Social Responsibility Journal

CSR as a tool to fight against poverty: the case of Mauritius

Nicolas J.F. Ragodoo
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Nicolas J.F. Ragodoo, (2009),"CSR as a tool to fight against poverty: the case of Mauritius", Social Responsibility Journal, Vol. 5 Iss 1 pp.
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 CSR as a tool to fight against poverty:
the case of Mauritius
Nicolas J.F. Ragodoo
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Nicolas J.F. Ragodoo is a
Lecturer in CSR, University
of Technology Mauritius,
Pointe Aux Sables,
Mauritius.
DOI 10.1108/17471110910939971
Abstract
Purpose – The primary aim of this paper is to analyse the contribution made by business organisations
in the fight against poverty in Mauritius. Whereas on one side businesses are flourishing and
ultra-capitalism is the order of the day, we are witnessing, in parallel, a growing level of poverty
worldwide. This situation of paradoxes is not being dealt with effectively by governments, being more
interested in attracting foreign direct investment. Civil society organisations, on the other hand, lack the
resources to do so. The role played by the business sector is analysed in this work.
Design/methodology/approach – For data collection purpose, a questionnaire-based semi-structured
interview schedule, worked out through the application of the mixed-methods approach, was devised
and applied to a stratified sample of 33.3 per cent of the top 100 companies and the 19
locally-incorporated banks, based on the stratified random sampling method. Secondary sources,
mainly in the form of company publications were also used.
Findings – Most businesses surveyed already have established procedures with regards to the
allocation of corporate social responsibility (CSR) funds. They are willing to help in creating a better
society whether through financial or non-monetary means, and do have the resources to do so. However,
presently, only 11 per cent of CSR funds are devoted to the fight against poverty. There is a need to set
the priorities and to coordinate these efforts. What is lacking is the active involvement of business
leaders and public figures. This is needed to create the momentum for setting poverty alleviation as a
top-priority of our social agenda.
Originality/value – This work contributes to the scarce literature on CSR in Africa by analysing the way
business organisations in the Mauritian economy contribute to the fight against poverty through CSR. It
provides an evaluation of what is presently being done, and proposes ways through which the business
contribution could be enhanced in order to help more people in need.
Keywords Corporate social responsibility, Poverty, Private sector organizations, Developing countries,
Mauritius
Paper type Research paper
1. Introduction
More than 1 billion people are presently living at the margins of survival on less than the
globally agreed minimum of US$1 a day (NetAid, 2008) in spite of the ambitious goal set by
world leaders at the Millennium Summit of September 2000 of halving global poverty.
Governments across the world, operating according to the global capitalist or even
ultra-capitalist model, have been found to be unable to reconcile the conflicting demands of
the owners of capital, who are constantly pressing for ever increasing margins, profitability
and productivity, and the population, urging for an improvement in living and working
conditions. In parallel, there are more than 40,000 internationally operating
non-governmental organisations (NGOs) (Anheier et al., 2001) and the figures for national
NGOs are even higher: Russia, for instance, has 277,000 NGOs and India between 1 million
and 2 million NGOs (Rodriguez, 2007), with a high number of these contributing, whether
directly or indirectly, to the fight against poverty. However, in spite of all the efforts being
made, the poverty problem is worsening on a daily basis worldwide.
VOL. 5 NO. 1 2009, pp. 19-33, Q Emerald Group Publishing Limited, ISSN 1747-1117 j SOCIAL RESPONSIBILITY JOURNAL j PAGE 19
 Mauritius is a cliché of this global phenomenon. Even if, in terms of economic development,
it is a success story, poverty is still very much present and thriving in the country. As part of
their corporate social responsibility (CSR), the expectation with regards to the contribution of
business organisations to the creation of a better society is rising year after year. Given that
the state and the civil society organisations are facing major constraints in their capacity to
bring any long-term remedy to the poverty problem, is the involvement of the business
sector the only hope left?

