Corporate Citizenship Behaviour and Rural Livelihoods: A Study on Multinational Corporations in Sri Lanka

Abstract

Corporate citizenship seems a new conceptualization of the role of business in society. Disparity between rural and urban economy is growing and it is essential for multinational companies to address the issues benchmarking best practices. MNCs enter a nation with numerous guarantees but are they equipped for accomplishing objectives as a corporate citizen? Although the role of MNCs on local firms has been measured at different industry levels, rural livelihood perspective is unkempt in developing economies. The study aims to identify the roles of MNCs in enhancing the rural livelihoods of the dairy farmers in Sri Lanka. The study was based on an exploratory approach, adopting a qualitative research design with a thematic data analysis. Data were collected through semi-structured interviews from twenty-five dairy farmers who were directly engaging with MNC subsidiaries operating in the rural community of Sri Lanka. The MNC has been able to enhance the rural livelihoods of the dairy farmers through generating of job opportunities and replacing conventional practices with modern technology, identifying the importance of knowledge management, understanding the value of quality, adhering to policies, standards and guidelines along with maintaining proper documentations and improving the return on invested capital. However, the MNC has failed to build strong relationships with local authorities and struggled to promote dairy farming as a main source of income. MNCs exercises in the developing context is still being contended and coordinating and compiling a policy framework with the local authorities could play a significant role in shaping the livelihoods of the dairy farmers.