11.3.1 CSR

Section 11.2 has demonstrated that it is quite difficult to determine fixed boundaries as to where public responsibilities end and corporate responsibilities commence in regard of corporate water use: (i) legislation and policies on how water is managed vary from country to country; (ii) different types ofindustries impact water in different ways; (iii) it is difficult to link environmental change in any direct way to the water consumption of any one enterprise; (iv) complications arise when multinationals operate in weak governance zones. Studies indicate that while a variety of factors positively influence voluntary environmental management, regulatory pressures are among the most important in achieving this (Jones, 2010). It could be argued that companies bear a limited legal responsibility for the environmental consequences of their water consumption in countries with effective management authorities. They do ofcourse bear a moral responsibility. The moral responsibility seems to increase in weak governance zones or where the water supply is limited: CSR then tends to become more important for sustainable water management.

CSR is often viewed as the 'missing link' in resolving the disconnect between economic growth under market economics and its negative consequences. Where too much emphasis is placed on economic development based on growth in material consumption, not enough attention is given to ecological limits and social constraints. There are many understandings of what 'CSR' means: from sound environmental practices to community based business approaches (Kumudini et al, 2007). In this chapter, the term CSR is used to indicate the intention of a company to take ecological and social aspects in consideration when doing business and to strive for an increase in value in all three dimensions: Planet, People and Profit (SER, 2000, pp. 17-18). CSR aims at facilitating the move towards a socially and ecologically sustainable future. Furthermore, in this chapter, all private business entities are referred to as 'companies', noting that these include an array of different legal and operating structures.

As water stress is increasingly viewed as a potential threat and constraint to economic growth, healthy ecosystems and social justice, sustainable water policies (i.e. in which companies use water with regard to the environment and local communities), can be considered part of CSR. In addition, the world leaders' concern with access to water and sanitation also requires a significant investment in water systems, and the private sector has been called to participate therein. This offers business opportunities as well as challenges: "Corporate leaders who prepare careful water strategies for managing mediumterm business risks and opportunities will not only be prepared to meet the future - gaining advantage in some of the key, and most water-constrained, global markets - but can also help shape it" (UN WWDR-3 2009, p. 36).