Historically, businesses have engaged with society through multiple forms, including paternalism, philanthropy and, more recently, corporate social responsibility and sustainability strategies. In the context of limited statehood (Börzel & Risse, 2010), the role of private actors has been particularly salient in the provision of public goods (Acosta & Perezts, 2017). However, the literature on corporate social responsibility has only recently started investigating such political role of businesses (Scherer & Palazzo, 2011). We discuss the historical intersection between state and private actors. Mainly we focus on how businesses engage (or not) with the state and address public issues in the context of limited statehood. Using archival data of a sugar company, we pursue a historical analysis detailing the main characteristics of firms entering the sphere of public goods from 1930 to 1980 in Colombia.
Our analysis of board minutes reveals that the first era, until the 1940s, exhibited the characteristics of traditional paternalism: a relationship based on authoritative parentalism, characterised by strong control and authoritarian care (Etchanchu & Djelic, 2018). During this period, the company provided public goods mainly for its employees and, at times, their families but usually sought a private benefit. In the second era (the 1940s-1970s), the government progressively undertook several reforms to extend its reach in health and education. It was during this period that philanthropy understood as the use of private funds for public benefit and social change, appeared. The company increased its support to governmental entities such as hospitals, educational institutions, and multiple catholic organisations. The state appealed to the company for financial support to fulfil its mission, leading to joint efforts in providing public goods. The last period (the 1970s-1980s) suggests the state reinforced its role as a regulator, particularly regarding taxing and environmental management, while collaborating, to a lesser extent, in providing public goods in education and health.