2. Literature review
Global poverty represents one of the key challenges facing humanity in the twenty-first
century: 1 billion people have no access to clean and safe water; 2.6 billion lack lavatories;
and 4,000 children die every day from diarrhoea, a water-borne disease (Thornton, 2006). In
addition, more than 8 million people around the world die because they are too poor to stay
alive, some 800 million go hungry each day, and over 100 million primary school-age
children cannot go to school (NetAid, 2008), in spite of the United Nations (UN) Declaration
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of 1948 proclaiming that all people have the right to education, work, health and well-being.
However, the cost of giving everyone living below a dollar a day a transfer of a dollar per day
would cost $443 billion, but the 0.7 per cent UN target for international aid as a percentage of
gross domestic product (GDP) would generate $142 billion if all the developed countries
contribute their share (Besley and Burgess, 2003). Thus, the UN’s (2006) vision for ‘‘a world
with less poverty, hunger and disease, greater survival prospects for mothers and their
infants, better educated children, equal opportunities for women, and a healthier
environment’’ cannot be achieved through international aid alone. Effectively tackling
global poverty requires a multi-pronged approach. The active participation of the business
sector is of utmost importance. Making the world a better place to live depends, to a large
extent, on the contribution and generosity of business organisations. Visser (2007) make an
interesting contribution to the existing literature in the CSR area by defining CSR in
developing countries as the ‘‘formal and informal ways in which business makes a
contribution to improving the governance, social, ethical, labour and environmental
conditions of the developing countries in which they operate, while remaining sensitive to
prevailing religious, historical and cultural contexts’’. This distinction made in the CSR
definition with regards to developing countries emphasises the fact that the ways through
which CSR is carried out, its drivers, and its model, are very much specific to the relatively
less industrialised countries and are different from CSR initiatives in the developed world.
The debate about the need for organisations to go beyond their profit motive is an ongoing
one. In the last century, corporations were paying little attention to CSR issues, which they
considered peripheral to the business. The world has experienced the emergence of CSR in
the 1970s as part of corporate strategies and vision statements. In these days, organisations
were using CSR only as a marketing tool to sell themselves and promote their products in the
eyes of customers. Nowadays, however:
Society expects organisation to go beyond mere compliance with law and regulations. Business
is expected to recognise and respect new or evolving ethical norms being institutionalised in
society (Caroll, 1999).

While some organisations have adopted CSR to promote sustainable development, others
have integrated CSR initiatives in response to internal and external pressures from investors,
consumer activism and government intervention.
Jenkins (2005) underlines the fact that, whilst development NGOs have been very critical
with regards to voluntary initiatives undertaken by business organisations, considering
these to be completely inadequate when compared to problems businesses cause to
society, official development agencies generally take a more positive outlook with regards to
the contribution of CSR, arguing that poverty reduction is possible through socially
responsible practices. The UN ‘‘Global Compact’’ initiative, the World Bank growing interest
in CSR projects, and the commitment by the International Organisation for Standardisation
(ISO) to establish a social responsibility standard (ISO 26000) are recent recognitions of the
active part organisations can play in society. After reviewing the factors behind the

