), environpreneurial marketing (Menon and Menon, 1997) and

corporate environmentalism (Bannerjee et al., 2003) have delimited the scope of CSR since

it provides basis for firm strategy and aids accountability. Recently, it has been argued that

the stakeholders approach be translated into a model of corporate sustainability (Marrewijk,

2003). The corporate sustainability calls for more attention to economic, environmental and

social issues.

Motivations for CSR

The early discussions on CSR attempted to justify that the socially responsible decisions can

have long-term benefits. Later Johnson (1971) asserted that social responsibility was

essential since firms needed to balance the multiple interests in ensuring achievements ofmultiple goals and the long-run profit maximisation. Another perspective was offered by

Davis (1973), termed as the iron law of responsibility, suggested that unless businesses

behaved responsibly, they would lose the power and legitimacy granted by society. As this

concept gained support, other researchers put forward the normative stakeholder theory

and the instrumental stakeholder theory. On one hand, the former theory argued that firms

were moral agents because of contractual obligations to satisfy societal expectations. On

the other hand, the instrumental stakeholder theory articulated that firms must satisfy

stakeholders because they are instrumental in achieving the firms objectives (Freeman,

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1984). Over the last decade, debates raged hard as to whether social responsibility arises

due to normative or instrumental reasons. However, the current word is sustainability. The

new theory of the firm (Stead and Stead, 2000) asserted on one end, that satisfying

stakeholders is the sole purpose and raison detre for a firms existence. On the other, it

provides a logical argument for simultaneously pursuing sustainable development and

shareholder value for the creation of sustainable value.

Effects of CSR on firms performance

It can be pointed out that, early themes in CSR conceptualisation focused a lot on corporatevoluntarism, which was critical to the discharge of social responsibilities. It was proposed

that managers should accept that it would not be possible to gauge economic impacts of

socially responsible actions in most cases (Walton, 1967). However, this was replaced by a

lexicographic view of social responsibility (Johnson, 1971), suggesting that firms paid

attention to social issues only after meeting profitability goals. The theory of slack resources

was then adopted by Waddock and Graves (1997), stating that firms that have resources to

spare outperformed those that do not in terms of social performance. Thus, for a long time,

CSR has been viewed as a cost rather than a source of revenues.

However, emerging paradigms that viewed CSR and shareholder wealth as complementary

goals originated by Drucker (1984). He suggested that social responsibility and profitability

were not only compatible but social opportunities should be converted into business

opportunities. This view was also supported by the literature on how environmentalism

improved business performance (Porter and van der Linde, 1995). In recent years,incorporating environmental issues into the strategic planning process provided superior

financial performance. This has evolved into the sustainable growth business model, which

extends beyond environmental responsibility and encompassing community and

employees welfare, corporate philanthropy and supplier/distributor partnerships. A new

corporate sustainability index has been designed by Dow Jones (2000) to meet the needs of

social investors, managing risks deriving from economic, environmental and social

developments, in short understanding how firms satisfy stakeholders and simultaneously

meeting social and economic objectives.

Theoretical perspectives on CSR

Since CSR is a multidimensional concept, there have been a lot of disagreements over what

social responsibility entails. It can also be noted that many theories mentioned above haveemerged, however, social responsibility can be interpreted using either the two major

schools of thought termed as: the restrictive and the expansionist views. The former consists

of proponents of profit maximisation and the latter believes that business has to be socially

responsible.

The shareholder theory

According to Friedman (1970), the only responsibility of business organization is to use its

resources and engage in activities designed to maximise profits through open and free

competition and without deception and fraud. This position is based on the argument that

business organization is an economic institution whose legitimate function is economic

performance and not social activity.

The stakeholder theory

This theory holds that business organization must play an active social role in the society in

which it operates. One of the advocates of stakeholder theory, namely, Freeman (1984) has

presented a more positive view of managers support of CSR. He asserts that managers

must satisfy a variety of constituents in terms of employees, customers, suppliers,

government and the local community organizations, who can influence the firms outcomes.

The stakeholder theory implies that engaging in certain CSR activities are beneficial for the

firm.



