Corporate Social Responsibility: The case of East Timor
Keywords:
Corporate social responsibility, East Timor, multinationals, stakeholder theoryAbstract
This chapter aims to analyze the perceptions of Foreign MNC managers with CSR responsibilities in East Timor companies. Since this country is rather new, and is thus addressing complex social and economic problems, the pertinence of CSR by companies with more resources and knowledge is even greater. This study is based on the results of in-depth interviews conducted with 10 MNC managers who are responsible for CSR issues. The results point to specific social, economic and cultural reasons in the definition of stakeholders and their relative importance to CSR. The shareholders and employees comprise the group of internal stakeholders, who are referred to most often; the external stakeholders consist of the Government and public institutions, NGOs, as well as religious and educational institutions. Society plays an extremely relevant role in the survival/prosperity of Timor-Leste companies. The population’s social and economic needs also exercise an influence on the definition of CSR measures. Environmental concerns are less obvious and are only considered when there is a negative environmental impact ensuing from the company’s activities. The Government is assessed as being an “external priority” stakeholder due to the roles it accumulates: besides being a regulator, it is also a shareholder and main customer of the companies. Ambiguities in Government regulations, as well as bureaucratic issues, compounded by logistic problems, result in difficult access to the important resources required to respond to stakeholders’ requests. These aspects are considered to constitute the main obstacles to the development and implementation of CSR measures in East Timor companies. Future research should focus on CSR practices in developing countries as East Timor to gain a better understanding of the guidelines issued by headquarters and their adjustment to local characteristics.
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