Theory and Practice of Corporate Social Responsibility in a Developing Country Context

Abstract

Corporate entities engage in business with a profit motive, but host communities suffer displacement, loss of livelihood, workplace hazards, environmental pollution, resources depletion and other such risks. These would be acceptable, if there is an overall betterment of life of local communities with an equitable distribution of wealth. The medieval practices of exploitation unmindful of consequences are out of place in modern capitalism. There is a growing realization that sustainable growth and success can be achieved by businesses only by recognizing social responsibilities and contributing to socioeconomic progress of host society and country. There is a paradigm shift in corporate accountability from ‘shareholders only’ to ‘all stakeholders’ with its evolution from philanthropy, charity, trusteeship, transparency, social accountability and sustainable business strategy to a responsibility. The concept and implementation of corporate social responsibility (CSR) differ much between developed countries and developing nations of Asia, Africa and South America. The diamond mining has deservingly earned a great deal of notoriety from looting, stealing, and reckless exploitation and ruining of host communities and countries. Terms like ‘blood diamonds‘ and’conflict diamonds‘ are the examples. This chapter attempts to explore, if cooperation, accountability, fair play and social values are incorporated in Zimbabwe’s Marange diamond fields, comparison of its record with that of other mining countries, examine the applicability of CSR of developed countries to developing nations, and drawing relevant conclusions and suggestions to enable developing countries bridge gaps in their CSR practices. It has been concluded that even the best endowed country in natural resources might remain poor with bad CSR practices, if resources are not properly managed.