Corporate Social Responsibility for Sustainable Development in Africa: A Review of Theory and Practice

Abstract

Corporate Social Responsibility (CSR) fosters development. Sufficient and effective action by the corporate world has resulted in development. The African continent has however not experienced commendable economic development through CSR. In some situations, communities have been exposed to health risks and greater poverty as companies expropriate community resources and claim to practice CSR for development. This study systematically reviewed literature on CSR and development in Africa over the last 10 years to identify the themes, incentives and challenges in the practice of CSR. Good governance, economic incentives, contextualization of CSR action, appropriate and robust legal and institutional frameworks are essential for CSR to play a meaningful role in developing the continent. This has been hampered by CSR initiatives being uncoordinated and failing to be integrated in core functions of organizations. It is also necessary to contextualize CSR to the needs and environment of Africa. Governments ought to provide a facilitative environment to encourage CSR for development in terms of policy formulation and setting in place oversight bodies to monitor and coordinate CSR activity. Corporate establishments need to form partnerships to reduce the overall cost of CSR and impact greatly on the development. Countries need to encourage companies to disclose their policies and practice so that they are held accountable to governments and communities adjacent to their establishments.