8/10/2019 Csr of Brics
1/2
The CSR concept is guided by the idea that it is no longer
possible for
corporations to function as separate economic units that are
detached from society.
There is a need for businesses to be accountable to a larger
range of stakeholders
other than shareholders (IISD, n.d.).
Therefore, there is an urgent need to change this attitude
towards CSR to ensure that
corporations business activities and its benefits pilfer down to
every strata of society. The driving force for focusing on CSR
activities within BRICS is based on the
transformation potential of these nations into global leading
economies in the decades
to come, coupled with the impending pressure for corporations in
these nations to
comply with CSR conducted by developed economies and the ability
and/or
opportunities to customise CSR activities in each nations local
context. As compared to
developed economies, social and environmental issues remain as
a
significant challenge for emerging countries. With the growth of
BRICSthe
Waking Giant, the environment has been identified to be one of
the new global
challenges (Lanzeni, 2008). In general, this makes CSR in BRICS
more far-reaching
and possesses greater implications to the society.
In the CSR arena, a distinct characteristic of BRICS is
consumers marginal role inmotivating corporations to undertake CSR
activities. In essence, consumers
commodity purchasing decisions are relatively insensitive to CSR
efforts undertaken
by corporations. In the lack of consumer and hence public
pressure to function as a
staunch critic of corporations social duties, the onus of
ensuring CSR and hence
sustainability then lies on other formal institutions and
corporations themselves.
Furthermore, BRICS continue to struggle with inadequate
provision of universal
social services, such as healthcare and education to its
citizens.
1.3
Research PurposeThe primary aim of this study is to assess5the
quality of reported CSR activities
undertaken by corporations in BRICS.
This study therefore intends to develop a qualitative CSR
assessment framework and
apply it to a limited number of sample companies, with the
ultimate goal of evaluating
the effectiveness of CSR initiatives in corporate
sustainability. Effectiveness in this
study is defined to be the capability of these CSR activities in
creating the intended
effect to targeted stakeholders.
An elaboration of our assessment approach can be found in
Section 4.2.
In essence, this study seeks to answer the question of whether
social development inBRICS is keeping pace with their blistering
economic growth.
BRICS continue to struggle with inadequate provision of
universal
social services, such as healthcare and education to its
citizens. Another key highlight is that
the developing economies have been constantly cited
when it comes to exploiting labour, owing to poor legislation
and the need to cut costs
to remain competitive.While developed countries exert influence
to undo the damage
of industrialisation (specifically on environmental
degradation), developing
economies vie for a share of the global pie at the expense of
the environment. Despite lowCSR disclosure requirements in BRICS,
globalisation of financial market
