Introduction

Corporate social responsibility (CSR) has become a mantra for countless businesses, societies and national governments. As states and international organisations have begun to perceive their limits and their relative lack of power in dealing with globalising businesses, cultures and societies, so they have heralded voluntary self-regulation as a means of bringing more flexibility and competency into global governance. Moreover, as CSR practices are increasingly standardised at the international and national levels, regulation may also be transformed, with voluntary standards embodying a model of shared global governance.

For people in developing countries and countries in transition, the growth of international CSR standards could have particular advantages. It has often been argued that voluntary business and CSR standards could produce a functioning measure when governments fail. So, in places like Africa or Eastern Europe, international business may be more likely to produce advanced corporate cultures and respect for human rights than weak administrations. Further, for countries undergoing complex political, economic and social changes, the notion of CSR is a challenge to traditional ways of regulation.

Its popularity and potential notwithstanding, there are considerable challenges in using CSR as a governance tool. Where CSR is proposed as a means of improving governance, there is a threshold question of what function CSR will serve in existing relations between business, state and society. Can states with weak administrative capacities effectively use CSR to advance respect for human rights and the rule of law?