CSR in Chavez's Venezuela

Governments have an important role in the development of corporate social responsibility (CSR) in their countries, and their actions combined with the needs of each society and the initiative of the private sector is what makes CSR so different across the world. This paper contributes to the debate surrounding CSR by drawing on a country specific case, that of Venezuela. The aim is to uncover the impact Hugo Chavez has in shaping CSR through the type of discourse he delivers and the legal enactments his administration drafts as well as ways they encourage CSR initiatives. The study analyses the national business system of Venezuela. The focus is on political influences wielded on society and corporations that shape this system. A variety of typologies are presented with the purpose of guiding the discussion. The study finds that CSR has been an active component of corporate behavior in the country since the second half of the twentieth century. Institutions are in place whose task is to undertake meaningful community efforts, and Venezuelan society expects companies to deliver. However, it was found that for the most part, the efforts undertaken through business responsibility centered on the social realm of CSR, neglecting other areas such as the environment. Also, an expansion of government means that Chavez is increasingly taking away from these responsibilities, and the paper suggests it is to fulfill a political agenda. During the research process, this study uncovered some inconsistencies in the CSR terminology used by government. To study this in detail, the Social Responsibility Law of Television and Radio was analyzed. The confused state of CSR terminology did not appear to transgress into the nonprofit or academic domains, as it is suspected that through their networks and reach of information they maintained a similar discussion of CSR to the rest of the world. The analysis suggests that CSR is a confused term for three reasons. First, the Social Responsibility Law of Television and Radio does not resemble CSR as defined in the literature. Second, Chavez has encouraged new measures for companies to follow what could be identified as CSR but is not labeled in those terms. Third, CSR efforts encouraged by the government seem to be lacking in terms of core corporate responsibilities such as preserving the environment. The aim of the paper is to clarify the state of CSR in Venezuela. The different influences on its development are illustrated, with the role of the government in furthering (or hindering) the cause of CSR taking center stage