Emerging Market Firms as Socially Responsible as Global Peers

There are no significant differences between the level of corporate responsibility exhibited by companies in emerging markets and companies operating in OECD member countries, according to a 2005 OECD study. This myth-busting conclusion of the fact-finding study "Corporate Responsibility Practices of Emerging Market Companies" came as a surprise, even to its authors.

Another finding is that the business case for corporate responsibility --such as attracting  employees, improving product market positioning, and protecting reputation -- is equally compelling for emerging market companies.

Finding no. 3: Emerging market companies are the ones leading the way in corporate responsibility. South African firms are singled out for their record in this area in more sectors and across more dimensions than their OECD peers. WRI's NextBillion.net and IFC's Innovations in Emerging Markets blogs have both showcased the leadership of Egypt's Sekem company in this area.

This OECD study deserves revisiting, despite its 2005 publication date. It provides a still rare snapshot of corporate responsibility practices by emerging markets firms that are steadily working to expand their share of global investment flows.