However, the ability of the public sector to fulfill the long-term requirements of this population segment can be limited. Potential impacts of business on the poor 2 Positive impact Negative impact Provide jobs, salaries, and benefits Even if the poor are unable to have work in the formal sector, the multiplier effect of salaries can boost local economies, including the informal sector Threaten livelihood The poor may access essential goods and services outside the marketplace. Common success factors from the case studies form the basis for recommendations to design and implement more CSR initiatives targeting socially-excluded groups. Strategic CSR is meant to address this problem by addressing any negative value-chain impacts while supporting the business strategy and the needs of the community. How can NGOs, civil society, and the Government work with corporations without compromising their unique purpose and mission?
Tax holidays, tax avoidance, and fraudulent accounting can reduce contributions to public revenues Trade with the poor As supply-chains become more international, even companies that only operate in developed countries can have a positive multiplier effect on developing economies Create dependency relationships Particularly in resource-extraction industries, business can dominate a local economy for a short period without helping long-term economic development Open in a separate window Strategic CSR is increasingly becoming integrated into core business operations supplies of materials, manufacturing, provision of services, product design, marketing, etc. Common success factors from the case studies form the basis for recommendations to design and implement more CSR initiatives targeting socially-excluded groups. Reprints are not available from the author , Dr. Their assets water rights, social networks, traditional land-use, etc. The analysis found that CSR has potential for positive and lasting impact on developing countries, especifically on socially-excluded populations. Is it appropriate for a commercial entity to help provide basic community services and infrastructure? Strategic CSR also ensures that a business is focused on minimizing potential negative impacts of its operations. Social change through, for instance, economic empowerment and reduced inequality has been critical in enabling socially-excluded populations to meet their basic human needs. For example, a company practising strategic CSR might design operations to minimize any environmental pollution, above and beyond legal requirements. CSR might be most relevant in developing countries where the impacts of business activities on the poor have been mixed. Script for CSR documentary feature corporate. In an environment of weak enforcement of regulations, is compliance with local labour and health standards treated as CSR? Potential impacts of business on the poor 2 Positive impact Negative impact Provide jobs, salaries, and benefits Even if the poor are unable to have work in the formal sector, the multiplier effect of salaries can boost local economies, including the informal sector Threaten livelihood The poor may access essential goods and services outside the marketplace. The CSR examples included in this analysis were selected purposively to represent different strategies of the CSR—both pure private sector and partnerships of the private sector and NGOs. All correspondence should be addressed to: CSR activities in Bangladesh provide specific examples of CSR implemented in developing countries from which one can draw critical lessons and recommendations for international efforts to harness the power of the private sector to achieve the Millennium Development Goals MDGs and improve the health and welfare of socially-excluded populations. Does reliance on corporations make socially-excluded populations more vulnerable in the case of economic difficulties or shifting corporate priorities? Business can also be a conduit for new technology and business practices to developing countries Impose costs on others Poor and rural populations often disproportionately experience negative externalities, like pollution, displacement, and social upheaval Create private and public wealth Direct profits from business rarely go to the poor but taxes, rents, and public service returns generate government revenues for public services and infrastructure investment Exploit resources while giving little back If businesses repatriate a majority of wealth through profit repatriation, expatriate employment, and international sourcing, the local economic multiplier is vastly reduced. CSR is an increasingly important tool to maximize the positive development impact of corporations and commercial activity in the developing world. In some cases, human needs can be met through various public-sector and non-governmental organizations NGO programmes. To achieve sustainable improvements in the health and welfare of socially-excluded populations, sustainable solutions must be found that provide the populations themselves with resources and integrate these structural changes into societal institutions. However, there is a need for additional monitoring and critical evaluation. Strategic CSR is meant to address this problem by addressing any negative value-chain impacts while supporting the business strategy and the needs of the community. This paper presents case studies of CSR projects in Bangladesh that are designed to reduce social exclusion among marginalized populations and explores whether CSR initiatives can increase economic and social capabilities to reduce exclusion. The analysis presents some of these issues in the context of Bangladesh, which exhibits parallels with other resource-constrained developing countries. Although CSR as a concept may have roots in philanthropic activities, the modern view of CSR is more strategic and complex.
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