Role of the corporate social responsibility in poverty reduction

The research explores the connection between the corporate social responsibility (CSR), capability approach and poverty reduction, focusing on the local employment development (LED). The joint action of CSR and LED results in a win-win situation, not only for the enterprises but also for all the stakeholders involved. In this perspective, subsidiarity and coordination between national and regional/local authorities are central to a socially oriented market economy; inter alia, the countless advantages translate into a better job matching on the labor market. The CSR is implemented via economic contribution, human rights promotion and social inclusion; hence, it becomes “an agent of development” against inequality. Poverty is intended as a “capabilities deprivation” when people cannot choose between different life options, ranging from level of education to employment. Looking at the pyramid of social responsibility, CSR works on two dimensions: poverty reduction and poverty prevention by means of a series of initiatives: firstly, job creation. Empowerment of the local actors, financial support and combination of top down and bottom up initiatives are some of CSR areas of activity. As result of practice, the positive effects occur at educational level, access to capital, health status, empowerment of youth and woman, access to social networks and so forth. To reach the target, CSR should consider fundamental criteria, such as the transparency, the information about benefits, a coordination unit among institutions and further guidelines. It is important to emphasize that the success of the strategy depends on the specific measures of the area in issue, by adapting them to the local needs, in compliance with general principles and index; therefore, the concrete commitment of the stakeholders is decisive. In a broad sense, the enterprises would represent a concrete contribution for the pursuit of sustainable development and for the dissemination of a social and well-being awareness.