A company’s CSR activities are shaped by the social, economic and ecological challenges at the site of its investment.

Management is faced with the challenge of abiding by international standards and norms in areas of relevance to CSR, while at the same time complying with national legislation. Following the laws of the host country is essential for good corporate governance, but it is equally necessary to follow international standards such as the ILO Core Labor Standards and the OECD Guidelines for Multinational Enterprises. Not least to minimize risks, many international standards are more stringent than the laws in effect in the host country.

The expectations of the various stakeholders – in the host country as well as internationally – focus both on the company’s core business and on its investments in the local and regional setting. Companies need to be aware of the areas in which they are expected to assume responsibility and decide just how they want to position themselves in this regard. The aim is to find “natural” areas of engagement, initiatives that are related in some way to the company’s business. This makes its efforts more credible and leads to useful synergies.

The goal is to develop a CSR strategy that addresses the most urgent social needs on the local agenda, while avoiding risks and identifying new opportunities to achieve corporate objectives. In a country with widespread poverty, for example, adapting a company’s products to the resources of low-income consumers can serve a social purpose and at the same time help the company gain access to new customer groups. Providing basic and further training ensures a well trained labor force and alleviates a shortage of qualified workers.

Well planned CSR activities can have the immediate effect of helping a company’s business run more smoothly while also ensuring the long-term availability of the workers and resources that are necessary for corporate success. Rather than following fleeting trends or giving in to pressure from NGOs, companies need to integrate sustainable CSR activities into their everyday routine so that they gradually become second nature.