Though the concept of Corporate Social Responsibility (CSR) is not new, it has assumed the status of a movement in recent times. It is being enthusiastically embraced by scholars, policy makers and in many instances, corporate leaders as well. The ever-increasing emphasis on CSR is partly attributable to the inadequacy of the capacity of many governments to deliver the public or merit goods vitally needed for achieving social goals. The movement has received a boost from national and international groups concerned with civil rights, women's rights, consumer's rights and protection of environment. In this backdrop, the objective of this paper is to examine the role that CSR can potentially play in attaining sustainable development goals (SDGs) adopted by the United Nations General Assembly on September 25, 2015. The goals are embodied in the Declaration entitled "Transforming our World: the 2030 Agenda for Sustainable Development." SDGs contain as many as 17 goals and 169 targets. It would be, therefore beyond the scope of this paper to explore all areas where CSR can potentially make a positive contribution to the attainment of SDGs. The focus will be on those goals which appear to the author to be directly intertwined with CSR.
THE CONCEPT OF CSR: Any assessment of the role of CSR in attaining SDGs has to be based on a clear understanding of the concept of CSR. Many scholars have attempted to clarify the concept and delineate its scope. Only a few are mentioned below.
Davis (1960) argued that social responsibility refers to "businessmen's decisions and actions taken for reasons at least partially beyond the firm's direct economic or technical interest." McGuire (1963) postulates that CSR implies assumption of the certain responsibilities to the society which extend beyond their economic and legal obligations. According to Murphy (1978), CSR includes involvement in community affairs, concern about urban decay, correction of racial discrimination, alleviation of pollution and charitable donations. According to Carroll (1979), the social responsibility of business encompasses the economic, legal, ethical and philanthropic expectations that the society has of businesses at a given point in time. Kotler and Lee (2005) define CSR as a commitment to improve community well-being through business practices and contributions of corporate resources.
Based on the brief survey above it can be concluded that CSR would include attention to (i) climate change, (ii) product responsibility, (iii) governance issues including reporting and management structure, (iv) labour practices for decent work, (v) human rights, (vi) services to community, (vii) ensuring non-discrimination in all aspects, for example, racial or sexual, and (viii) charitable donations.
CSR AND SDG GOALS:
Goal 1: Postulates end of poverty in all its forms everywhere.
Of particular relevance to CSR are the two indicators associated with this goal: mobilisation of resources from a variety of sources and implementation of nationally appropriate social protection systems. CSR in this context would involve contribution to mobilisation of resources intended for eradicating poverty going beyond legally required tax payments. With regard to Social Protection System, CSR would include provisions for life and medical insurance for workers and appropriate pension/ provident fund system.
Goal 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture.
There are many indicators under this goal. The important areas for potential contribution of CSR to the fulfillment of the goal relate to increasing agricultural productivity through inclusive financial services, creation of opportunities for value addition and non-farm employment for small-scale food producers, indigenous peoples, family farmers and fishers, investment in research and technology development and ensuring proper functioning of food commodity markets in order to help limit extreme food price volatility.
Goal 3: Ensure healthy lives and promote well-being for all citizens.
 The most important area of the contribution of CSR in respect of this goal would be to help achieve universal health coverage through enhancing access to safe, effective, quality and affordable essential medicines and vaccines for all as well as through ensuring universal access to sexual and reproductive health services.
Goal 4: Ensure inclusive and equitable quality education and promote life-long opportunities for all.
Here CSR can contribute to ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant effective learning outcome. Another point of interest is to ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university education.
Goal 5: Achieve gender equality and empower all women and girls.
The role of CSR would be to ensure women's effective and full participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.
Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all.
The role of CSR in this case would lie in increasing the share of renewable energy and development of advanced and clean fossil fuel technology and promoting investment in energy infrastructure.
Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Here again there are many indicators. Those of direct relevance to CSR in my opinion are: (i) full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value, (ii) eradication of forced labour and worst forms of child labour, and (iii) protection of labour rights and promotion of safe and secure working environment for all workers.
Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable.
The contribution of CSR in this area would include ensuring access to safe, affordable, accessible and sustainable transport system; enhancing inclusive and sustainable urbanisation and providing safe universal access to green spaces, in particular for women and children, older persons and persons with disabilities.
Goal 17: Strengthen the means of implementation and revitalise the global partnership for sustainable development.
In this case CSR, specially by large transnational corporations, could contribute to the mobilisation of financial resource for developing countries. Another important contribution could be the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms.
SOME CONCLUDING COMMENTS: This paper has identified selected goals and indicators of SDGs where CSR could make a positive contribution without any claim to be exhaustive. The mechanisms for operationalising the roles of CSR in the specific contexts of particular countries and societies have to be worked out.
Besides, a question may be asked as to why corporate entities should show any interest in CSR to further the cause of SDG goals. The rationale lies in the evidence that CSR has a positive impact on financial performance of firms. The impact occurs through a number of channels which include (i) reduction of costs and risks, (ii) strengthening legitimacy and reputation, (iii) building competitive advantage and (iv) creating win-win situations through synergetic value creation (Kuruez etal, 2008).
It is hoped that corporate entities in Bangladesh will pay greater attention to CSR than has been done so far and thereby fulfil some SDG goals while pursuing profit.
Dr. Mirza Azizul Islam, a former Adviser to the Caretaker Government, Ministries of Finance and Planning, is a Visiting Professor in BRAC University.
maislam@bracu.ac.bd
CSR and SDGs: Creating win-win situations
Mirza Azizul Islam | Published: March 08, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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