Businesses operating in the modern business world are
faced with varying challenges; amongst which is the need to ensure
that they are performing their societal function of being responsible
in the society in which they operate. This responsibility to society is
generally termed as corporate social responsibility. For many years,
the practice of corporate social responsibility (CSR) was solely
philanthropic, where organizations gave ‘charity’ or ‘alms’ to society,
without any link to the organization’s mission and objectives.
However, there has arisen a shift in the application of CSR from an
act of philanthropy to a strategy with a business model engaged in by
organizations to create a win-win situation of performing their
societal obligation, whilst simultaneously performing their economic
obligation. In more recent times, the term has moved from CSR to
creating shared value, which is simply corporate policies and
practices that enhance the competitiveness of a business organization
while simultaneously advancing social and economic conditions in
the communities in which the company operates. Creating shared
value has in more recent light found more meaning in
underdeveloped countries, faced with deep societal challenges that
businesses can solve whilst creating economic value. This study thus
reviews literature on CSR, conceptualizing the shift to creating
shared value and finally viewing its potential significance in Africa’s
development