Systemic Causes, Systemic Solutions

This chapter presents the basic arguments informing the approach taken by the editors in organizing this book. First, we argue that poverty, social exclusion, and environmental degradation, while often clearly exacerbated by irresponsible business, exist within a broader local and global political economic context in which irresponsibility and lack of accountability are built into the system. Second, Corporate Social Responsibility (CSR) strategies conceptualized as a set of discretionary or voluntary actions originating within a company can provide firms with a strategic response to some of the risks that systemic dynamics present, especially in the developing world. By addressing governance gaps, systemic risk is lowered, and firms increase their potential of obtaining a ‘social license to operate.’ However, third, we argue that firm-centred CSR as currently conceptualized cannot be expected to bring about the long-term, transformative change needed to address multi-actor, system-wide issues. Fourth and finally, given these limitations, new analytical models that can capture system-wide dynamics and put CSR into context within a broader governance system should be used as a complement to traditional stakeholder-management CSR planning tools. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Accountability · Business · Context (archaeology) · Corporate governance · Corporate social responsibility · Economics · Financial crisis · Political science · Politics · Poverty · Public relations · Sociology · Stakeholder · Systemic risk · Transformative learning · Innovation and Socioeconomic Development