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5 - The Informal Economy: CSR and Sustainable Development

from Part I - Institutions, CSR Conceptualizations and Sustainable Development

Published online by Cambridge University Press:  18 December 2019

By
Ogechi Adeola ,
Oserere Eigbe  and
Omotayo Muritala
Edited by
Onyeka Osuji ,
Franklin N. Ngwu  and
Dima Jamali
Onyeka Osuji
Affiliation:
University of Essex
Franklin N. Ngwu
Affiliation:
Pan-Atlantic University, Nigeria
Dima Jamali
Affiliation:
American University of Beirut
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Summary

CSR and sustainability practices play a significant role across diverse sectors of an economy. This chapter examines corporate social responsibility and sustainable development in the informal economy. Through the review of the literature, the chapter establishes that unregistered micro, small, and medium enterprises mainly dominate the informal sector particularly in developing and emerging economies. The low degree of formalisation and other specific attributes common to small and medium enterprises (SMEs) operating in the informal sector, influence their CSR approach and strategies. The chapter discusses the need to build social capital (trust, reputation and legitimacy) and culture as motivating factors that promote SMEs involvement in CSR practices, while legislation and institutional context are major drivers of sustainability practices. The chapter highlights how the informal economy, particularly in the context of SMEs, can be positioned to be more socially and environmentally responsible.

Keywords

Corporate Social ResponsibilityCultureInformal EconomyInstitutionsSmall and Medium EnterprisesSocial CapitalSustainability
Type
Chapter
Information
Corporate Social Responsibility in Developing and Emerging Markets
Institutions, Actors and Sustainable Development
 , pp. 85 - 97
Publisher: Cambridge University Press
Print publication year: 2019

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