Corporations and development: The barriers to effective corporate social responsibility (CSR) in a neoliberal age

Abstract

Purpose

This paper aims to examine the nature and role of contemporary CSR in the current neoliberal age. It offers an insight into the tension that exists between the ideologies of “neoliberal” shareholder value and that of “effective” CSR, and argues that both ideologies are fundamentally antithetical. It aims to identify and analyse the inter-connected but distinguishable barriers (ideological, practical and political) that militate against the realization of effective CSR.

Design/methodology/approach

The method applied is a critical evaluation of concepts and a thorough review of existing literature on neoliberalism, shareholder value and contemporary CSR. It uses existing literature to highlight the inability of contemporary CSR to transform into an effective mechanism for development.

Findings

The paper emphasizes the failure of contemporary CSR to equate to a successful mechanism for development. It concludes that the existence and operations of these barriers militate against the realization of an effective CSR regime capable of leading to development.

Practical implications

Given the current dominance of the “maximizing shareholder value” model of corporate governance internationally, it appears unreasonable to pin too much hope on contemporary CSR as a mechanism for development, especially in emerging economies. Neither the culture of corporations nor the pressures to which they are currently subjected encourage socially responsible behaviour.

Originality/value

The paper extends the body of knowledge in the area of contemporary CSR, by identifying and analysing the inter-connected but distinguishable barriers that render the CSR practices of corporations ineffective.

Citation

Nwoke, U. (2017), "Corporations and development: The barriers to effective corporate social responsibility (CSR) in a neoliberal age", International Journal of Law and Management, Vol. 59 No. 1, pp. 122-146. https://doi.org/10.1108/IJLMA-07-2015-0042