The role of local governments in promoting corporate responsibility

Following the recent global economic crisis, the spotlight has been placed on the need for greater corporate responsibility, and the role that governments can play to foster its adoption. In addition, the constrained budgets of governments have increased interest in ways to stretch resources to achieve sustainable development outcomes. Although much of the responsibility for facilitating corporate responsibility falls to national and state governments, local governments also have a role to play. Local governments have a significant impact on the way organisational entities operate. Through areas of control and influence, such as licensing and regulation, softer mechanisms such as awareness raising, partnerships, purchasing and provision of services, local governments can facilitate more sustainable means of operation for organisations within or near their geographic boundaries. The research is continuing, but this paper focuses on the emerging typology of mechanisms particularly available to local governments to influence the corporate responsibility behaviour of the private sector operating within their jurisdiction.