Corporate social responsibility in state-owned enterprises: Zimbabwe Revenue Authority

Abstract

Background: Organisations contribute to a stable environment through corporate social responsibility (CSR). For an organisation to be viable, it has to fulfil the needs of all its stakeholders. The function of state-owned enterprises (SOEs) is not profit-making but providing goods and services and accomplishing public policy objectives. State-owned enterprises demand consideration in the current economic climate because they represent an important part of the economies of many countries. Stakeholders in SOEs have a complex relationship. This article seeks to examine how Zimbabwe Revenue Authority (ZIMRA) is implementing its CSR activities.

Aim: Understand how managers in SOEs treat their stakeholders in CSR implementation.

Setting: The research was done in the ZIMRA, a parastatal operating in Zimbabwe.

Methods: Qualitative research was used where in-depth interviews were conducted with ZIMRA managers to analyse their understanding of CSR and how they are implementing CSR.

Results: Zimbabwe Revenue Authority understands what CSR is and what it involves; however, the organisation does not have a plan that involves all their stakeholders. This may lead to a negative impact on stakeholder perception and organisation’s reputation. Zimbabwe Revenue Authority’s employees fund their CSR making them more important and therefore should be considered in decision-making.

Conclusion: It is imperative for ZIMRA to have a CSR approach which involves their stakeholders in CSR implementation. The funding of the CSR policy is also unsustainable and the organisation should consider including other funding strategies. It is vital for an organisation to do a stakeholder mapping so that they better understand their stakeholders.

Contribution: The article recommends the best ways in which SOEs can contribute to communities through CSR.