, DPR3706
ASSIGNMENT 1 SEMESTER 2
2026
DUE 17 AUGUST 2026
QUESTION 1
Businesses wield significant power in CSR due to their enormous economic influence, as the market
capitalisation of large corporations often surpasses the GDP of many nations, giving them resources
that rival states (Ruggie, 2018). This economic clout translates into political leverage, with
companies using CSR initiatives to gain policy access and shape regulatory environments to their
advantage, as seen when extractive firms fund community development projects to secure
operating licences (Banerjee, 2008). For instance, multinationals in Indonesia have strategically
deployed SDG-aligned CSR programmes to cultivate government relationships and enhance
political influence without resorting to corrupt practices (Kourula & Delalieux, 2019). Through CSR,
corporations also set industry norms and influence public discourse, effectively acting as private
authorities that can overshadow weak state governance, particularly in developing regions (Scherer
& Palazzo, 2011). Additionally, CSR serves as a reputational shield, allowing firms like BP to rebuild
legitimacy after environmental disasters, thereby demonstrating their ability to control narratives
and maintain social acceptance (Frynas, 2005). Consequently, CSR is not merely philanthropic but a
potent instrument of corporate power that enables businesses to shape societal priorities and
influence stakeholder behaviour (Crane et al., 2019). This power, however, carries accountability
demands, as stakeholders increasingly expect responsible use of such influence (Whelan, 2021).
ASSIGNMENT 1 SEMESTER 2
2026
DUE 17 AUGUST 2026
QUESTION 1
Businesses wield significant power in CSR due to their enormous economic influence, as the market
capitalisation of large corporations often surpasses the GDP of many nations, giving them resources
that rival states (Ruggie, 2018). This economic clout translates into political leverage, with
companies using CSR initiatives to gain policy access and shape regulatory environments to their
advantage, as seen when extractive firms fund community development projects to secure
operating licences (Banerjee, 2008). For instance, multinationals in Indonesia have strategically
deployed SDG-aligned CSR programmes to cultivate government relationships and enhance
political influence without resorting to corrupt practices (Kourula & Delalieux, 2019). Through CSR,
corporations also set industry norms and influence public discourse, effectively acting as private
authorities that can overshadow weak state governance, particularly in developing regions (Scherer
& Palazzo, 2011). Additionally, CSR serves as a reputational shield, allowing firms like BP to rebuild
legitimacy after environmental disasters, thereby demonstrating their ability to control narratives
and maintain social acceptance (Frynas, 2005). Consequently, CSR is not merely philanthropic but a
potent instrument of corporate power that enables businesses to shape societal priorities and
influence stakeholder behaviour (Crane et al., 2019). This power, however, carries accountability
demands, as stakeholders increasingly expect responsible use of such influence (Whelan, 2021).
