There is some form of mutual connection between concepts of corporate social responsibility (CSR) and sustainable livelihood (SL) as a result of globalization. The two concepts by no means are very crucial looking at the current issues such as poverty, inequality, resource scarcity and global warming as a result of unhealthy environmental practices. That is, CSRs can play a meaningful impact in tackling some societal constraints raised above.
CSR which is seen by many as correcting wrongs committed by multinational enterprises (MNEs)and transnational corporations (TNCs) with the aim of avoiding social upheavals especially in the global south (Mares, 2006, p.1) go beyond that today. MNEs/TNCs today
Figure 2: Cocoa Supply Chain in Ghana (a modification by the author based on Gilbert 2014, p.4)
are focusing seriously on issue of sustainability of their operations (Katsoulokas and Katsoulokas, 2007) and it is being attended to within the concept of CSR which somehow may transcend to sustainable livelihood concept.
The millennium development goal 8 (MDGs) which is partnership for development under the United Nations (UN) is concern with creating a sustainable livelihood for all and is encouraging TNCs/MNEs to take active part to achieve the set targets of the MDGs (UN Millennium Project, 2002-2006). Under the framework of the corporate contribution to development, business can contribute to reaching each of the MDGs by adopting international principles into their day-to-day activities. According to United Nations Development Programme (UNDP, 2008), “the poorest two-thirds of the world population has some five trillion dollars in purchasing power” and if this, is true, then one is right to believe that business if extended to them, can be beneficial to the poor and businesses. In other words, businesses are guaranteed sustainable production since they have markets for their goods.
Companies through CSRs can contribute meaningfully to eradication of poverty and hunger by making products and services such as water, electricity, housing, healthcare, food and education, as well as economic opportunity, for example, in the form of employment and training, supplier development programs and micro credits, available to the poor (UNDP, 2008).
Enterprises can also support NGOs and social enterprises in their combat against poverty by fund-raising or by offering in-kind support such as employee volunteering. Besides the civil society, companies can offer their support to governments in their initiatives aiming at improving the business environment to attract foreign investment.
In economic terms, business can contribute to reach each of the MDGs by creating sustainable jobs, generating income and investments, developing local human resources through technology transfers, avoiding corrupt practices among others which fall under economic responsibility (ibid).
Creating job for the poor will not only offer income but will put them on the sustainable supply chain line in relation to production. UNDP (2008) emphasizes that business must invest in skills development training of workers and at the same time increasing local capacity and capability by providing an up-to-date modern technology to improve their
efficient way of working. This will lead to technology transfer which will help transform their way of life.
Companies through CSR activities can help in achieving universal primary education by tackling child labour. This can be done through careful management of the global supply chains to make sure that child labour is not used in any stage of the production and also through promoting children’s rights in cooperation with governments, NGOs and international organizations (ibid). Companies involved in ICT and education can work for this goal by supporting the use of ICT in schools, offering learning materials and training teachers (UNDP, 2008). Companies can also support the education of their employees’ children and of the children in the communities they operate in and invest in local schools by providing financial and in-kind help. They can also try to affect government policies to promote education.
Businesses can promote gender equality and empower women by hiring more women, using female-owned enterprises as suppliers and tailoring products targeted for women’s needs (ibid). The UNDP report paper argues that companies can also tackle sexual harassment in the workplace and combat sexual exploitation and trafficking of women.
Companies thus support programs for empowering women directly or with NGOs and promote women leadership for example through organizing networking events (ibid).
Business organizations can also try to influence the governments to draft legislative reform that would improve gender equality.
According to UNDP (ibid), companies producing consumer goods, pharmaceuticals, and food can contribute in reducing child mortality by providing affordable products that are essential for children’s health. More indirect initiatives involve, improving public health services and access to clean water and sanitation. Companies can also support information awareness-raising campaigns related to hygiene and nutrition, AIDS/HIV orphans programs and school-feeding programs as well as an advocate for government to support children’s rights.
Business under CSRs can positively engage in improving maternal health directly by providing women in developing countries with affordable health care products and services. Indirectly, companies can influence this cause by introducing health and safety standards across their supply chains, which are often staffed by women (ibid). Supporting
efforts promoting gender equality as well as increasing access to clean water and fighting HIV/AIDS have indirect effects as well.
Businesses all over the world need Healthy human power to effectively sustain its existence. In this regard, it is imperative that business help combat HIV/AIDS, malaria and other diseases by providing affordable HIV/AIDS drugs and other essential drugs in developing countries and by supporting different HIV/AIDS programs at workplace and elsewhere as well as contributing to HIV/AIDS and other disease funds.
Environmental degradation as a result of improper disposal of industrial waste, open pit mining and electronic waste is very crucial to good health (ibid). Business can work towards dealing with these problems by developing innovative way and technologies in terms of machinery to tackle them. Companies through CSRs can contribute to ensuring environmental sustainability in many ways, which include: complying with existing environmental laws and voluntary international standards, investments in green technology, life cycle assessments, sharing environmentally friendly methods and technology with supply chain members and business partners, greening the financial markets, combating the climate change through reducing the carbon footprint and train locals for example farmers in sustainable farming practices.