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Strategic and Moral Dilemmas of Corporate Philanthropy in Developing Countries: Heineken in Sub-Saharan Africa

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  • Katinka Cranenburgh
  • Daniel Arenas

Abstract

This case study illustrates the dilemmas facing multinational companies in meeting social challenges in Sub-Saharan Africa (especially health-related ones). It also discusses the purpose, responsibilities and limitations of business involvement in social development. From a business standpoint, social challenges in developing countries differ greatly from those in nations where governments or markets effectively provide for the population’s health needs. The case illustrates what led a multinational to set up a corporate foundation and focuses on three strategic and operational dilemmas it ran up against. The case discussion shows that the ethical issues intertwined with these dilemmas are best understood using a variety of ethical approaches. We also show that Ethics of Care are just as relevant to analysing corporate social responsibility and corporate philanthropy as the Deontological and Utilitarianism theories commonly used in business ethics. Copyright Springer Science+Business Media Dordrecht 2014

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  • Katinka Cranenburgh & Daniel Arenas, 2014. "Strategic and Moral Dilemmas of Corporate Philanthropy in Developing Countries: Heineken in Sub-Saharan Africa," Journal of Business Ethics, Springer, vol. 122(3), pages 523-536, July.
    • Handle: RePEc:kap:jbuset:v:122:y:2014:i:3:p:523-536
    DOI: 10.1007/s10551-013-1776-1
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    2. Williams, Christopher & Steriu, Ruxandra, 2022. "MNE market entry and social investment in battle-weary countries: Evidence from Heineken," Journal of World Business, Elsevier, vol. 57(4).
    3. Ivan Montiel & Alvaro Cuervo-Cazurra & Junghoon Park & Raquel Antolín-López & Bryan W. Husted, 2021. "Implementing the United Nations’ Sustainable Development Goals in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 999-1030, July.
    4. Valeria Giacomin & Geoffrey Jones, 2022. "Drivers of Philanthropic Foundations in Emerging Markets: Family, Values and Spirituality," Journal of Business Ethics, Springer, vol. 180(1), pages 263-282, September.
    5. Shinwon Noh & Dongyoub Shin & Sunhyuk Kim, 2023. "Problemistic search and hybrid organizations: multiple sources of performance feedback in diversifications by corporate foundations in Korea," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 188-216, February.
    6. Ivan Montiel & Junghoon Park & Bryan W. Husted & Andres Velez-Calle, 2022. "Tracing the connections between international business and communicable diseases," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1785-1804, October.
    7. Glavas, Ante & Fitzgerald, Erin, 2020. "The process of voluntary radical change for corporate social responsibility: The case of the dairy industry," Journal of Business Research, Elsevier, vol. 110(C), pages 184-201.
    8. Ntim, Collins G., 2016. "Corporate governance, corporate health accounting, and firm value: The case of HIV/AIDS disclosures in Sub-Saharan Africa," The International Journal of Accounting, Elsevier, vol. 51(2), pages 155-216.
    9. Pisani, Niccolò & Kourula, Arno & Kolk, Ans & Meijer, Renske, 2017. "How global is international CSR research? Insights and recommendations from a systematic review," Journal of World Business, Elsevier, vol. 52(5), pages 591-614.
    10. Ifedapo Adeleye & John Luiz & Judy Muthuri & Kenneth Amaeshi, 2020. "Business Ethics in Africa: The Role of Institutional Context, Social Relevance, and Development Challenges," Journal of Business Ethics, Springer, vol. 161(4), pages 717-729, February.

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