Corporate social responsibility

New dimensions on CSR

CSR report
New dimensions on corporate social responsibility (2006) 3.16 MB
More information: DCA conference on CSR, hunger and poverty

Fighting hunger with investments

The question, ”How can we survive in a time of globalisation” sounds very different depending on who asks it and where.

In Denmark, it is posed by Danish companies facing globalisation. In India it is asked by the many millions of poor and hungry people. However, the answer may prove to be the same.

Danish and European companies must increasingly survive in globalisation by investing and expanding abroad, investments that can also contribute positively to the fight against hunger and poverty.

In DanChurchAid, we are happy whenever Danish and European companies move and outsource jobs to some of the poorest countries in the world. This should not be seen as an insult to Danes who may be losing their jobs, but as recognition of the potentially positive effect it can have in the fight against hunger and poverty. However, it does not happen automatically.

Investments and economic growth will help reduce poverty in developing countries. But the World Bank shows that the distribution of income, land and opportunities is critical. For countries with low levels of income inequality, a one percentage point growth in mean incomes leads to about a four percentage point reduction in the incidence of dollar-a-day poverty. In countries with high income inequality, the effect is close to zero. Growth, distribution and poverty are closely linked.

• It is therefore not only important for foreign companies to invest, but increasingly important where they invest, as well as how they invest and produce.

In the debate on CSR policies, until now the focus has been on child labour, working conditions and the environment. Less attention has been given to the broader effects of CSR policies on the society as a whole. However, if foreign investments and transnational companies are to have significant positive effects in the fight against poverty and hunger, more must be done.

As the report shows, poverty and hunger are closely related to inequalities in income, assets and opportunities. If Danish and European companies are to increase their contribution to combating poverty and hunger, they must include access to water, which is often a critical factor for the poor. They must also analyse whether their investments have any negative effects on the distribution of land or on access to land, and guarantee compensation to those who, whether legally or illegally, are occupying land which is used or polluted by investments and production facilities.

A strong CSR policy will yield benefits for both the host country, the recipient country and, importantly, the company itself. It is this positive correlation that will allow us all to survive and live in the future.

Related information
DCA conference on CSR, hunger and poverty