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Arguments for and against CSR

There are various reasons for firms to undertake CSR and these would include the building of

a robust reputation, attracting and retaining employees, protection of the environmental and

natural resources, following the trend and risk management. However, the sceptical school

of thought views CSR as an additional cost and would jeopardise the overall performance

and sustainability of an organization. Robert Reich (2007), in his book, Supercapitalism

guards against CSR based on three fronts namely:

1. CSR encroaches upon functions of Government. Government wash off from the

responsibility of advancing the cause of common good as they are under the purview ofthe private companies, thus making a plausible excuse for Government to have a way out.

He claims that CSR is a dangerous diversion to the core issue of democracy and firms are

using CSR to fool public opinion through creating the perception in addressing the

problems. Adopting a Marxist view, politicians are taking advantage of CSR.

2. CSR as a sideshow. Companies are already contributing to employment, welfare creation

and product innovation and the provision of services. CSR is merely being used as

window-dressing, for the gallery as a sideshow. Since it is a trendy issue and that

everyone else is doing it alongside with the wide media coverage and ensuring

favourable public opinion to the company. Corporations eagerly display their social

engagement in public spotlight. Other researchers like Porter and van de Linde (1995)

have highlighted that the drive towards CSR remains unfocused, too shotgun and

supporting someones pet project without real connection to the business. Therefore, CSRremains nearly a utopia and very few companies manage to achieve corporate

citizenship.

3. CSR involves playing with shareholders money. According to the sceptics such as

Friedman (1970), the sole responsibility of business is profit making and accountability to

its shareholders. The private firms have the responsibility of increasing shareholders

money through business. Other forms of goodness are regarded as irresponsible and

CSR is seen as an unfair and costly burden to shareholders.

Perspectives on CSR and development

Debates concerning the potential of CSR to contribute positively to development have been

raging since the inception of the term. Commentators on this issue are divided into the

optimists and the pessimists.

The optimists believe that businesses have great potential to address social and economic

development of the regions they operate in. The pessimists on the other hand doubt this

belief and assert that businesses cannot contribute to social development because they

neither have the requisite authority which lies with the state nor the correct incentives.

Furthermore, according to the optimists, since businesses are so deeply embedded within

the communities they operate, they have great potential to address the social and

environmental problems of these communities. There are some NGOs that play a vital role in

sustainable development. By launching innovative initiatives, such as setting up schools ad

vocational training centres in underdeveloped areas, firms can contribute significantly to

improving the lives of people living in these areas.

On the other hand, pessimists believe that CSR does not have the potential to solve social

problems. This is mainly due to two reasons. First, they believe that firms cannot escape their

primary goal of making profits. CSR activities will only be followed until they can provide

tangible gains to the firm. Although the social environment may improve in the process, the

improvement is likely to be short lived. Second, they believe that social provision should be

solely the job of the state. The state is the elected representative of the people entrusted with

the task of improving social conditions. It has the required expertise and resources to be

able to understand and address the needs of the people. Firms lack this expertise and

knowledge and should therefore not aim to fulfil the states obligations.



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CSR in Mauritius

Overview of the Mauritian economy. The Republic of Mauritius is located in the Indian Ocean

and is made up of some 1.2 million people. The peopling of Mauritius is a

deterritorialisation of people across the globe. The heterogeneity of the island is

reflected by its ethnic groups, languages and religious differences (Bunwaree and

Kasenally, 2007). Mauritius moved across different stages in its development following

economic crusade experienced during in the 1980s and mid-1990s: from a monocrop

economy relying mainly on sugar exports to a broader based multi-pronged oriented

economy with an emerging textile industry and thereafter the tourism sector which gainedsignificant economic impetus. Following the expansion in the financial sector, the

information, communication and technology (ICT) sector is the most recent development

strategy since Mauritius is aiming to position itself as the cyber island or knowledge hub

in the African region. However, contemporary Mauritius is at the crossroads of its

development, with unprecedented exposure vagaries of the new world economic order,

inherent feature of the global era (Azmatally, 2008).

