Looking through the African lenses: a critical exploration of the CSR activities of Chinese International Construction Companies (CICCs) in Africa

Abstract

The importance of Chinese International Construction Companies (CICCs) within the construction sector in Africa can no longer be ignored, as these firms hold a considerable amount of market share within the African continent. The construction industry is of high importance to African economic renaissance, and Corporate Social Responsibility (CSR) is becoming a key issue in business processes on the developing continent. Narratives around the implementation of CSR within construction in African economies have been largely one-sided, viewed from foreign perspectives and outsider anecdotes, without engaging locals in evaluating these initiatives. As a result, this paper explores CSR as a critical component of the continued penetration and dominance of Chinese contractors in the highly competitive African construction markets. The paper adopts a quantitative survey to explore the areas of implementation of CSR by CICCs, how they line up against current local and international counterparts and the future of these firms in Africa using CSR as a metric. Residents of Africa’s largest economy, Nigeria, who have Chinese-led projects ongoing in their communities, were surveyed for the study, and the findings used to propose solutions for future CSR policy-making in local African communities where Chinese contractors carry out business. The study found that in terms of CSR strategy implementation, CICCs were ranked highly on quality of construction and respect for local laws and customs, but ranked low in perception of employee welfare and environmental protection. The study highlighted that African governments taking responsible leadership by formulating a CSR policy for all international contractors might stem the tide of increasing anti-Chinese rhetoric within the construction sector on the African continent.

Understanding the influence of business strategy in corporate social responsibility: evidence from Chinese firms in Africa

“…As we mentioned above in the introduction section, recently, Chinese firms have recognized themselves as one of the most challenging competitors in the African manufacturing firms. However, a few studies look into Chinese companies’ CSR initiatives in Africa (Seriki, 2020). Also, many industries are not clear about adequately anticipating and identifying which social issues will influence their overall strategy and CSR (Rangan et al , 2015).…”

“…Significantly, the construction industry is critical to Africa's economic revival, and recently, CSR is becoming a crucial concern in corporate procedures on the area (Seriki, 2020). Despite the significant level of foreign investment and economic contribution, the industry is usually disregarded in CSR research.…”

“…Chinese manufacturing firms in Africa were obligated to consider their stakeholders’ interests and consider three pillars of sustainability: economic, social and environmental consequences of business activities (Tang and Tang, 2018). Significantly, the construction industry is critical to Africa’s economic revival, and recently, CSR is becoming a crucial concern in corporate procedures on the area (Seriki, 2020). Despite the significant level of foreign investment and economic contribution, the industry is usually disregarded in CSR research.…”

“…Thus, several generic techniques can be used to reflect diverse perspectives on what the strategy is helpful for and how to achieve it. According Seriki (2020), Chinese companies have established themselves as one of the most formidable competitors in the African industry; however, there are a few studies that look into Chinese companies’ CSR initiatives in Africa (Seriki, 2020). At the same time, many companies are not clear about adequately anticipating and identifying which social issues will influence their overall strategy (Rangan et al , 2015).…”

The Construction Industry as the Subject of Implementing Corporate Social Responsibility (the Case of Poland)

“…The construction sector is characterised by a number of features that distinguish it from other sectors of the economy. Many studies show that, together with related sectors, it is a key contributor to job creation and GDP [1][2][3][4][5]. At the same time, it is very vulnerable to changes in the economic situation and changes in the labour market.…”