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 emergence of CSR, Jenkins comes to the conclusion that the present focus of organisations
is on environmental impacts, working conditions, and human rights. This reflects their
concern about the harm any malpractices in these areas can cause to their public image.
Seen from this angle, the fight against poverty is not a priority for business organisation. They
prefer to ensure that they are not involved in anything they should not, rather than thinking
about what they could do, and active contributions they could make, for the creation of a
better society. The never-ending focus on profit maximisation and the application of
cost-cutting strategies prevent organisations from engaging themselves in social projects or
in the development of new products for low-income consumers, as the return on investment
might not be interesting in the short and medium term.
However, contributing to the fight against poverty does not mean that business
organisations need to endlessly contribute to charity and always adopt a philanthropic
stand. Prahalad (2004) in his interesting book, The Fortune at the Bottom of the Pyramid
argues that doing business in an intelligent way can help tremendously in tackling global
poverty. He rightly points out that attempts made by the World Bank, donor nations, aid
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agencies, governments and other bodies during the past 50 years have proved to be
ineffective in poverty eradication, as it remains very much in the forefront and the
pre-occupation of one and all. As such, there is a need to use other means to fight this social
evil. Prahalad puts forward that companies should engage themselves in the profitable
provision of goods and services that meet the real needs of the enormous population at the
bottom of the pyramid. Baker (2004) supports this view and provides evidence of successful
completion of profitable ‘‘social’’ projects in India, with Hindustan Lever (HLL) producing
iodised salt, helping the 70 million children suffering from iodine deficiency, and developing
the soap market through life-saving health-based education targeted at village school
children in an attempt to fight against diarrhoea which causes 2.2 million deaths annually. At
global level, GrupoNueva targets the world’s poor by working on affordable wood and water
pipeline products, proving that being socially responsible does not mean giving up the
primary objective of business organisation: making profits.
In any case, it is essential to point out that recent reports tend to confirm the belief that
engaging in CSR has a positive impact on business performance. The Economist
Intelligence Unit’s (2008) report, based on a survey of 1,254 business executives, found a
strong correlation between growth rate and level of social/environmental concern amongst
global companies. Businesses that have achieved high share price growth over the past
three years have been found to be more proactive on corporate sustainability issues than
those that have seen their share price stagnate or decline. In addition, a study by IBM
(2008), Attaining Sustainable Growth through Corporate Social Responsibility, carried out
amongst 250 business leaders, came to the conclusion that an organisation gradually
progresses through a ‘‘growth curve’’ in the implementation of CSR projects, ultimately
opening new markets or creating innovative products as a result of CSR activity. Graham
et al. (2004), on their part, after an extensive study of the Indonesian society came to the
conclusion that policies need to be assessed based not just on their cost-effectiveness, but
also their contribution to poverty-alleviation and equity-enhancement.
Only a few studies have so far attempted to analyse the link between CSR and poverty
(Engineers against Poverty, 2004; RISC, 2004; Christian Aid, 2004; Rohregger, 2006;
Jenkins, 2005; Oyen, 2005) but these have either considered this link from a macro-level
orientation, or have used case studies to support the ideas they put forward. Research in the
developing world is even scarcer. Studying how to maximise the potential CSR contribution
of the private sector in Kenya and Zambia, Kivuitu et al. (2005) come to the conclusion that
companies in both countries are mainly engaged in philanthropic activities through
donations to health, social and educational institutions. This is primarily based on the belief
that organisations should ‘‘give something back’’ to the local community. Tackling capacity
constraints, strengthening the case for responsible business practices and fostering
‘‘localised’’ CSR agendas are three key recommendations reached so as to enhance the
contribution made by the business sector. This strong focus on community development is
also outlined by Visser (2007) in a review of CSR in developing countries, who also bases

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VOL. 5 NO. 1 2009 SOCIAL RESPONSIBILITY JOURNAL PAGE 21
 himself on empirical studies by Pinkston and Carroll (1994), Edmondson and Carroll (1999)
and Burton et al. (2000) to underline the fact that culture may play a key role with regards to
the perception about CSR priorities. The widely accepted Caroll’s pyramid is thus revisited in
the context of developing countries, as can be seen in Figure 1.
Even if primary emphasis is still on economic responsibilities, philanthropy is rated second
highest priority, followed by legal and ethical responsibilities. This is explained partly by the
traditional attachment to philanthropy, by the fact that it is the most direct way to improve the
living conditions in their immediate surroundings and also by a traditional culture of fatalism,
dependence and assistance in the developing world. On the other hand, the pressure to
comply with existing legislation is less, as compared to the developed world. Crane and
Matten (2007a) go one step further by putting forward the argument that even in the European
context itself different levels of CSR mean different things and are interlinked in different ways.

