Stakeholder Theory, Pyramid Of CSR, And Relational Model Of The Government

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2. Literature Review
This study will review the impact of MNCs and government activities. It will throw light on the progression of government welfare packages and the challenges confronting the society in general. The literature will benefit from global, and political perspectives, as well as the specific theories of CSR which can be divided into three major areas namely: Stakeholder theory, Pyramid of CSR, and Relational Model of CSR. While not presenting an exhaustive review of each of these areas, the most relevant findings in each are presented below:
2.1. Global Perspective
The concept of globalization has opened up nations to new waves of political challenges and more needy responses from global stakeholders and individual governments …show more content…

The major challenge will be the benefits which will accrue to the parties involved and the impact on the society. Zadek and Swift, (2002) further assure that CSR is the right mechanism on which public policies can be operational. The role of government is to provide the framework on political stability, leadership, institutional support and an enabling environment for businesses to be sustainable, profitable, and for the society to be conscious of their operations (Bell, 2005). This is to ensure a coordinated and improved social, political, and economic development for countries, MNCs, and other stakeholders. European Commission, (2002) described CSR as “the business contribution to sustainable development”. Therefore, the essentiality for governments, MNCs and other stakeholders is to provide a forum in which global and local social issues are …show more content…

Among the many researchers, Zadek, (2001) described the inclusion of government roles in the CSR frame as the “third CSR generation”. He viewed governments as central determinants in the framework of CSR. Politically, there have been strong debates as to how government should be involved in the regulation and enactment of laws on CSR.
Government involvement in CSR public policies can also be considered as “soft intervention”. Joseph, (2003), highlighted government role as systemic; noting that government attends to societal needs through its established institutions. Researchers have also positioned that government CSR public policies through soft regulation can influence the CSR of MNCs (Fox et al., 2002; Zappal, 2003; Albareda et al., 2004; Lepoutre et al. 2004; and Bell, 2005). They were able to buttress the ways in which governments (through soft intervention) can promote and develop

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