Corporate social responsibility strategies for multinational corporations investing in countries with indigenisation and economic empowerment policies : a case of two MNCs in Zimbabwe

Abstract

Corporate social responsibility (CSR) is an important concept which continues to attract the attention of many across the world. The emergence of globalization has increased its importance to organisations such as multinational corporations (MNCs) exploring opportunities away from their home countries. These MNCs increasingly have to demonstrate their commitment to the sustainable development of both their home countries and their hosts. CSR strategies may therefore be used to align their strategies to conform to the priorities of these countries. This is increasingly so if the host countries are in the developmental stages and have priorities such as redressing the social and economic imbalances caused by historical injustices such as slavery, colonisation and apartheid. Countries like Zimbabwe have thus enacted interventionist polices such as the Indigenisation and Economic Empowerment Policy (IEEP) to address social injustice and economic empowerment by providing indigenous citizens the opportunity to purposefully participate in the economic activities and development of their country. CSR strategies are seen as an important tool to use to draw the attention of countries with such social and economic needs. This study analyses how CSR strategies may be used to add value to the investment propositions of MNCs taking into consideration these indigenisation and economic empowerment needs. Further, the study examines how the MNCs’ CSR practices in these countries are influenced by IEEPs and how they develop strategies in response to IEEP. In addition, the study examines the host government’s expectations with regards to IEEP. An evaluation of the policy is also given, with its impact on investment assessed. The study also identifies and evaluates the CSR priorities and practices of MNCs in their home countries compared to those in the host country. The study was conducted through an extensive review of literature in the fields of CSR, strategy and social justice and economic empowerment. The study explored the investment of Anglo American Platinum and Impala Platinum, both of whom have mining operations in Zimbabwe. The findings show that these MNCs do not recognise IEEP as a CSR initiative and as such do not formulate strategies in response to IEEP. The findings show that although the need for social justice and economic empowerment exists in Zimbabwe, the current policy has hampered investment and this has a bearing in this priority not being considered as a CSR imperative. The study however assisted in the development of a theoretical approach, titled the Bricolagical CSR approach to assist MNCs recognise the transformational aspiration of the country and to develop CSR strategies that will attract the attention of countries with these aspirations.