2.1 CSR and poverty in Mauritius

Mauritius is regarded worldwide as an economic success story, and this is more pronounced
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in the African continent. Business in Mauritius is booming, with a combined turnover of £4.64
billion (þ18 per cent) and combined profits of close to £800 million (Business Magazine,
2008). However, ultra-liberalism, which has been marketed as the remedy to all social
problems by giving the opportunity to one and all in having a share in a nation’s economic
growth, is in fact proving to be primarily serving the interest of the ruling élite. Wealth is
concentrated in a few hands, with a growing number of marginalised and excluded, a
striving working class, an indebted middle class and untouchable élite. Indeed, whereas on
one side, tremendous progress is being made at the economic level, with a GDP which has
reached £7,629 (UNDP, 2007) we are, on the other hand, witnessing a widening of the gap
between the rich and the poor, with a Gini coefficient increasing from 0.371 in 2001/2002 to
0.389 in 2006/2007 (UNDP, 2007). What is even more worrying is that, out of a total
population of 1.2 million, there are now some 26,900 poor households, as compared to
23,700 in 2001/2002 (CSO, 2007). In his June 2008 Budget speech, the Minister of Finance
officially cited the figure of 7157 families living in extreme poverty in the 229 deprived regions
that have been identified by the Government (Hansard of the Mauritius National Assembly,
2008). Obviously, this is a complex situation: business organisations are flourishing, and the
signs of rising affluence are very clear: physical signs such as skyscrapers, luxury cars,
castle-like houses, beachside villas, and integrated resort schemes do not lie. Figures show
that the Mauritian Stock Exchange is booming, and the tourism sector is on a
record-breaking track year after year, both in terms of tourist arrivals and of earnings.
As the main generator of wealth and employment, business organisations are crucial to the
economic and social development of the societies in which they operate. Firms are now
increasingly integrating CSR as a management strategy. Of the enterprises, 69 per cent are

Figure 1 Caroll’s classic pyramid

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PAGE 22 SOCIAL RESPONSIBILITY JOURNAL VOL. 5 NO. 1 2009
 reported to be engaged in external social activities for the benefits of the wider community
(MEF, 2007). There is indeed a growing interest in social involvement on the part of the
business sector. For example, the Mauritius Commercial Bank (MCB), the leading bank in
Mauritius, has pledged 1 per cent of its profits before tax (£460,000) for social projects this
year and Barclays Bank (Mauritius) has committed Rs £400,000 for the fight against AIDS.
The hotel industry, through its national body, has contributed some £800,000 for community
projects, and the association has recommended that its members increase their CSR
budget to 2 per cent of net profit by 2009. What is even more interesting is that 92 per cent of
the MEF members surveyed recognise that Mauritian enterprises are not doing enough in
terms of CSR, although they do expect business involvement in social activities to increase
in the future (MEF, 2007)
Businesses are therefore coming at the forefront position, asserting their commitment in
addressing community needs. Leading organisations now have a CSR department
responsible for the implementation of policies to meet the needs of the various stakeholders.
However, not much research has been done with regards to CSR in Mauritius, and
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documentation about its contribution to the fight against poverty is virtually non-existent. This
work aims at contributing to the scarce literature on CSR in Africa by shedding some light on
the contribution of business organisations towards poverty alleviation in the context of a
developing economy. The main purpose of this work, therefore, is to analyse the CSR
initiatives undertaken by the business sector in Mauritius. What is the amount/percentage of
profits committed to CSR? For what purposes are the funds allocated being used? What is
the share being presently devoted to the fight against poverty. Apart from providing funds,
are there non-monetary initiatives that business organisations engage in to fight against
poverty? What are the organisational policies with regards to CSR? Are there specific
policies with regards to poverty alleviation? How is the monitoring and evaluation of projects
carried out? All these elements will provide a clear picture of the actual situation and help us
to better understand why, in spite of massive contributions, poverty is still very much present
and thriving. This work also aims at analysing in what direction the business organisations
are planning to move in the future and whether innovative CSR initiatives are likely to be
implemented to reap better rewards in terms of poverty alleviation.

