Discussions on CSR often revolve around attempts to find ‘universal’ solutions that can be uniformly applied across the world. Ethical codes and principles such as the United Nations Global Compact, certification schemes such as the ISO 14001 or standards for reporting such as the Global Reporting Initiative attempt to universalise social and environmental standards. There are good arguments for applying the same universal standards: certain standards are becoming a legal requirement, unambiguous criteria simplify the work of managers and auditors and universal standards increase transparency in information flows about corporate conduct around the world (Paine et al. 2005; Smeltzer and Jennings 2006).

However, there are major problems with applying the same rules and practices everywhere. Indeed, the crucial challenge is to explore the potential and limitations of CSR in specific settings, because the success of CSR initiatives is highly dependent on the context. The same initiative may be appropriate in one country but not elsewhere; it may work in one sector but not in other sectors; it may be successful in one situation but not on other occasions. The universal assumptions about the social and political conditions for the success of CSR initiatives are also unrealistic, as we explore further in Chapter 6.

Previous research has clearly demonstrated the limits of universal standards. First, universal CSR standards fail to address specific national contexts.