During the post-independent period, Mauritius had to seek international assistance since it

faced various economic and social difficulties such as massive unemployment, heavy

budget deficits and an exploding population. Yet, in less than a decade, Mauritius has

moved out of the morass to becoming a success story. Furthermore, the island adopted the

Structural Adjustment Programmes (SAPs) in an atmosphere of negotiations and consensus

(Bheenick, 1991), which allowed the introduction of SAPs to be smoother and human

faced:

The devaluations that accompanied the SAP led to an erosion of purchasing power of all

Mauritians but the impact was most significant amongst the poorest stratum of the Mauritian

society (Bunwaree and Kasenally, 2007, pp. 11-12).

Mauritius had experienced a rapid economic progress over the last two decades, with an

average annual growth of 5.7 per cent. Openness to foreign direct investment (FDI) and

ethnicity related capital inflows could form part of the explanations behind Mauritiuss

achievements. The setting up of the export processing zone (EPZ) attracted capital from

different parts of the world and the pluri-ethnic dimension played an important role in

fostering the business relations around the globe. Social dialogue and institutional

development are other factors contributing to the success story of Mauritius. Tripartite

negotiations, that is, business sector, the state and the trade unions are also engaged inwage compensations. The economy experienced full employment in the late 1980s and

early 1990s, however, unemployment has now cropped up again and even more

pronounced among the females, thus leading to a feminisation of poverty (United Nations

Development Programme, 2000; De Chazal du Mee, 2001).

Call for public/private partnerships to fight poverty. Poverty, as Sen (1982) puts it, is

essentially the deprivation of capabilities the deprivation of a capability to access such

things as education, health, justice, land, community support, financial resources, a voice in

institutions and access to opportunities. It is thus a complex, multi-dimensional problem. It is

indeed a tough challenge to liberate people from the poverty trap. Poverty has always been

on the agenda of all successive governments in Mauritius. Massive amount of public funds

through free education, free health care and universal old age pension are channelled

precisely to make sure that the poor are not deprived of a host of capabilities which impacton their life chances.

As a small island developing state, Mauritius is characterised by its smallness and

insularity render the economy even more vulnerable. Mauritius had to confront the

difficulties associated with the dismantling of the Multi Fibre Agreement as well as with the

price cuts of sugar imports. The Budget Speech 2007/2008 described the situation as an

economy facing the triple shocks from loss of textile preferences, high oil prices and the

impeding cut in sugar prices (Government of Mauritius, n.d.). As a result of globalisation,



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Mauritius is in a situation of powerlessness and the state calls for public/private partnership

to address key developmental issues.

It has been seen that since the beginning of the twenty-first century, the island had to face a

number of challenges, with the rapidly rising unemployment problem accompanied by

growing poverty. Some poverty alleviation programmes have been instituted but there

seems to be no systematic monitoring and evaluation to assess to what extent these

programmes are helping the poor to integrate mainstream society (Bunwaree and

Kasenally, 2007, p. 15).

The present political discourses on poverty include concepts like democratisation of theeconomy, inclusive growth, equitable and sustainable development and redistributive

justice are lavishly used as political rhetorics. Some of the present social initiatives consist

of the empowerment program, eradicating absolute poverty (EAP) initiative and the

human resource development, knowledge and arts fund. The EAP focuses on education,

training, empowerment and reintegration by building an inclusive Mauritius and

implemented in partnership with the private sector, which has agreed to cover 30 per

cent of the cost as part of their CSR program for tangible partnership, particularly in creating

inclusive growth and enhancing the alternative development agenda. During the SADC

Consultative Conference on Poverty and Development held in Mauritius, April 2008, the

Minister of Finance made an appeal to the contribution of the private sector:

[. . .] Public Private Partnerships will have to become a prominent feature of our policies and

actions on projects [.. .]; in a similar vein, greater partnership at the social level, bringing togetherthe corporate sector, civil society and government and non-governmental organizations to

combat the multi-faceted aspects of poverty as its roots [. . .].

Governments strive to achieve the new ideology of redistributive justice and inclusive

growth has also been demonstrated in potential sectors contributing to national revenues

such as Integrated Resort Scheme (IRS). The setting up of the various social programs

and empowerment of the poor is noticeable. Recently, in the Budget Speech 2009, the

Minister of Finance requested all profitable firms to either spend 2 per cent of their profits on

CSR activities approved by Government or to transfer these funds to Government to be used

for social and environmental projects. The CSR programme or the direct payment to

Government could provide some of the resources to underpin the efforts of the Ministry of

Social Security to build up a strong NGO community through development. These levies

should not be perceived as a tax on efficiency. They are instead a gesture of compassion

and solidarity with those who cannot help themselves and with those who will have no meansof livelihood if they lose their jobs.

