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.
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.
There are many different areas in which a company may choose to focus its corporate social responsibility. Duke Energy has demonstrated CSR at high level and received an award for it. Social responsibility investment combines investors’ financial goals with their obligation and dedication to factors that ensure the well-being of society such as environmental friendly practices, economic growth and justice in society; and that is what Duke energy exactly did. These elements are not only aspects of corporate social responsibility, but also a show of the ethical standards of a company. It is unethical for some individuals to own so much and earn so much, at the expense of other suffering members of society. It is also unethical for companies to engage in environmentally demeaning practices that result in illnesses and loss of life and in conclusion Social corporate responsibility and the maintenance of high ethical standards is not an option but an
Business is an organisation or economic system where products and services are traded for money, a product or services. Businesses need investment or customers to make a profit and survive. In business, ethical issues may arise for example false advertising, misleading the public, exaggerations and disclaimers. In this case study the ethical issue identified is an exaggeration of how much the company makes and falsifying of documents by signing off on an order that has not yet been finalised. Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are evaluated. “Business ethics, ultimately, is just business in its larger human context” (Solomon, 2009, p.37). Ethical dilemmas such as financial management, corporate social management, corporate governance, shareholder relations, insider trading, and discrimination are examined by business ethics. Ethical dilemmas arise in situations where there is no right or wrong answers, usually a complex moral issue that needs to be resolved, a choice needs to be made between ‘right’ and ‘right’; choosing the best of the worst. It is not normally easy to reach an outcome but the dilemma can be solved in different ways depending on each person’s situation, background, personality, beliefs, life experiences as well as taking factors of law, morals and society norms into account when analysing, processing and making a fully informed morally ethical decision. The process of solving such complex issues involves analysing the issue itself, looking at possible consequ...
Business ethics are the moral principles that describe the way a business behaves. Because businesses are treated as “persons”, it can be said that the same principles that determine an individual’s actions can also apply to business. Making ethical choices involves distinguishing between right and wrong, and then making the right choice; and while it can be easy to identify unethical business practices, such as using child labor or not paying employees properly, good ethical practice can be harder to define simply because what is deemed right is not always universally accepted. In other words, everyone has a unique moral compass, and can see black and white as different shades of gray. In the face of this, every business holds corporate social responsibility to act fairly for their employees’, stakeholders’, and sometimes even the earth’s sake. However, whether or not the business adheres to this ethical paradigm varies.
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
Business ethics must be understood from a historical perspective to appreciate how the current economic system and regulatory system has evolved over time. (Collins, 2012) The idea of ethics has expanded slowly over time with more and more “stakeholders” being given particular rights when it came to business decisions. The text describes the evolution of ethics into a few key phases such as in pre-capitalist America, Adam’s Capitalism and the industrial revolution. Those moments give an ideal breakdown on how business ethics evolved into what they are today.
Seawell, Buie 2010, ‘The Content and Practice of Business Ethics’, Good Business, pp. 2-18, viewed 22 October 2013, .
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.
In the article, The Truth About CSR by Kasturi Rangan, Lisa Chase, and Sohel Karim, the importance that coherence plays in corporate social responsibility (CSR), is emphasized. Throughout the article, corporate social responsibility application, within corporations, is broken down into three theaters. According to the article, many corporations do not focus on their CSR programs, and usually see these CSR actions as a secondary responsibility following the responsibility they hold towards their shareholders. It is argued in the article that in CSR is a key and essential block for corporate success, focusing on CSR coherence throughout all three theaters will bring positive results along the way, possibly making the corporation
From a long-term, global perspective he believes that business ethics is paramount to all societies at the turn of the millennium. Because major driving forces for business ethics lay in an increasing importance of business, a growing diversity of ethical beliefs and an ever more pressing need to address th...
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.
Husted, B. W., & Allen, D. B. (2006). Corporate social responsibility in the multinational enterprise: Strategic and institutional approaches. Journal of International Business Studies, 37(6), 838-849.
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.
While the concept of an individual having responsibility is commonly recognized, modern views have lead to the emerging issue of corporate responsibility. Business Directory.com defines corporate social responsibility as, “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” But such a concept has been much disputed since at least the 1970’s.
According to Michaelson (2016), business ethics involves the relationship that exists between different parties in business and refers to the current organizational principles, standards and values that manage the conduct and action of individuals in the business society (Shaw, 2016). It often focuses on the moral principles guiding the behavior between consumers and businesses on multiple economic and social levels. As a result, it can be defined as the relationship between the business and the customer, an aspect that can apply to the employees, community, or various aspects of the government. Business morals have expressive and normative scopes. As a career specialism as well as corporate practice, business moral value is mainly normative. Researchers attempting to understand business ethics use illustrative methods. The quantity and range of ethical issues in an organization reveals the interaction of income-exploiting behaviors with non-economic apprehensions. The principles that limit the actions of an