What is Zone Social Responsibility (ZSR)?

Zone Social Responsibility (ZSR) is a guiding framework specifying how special economic zones (SEZs) and other economic development zones (EDZs) can integrate and address social and environmental issues during zone planning, establishment, management and operation, while fulfilling their roles in attracting foreign direct investment (FDI) and promoting industrialisation.

ZSR especially addresses the concerns of local communities and the public who are affected by the construction and operation of SEZs and other EDZs. It maintains that zones should enhance the societies and environment surrounding them and prevent negative local impacts. The aim is to foster more inclusive and sustainable forms of industrial development that create mutually beneficial relationships between industries and the local areas surrounding them. Employing ZSR will have a positive effect on the reputation of zones. 

There are four types of ZSR:  

  • Responsibility towards local communities: Addressing the challenges faced by local communities living on or around SEZ land, who experience significant livelihood changes and are often dispossessed and moved from their land in the process of zone development. 
  • Responsibility towards in-migrants: Accommodating the needs of migrants who travel from afar to work in the SEZs and face challenges in adapting to local circumstances and integrating into local societies. 
  • Responsibility regarding employment and labour: Assuring decent labour conditions in the zones for both migrant and local workers. 

Responsibility regarding the environment and sustainability: Ensuring that the negative impacts on the environment and sustainability that frequently arise during industrial development are sufficiently mitigated during zone development and operation.