STATE’S ROLES IN ENGAGING FOREIGN INVESTORS IN CORPORATE SOCIAL RESPONSIBILITY: A CASE STUDY OF MYANMAR

Abstract

This research examines the Myanmar civilian government’s changing roles in shaping Chinese companies’ corporate social responsibility (CSR) behaviors between 2011 and 2020. Based on empirical evidence gathered from surveys and interviews, it reveals two findings. First, Myanmar’s democratic transition and economic reform since March 2011 has intensified competition among foreign investors and emboldened social scrutiny over foreign investment, which has clarified the Myanmar government’s roles in promoting sustainable investment. Second, the Myanmar government has engaged Chinese investors in CSR by enforcing mandatory rules in foreign investment regulations and creating an environment for stakeholders’ scrutiny over corporate behavior. The “hard” and “soft” incentives have motivated Chinese companies to adopt CSR to develop “competitive edge” among foreign investors and respond to public scrutiny (Porter and Kramer, 2007). The Myanmar government has assumed four roles to engage foreign investors in CSR: mandating role to embed CSR as a prerequisite for approving foreign investment, endorsing role to embrace an international CSR agenda and best practices, as well as facilitating role and partnering role in Chinese companies’ CSR implementation.

Keywords

• corporate social responsibility
• myanmar
• china
• state