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Corporate social responsibility at the base of the pyramid

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  • Arnold, Denis G.
  • Valentin, Andres

Abstract

The base of the pyramid proposition holds that transnational corporations (TNCs) can profitably serve the needs of the poor at the base of the global economic pyramid. This article explores the ethical dimensions of business ventures targeting the 2.6billion moderate and extremely poor (MEP) at the base of the pyramid. It is shown that MEP populations are both cognitively and socially vulnerable, rendering them susceptible to harmful exploitation. We defend an empowerment theory of morally legitimate BoP business ventures and provide a multi-stage opportunity assessment process that allows TNC managers to determine when BoP ventures should be pursued and when they should be abandoned. This analysis is used to demonstrate the inadequacy of an instrumental, or economic, conception of corporate social responsibility (CSR) and to defend an ethical conception of CSR.

Suggested Citation

  • Arnold, Denis G. & Valentin, Andres, 2013. "Corporate social responsibility at the base of the pyramid," Journal of Business Research, Elsevier, vol. 66(10), pages 1904-1914.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:10:p:1904-1914
    DOI: 10.1016/j.jbusres.2013.02.012
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    5. Minna Halme & Arno Kourula & Sara Lindeman & Galina Kallio & Maria Lima‐Toivanen & Angelina Korsunova, 2016. "Sustainability Innovation at the Base of the Pyramid through Multi‐Sited Rapid Ethnography," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(2), pages 113-128, March.
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    12. Blanco-Oliver, Antonio & Irimia-Dieguez, Ana & Reguera-Alvarado, Nuria, 2016. "Prediction-oriented PLS path modeling in microfinance research," Journal of Business Research, Elsevier, vol. 69(10), pages 4643-4649.
    13. Chantziaras, Antonios & Dedoulis, Emmanouil & Grougiou, Vassiliki & Leventis, Stergios, 2020. "The impact of religiosity and corruption on CSR reporting: The case of U.S. banks," Journal of Business Research, Elsevier, vol. 109(C), pages 362-374.
    14. Raja Usman Khalid & Stefan Seuring, 2019. "Analyzing Base-of-the-Pyramid Research from a (Sustainable) Supply Chain Perspective," Journal of Business Ethics, Springer, vol. 155(3), pages 663-686, March.
    15. Roni Budianto & Eko Suyono, 2020. "Corporate Social Responsibility and Factors Affecting It: An Empirical Evidence from the Indonesian Capital Market," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 239-253.
    16. Bilbao-Terol, Amelia & Álvarez-Otero, Susana & Bilbao-Terol, Celia & Cañal-Fernández, Verónica, 2017. "Hedonic evaluation of the SRI label of mutual funds using matching methodology," International Review of Financial Analysis, Elsevier, vol. 52(C), pages 213-227.
    17. Richter, Ulf Henning & Shirodkar, Vikrant & Shete, Namita, 2021. "Firm-level indicators of instrumental and political CSR processes – A multiple case study," European Management Journal, Elsevier, vol. 39(2), pages 279-290.
    18. Bryan H. Chen & Mei-Hua Chen & Pei-Ni Tai, 2018. "Socially Irresponsible Corporations and Choices of Consumers: Altruism, Retaliation, or Demand for Reparation?," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 10(2), pages 47-59, June.
    19. Dr. Muhammad Siddique & Dr. Muhammad Sarfraz Khan & Dr. Kamran Ali & Zunaira Maqsood, 2023. "Impact of Corporate Social Responsibility on Firm Financial Performance: Evidence from Insurance Sector of Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(3), pages 1-14.
    20. Sreevas Sahasranamam & Bindu Arya & Mukesh Sud, 2020. "Ownership structure and corporate social responsibility in an emerging market," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1165-1192, December.
    21. Mbaye Fall Diallo & Christine Lambey-Checchin, 2017. "Consumers’ Perceptions of Retail Business Ethics and Loyalty to the Retailer: The Moderating Role of Social Discount Practices," Journal of Business Ethics, Springer, vol. 141(3), pages 435-449, March.
    22. Rosca, Eugenia & Bendul, Julia C., 2019. "Value chain integration of base of the pyramid consumers: An empirical study of drivers and performance outcomes," International Business Review, Elsevier, vol. 28(1), pages 162-176.

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