The Role Of Government And Quasi-Governmental Agencies In CRS

Table of Contents

Abstract

This paper will address the roles of the government and quasi governmental agencies in CRS. Their roles are covered under the International Standardization Organization (ISO). This body has well developed standards of social responsibility under ISO26000 title that cover all organizations and corporations.

Introduction

Corporate social responsibility emerged in the 1970s to view the concerns of transnational corporations (TNCs). The agenda was to examine the negative aspects and the power of the activities of the transnational corporations. These issues are still addressed in the modern society especially now that the globalization is on the increase and human rights concerns have become vital (Addo, 1999, pp 56: Frankental and House 2000, pp 134).

Corporate social responsibility main concern is to address the cord of conduct of corporations, marketing practices, and adherence to the government laws and policies. The activities of CSR in the 1980s diminished after the introduction of the economic liberalization. In the late 1980s and early 1990s, waves of worries gained momentum. New initiatives and organizations began to be formed under the name CSR. The main actors were from various levels and sectors within the international system especial non Governmental organizations. Other organizations today have taken up in CSR development.

Corporations have adopted the rules and requirements of CRS as well as it activities. Further new organizations have risen to address the issues of CRS. Multi–stakeholder forums have been held to dialogue with the stakeholders and corporations. The Government has also taken up in CSR activities such as the creation of multi-stake holder initiatives. For example, the development of legislative measures concerning CSR. Quasi-governmental agencies and intergovernmental organizations have started to also play the role of addressing CSR issues.

Literature Review

A set of rules that are incorporated into company rules are known as corporate social responsibility (Albereda & Joseph, 2009). There are many social responsibility plays various roles. It deals with the management of the relationship between share holders and the firm. The second role is to check any exploitation of the customers by the firms. Corporate social responsibility prevents such vices which are illegal deals. The firm’s productivity is also improved by corporate social responsibility (Albareda & Joseph, 2009). The government plays vital roles in corporate social responsibility.

Consumers are protected from exploitation by firms have to adhere to policies set by the government. All the activities of the firms and companies should be in aligned to the requirements of the government the government provide funds to companies for the implementation of the set laws. The government also assists expected roles and polices. The government punishes those companies that do not comply with the set rules and laws (Broomhill, 2007). The unethical companies do not benefit from governments’ grants and incentives (Chandler, 2002).

The firms are assisted by the government to develop business policy because they have a closer relationship with the internal government those international agencies. Business owners find this of great advantage (Abareda & Joseph, 2009). The actions of the companies are also regulated by the government through the set policies and guidelines (Broomhill, 2007).

The quasi government agencies also participate in CSR activities. They rely on the government for financial assistance and are founded by the government. The role of quasi government organizations is similar to those of the government. They protect consumers from exploitation as well as their interests. The interest of shareholders and stakeholders are also protected by quasi government organizations. The negative effects of a company’s policies are strictly monitored by this quasi-government (Albareda and Joseph. 2009). The quasi governments just like the government offers incentives to those companies that comply with the standards of CSR (Broomhill, 2007).

Most companies have incorporated corporate social responsibility (Bitchta, 2003) so as to ensure there is a healthy relationship with the corporate stakeholders and to avoid any cases of law suits against them. Similar roles and objective are shared by governments of many countries in the world (Chandler, 2002). The activities and duties of various corporations are controlled by government’s guidelines.

The Role of Governemt and CRS

Governments have a positive role to play in bringing desirable changes to the business sector. They have the ‘soft power’ which Paul Hohnen describes as the possibility of the government to influence the behaviors of the business sector with the aim of introducing positive changes. The government, therefore, plays a vital role in corporate social responsibility. The Governments of many countries have similar objectives and roles (Chandler, 2002, p 423).

This influence is not through regulations but the creation of a desirable environment. The government’s soft powers are visible through stimulating and raising awareness to citizens to air and debate on the issues they face and their challenges. The government has the power to promote the initiatives of CRS and inviting support from the community and business. The government can also look into CSR capacities in business, in public authorities, and in the civil society. This can be done through offering of trainings and platforms conducted through the internet.

It is the responsibility of the government to convene stakeholders and businesses to enhance capacity building. In these meetings, government personnel can play the role of mediation of interests in an active and neutral way. The government is at the forefront in leading researchers and funding them which are in the CSR context. The activities of the researchers should be networked and facilitated by the government. The initiatives of CSR are also founded by the government. It is the role of the government to develop management tools for CSR.

