Academic journal article Asian Social Science

The Roles of Government Agency in Assisting CSR Project for Community Development: Analysis from the Recipients Perspectives

Academic journal article Asian Social Science

The Roles of Government Agency in Assisting CSR Project for Community Development: Analysis from the Recipients Perspectives

Article excerpt

Abstract

Corporate Social responsibility (CSR) initiatives by the corporations are playing increasingly significant role in the effort of contributing to community development particularly in the developing country. The international prominence of the initiatives in this area can be traced to the objectives of Millenium Development Goals (MDGs) that established corporations as partners of development. However, realizing the corporate sectors constraints in playing the roles as agents of development, the CSR initiatives need to be implemented with the involvement of the government agency to assist community development. This paper will explore the roles played by government agency in CSR project through a case study of successful CSR initiative in Bukit Awang, PasirPuteh Kelantan in Malaysia. A qualitative research strategy that explores the perspective of social actors that involved in the project and thematic data analysis are undertaken for that purpose. The result from the analysis reveals two main roles played by the government agency in CSR project by the corporation to the community. The roles are as the supporting agency and as leader in the community. These roles have assisted in the implementation of the CSR project with the objectives to develop the community involved.

Keywords: corporate social responsibility (CSR), roles of government agency, recipients perspectives analysis, CSR partnership

1. Introduction

Corporate Social Responsibility (CSR) has gained prominence globally and has been discussed as one of the avenues for the corporate sector to contribute to the process of developing the community (Ideamudia, 2008; Blowfield, 2007; Muthuri, 2007). According to The World Business Council for Sustainable Development (WBCSD), CSR is defined as the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life (WBCSD, 2002). The roles of corporation in assisting the development of the community have also been recognized in the objectives of the Millenium Development Goals (MDGs) that established the position of corporations as partners in development (WBCSD, 2010). However, they are also critics that the corporation alone is unable to assist community development through their CSR project (Frynas; 2005, Utting; 2005, Fox; 2004). As an organization that's been established for the purpose of maximizing shareholder wealth, business corporations are seen as having lack of social skill in pursuing the effort with social motives particularly in community development (Frynas, 2005; Newell, 2005; Fox, 2004; Davis, 1973). To overcome such constraints, corporations are encouraged to embark into partnership with government agency to effectively implementing CSR programs and initiatives as their CSR strategy particularly for the purpose of development (Seitanidi & Crane, 2009; Kolk, Tulder & Kostwinder, 2008; Ideamudia, 2007). This issue has led to the discussion of the roles of the government agency in the CSR project initiatives. This paper will look into the roles played by the government agency in assisting the CSR project implementation by a corporation towards the community in the case study.

2. The Roles of Government Sector in CSR Project

At the macro level discussion, government sector is expected to play the roles as the driver of CSR initiatives by the corporation for the benefit of the society (Moon, 2004; Fox, Ward & Howard, 2002). The expectation of the government sector roles in CSR implementation can also be regarded as reciprocity efforts by the sector towards the initiatives of the business corporation in contributing to the development of the community. Thus, the government sectors are expected to provide enabling environment to assist and encourage the business corporation to undertake CSR effort as one of the business strategy in the country. …

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