3. Methodology
This work aims at providing an insight into of the CSR initiatives of leading organisations in
Mauritius in the fight against poverty and the philosophy guiding these initiatives. For the
purpose of this research, a mixed-methods approach has been applied (Puxty et al., 1987).
This method helps to bridge the gap between quantitative and qualitative research
(Onwuegbuzie and Leech, 2004a). Proponents of mixed-methods research adhere to the
compatibility thesis, sharing the view that both quantitative and qualitative research can be
used in a single research only. They also share the philosophy of pragmatism, putting forward
that researchers should use the approach or mixture of approach that works best in a real
world situation (Johnson and Onwuegbuzie, 2004). The combination of methods also provide
for complementary strengths and non-overlapping weaknesses (Brewer and Hunter, 1989).
Questions set in the structured interview schedule were therefore composed of a mix of
qualitative and quantitative nature, so as to complement each other. This work contributes to
the literature as it brings in an ethnocentric approach that provides a grounded
understanding of the CSR/poverty relationship in the context of the Mauritian society. As
such, questionnaire-based semi-structured interviews (see the Appendix, Figure A1), have
been carried out among CSR managers (or managers responsible for CSR) of 33.3 per cent
of the top 100 companies and the 19 locally incorporated banks selected through stratified
sampling. The response received was very positive, as out of the 33 companies selected, 29
completed the interview schedule (response rate of 88 per cent) and five out of the six banks
identified for the exercise responded positively (response rate of 83 per cent). The overall
response rate for the data collection exercise, therefore, stands at 87 per cent. Based on the
analysis of information collected, recommendations with regards to the changes to be made
at organisational and national level, so as to make the most of the business sector
contributions in the fight against poverty, are worked out.

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VOL. 5 NO. 1 2009 SOCIAL RESPONSIBILITY JOURNAL PAGE 23
 Apart from primary data collected through the use of the structured interview schedule,
secondary sources have also been used, in the form of company publications. The prime
source is the annual report of the company itself. This is consistent with previous researches
done in this area (Hackston and Milne, 1996; Haron et al., 2006; Zakaria, 2002; Amran and
Susela, 2007). The choice of the annual report as the main document is based on the fact
that it is conveniently available and published yearly. It is also the official way through which
companies communicate their financial performance and their activities to stakeholders.
Gray et al.(2001) point out three main reasons for CSR researchers to refer to annual reports
for their studies: It presents a holistic picture of the organisation; there is no need to look for
other source of information on a piecemeal basis; the amount spent on social and
environmental activities will be reported. As such, the annual reports of these organisations
for the year 2006 and 2007 were analysed so as to complement, and cross check
information collected through the survey. Annual reports may not be the only means through
which organisations communicate their CSR information. Other means such as public
relations, web sites, and advertising may be used to convey social information. Company
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publications and press/industry reports have also been used so as to take full advantage of
the mixed-method approach. Other secondary sources of information, in the form of press
cuttings on CSR initiatives and the top 100 companies report compiled yearly by Business
Magazine Mauritius will also be referred to, so as to gather maximum information with
regards to CSR initiatives of business organisations.
The population of the sample consists of the top 100 companies based on the 2008 turnover
listing and the 19 locally incorporated banks, which, on their own, have a total assets of
£13.7 billion (Business Magazine, 2008). They are all required to publish their financial
reports annually, as Companies Act requirement. This study applies the stratified random
sampling method on the sectors of the listed companies. Each sector then has its
representatives (33.3 per cent of the population) selected randomly. The top 100 companies
based on turnover (excluding banks) can be represented sector-wise as shown in Figure 2.
Interviews were carried out during a three-week period and all the necessary precautions
were taken so as to ensure that collected information was as objective as possible. These
were then processed so as to be in suitable format for analysis purposes.

4. Findings and discussions

The total combined assets of the top 100 Mauritian companies together with the 19
locally-incorporated banks stands at more than a trillion rupees, with a combined profits of
£460 million (þ 21 per cent); the market capitalisation of all companies listed on the Stock
Exchange of Mauritius in mid-June 2008 was of £4.5 billion, and GDP per capita has reached
£4,000 (Riviere, 2008). A 2 per cent contribution on the part of these companies would mean
a massive sum of £9.2 million would be available for CSR projects.

