Creating a CSR-enabling environment: the role of Government

Abstract

The legacies of apartheid remain firmly entrenched in the social challenges facing South Africa and it seems as if the national government is, at least to some extent to date, unable to deliver social and physical infrastructure, which has necessitated the engagement of the private sector. The (perceived) failure of the welfare state has given further impetus to the move of governments towards tapping into the resources of the private sector in order to address socio-economic challenges. One instance where the resources of the private sector can be used to address socioeconomic challenges is through the private sector's corporate social responsibility (CSR) initiatives. Albareda et al argue that the challenges faced by post-industrial governments and societies (such as unemployment and poverty) and the demand on governments with limited resources to address the challenges have caused a crisis in the welfare state. This crisis requires a new model of societal governance where innovative new ways have to be found to address the social demands which cannot be met by the state. The new model of societal governance has given rise to the appearance of partnerships between governments and the private sector working in collaboration to address societal issues through a CSR approach. The CSR movement has been described as a bundle of trends comprising regulatory frameworks aimed at improving corporate practices and leading to changes in these practices, the mobilisation of corporate role players to support the development of states, and a management trend that enhances the legitimacy of a business. Governments are regarded as one of the most important driving forces behind the CSR agenda and as a result have a particularly important role to play in the creation of an enabling CSR environment.