International Corporate Responsibility Series

Volume 2, 2005

Perspectives On International Corporate Responsibility

How Involved Should the World Bank Be in International Corporate Responsibility Programs?
A Qualitative Exploration of Optimal Program Provision

The growth of popularity of International Corporate Responsibility (ICR) has brought several international organizations into the ICR “industry”—notably the World Bank. The World Bank sees its ICR activities as public goods which make up for under-provision by the market due to market externalities. Yet, ICR also benefits the Bank. The optimal level of World Bank involvement will depend on the degree to which it provides public goods and increases the quality of non-perfectly competitive markets where ICR activities may be under-provided. The optimal level of World Bank ICR project provision is discussed and policy issues are raised.