Figure 2 CSR pyramid for developing countries

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PAGE 24 SOCIAL RESPONSIBILITY JOURNAL VOL. 5 NO. 1 2009
 An analysis of information collected shows clearly that the leading organisations in Mauritius
do express a high level of commitment with regards to their social responsibilities. In fact,
some 80 per cent of these organisations already having an established structure to select
and prioritise funding requests/initiatives made whether internally or from other stakeholders
in society. This can clearly be seen in Figure 3.
Banks, hotels and the sugar sector attach a lot of importance in the establishment of
systematic procedures, as the 100 per cent response clearly indicates. For the industrial and
commercial sectors, the figures stand at 82 per cent and 86 per cent respectively. It can
therefore be said that Mauritian businesses are very much concerned and involved, as far as
CSR is concerned. This is very positive, as it is much easier to have the participation of
organisations that already view CSR projects favourably.
With regard to funds committed to CSR, the average contribution for the top 100 companies
stand at 0.68 per cent of profits before tax. This is very encouraging, even if there is still room for
improvement, given that business organisations listed on UK’s FTSE 2006 giving list averages
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0.79 per cent in terms of percentage of profits contributed to CSR. The banking sector and the
hotel industry top the list in terms of per cent of profits committed to CSR, respectively
contributing an average of 1.2 per cent and 1.1 per cent of their profits before tax (Figure 4).

Figure 3 The top 100 companies in Mauritius, sector wise

Figure 4 The percentage of organisations having systematic and established procedures

in the allocation of CSR funds, sector-wise

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VOL. 5 NO. 1 2009 SOCIAL RESPONSIBILITY JOURNAL PAGE 25
 At this level as well, it can clearly be seen that the banking sector and the leisure/hotel sector
are leading, by contributing an average of 1.2 per cent and 1.1 per cent of their profits
respectively to CSR. The Mauritian hotel sector, through the association regrouping its
members, the AHRIM, has set as target to devote 2 per cent of its profits to CSR by 2009. The
banking sector, through the Mauritius bankers’ association, is also showing signs of its
determination to maintain the lead. These leading business sectors are taking their role
seriously, as far as CSR contributions are concerned. On the other side, the contribution of the
transport sector (0.4 per cent) and the investment sector (0.3 per cent) need to be reviewed.
However, when asked about their priorities in the allocation of CSR fund, it is clear that the
fight against poverty is not the main priority of business organisations, as depicted by the
Table I. Concern for the environment, education, health and the local community all have a
higher ranking on the CSR agenda of Mauritian business organisations. The priorities of
these organisations can be viewed sector-wise as shown in Table I.

Caring for the environment is cited by 85 per cent of organisations surveyed as forming part
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of their top three CSR priorities. Education stands at by 65 per cent and helping in the
promotion of health care is mentioned as a key-priority by 41 per cent of organisations.
Poverty stands at the fifth place only, with 32 per cent of organisations identifying it as
amongst their top three areas of intervention. This can be clearly seen in Figure 5.

It is important to point out that business organisations operating in the sugar sector and hotel
industry give a lot of consideration to local community projects, and this is legitimate, given
that they have to maintain a strong link with people around them. As far as the hotel industry
is concerned, apart from the fact that it depends heavily on the nearby localities for its
workforce, investment in the community will also help in the harmonious relationship that
need to be maintained between visitors and hosts. As such, creating a positive outlook on

Table I The top three priority areas of intervention, sector-wise

Three main priority areas of intervention
Areas Environment Education/training Sports Health/disabled Poverty Local community Employees’ welfare Others

Banks O O O
Insurance O O O
Commerce O O O
Industry O O O
Investment O O O
Leisure/hotels O O O
Sugar O O O
Transport O O O
Others O O O

