28 January, 2021

When corporate social responsibility is mostly for show

Under pressure to be good corporate citizens, politically endorsed firms in emerging markets often choose philanthropy over adopting greener practices.

Image: Zentangle/Shutterstock

In developed economies, consumers have been saying it loud and clear: corporate social responsibility (CSR) is a must, not a nice-to-have. As far back as 2010, more than 88% of consumers thought firms should improve society and the environment. The trend has hardly abated. A 2018 survey conducted in the UK and the US revealed that the overwhelming majority of consumers now count on brands to help them be more environment-friendly in their own daily lives. Meanwhile, in emerging markets, governments often play a larger role than consumers in pushing companies to be good corporate citizens. In China for instance, the state is using CSR as a

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China, corporate social responsibility, CSR, Danqing Wang, emerging markets, INSEAD Knowledge, philanthropy, SMEs, sustainability, Xiaowei Rose Luo