The CSR concept is guided by the idea that it is no longer possible for

corporations to function as separate economic units that are detached from society.
There is a need for businesses to be accountable to a larger range of stakeholders
other than shareholders (IISD, n.d.).
Therefore, there is an urgent need to change this attitude towards CSR to ensure that
corporations business activities and its benefits pilfer down to every strata of society.
The driving force for focusing on CSR activities within BRICS is based on the
transformation potential of these nations into global leading economies in the decades
to come, coupled with the impending pressure for corporations in these nations to
comply with CSR conducted by developed economies and the ability and/or
opportunities to customise CSR activities in each nations local context. As compared to
developed economies, social and environmental issues remain as a
significant challenge for emerging countries. With the growth of BRICS the
Waking Giant, the environment has been identified to be one of the new global
challenges (Lanzeni, 2008). In general, this makes CSR in BRICS more far-reaching
and possesses greater implications to the society.
In the CSR arena, a distinct characteristic of BRICS is consumers marginal role in
motivating corporations to undertake CSR activities. In essence, consumers
commodity purchasing decisions are relatively insensitive to CSR efforts undertaken
by corporations. In the lack of consumer and hence public pressure to function as a
staunch critic of corporations social duties, the onus of ensuring CSR and hence
sustainability then lies on other formal institutions and corporations themselves.
Furthermore, BRICS continue to struggle with inadequate provision of universal
social services, such as healthcare and education to its citizens.

1.3 Research Purpose

The primary aim of this study is to assess
5

the quality of reported CSR activities

undertaken by corporations in BRICS.
This study therefore intends to develop a qualitative CSR assessment framework and
apply it to a limited number of sample companies, with the ultimate goal of evaluating
the effectiveness of CSR initiatives in corporate sustainability. Effectiveness in this
study is defined to be the capability of these CSR activities in creating the intended
effect to targeted stakeholders.
An elaboration of our assessment approach can be found in Section 4.2.
In essence, this study seeks to answer the question of whether social development in
BRICS is keeping pace with their blistering economic growth.

BRICS continue to struggle with inadequate provision of universal

social services, such as healthcare and education to its citizens. Another key highlight is that
the developing economies have been constantly cited
when it comes to exploiting labour, owing to poor legislation and the need to cut costs
to remain competitive. While developed countries exert influence to undo the damage
of industrialisation (specifically on environmental degradation), developing
economies vie for a share of the global pie at the expense of the environment. Despite low
CSR disclosure requirements in BRICS, globalisation of financial market

and cross border flow of funds have resulted in companies complying to international
norms, such as the Global Reporting Initiatives (GRI
3

), United Nations Global

Compact, Carbon Disclosure Project (CDP
4

) etc.