The business-case for community investment: evidence from Fiji’s tourism industry

Abstract

Purpose – This paper aims to argue that the rationale for community investment in developing countries is broader and more complex than in the West, and that the usual drivers of corporate social responsibility (CSR) behaviour are less explicit and robust in these settings. Design/methodology/approach – Development of descriptive theory using the results of a qualitative study of 42 firms in Fiji’s tourism industry. The primary data were derived from in-depth interviews with senior managers about their firm’s CSR values and practices. This paper focuses on one aspect of CSR practice, community investment, and provides a comparative analysis of the results from the interview data. Findings – The paper presents evidence that shows that the rationale for engaging with and supporting local communities is more concerned with long-term sustainability than short-term profitability. The findings reveal that issues of legitimacy, interdependence and risk management are important strategic reasons for undertaking community investment. Research limitations/implications – The paper adds to theoretical understanding of the nature of CSR practices in developing countries. In particular, it reveals the importance of institutional factors in community investment decision-making and argues for an expanded theory of the business-case for CSR. Originality/value – This research adds to the growing number of developing-country case studies by focusing on a region that has been largely absent from empirical CSR research.