While corporate social responsibility (CSR) is important to economic
development and baseline human rights in countries dependent on extractive
industry revenues, failures in governance-such as the absence of basic
services like health care and electricity- require new strategies and incentives
to encourage governments to play their traditional role more effectively.
Political economic theories of the "resource curse" see the breakdown of a
sense of government accountability to its people as one of the more destructive
aspects of excessive reliance on natural resource rents. The authors look to
recent innovations such as transparency projects that can reinvigorate a sense
of government accountability, among other positive outcomes. The authors
argue that both mandatory and voluntary models of CSR could have an
adverse impact on sustainable development so long as they focus exclusively
on the role of the corporation rather than the on ways corporate investment
might be used to create incentives for a more effective state role.
Matthew Genasci & Sarah Pray,
Extracting Accountability: The Implications of the Resource Curse for CSR Theory and Practice,
Yale Hum. Rts. & Dev. L.J.
Available at: https://digitalcommons.law.yale.edu/yhrdlj/vol11/iss1/4