Volume 3, 2007
Controversies in International Corporate Responsibility
Loke Min Foo
Third Way CR and Third World CR
In What Way Should Responsible Corporations Serve the World?
This paper distinguishes norms for corporate responsibility in developed and developing countries. In the former, corporate responsibility should reflect “ Third Way” values of restoring individual responsibility and social relationship, and these can be achieved through stakeholder engagement. Since stakeholder engagement often presumes an adequate level of individual rights and rule-governed behaviour, it is incompatible with the current political and cultural characteristics of developing countries. This paper suggests that the end of CR initiatives in developing countries is to promote stakeholder rights and good governance, while the means is through stakeholder empowerment.