Why Do CSR Governance Institutions Fail in Developing Countries: A Case Study of The Ghana Business Code

The effect of globalization in the last few decades spearheaded by the transnational operations of businesses has driven the exercise of societal regulation and control beyond state authority into a sphere of global governance. Corporate Social Responsibility (CSR) has been seen to hold the key to effective global governance through its institutions. As a concept with diverse characterization and practice across nations, CSR has become a global concept that development seeking and sustainability oriented businesses cannot overlook. Relying on two theories, institutional and governance theories, this dissertation examines the challenges CSR institutions face that most often have resulted in the dysfunction and failures of these institutions in developing countries. The findings show that CSR has not been conceptualized in a Ghanaian context, basically because CSR institutions in Ghana have unconsciously overlooked the institutional environment within which they operate, hence the inability to situate CSR in a context that will make it relevant to businesses and society. It was also found that businesses have not prioritized CSR issues because they have not as yet come to appreciate and understand the benefits businesses stand to gain when they indulge in strategic CSR. The study concludes that CSR in Ghana will need to be institutionalized through an understanding of the institutional environment in which businesses operate, thereby acknowledging the social, economic, cultural and political conditions prevailing in the country. This will then bring to the fore the inherent challenges posed by these institutions such as the lack of political will to push for regulations, and the financial challenges that confront the Ghanaian business society and such other factors that have always led to the failure of CSR governance institutions