Overview of CSR in Mauritius. CSR initiatives go quite a long way in corporate Mauritius up to

20 years back. Since the 1980s, the Mauritius Employment Federation (MEF) imbued the

concept of social obligation of enterprises to pursue social goals in its Code of Practice for

Enterprises. According to a report by Deloitte et al. (2008), it was found that the involvement

in CSR has started at varying points in time for the companies surveyed. Many enterprises

are engaged in CSR initiatives for the benefits of their employees and the wider community.

The 2006 MEF survey on CSR shows the commitment to social responsibility is primarily

motivated by ethical considerations, the need to have and maintain a good reputation and to

create an engaged and inspired workforce (MEF, 2008).

With the support of ILO and UNDP, the MEF is currently working on a program to sensitise

firms on social responsibility as well as extending advisory services to those wishing toembark on social projects. To date, demands for corporate social managers are increasing,

with varying nomenclatures, from community support manager, social projects

implementation manager, community action, welfare and communications coordinator, to

communication and sustainable social and public relations coordinator.

In his Budget Speech 2008, the Minister of Finance pointed out that 7,157 families are living

in extreme poverty in the 229 deprived regions that have been identified by the government

(Government of Mauritius, n.d.). This seems to be an alarming situation and a pressing need



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for government to call upon the private sector to play an important role in promoting social,

economic and sustainable development of Mauritius. Given the limited means of

Government to tackle social and environmental issues alone, an appeal was made to the

private sector enterprises in the Budget Speech 2009 to devote 2 per cent of their profits to

CSR activities.

As part of governments policy to broaden the circle of opportunities and to ensure that the

fruits of development are shared by all, a CSR scheme has been imposed on the IRS

promoters with well defined guidelines for their actions. To ensure that there is no duplication

and that there is an integrated approach the IRS will work with the National EmpowermentFoundation (NEF) and EAP. As the economic situation has now changed, they will be

required to align their CSR projects with Governments emphasis on saving jobs and

protecting people. To implement these projects a special vehicle will be created for the Rs 50

million ($1,650 million) to be deposited with the NEF and these funds will be supplemented

with a matching grant from Government. According to the Minister of Finance, social

consciousness must be reflected in a national effort.

Furthermore, the Budget Speech 2009 suggested some of the projects that the CSR

programmes could undertake by supporting NGOs, would include: literacy, social housing,

life skills training, micro enterprises, support to improve academic performance and reduce

dropouts, aids prevention and support, assistance to women and children in need or

abused, assisting the handicapped, alcohol and substance abuse prevention and

rehabilitation and promoting arts and crafts.

Local firms which implement CSR projects cover a wide range of sectors such as the

banking and finance, investment and insurance, aviation, tourism amongst others. These

organizations have started CSR long time back and just to name a few: the Mauritius

Commercial Bank (MCB), Barclays Bank, HSBC, CIEL Ltd, British Airways, Airports of

Mauritius Ltd, British American Investment Group, Medine Sugar Estate and Beachcomber

Group.

Methodology

This paper sheds some light on CSR in Mauritius, since research in this area is inexistent. It

also contributes to the scarce literature on CSR in the African continent. Therefore, this work

investigates the relationship between CSR and development: Is CSR redefining or rewriting

development? The main purpose of the work, therefore, is to analyse the CSR initiativesundertaken by the private sector and views of the NGO sector on CSR in Mauritius. The

paper will specifically look at the rationale behind the CSR activities and provide an insight of

the areas of intervention of the private sector in Mauritius. Furthermore, it analyses the

relation between the business sector and poverty reduction.

For the purpose of this study, both primary and secondary data were collected. Qualitative

methods of data collection were privileged to address complex issues such as the

relationship between CSR and development. In-depth interviews were carried out and seen

as an appropriate research technique in order to explore and capture the perspectives of the

stakeholders, namely private sector and the NGOs on CSR. Boyce and Palena (2006)

stressed the importance of in-depth interviewing, as a qualitative research technique since it

involves conducting intensive individual interviews with a small number of respondents and

their perspectives are used to explore a particular idea, program, or situation.

