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The benefit and danger of corporate social responsibility
The nature of csr in a business
The benefit and danger of corporate social responsibility
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The relationship in the middle of globalization and corporate social obligation is very wrangled by academicians. This study will first expound on what is CSR and how it is characterized trailed by comprehension the idea of globalization and afterward will discourse about the influence of globalization on corporate social obligation likewise to comprehend the criticism by worldwide global companies and in conclusion decipher the present circumstance taking the case of the act of corporate social obligation in China.
Keywords: globalization, corporate social responsibility, criticism, global companies.
Introduction:
The idea of globalization is depicted as a standout amongst the most driving contemplations impressively influencing existing
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Corporate social obligation is considered as a standout amongst the most noteworthy perspectives confronting firms utilizing global business. At the end of the day, multinational corporates reexamines the way that the good, moral, ecological and social issues ought to be consolidated into the procedure of choice making on business systems and …show more content…
To start with, monetary development not just makes general society and national governments focus on welfare expansion and its advantages for the general public, additionally makes them perceive that financial advancement is the outcome of the mix of social, monetary and good ramifications. In perfect environment, financial development will give the equivalent dispersion of wage and welfare, the admiration and insurance of human rights and different perspectives, which all individuals will share. Be that as it may, globalization to a sure degree further heightens the wonder on disparity. Amid this procedure, who to be in charge of the harmony between financial development and disparity is considered as the huge way of adapting to the negative results of globalization. This study contends that administrations, firms, shoppers are portrayed as the main funeral director. For firms, they are critical funeral directors in charge of people in general and social hobbies and good issues. The organizations consolidate social, ecological and good issues into the procedure of their choice making and take the reasonable capable conduct and exercises, which brings more benefits for their shareholders and hobbies for their partners in the long haul. In any case, a few firms settled on some choice and illicit and shameless and were in charge of the terrible results.
Here and there individuals allude to globalization as a path for huge partnerships to command and impact the world economy. Globalization has a tendency to take away exceptional social assorted qualities by regularly driving western world values and plans on everybody. It additionally has lead to outsourcing in a few nations (the USA has seen this with organizations like Apple and Nike). Indeed the spread of AIDS and different dieses could be faulted for globalization.
Boatright (2006) contend that corporate social responsibility denotes the responsibility recognized by a company for acting in socially responsible manner. There is no single universally accepted definition of corporate social responsibility, it has generally come to mean business decision making linked to ethical values, legal compliance, and respect for people, community, and environment. CSR accepts a company to go further than required by law so as to treat employees fairly and with respect, operate with integrity and in an ethical manner in all its business dealings with customer, suppliers, lenders, and others, respect human rights, sustain the environment for future generations and be a responsible neighbor in the community and a good ‘corporate citizen’. Hill (2009) asserts that corporate social responsibility has become a challenge which MNCs face in emerging markets. Galbreath (2009) support the view of Hill (2009) by saying that with increase in globalization, the importance of corporate social responsibility has increased a lot.
Corporate social responsibility is globally defined as operating a business in a way that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. The concern of CSR has drastically increased over the last two decades. It has enhanced interactions between governments, businesses, society and internationally. In the past, businesses primarily focus themselves with the economic results of their decisions. Now, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions. Corporate Social Responsibility is no longer defined by how much money a company contributes to charity, but by its overall involvement in activities that improve the quality of people’s lives.
Enterprises lay high emphasis on corporate social responsibility instead of being profitable tools. It is essential for all the enterprises to focus on corporate social responsibility which can help the organization creates long-term sustainability for corporate success. More specifically, corporate social responsibility can be referred as a process which is aim to embrace responsibility for the organization’s actions. Moreover, it can have a benefit to the people who are regarded as stakeholders, like employees, consumers and communities, which is based on its activities. Also, Tai (2014) states that corporate social responsibility is considered as corporate citizenship which tends to be an obligation that can protect, foster, and enhance
The current global economy has not only increased the supply of ample products based on consumers’ demands, but it has also increased competitiveness among the companies to spread their influence over the international market. The strategy used by the companies to stand out more than the others is by fortifying the element of Corporate Social Responsibility in their organization.
