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Companies should help countries to become more stable places
to do business, says Martin Summers
The long-term prosperity of many countries depends on their ability to move away from 'crony capitalism' - where companies succeed by having the best connections and offering the best bribes rather than the best products - to market economies based on open and fair competition. This requires not only the elimination of corruption, which is rightly high on the CSR agenda, but also the development of frameworks that support rather than suppress markets, which is not. It's time for corporate responsibility to embrace a sustainability agenda for market economies.
This vital institutional dimension to economics, rather than just the free play of the invisible hand and the absence of state control and ownership, was recognized by the Commission for Africa. Its understanding of governance as 'the right economic, social and legal framework which will encourage economic growth and allow poor people to participate in it' is equally valid beyond Africa's borders, as is its conclusion that 'the issue of good governance and capacity-building [to make governance systems work] is what we believe lies at the core of all of Africa's problems'. Good governance is fundamental to sustainable economic and democratic development.
If poverty reduction and economic sustainability are legitimate CSR objectives, then surely companies should champion and invest in governance in this wider sense. This dovetails with the human rights agenda because the institutions and practices required to safeguard such rights, such as the rule of law, an independent judiciary and professional law enforcement, are the same ones needed to enshrine and protect private property rights, enforce contracts, achieve redress and act as a check on governments - all fundamental for dynamic market systems.
Enlightened companies should take up the cause of good governance, raising awareness and, where appropriate, investing in it. This could be done by supporting institutions (civil service colleges, universities, think-tanks) and programmes to inform, educate and train civil servants, politicians and judges so that they too can promote and demonstrate good governance. And it could also be done by helping these same people build systems of law, administration, enforcement and service provision that serve the cause of democracy and efficient market economies.
A good governance agenda for CSR should unite sceptics and advocates alike, demonstrating that business has the vision to focus on the institutional conditions that facilitate not only long-term commercial success but also the economic and democratic sustainability of the countries in which they operate.
Martin Summers is international social accountability manager at British American Tobacco. He writes in a personal capacity
to do business, says Martin Summers
The long-term prosperity of many countries depends on their ability to move away from 'crony capitalism' - where companies succeed by having the best connections and offering the best bribes rather than the best products - to market economies based on open and fair competition. This requires not only the elimination of corruption, which is rightly high on the CSR agenda, but also the development of frameworks that support rather than suppress markets, which is not. It's time for corporate responsibility to embrace a sustainability agenda for market economies.
This vital institutional dimension to economics, rather than just the free play of the invisible hand and the absence of state control and ownership, was recognized by the Commission for Africa. Its understanding of governance as 'the right economic, social and legal framework which will encourage economic growth and allow poor people to participate in it' is equally valid beyond Africa's borders, as is its conclusion that 'the issue of good governance and capacity-building [to make governance systems work] is what we believe lies at the core of all of Africa's problems'. Good governance is fundamental to sustainable economic and democratic development.
If poverty reduction and economic sustainability are legitimate CSR objectives, then surely companies should champion and invest in governance in this wider sense. This dovetails with the human rights agenda because the institutions and practices required to safeguard such rights, such as the rule of law, an independent judiciary and professional law enforcement, are the same ones needed to enshrine and protect private property rights, enforce contracts, achieve redress and act as a check on governments - all fundamental for dynamic market systems.
Enlightened companies should take up the cause of good governance, raising awareness and, where appropriate, investing in it. This could be done by supporting institutions (civil service colleges, universities, think-tanks) and programmes to inform, educate and train civil servants, politicians and judges so that they too can promote and demonstrate good governance. And it could also be done by helping these same people build systems of law, administration, enforcement and service provision that serve the cause of democracy and efficient market economies.
A good governance agenda for CSR should unite sceptics and advocates alike, demonstrating that business has the vision to focus on the institutional conditions that facilitate not only long-term commercial success but also the economic and democratic sustainability of the countries in which they operate.
Martin Summers is international social accountability manager at British American Tobacco. He writes in a personal capacity
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