The first phase of the study consisted in identifying the stakeholders to be included in the

study. A representative sample of 15 organizations was selected and responded positively

to participate in the study. In the private sector, nine leading companies, covering a range of

services and industries were selected since they were reported to be engaged extensively in

and committed to CSR activities (MACOSS, 2009). The MEF, known as the largest

organization representing the interests of private sector organizations was also selected to

participate in the interviews. The MEF is the vital voice of the Mauritian enterprise and

coordinates the CSR activities in Mauritius.



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The core activities of the organizations and the number of companies interviewed are

described in Table I.

Interviews in the different companies were carried out with the CSR managers and human

resource and communication managers.

Regarding the NGO sector, four NGOs were selected to participate in the study and

categorised into different fields as described in Table II. The Mauritius Council of Social

services (MACOSS), an umbrella organization of the NGO sector, was also included to

participate in the interviews since it acts as a facilitator and a voice for the NGOs. These four

NGOs were affiliated with MACOSS and interviews were mainly carried out with theirexecutives.

The second phase of the study consisted of carrying out in-depth interviews. An interview

schedule was designed to carry out the in-depth interviews with the stakeholders. Questions

asked were different for the private sector as to the NGO sector and they were mainly

open-ended. Discussions were based on the four broad themes particularly the concept,

activities and policies, poverty and the future of CSR. Probing was also used and

interviewees were expected to illustrate examples, elaborate, explain and describe certain

issues pertaining CSR activities in their organization.

Apart from the primary data collection through the in-depth interviews, secondary data were

also collected in the form of company publications, annual reports, press cuttings and web

sites of the companies and survey reports were also consulted. Background information was

collected for analysis purposes, whereby the objectives, mission, vision and core values ofthe company were provided by the interviewees.

Findings and analysis

After the collection of primary and secondary data, interview data were transcribed and

analysed. Key findings were grouped under the four themes namely:

1. The concept of CSR (includes definition, views/perspectives).

2. CSR activities and policies.

3. CSR as a tool to fight poverty in Mauritius.

4. Future of CSR in Mauritius.

Table I Activities and number of companies interviewed

Core activities of companies Number of companies interviewed

Sugar 1Textile 1Tourism 1Investment 2Banking 2Insurance 2Total 9

Table II Number of NGOs interviewed and their categorisation in addressing communitysneeds

Addressing communitys needs in the fields Number of NGOs interviewed

Health 2Education 1Substance abuse 1Total 4



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The concept of CSR

An analysis of the information collected shows clearly that the private sector defined CSR in

a more elaborate manner as compared to the NGO sector. Most companies defined CSR as

the voluntary initiatives by business that, look to go beyond legal compliance in the various

areas such as social, economic and environment. It can be observed that their definitions of

CSR were in line with the international institutions like the ILO, European Commission, World

Business Council for Sustainable Development and UNDP (MACOSS, 2009). But it should

be pointed out that some companies interviewed focused their definition as enterprises

which voluntarily adopt ethical and socially responsible conduct by giving consideration tothe impact of their operations on their employees and other stakeholders, the environment,

the communities in which they operate and society in general. The two companies in the

banking sector stressed the importance of integrating social and environmental concerns in

their business strategy and operations.

For most stakeholders interviewed in the private sector, the main elements characterising

CSR are as follows:

B It is voluntary and goes beyond philanthropy.

B It is an integral part of corporate culture, strategy and management.

B It is both internal and external to the enterprise.

B It exceeds compliance with legal obligations.

B It promotes a business model based on values and principles.

B CSR actions are systematic, not occasional.

B It contributes to sustainable development.

However, some companies argued that the private sector cannot substitute the role of

government and that employers have their responsibilities to determine their CSR priorities

according to their means, their fields of activities and the needs of the communities in which

they operate. A few companies have also pointed out that it is a real challenge for them to

work with the NGOs and the community at large in the long run. Based on the interviews of

the private sector, it can be analysed that the companies interviewed have taken the

challenge to engage actively in a CSR programme that goes in line with its business strategy,

objectives and corporate image.