The role of government in promoting CSR is changing. It has joined with the stakeholders in the forefront of CSR activities. The government has worked with the quasi government organizations to develop public policies that concern CSR. The changing role is also seen in the government partnering with social and private sector (Moon 2004).

Their partnership aim at working at a common discourse and statement on the concerns of CSR. The aim of the government is to create a win –win situation between social organizations and the business. The development of CSR public policies are based on political and cultural framework such as organizations structures, the typology welfare of the state and cultural, social, and business background of a country. The government has also played a major role in strengthening the activities of CSR (Fox et al. 2002, pp 47). The political agenda is similarly driven towards strengthening CSR and dealing with the challenges brought about by changes in the economy and globalization since the wake of 21^st century(Aaronson & Reeves, 2002 and Fox et al 2002).

The global focus of practices of CSR is related to the impact of the transnationalization of the activities of business. The development of CSR is as a result of the activities of global businesses. This has called businesses to take up responsibilities and to be accountable to the impact they have to the society. Likewise, the government had to do away with traditional governance (Westphalian context or setting) and to adopt the globalize context. The traditional activity of the government was that of the regulator of company’s dependent role vs. the imperative regulation. The current role is within the Post-West pahalian setting which is in global level. It is about the company’s dominant role vs. the dependent role. Governments in the traditional context were the only authority and political power responsible for legislation. This has been changed by globalization. National boundaries have been surpassed by economic relationships between and among countries.

The change brought about by globalization has subsequently led to a change in the economy which possess political challenges. For example, on issues concerning the welfare of the state. These challenges call for reforms and policy implementation to tackle the problems. CSR provides a framework with which the civil society and governments can develop various innovations for effective governance.

Corporate social responsibility covers various issues which are related to the conduct of business. These activities include protection of the environment, corporate governance, social inclusion issues, the development of national economy and human rights. The corporations have to adhere to the environmental and social objectives and are also held accountable for their actions. The government monitors the laws of the company which are related to the organization and to the shareholders.

Corporations have seen the benefit of embracing social responsibility so as to maintain a good relationship with their stakeholders (Bitcha, 2003). Another advantage of incorporating CSR by the corporations is to ensure more productivity. They also prevent cases of laws suits against them for engaging in unethical issues. Those corporations with no social responsibility have a poor relationship with the stakeholder (Bitcha, 2003). Therefore, the issue of corporate social responsibly is a major concern in modern society.

CSR policies implemented by the government are meant to protect organizations and consumers.

The government plays the role of protecting the citizens from illegal practices of corporations, such as hiked prices of goods and substandard goods. This is why the government funds corporations to implement and incorporate CSR policies into the laws and rules of the corporation (Albarada, Joseph and Lozana, 2008).

Both the shareholders and consumers have been helped to prevent exploitation from those corporations which do not follow the governmental requirements of CSR. Unethical companies face law suits and are punished by the government through the denial of incentives and grants (Broomhill, 2007: Chandler, 2002). This means that the activities of corporation are regulated by the government through policies and laws.

Role Quasi Governmental organizations in corporate social responsibility

Quasi- governmental organization can be an agency, or a business or corporation. These quasi government organizations are formed by the government with a set of national regulations and laws. It performance is therefore, under the guidelines of the government and it fully funds these agencies. Quasi governments are beneficial to the society because they ensure the smooth running of the activities of the government.

The quasi agencies implement government policy and ensure government targets are met.

The state owned agencies protect labor rights and recommend CSR reporting systems. The quasi government plays an important role in the activities of CSR similar to those of the government. It shapes the future and present regulatory frame for corporations on various issues. The state owned agencies ensure that corporations adhere to the standards of human rights and provide resources to address the dilemmas that are related to human rights. These guidelines are in respect to the UN framework which companies have to adopt.

The quasi government organizations work together with the government to consider approaches that greatly contribute to the coherence of human rights and coherence in business. The agencies assist in the policy making and the provision of guidelines and measures. The agencies in ensuring the development of CSR at an international level according to the standard of ISO 26000. This is through the implementation of social responsible practices and those of public procurement. Such initiatives and programs support the dialogue of business and stakeholders and serving each of their interest.

