A development perspective for 'corporate social responsibility': Case of Turkey

Abstract

This paper takes a snapshot of the role of economy, state and societal culture in shaping society's attitude toward business. It attempts to explore how cultural characteristics of the society may be related to the significance of the role stakeholders play in driving corporate behaviour. The paper is based on review of existing research on the cultural dimensions and attitudes of society, surveys on corporate disclosures, interviews and cumulative knowledge on the dynamics of economic and social development. The emergence of CSR discourse in emerging markets is heavily driven by external factors. Exemplified in the case of Turkey, economic fundamentals, and cultural dimensions of power distance and low individuality combined with strong collectivism do not relate to a strong societal influence on corporate behavior. We conclude that the drivers for CSR in Turkey and in countries with similar cultural characteristics and economic fundamentals will be exogenous and institutional rather than endogenous and cultural. The paper implies a stronger role for regulation and enforcement in driving corporate accountability and social performance as well as highlighting the importance of international community in rewarding or punishing social performance. The originality of the paper is in exhibiting the role of societal culture in shaping expectations from business and providing support for a stronger role on public enforcement and international monitoring. The paper would have value for regulators and international agencies.