Respondents in the NGO sector, on the other hand, have provided simple definitions of CSR.These include mainly a jargon used to redefine the roles and responsibilities of the private

sector in the community and making them active players in alleviating social problems and

promoting development in Mauritius. According to some stakeholders in the NGO sector, the

concept of CSR is still misunderstood by many NGOs. However, most NGOs have

underlined that only a few NGOs have been successful in implementing the CSR projects of

the business sector mainly in the field of education, health and substance abuse. In order to

have a better understanding of the CSR concept, more communication, information and

awareness campaigns must be carried out in the NGO sector.

CSR activities and policies

Most of the private organizations pointed out that CSR activities have started since the

setting up of their organizations more in terms of donations and sponsorship. However, theterm CSR is quite new to them and they have taken the challenge to incorporate the

component of CSR to their lists of activities.

The majority of the respondents in the business sector highlighted that CSR initiatives

include both internal and external activities and in line with the MEF survey report (MEF,

2008).

On the one hand internal initiatives manage the responsibility inside the company. They are

undertaken for the benefits of the employees and most of the respondents in the private



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through the different initiatives taken by the companies to change the mentality of the

citizens, for example, promoting energy saving campaigns. Respondents in the banking

sector provided some detailed information regarding the monitoring of projects. This is done

through periodic reports on the status of the project, site visits in ensuring that the project is

progressing, and the involvement of the employees in the projects.

A positive signal in Deloitte (Deloitte et al. (2008)) report showed that 70 per cent of the

companies surveyed set budgets for conducting CSR activities, which is in line with the

interviews carried out with the private sector. This shows that there is a financial commitment

on part of these companies to conduct CSR activities. However, findings in the survey reportby MEF (2008) indicated that very few enterprises regularly evaluate and report on the

impact of their social involvement.

Based on the findings, it has been found that since CSR is quite a new concept in the

business culture of Mauritius, companies work in a spirit of solidarity and there is

coordination between the different private institutions to work on a common project.

However, some stakeholders in the private sector pointed out that the government

communicates the concept of CSR to the NGOs in a confusing manner. Not all the NGOs

were affiliated with a company but two out of four NGOs were recognised by a few leading

CSR groups. The list of interventions by these NGOs covered diverse range of areas such as

promoting health and education services and needs in the community and awareness

programmes and prevention campaigns on health-related issues like diabetes,

cardiovascular diseases, drugs and HIV/AIDS. However, most NGOs have not

established an appropriate CSR policy.

Furthermore, the stakeholders of the NGO sector highlighted that strengths/successes of

the CSR projects in Mauritius, which consisted of the willingness of the private sector to

address social problems and the structured means to implement these projects. However,

three NGOs stated that there are lots of improvements to be made since some private

organizations do not have a well-defined CSR project and funds are being channelled to the

most locally reputed ones. Interviewees in the NGO sector pointed out that there is a need for

a mechanism to be put in place to monitor and evaluate the CSR projects in all the

companies involved.

CSR as a tool to fight poverty

Most stakeholders in the private and NGO sector believed that CSR is an important tool to

fight poverty in the country by providing financial support to the underprivileged ones in the

community. However, respondents in the banking sector highlighted that, since poverty is

related to other problems like prostitution, drugs, HIV/AIDS, domestic violence, criminality,

and so on, investing in the education of children and integration of the underprivileged

people are vital to the development of the country.

Two NGOs argued that so much is being spent by the private companies as part of their

CSR, and yet poverty is growing in Mauritius. It is also interesting to note in Ragodoos study

that organizations rate their contribution to the fight against absolute poverty as being

average and, therefore, the allocation of funds in other areas is given priority. According to

his study, direct involvement in the fight against absolute poverty is more pronounced in the

hotel sector (19 per cent), the sugar sector (17 per cent), the investment (14 per cent) and

the banking sector (13 per cent) and it is of least concern in the insurance (7 per cent) and

transport sector (5 per cent). It was also found in his study that CSR managers are very muchsatisfied regarding their involvement in the poverty battle even if their contribution to poverty

alleviation does not involve a high percentage of their CSR funds.

