A Concentric CSR Roadmap Model for Host Community Relations in the Global South

Abstract

The purpose of this article is to find new Corporate Social Responsibility (CSR) approaches for corporate-community relationships in the global South and hence to achieve some distance from the Northern ethos. The article is based on a case study from the Brazilian pulp and paper sector. Veracel Celulose, a multinational corporation, is a joint venture between the Brazilian Fibria Celulose (formerly Aracruz Celulose) and the Swedish-Finnish Stora Enso. First, Veracel’s production impacts on the Indigenous community, the Pataxó Indians, are examined. Second, Veracel’s CSR policy and its subsequent impact are brought under closer scrutiny by juxtaposing corporate words with corporate actions. The findings demonstrate the many problematic dimensions of corporate philanthropy in the global South contexts: philanthropy runs a considerable risk of engaging in corporate social irresponsibility (CSI) actions in the global South. Third, the local community’s own CSR expectations are presented: What constitutes responsible business practice, and what does a good relationship entail according to the Pataxó? Fourth, it would be necessary to build bridges between business ethics and development studies. In the same vein, experiences from international development can offer useful tools for community-corporate relationship analyses. The qualitative research material of the study consists of ethnographic fieldwork data and the supporting extant literature. By combining a case study with the Grounded Theory approach, a new CSR model was created for local community stakeholder relations. This Concentric CSR Roadmap Model outlines 22 principles, and 49 sub-principles, organized in three hierarchic CSR levels: binding, ethical, and philanthropic responsibilities. Hence this article opens up a new agenda for work on CSR with Southern societies and their local communities.