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Role of Multilateral Institutions
While we believe that MNC’s policies have the greatest effect on SME development and CSR practices, we also believe that multilateral organizations can contribute significantly to such development. Although the role of multilateral institutions was not specifically discussed in our case studies, multilateral institutions like the World Bank, the UNDP, the Asian Development Bank, the Inter-American Development Bank, as well as bilateral aid programs like AusAid, USAID, and DFID and other CSR and SME organizations like WASME and WBCSD, have critical roles to play in facilitating activities that will promote CSR capacity and institution building policies and projects. Furthermore, international organization can help build capacity by offering access to financial capital through the provision of grants and soft-loans.
Given their global perspective and network, these organizations can also help create supportive networks that facilitate dialogue and join different agents, such as SMEs, MNCs and Governments to leverage strengths and knowledge across agents, regions and sectors. Multilateral institutions need to raise awareness and help governments establish ways to work together and to engage in public/private partnerships. Some of the activities that can be undertaken to accomplish such goals are: sharing of best practices through workshops and publications, training and research and forming intermediary organizations which provide SMEs with capital to build capacity and pursue CSR activity.
Some current CSR initiatives undertaken by such organizations include:
The U.N. Global Compact:
The Global Compact is an initiative created by the U. ...