A few private companies stated that long ago some companies were not playing their role

fully in alleviating poverty but now since all companies are now required to spend 2 per cent

of their profits on CSR, this will be a turning point for them. Interviewees in the private sector

believed that with this new regulation of 2 per cent, their actions will be more transparent and

accountable and important in maintaining a good reputation of the company.



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However, most stakeholders in the NGO sector believed that very few companies are

genuine in their actions and many are simply eyewash and used as window-dressing. In

some cases, there might be no agreement between the company and the NGO regarding

the objectives and methodology to deal with the problems.

Most stakeholders in the private and NGO sectors pointed out that there should be

concerted efforts for the government, the private sector and the civil society to work together

to bring development in the country. A study carried out by Azmatally (2008) pointed out that

CSR is a way to promote the private sector as a development partner. From the data

collected in the private and NGO sector, it can be analysed it is very important for the privatesector to interact with NGOs so that the needs of the community can be met. Therefore, the

NGO sector recommended an appropriate mechanism to be set up to strengthen effective

dialogue between the government, the private sector and the civil society in addressing the

societal problems.

Future of CSR

Most stakeholders in the private sector felt that the future of CSR is of strategic importance

and should be ongoing. The banking sector believed that more statistical data should be

made available on certain issues so that companies can identify and embark on future

projects. However, some NGOs felt the need to review the existing CSR policy in their

organizations and others to establish an appropriate CSR policy.

Most stakeholders in the private and NGO sector pointed out that the awareness campaignsof CSR are not enough, these need to be strengthened in the future and media is seen as an

important tool of communication. Moreover, some stakeholders in the private sector argued

that government should reinforce the legal framework regulating CSR in Mauritius so that

CSR projects are taken seriously. On another note, the NGO sector believed that the private

sector, need to demonstrate genuine visibility and collaborative partnership is essential in

addressing societal problems.

Furthermore, findings in the private sector show that CSR projects will encourage team

building among employees and will have positive impacts on the performance of the

company. The private sector also believed that investing in childrens education, particularly

in deprived areas should be at the core of most of the CSR programmes. On the other hand,

stakeholders in the NGO sector claimed that a CSR project contributes towards the capacity

building of the organization and to the national socio-economic development of Mauritius.

Findings clearly demonstrate that CSR projects are important both for the benefit of the

employees in private companies and society at large.

Conclusions and recommendations

This study has provided some reflections on the role of the business sector in promoting

development in Mauritius. It has also been seen that from the interviews carried out with the

different stakeholders namely in the business and NGO sector, CSR is rewriting or redefining

the development landscape of Mauritius to a certain extent. Since developing countries and

small island economies are highly vulnerable in this era of globalisation and in times of

financial turmoil, government is therefore calling for the private sector as a development

partner in shaping the social development landscape of these countries.

Evidence from this study showed that CSR should be increasingly embedded in the

corporate culture of Mauritius. The vision of CSR in Mauritius feeds into the notions of

sustainable development and the longing of a fair, stable, just and inclusive society. Though

there has been a fair bit of media coverage of the concept of CSR in Mauritius, there are still

some confusions revolving around the concept. Therefore, there must be more information

campaigns about the concept itself for companies, NGOs and the society at large. CSR

should be sensitised in the right perspective in order to facilitate and create an enabling

environment for equitable partnership between business organization and civil society.



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From the findings and analysis of the study, it can be seen that the business sector in

Mauritius plays an important role in the creation of a better society. The data collected also

captured the types of internal and external initiatives of CSR in private companies. However,

since some stakeholders in the NGO sector believe that the Mauritian enterprises are not

doing enough in terms of CSR, there is a call for transparency and not use CSR as

window-dressing. Most stakeholders in the private and NGO sector view CSR as a vital tool

to fight poverty, therefore investing massively in education is important in the poverty battle.

The Maurice, Ile Durable vision of the Mauritian Government is a core pillar of its strategy

for sustainable development and for protecting the quality of life of its citizens. Therefore, thecollaborative partnerships among the different stakeholders namely government, private

sector and NGOs should be strengthened. Although CSR is a management concept, it is

fully applicable and relevant in addressing social development in any country with respect of

pushing the alternative/equitable/ethical development agenda forward.

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Corresponding author

Roshni Deepa Gokulsing can be contacted at: [email protected]


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