Abstract

Following globalization, Corporate Social Responsibility (CSR) initially emerged in developed countries. Since developing countries have lower wage rates compared to northern countries, this encourages multinational enterprises (MNEs) to outsource from developed countries to developing ones. MNEs are based on a neo-classical paradigm to maximize profits. Yet, the economic systems in developing countries are not always based on profit motives, socially or politically. However, some rules issued in southern countries should adjust to the regulations outlined by MNEs from the north to attract MNEs. Therefore, this paper reviews several CSR applications in some emerging markets and the development of a CSR model that is suitable for local conditions. The study shows that the private aspect and the development of Small and Medium Enterprises (SMEs) in implementing CSR have not been fully directed toward economic empowerment. Clustering SMEs and implementing concentric CSR are expected to improve the effectiveness of CSR, especially for economic and social empowerment.