Corporate (and stakeholder) responsibility in Central and Eastern Europe

Purpose - The purpose of this paper is to examine corporate social responsibility (CSR) in Central and Eastern Europe (CEE), offering a characterization, explanation, and critique. A recent European Commission conference on “CSR in an Enlarged Europe” suggests European interest in such an understanding, and other developments in the paper suggest a broader interest. Design/methodology/approach - The paper utilizes local observations and analyses of secondary materials available from multinational and local companies in the region. Throughout, it offers examples of and perspectives on corporate and stakeholder responsibility in CEE. The paper suggests that CSR should be understood as corporate responsibility to stakeholders, rather than as corporate philanthropy, public relations, or marketing, and that limitations associated with corporate responsibility in CEE are associated with limitations in stakeholder responsibility. It proposes that in a market in which stakeholders place value on ethical behavior, corporate responsibility becomes endogenous. It identifies reasons for the lack of such stakeholder activism in CEE. Findings - The paper's main conclusion is that without stakeholder responsibility, corporate responsibility will not develop in CEE. However, it also suggests and describes multiple examples of developments in the region that will contribute to both. Originality/value - CEE provides an excellent arena in which to examine the development of both corporate and stakeholder responsibility. That examination provides insights on CSR elsewhere in the world. Additionally, CEE has been identified as a potential laboratory for excellence in CSR, but the paper identifies issues that must be addressed for responsibility to become a reality in the region.