Stakeholders' Perceptions of Corporate Social Responsibility (Csr): Case Studies from Bangladesh and Pakistan

This dissertation, "Stakeholders' Perceptions of Corporate Social Responsibility (CSR): Case Studies From Bangladesh and Pakistan" by Asghar Naeem, Malik, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract of thesis entitled Stakeholders' Perceptions of Corporate Social Responsibility (CSR): Case Studies from Bangladesh and Pakistan Submitted by Malik Asghar Naeem for the degree of Doctor of Philosophy at The University of Hong Kong in December 2007 State, civil society and businesses are among the key agents for achieving the goal of sustainable development. However, in an era of economic globalization, businesses have become more resourceful and seem to be playing a leading role. The abundant supply of cheap labour in Bangladesh and Pakistan makes them attractive to foreign as well as local investors. At the same time, these countries are facing the daunting challenges of poverty, environmental degradation, female discrimination, low labour standards, child labour, corruption and illiteracy, all of which necessitate an investigation into the level of observance of social responsibility by businesses in the two countries. The ten principles of the United Nations Global Compact and the corresponding elements adapted from the GRI Sustainability Reporting Guidelines have been employed by this study to devise a screening benchmark. The stakeholders' perceptions of CSR and the businesses' sensitivity in terms of having written policies on CSR have been gauged through questionnaire surveys. Sensitivity to CSR has also been measured through content analysis of CSR related information communicated by businesses on their websites. Finally, in-depth interviews with stakeholders have been carried out to ascertain the drivers for and the impediments to the observance of CSR. The study reveals that the stakeholders' awareness of CSR is in its infancy. Although most stakeholders urge businesses to comply with their social responsibility, at the individual level there is a general lack of vigilance regarding the social and environmental performance of a business entity while making investment or purchasing decisions. Most businesses in Bangladesh and Pakistan do not have written policies on CSR. Labour standards and environmental protection are areas of greater concern than those of human rights and anti-corruption. Multinational companies are far ahead of listed local companies in terms of having written policies on CSR. However, CSR elements such as monitoring of supply chains, environmental and social reporting practices, providing information to workers about HIV/AIDS, and the composition of senior management with balanced female/male ratios, are not included in the written policies of many local as well as multinational companies. The businesses in both countries are seemingly reactive rather than proactive to statutory laws. Religious obligation, brand image, foreign buyers' pressure and state laws appear to be the key driving forces in the study countries, while lack of awareness and lack of capacity, meagre profits, unrealistic prices from foreign buyers, poverty, weak and corrupt regulatory departments, and authoritative military rule appear to be impeding CSR practices. The research concludes that there is an urgent need for a widespread awareness campaign and capacity building of stakeholders, engaging the institution of religion in the CSR movement and sensitizing businesses to playing a responsible role in monitoring their supply chains. The study suggests a proactive r