Figure 5 Top three priority areas of intervention

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PAGE 26 SOCIAL RESPONSIBILITY JOURNAL VOL. 5 NO. 1 2009
 the tourism sector in the local communities where hotels are operating will definitely help in
making the host stay a memorable one. In fact, one of the initial requirements prior to the
delivery of an operating license to a hotel is that it contributes a sum of £500,000 that will be
used to finance projects in the local community. Opening a resort is a give and take, given
that the local community will have to share part of their beach and facilities to tourists. The
sugar sector, on its part, has been the main industry for several decades and has
established strong links and taken a number of commitments with the local community,
whose very existence is very often linked to the sugar factory. It can be said that over the
years, members of the local community have developed high expectations from the sugar
factories, which has no alternative than to respond positively to these, given that they control
and still exploit a high percentage of the agricultural land in the vicinity.
It is interesting to note that organisations rate their contribution to the fight against absolute
poverty as being, on average, less than 11 per cent of their total CSR budget. This confirms
the initial finding that they have other priorities in the allocation of funds (Figure 6).
Direct involvement in the fight against absolute poverty is more pronounced in the hotel
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sector (19 per cent), the sugar sector (17 per cent), the investment (14 per cent) and the
banking sector (13 per cent) whereas it is of least concern in the insurance (7 per cent) and
transport sector (5 per cent). There is a need, therefore, to motivate decision-makers in
sectors lagging behind in terms of commitment to give a helping hand in the fight against
this social evil. The active participation of the top management of business organisations in
the implementation of CSR projects geared towards poverty alleviation is needed.
As it stands now, even if their contribution to poverty alleviation does not involve a high
percentage of their CSR funds, CSR managers are very much satisfied with their input.
Indeed, some 92 per cent are either quite satisfied (52 per cent) or extremely satisfied (40
per cent) with regards to their involvement in the poverty battle. This expression of
satisfaction, however, can be a negative sign, as far the ability to secure further contributions
in that area is concerned. The top management of these leading organisations, through their
CSR managers, should therefore, be convinced of the need for further support so as to win
the poverty battle. This can be done by establishing/reinforcing the links with those in need.
Interacting with the poor community will mean that CSR managers will be in a better position
to evaluate the degree of urgency, as far as funding of social projects is concerned, and
persuade the decision makers in the boardroom of the need to increase their level of
participation. Through their active participation in the implementation of CSR initiatives
towards the poor, top management of these organisations will be able to see for themselves
the situation in which people are living and will be in a better position to evaluate whether
CSR funds are being allocated in a rational way, or whether sponsorship priorities need to be
reviewed.
In fact, even if they are contributing heavily in financial terms, business organisations,
especially those operating in the hotel, sugar, and banking sectors are also very much
involved in non-monetary CSR initiatives. A total of 62 per cent of organisations queried

Figure 6 Average percentage of CSR funds committed to the fight against poverty

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VOL. 5 NO. 1 2009 SOCIAL RESPONSIBILITY JOURNAL PAGE 27
 reported being involved in CSR activities other than financing projects. This primarily takes
the form of active participation of employees in voluntary activities to help those in need.
Training and providing job opportunities to those living in these deprived localities is also
another typical example of an effective non-monetary contribution. Yet another non-financial
mean through which business organisations are presently helping the poor is by supporting
micro-projects that the latter initiate with the help of the government and NGOs. By helping in
the development of strategic self-help projects which are at an incubating or early infancy
stage, this helps the poor people to take more responsibility and to move out of this vicious
cycle of dependency, marginality, present-day orientation. Figure 7 shows the three main
forms of non-monetary initiatives organisations are involved in.
In the hotel industry, for instance, contracts for the running of handicraft/souvenir shops,
supplying flowers/local fruits, etc. and the cleaning of yards can be allocated to those in
need through CSR projects involving public/private/NGOs, instead of favouring large
suppliers with already established businesses with multi-million rupees in terms of turnover.
This proximity with the poor also provides the organisation with a better picture of the needs
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and aspirations of these people. They will therefore, be in a better position to help them in
moving out of poverty.
In terms of monitoring, it is worth mentioning the fact that 68 per cent of businesses do
monitor the projects funded so as to ensure that money injected is not being wasted. This is
done primarily in the form of periodic reports asked on the status of the project, site visits to
ensure that the project is progressing satisfactorily and also take the form of involvement of
employees on the project. Effective monitoring is essential so as to be able to screen the
stakeholders who are genuinely working in the interest of the poor and those who are there to
further their own interest. In that respect 45 per cent of these organisations do not entertain
requests from individuals at all, working only with established bodies, with a clear vision and
aims. With regard to further contributions that can be made by their respective organisations
in the future, it is important to note that 67 per cent of CSR managers share the view that it
should take the form of active partnerships with the deprived areas so as to provide more
opportunities to the marginalised groups, rather than merely increasing the amount pledged
as donation.
The government can play an important role in that respect too. Indeed, 91 per cent of
respondents point out the fact that they would be in a better position to persuade top
management in getting involved in more social projects if the government offered them more
opportunities to do so. Tax concession is outlined by 85 per cent of respondents as being the
main way through which the Government can intervene positively. A more active and
coordinated private sector/government/NGO partnership is also mentioned by 52 per cent
of respondents as likely to bring a positive contribution. Successive governments have, over
the years, implemented measures in view of reinforcing the welfare system, by providing
assistance to those in need. However, is this assistance from the state or NGOs not merely
reinforcing the culture of poverty, characterised by helplessness, fatalism and dependence,

