Globalization and Corporate Social Responsibility

Globalization and Corporate Social Responsibility

Events in resent history have made a clear statement to the executives of the world that Globalization and Corporate Social Responsibility (CSR) are tightly linked in projecting a positive brand image. Most of the negative publicity surrounding the globalization debate is directed at one key area, the perceived lack of corporate social responsibility in the business culture of the developed world. The European Commission defines Corporate Social Responsibility as, “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis."(European) As the heat is turned up on firms, especially the large corporations, Transnational Corporations (TNC), and Multinational Corporations (MNC), many of these entities still do not seem to realize the global pressure by the population of the developed nations to do the right thing, and publicly demonstrate an ethical business strategy.

The impression that the large corporations, TNCs, and the MNCs are not aware of their perceived lack of proven CSR is the basis of this issue. This is brought to the forefront during global protests like the G8 and G20 summits, the World Trade Organization`s meetings, and most recently the “Occupy Wall Street” movement. The main effort of the peaceful protesters revolves around educating the public and making them aware of the corporations’ apparent disregard for the norms of ethical business practices, employee substandard working conditions, and environmental degradation.

Ethical business practises are first described as, an understanding of how society would define right and wrong, and then app...

... middle of paper ...

...its environment. This is commonly seen in the excavation, mining, and resource collection, as well as manufacturing. Companies like Texaco-Gulf, Ecuador’s national oil company, and other foreign oil companies dumped approximately thirty billion gallons of toxic chemicals into the eco-system in and around Ecuador`s Amazon River basin from 1976 to 1993. (San Sebastian 799) The results of this pollution killed all the fish in some streams and cattle were known to die after drinking of same water source. Other companies take a proactive approach and risk lower profits and reduced investment. Companies like Mountain Equipment Coop have decided to act in an extremely ethical manner; some would say this should be the new standard that all others should strive for. During their CSR audit, the auditors actualy go through MECs garbage bins to review what is in them.