Systematic Review of Potential Statutory and Policy Frameworks for Corporate Social Responsibility (CSR) Enforcement in Ethiopia: International and Local Experience

Abstract

Purpose: This article aims to identify the existence of local and international legal and policy frameworks that can be used to commence structured CSR practice and establish comprehensive legal and policy frameworks in Ethiopia and the rest of the developing countries. The penultimate purpose of this study is also to ascribe the legal and policy frameworks that support Internal and/or External CSR. These all are the major foci of the contribution of this research article.

Design/methodology/approach: National and international legal and policy documents related to CSR were reviewed. The study adopts a qualitative approach through a systematic review and meta-analysis was used to meet its research objectives.

Findings: The findings depict that various legal and policy documents can contribute as a foundation for the laws, policies, and guidelines of CSR that will be established in Ethiopia, thus it helps to ensure the effective implementation of CSR. However, most of the legal and policy resources are emphasised on ICSR than ECSR. Moreover, the finding supports the existence of a significant gap in CSR orientations between developed and developing nations.

Practical Implications: This study provides insight into the legal and policymakers that endeavor to bridge the gaps through establishing comprehensive law and policy frameworks. This wills results in corporate businesses to consider CSR compulsory and that promotes societal well-being.

Originality: The study has unique features compared to prior research. The researchers were focused on the CSR operational activities in certain industries. Therefore, this study focuses on exploring the legal and policy infrastructure that can be profound in establishing independent, institutionalised, and consistent CSR in Ethiopia.