Challenges of CSR in Africa: Assessing the Practice under the Voluntary and Mandatory Provisions

Abstract

This chapter discusses the concept of Corporate Social Responsibility (CSR) under the voluntary and mandatory provisions covering the practice in Africa. The study aims to assess how the concept can overcome the challenges of CSR, through legislation. CSR originated in the West as voluntary, where Northern businesses have prioritized shareholders’ interests, overlooking stakeholders. The arrival of some Northern multinationals in Africa has revealed corporate governance deficits, pushing some African governments to regulate the practice whose voluntary approach was no longer tenable. Past CSR projects have been deemed as a failure due to the development of a pyramid whose implementation in Africa remains problematic. All this provides challenges to the practice and hence the assessment of the practice. Previous studies have assessed CSR but mostly under the voluntary dimension, which remains common. This study looks further at the issue with existing provisions, which seem to be part of the major developments by African organizations on CSR. Key findings reveal that national action plans developed by some countries using the voluntary approach to conduct their CSR are unproductive, while the mandatory approach seems to be the desirable step, looking at countries with legislation. A qualitative inquiry provides recommendations.