Corporate Social Responsibility in Pakistan: A Legal Perspective with Reference to MNEs

Abstract

It is no secret that many multinational enterprises have annual revenues higher than that of the GDP of a significant number of less developed countries put together. This fact puts them in a position not only to influence the host country's policies and but also lives of the people. With the rise of Multi-National Enterprises and foreign investments, the concept of Corporate Social Responsibility, theoretically a self-regulatory mechanism to ensure the active participation of corporations for betterment of society in general, has gained importance in International Law. Given the fact that a huge capital is flowing in Pakistan, it is significant to understand and evaluate the extent to which the principles of CSR are being followed in Pakistan, with a special reference to foreign investment. High ratio of Foreign Direct Investment to the annual budget of Pakistan in recent years coupled with the fact that CSR is still relatively a new concept in Pakistan amplifies the importance of CSR in Pakistan in relation to Foreign Investments. Since CSR, as per OECD guidelines, requires the international corporations to take certain measures to ensure the betterment of the locality and community, the research shall attempt to find out whether the foreign companies working in Pakistan are complying with the norms of CSR and if they do, to what extent those principles are being followed. To do that, we shall try to understand the concept of CSR, to trace down its origins, and to study its elements and key drivers. Moreover, the impacts of compliance of CSR especially on the people, environment and goals of sustainable development shall also be taken into account. The study shall try to search relevant laws, rules, regulations and guidelines, both in international and domestic legal skeletons, which emphasize the significance of CSR and its implementation. We shall try to find out whether any legal recourse or remedies are available to the people and the State of Pakistan in case foreign MNEs do not implement the CSR regulations.

Supporting the Sustainable Development of Companies Through the Use of Social Responsibility Practices In International Affairs

“…In a recent study (2019) [53], a legal analysis is performed, considering whether foreign multinational companies working in Pakistan comply with CSR provisions and norms and, if so, to what extent these principles are respected. The study focuses more on identifying laws, rules and regulations in both international and national legal frameworks and aims to analyze the impact of CSR compliance especially on human rights, the environment and sustainable development.…”