Figure 7 Three main forms of non-monetary intervention

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PAGE 28 SOCIAL RESPONSIBILITY JOURNAL VOL. 5 NO. 1 2009
 which has been extensively been depicted by Lewis (1966 in Gmelch and Zenner, 1996) in
his study of Mexico and Puerto-Rico? There is a need to provide opportunities for the
younger generations so as to develop a culture of work ethics and commitment, rather than
just adopting this culture of poverty that is being replicated over generations.

5. Conclusions and recommendations

From data collected and analysed for the purpose of this work, it is clear that the business
sector in Mauritius has at its disposal the necessary resources to contribute positively to the
creation of a better Mauritian society. Already, business organisations are doing a lot in terms
of social responsibility, contributing some 0.68 per cent of their profits to CSR initiatives,
which amounts to some £5.3 million, given that the combined profit figure for the top 100
companies and the 19 locally incorporated banks stand at £776 million. However, only 11
per cent of CSR funds is presently being devoted to the fight against absolute poverty, as
several other social needs are presently being given priority over poverty alleviation.
Therefore, business organisations do have the potential to make the difference, but depends
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to a large extent on the approach taken so as to tackle this social evil. CSR managers need to
work out a common strategy so as to put poverty-alleviation as a priority on the social
agenda.
A key element in the success of such an endeavour is the active participation and
involvement of the business leaders. The ability of decision-makers to motivate their
employees towards a specific cause should never be under-estimated. By being involved
and working with the deprived social groups, the latter will not only act as a role-model and
set the right example, but will also be in a better position to evaluate the real needs of the
poor. This will force business organisations to move out of the comfort zone in which they
presently find themselves in the Mauritian setting with regards to their contribution towards
poverty alleviation. Employees coming from poor families who have been successful
through hard work and loyalty to the organisation, or who have made it to the top, should be
encouraged to come forward so as to guide the youngsters from deprived areas that are still
very much trapped in the culture of poverty, seeking immediate gratification rather than
through consistency and dedication.
The fight against poverty cannot be a lonely endeavour, but in fact need a multi-pronged
approach so as to be effective. In that context, the active participation and the coordination
of the activities of all the stakeholders are required. There is a dire need for business leaders
and public figures to take the lead and start setting the pace.

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(The Appendix follows on the next page.)

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 Appendix

Figure A1 Corporate social responsibility as a tool to fight against poverty: the case of
Mauritius
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PAGE 32 SOCIAL RESPONSIBILITY JOURNAL VOL. 5 NO. 1 2009
 Figure A1
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About the author

Nicolas J.F. Ragodoo is a Lecturer in CSR at the School of Sustainable Development and
Tourism of the University of Technology, Mauritius. He has completed his Bachelor in Social
Studies at the University of Mauritius, a PGCE in Social Science at the Mauritius Institute of
Education and a Masters in Human Resource Management and Training at the University of
Leicester (UK). Mr Ragodoo’s research interest is in the field of CSR, business ethics and
people in organisations. Nicolas J.F. Ragodoo can be contacted at: ragodoo@utm.intnet.mu

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