CSR initiatives : benefactors of sustainable development or smokescreens and window dressing? : Evidence from Jamaica's tourism industry

Abstract

This paper argues that corporate social responsibility (CSR) as a mechanism of corporate legitimation can sabotage the potential of foreign direct investment (FDI) to be a vehicle for the sustainable development of developing host countries. A case study of the Gran Bahia Principe Hotel Resort in Jamaica is used to explore latent issues that undergird this problematic. The case study suggests that issues such as: the absence of mutual vulnerability between the Multinational Corporation (MNC) and the host, and the enclave structure of some MNCs influence their relationship with government and society. These issues can foster a purely instrumental and symbolic approach to CSR and thereby restrict its developmental capacity. The paper concludes that corporate innovation and a separation of business and development are two options for enhancing the benefits of CSR to community development. It also recommends that governments reassess their role in maximizing these benefits.