Corporate Social Responsibility and the Role of Policy making bodies in Ethiopia: Voluntary Versus Mandatory Preference of Law

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Date

2018-10

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Publisher

Addis Ababa University

Abstract

This dynamic natureof CSR has a significant impact on how the roles of the public sector in particular and other stakeholders in general, need to align in order to fully realize the benefits of CSR, both to the society and towards these entities themselves. Recent literature and legislature dose also show, at least internationally, the concept CSR being incorporated both in relevant regulations and policy agendas regarding national and international development. However, the role of the public sector as the driver of the agenda for CSR has still persistent and the areas where the contemporary social responsibility agenda has itself given rise to new kinds of policy instrument, or new roles for government. This dominant role is needed especially in countries such as Ethiopia, where public support is essential for the development of the concept of CSR. Being one of the least developed countries internationally, the concept of CSR is at the initial stages in Ethiopia, specifically the application of CSR responsibility has not evolved from the confines of philanthropy to an issue encompassing social and economic implications. Hence, the research has formulated its question based on issues like what the policy making organ should do with regards formulation and overall understanding of CSR and what preference of laws should exist. This questions have assisted in gaining a firsthand insight about understanding CSR in Ethiopian context by the stakeholders. For this purpose, qualitative data was collected from both primary (interview and discussions) and secondary sources by employing purposive and area sampling method to later analyze the data using deductive reasoning. The method helped the researcher in categorizing respondents based on conceptual typologies. Hence, the findings showed that first, there is still a gap on by the policy making public sector organ on to what extent its role should be and second, there is a lack of consensus on what CSR constitutes and preference of CSR laws as mandatory or voluntary. However, even if many argue in favor of voluntarism and agreed that CSR initiatives by nature should be governed by soft laws, they have also agreed that policy making organ needs to pay an active role in developing regulations, guiding principles, minimum standards and impact measurement instrumentsso as to promote CSR initiatives meaningfully and to prevent free-rider and ‘irresponsible’ behavior which can have an adverse impact on social and environmental well-being.

Description

A Thesis Submitted in the Degree of Masters of Arts in Public Management and Policy (MPMP) in the Department of Development Management

Keywords

CSR, Policy, Public Sector

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