Nowadays, corporate social responsibility (CSR) becomes an integral part of each company. CSR can be understood as a management concept and a process that links social and environmental issues in business operations to a company’s interactions with it’s stakeholders. CSR not only gives the company a chance to help society but also enhances company’s reputation and investors’ attractiveness. In this paper, we will show a brief description about CSR and effects of CSR on international business, including pros and cons when a company applies the CSR program. Besides that, I give my ideas on conflicts of interest beween shareholders and the company’s managers. And then, advantages and difficulties for companies implementing CSR in Vietnam will be defined. Although CSR was first introduced widely in Vietnam many years, it is still a new concept. Therefore, pioneers in this area are facing lots of challenges in running CSR programs in Vietnam.
“The notion of corporate social responsibility (CSR) is not new in our society. It was born when corporations were born and societies to accommodate them. The ‘soul’ of corporate social responsibility is what the French philosopher Rousseau understood to be ‘the social contract’ between business and society (Bichta 2003).”
Globalization Phase, companies were known locally, regionally and internationally, their products were already improved offering innovative services. However, as The Economist (2007) has highlighted, while more global the companies are more aware of corporate social responsibility they need to be, namely, foreign stakeholders will expect, not only innovative and effective products, but also they will open their doors and invest their money to companies that are social responsible.
With the company facing themselves in the context of globalization, they are increasingly aware that corporate social responsibility can be of direct economic value. Although the company 's primary goal is to create profit, companies can at the same time contribute to social and environmental objectives into their business strategy of corporate social responsibility as a strategic investment.
Global corporations have the responsibility of making successful strategic decisions when developing a new plan for their company. One wrong move and these corporations could negatively impact the shareholders, surrounding communities and the environment, as well. It is imperative that these large global corporations understand how the roles of ethics and social responsibility have an enormous impact on those that are directly invested in them. The decision making process is a delicate process that requires special attention to detail and perhaps even a blueprint on how their decisions should affect society. It is also very important that the corporate executives have a well-rounded and balanced strategy when pursuing shareholders profits. All decisions should always be made using their blueprint of strong ethical code in order to prevent a negative
Kanji, G. K., & Chopra, P. K. (2010). Corporate social responsibility in a global economy. Total Quality Management & Business Excellence, 21(2), 119-143. doi:10.1080/14783360903549808
When it comes to companies operating in multiple countries with varying standards, companies should realize that they have to practice some level of corporate social responsibility if they don’t want to be publicly scorned or looked down upon in their home country. Over the past several years, companies have been experiencing pressure through their stakeholders and their consumers to show how they are committed to prevent human rights violations and environmental pollution. According to an article written by Dr. Tulder, “a strict approach, such as firing child workers or terminating relationships with companies that employ them, does not necessarily change underlying causes” (Tulder 260). In his research, it has been found that when a company does this that it can even worsen the child’s situation by driving them to a more hazardous line of work. With regards to this, companies should consider what is and is not acceptable forms of child labor in foreign countries. For instance, “tolerable might be ‘light work’ which is not likely to be harmful to a child’s health or development, which will not affect their attendance at school, and whether the child is at least thirteen years of age” (Tudler 262). Companies should also realize that unacceptable child labor “are all kinds of abusive, exploitable, and dangerous work. Or anything that involves any form of slavery such as; the sale and trafficking of children, debt bondage, and forced recruitment of children for use in armed conflict” (Tulder 262). Companies that are operating in countries that are experiencing any sort of economic hardship that might not adhere to these same standards should enact a policy that deals with these issues that puts the child’s safety first.
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.
A plethora of studies have been presented to describe the issues concerned with social ethics in regard to internationalization of business activities. For instance, Lee (2009) indicates that corporate social responsibility (CSR) has increasingly become very concept in many organizations with national or international scope. However, Asia is a region that is huge and assuming that XYZ is focusing on multiple countries as a base of its business expansion, then the complexity of the social ethical conditions become even more complex. Lee (2009) and Steenkamp (2001) posit that some of the most common social and ethical considerations that should be considered by an expanding organization are: human rights, environmental regulations, employment practices and corruption.
Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society. Moreover, Corporate Social Responsibility has a definition of a concept where the companies integrate social and the environmental concerns into their own business operation and also on a basis of voluntary with their interactions they have with the stakeholders. Corporate Social Resp...