The policies set by the government and agencies have issues which may generally apply to most companies while some are focused on specific companies. Just like the government, quasi governmental agencies play the role of protecting stakeholders, shareholders, and consumers. They do monitor corporation’s policies to prevent any misconduct (Albareda & Joseph, 2009, pp 167). This means that they help the government to check the behavior of companies in the business sector. They identify firms which affect consumers negatively and ensure that they are punished for the crimes. The quasi governmental agencies assist the government in the development of policies which ensures that the stakeholders and consumers are protected. The organizations further assist the government in the provision of incentives to corporations which adhere to the policies of CSR. Quasi government organization and the government ensure that a good relationship exists between the shareholders and the stakeholders (Broomhill, 2007, pp 89).

Current status of CSR

There are risks in corporate social responsibility is which can become a challenge in governance. The programs with CSR are meant to strengthen operational license, boosting of the company’s reputation and assisting in the creation of market advantages. These positive aspects can be hindered when corporations involve themselves in roles outsides the expected competence.

CSR initiatives are viewed as an attempt to give back to the society. Many managers and executives of corporations are determined to adhere to the set rules and regulations of CSR but the strategies of CSR can derail good governance. Corporations have responsibility to provide schools, healthcare, roads infrastructure and goods for the public and the quasi public.

The practices of CRS at a global level means making business decisions which are related to compliance to legal requirements, ethical values, and respect for communities, people, and world environment. Most companies small and big, manufacturing and non manufacturing have adopted the initiatives of CSR voluntarily. They have adopted activities like auditing, strategies of monitoring, code of conduct eco and social labels and philanthropy.

The current trend of CSR mirror globalization and state retreat. This is because; many firms are producing and sourcing globally. The stakeholders have made calls for policies, laws, and regulations which will require firms that operate globally to be accountable for their activities. These activities are a threat to the economic, social, and environmental development.

Today, there is a narrow line between the government and the business. Developing and industrialized nations have privatized and deregulated public functions which traditionally were the responsibility of the government. Such functions include the provision of education, postal services, and water. Citizens in developing nations however still face the lack of these services. This is due to lack of technological know- how and funds. Illiteracy also poses a challenge in that citizens are unable to question and influence the government to provide equal resources to all people. Out of poverty, they can’t afford affordable and consistent access to resources. This shows the inadequacy of governance.

To achieve good governance, government officials have to rapidly change the technology, the political social and economic developments. Governance involves the processes, mechanisms, and institutionalization of principles which groups and citizens can freely exercise their legal rights, articulate their interests and solve the differences. The role of market actors and policy makers have a responsibility of ensuring that citizens are well informed and have the ability to contest and influence public policy. Therefore, governments should respect political and civil rights.

Firms tend to respond to the set rules and conditions that are available in the environment. Inadequate governance of CSR strategies will therefore, be reflected by the firms as well. To start with, CRS strategies are normally expensive which may cause firms to abandon initiatives which are taken up voluntarily. This is normally the case of hard economical challenges and when competitors to have firm have not implemented the strategies. Secondly, firms which ensure the provision of quasi public goods via partnering with NGO and philanthropy tend to lack consistency in the provisions of service and may encounter lack of funds and expertise.

Thirdly, corporations tend to be influenced and manipulated easily by the stakeholders to do activities which may not represent public interest. Fourthly, the strategies of CSR are relatively new and taken up by corporation on voluntary basis. Citizens may also not know their right of communicating with policymakers on their concerns and interests (Aaronson, 2009-10).

Recommendations

Alternative approaches can be derived from the examination of history. Managers have in the past developed their own capacity of governance. Executives can provide the know-how and the skills which will ensure that both their expertise and time of investment meet the business and public interest. This is an aspect that was practiced by the managers during the World Wars which can be applied today. Today’s managers can provide assets, technology, and skill that will ensure governance is improved at the national level. Capacity building efforts is required for this to succeed.

Business firms should take the moral step of favoritism and avoidance of corruption. This can be done with the developments of Transparency Initiatives such as partnership and bank support.

An Extractive Industry Transparency initiative is vital in providing a framework through which policy makers, citizens and business executives perform their shared interest. It ensures cases of corruption do not originate from the available natural resources. This body is also ensuring publication the earnings of the firms and active involvement of the civil society. This will help the citizens with the power to be involved in the monitoring process and at the same time influence the actions of the government. The policy makers will also benefit to identify the interest of the citizen

Conclusion

Both the government and the quasi government have a role to employ in corporate social responsibility. Their roles are in many ways similar but only that the quasi governmental organizations are formed and funded by the government. Poor governance leads to firm’s not voluntarily adoptive CSR voluntary leading to vices such as corruption and customer’s exploitation. A transparency program will ensure the interest of the citizens is protected and policy makers can implement policies which solve the changes of the citizens.

Reference

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