Corporate social action in developing economies

Recent decades have been characterized by increasing global preoccupation with sustainability challenges such as climate change, resource depletion, financial crises and a widening gap between rich and poor. Attesting to the inability of regulators to attend to ensuing socioeconomic needs centrally, corporations are increasingly expected to step up and attend to the needs of the societies affected by their presence (Marquis et al., 2007). Accordingly, scholars and practitioners alike are suggesting that firms should engage in corporate social actions (CSA) that minimize the negative impact of business on society, increase the level of convergence between business and societal interests, and encourage corporate action that takes into account the needs of society and the environment (Sigurthorsson, 2012). In turn, evidence suggests that CSA could be beneficial for firms as well (Heugens and Oosterhout, 2008; Marcus, 2012). This view is increasingly recognized by executives such as Paul Polman (CEO of Unilever), voted Sustainable Leader of the Year (Confino, 2014), who noted: “It’s important to make people feel more comfortable working in situations where the win-win is not driven just by your shareholder but by all stakeholders.”