CSR in Global Context and in International Business

C O M P A N I E S A D O P T I N G ‘ E T H I C A L P O L I C I E S ’
O R ‘ C O D E S O F C O N D U C T ’ S T A T I N G H O W
T H E Y I N T E N T E D T O “ B E H A V E ” .
M E A N S D I F F E R E N T T H I N G S T O D I F F E R E N T
P E O P L E
B U S I N E S S S T R A T E G Y A P P R O A C H
CORPORATE SOCIAL
RESPONSIBILITY
OVERVIEW

A V O L U N T A R Y S O C I A L A N D E N V I R O N M E N T A L
P O S I T I V E I N I T I A T I V E
D R I V I N G F O R C E S B E H I N D I N C L U D E S N E W
C O N C E R N S A N D E X P E C T A T I O N S F R O M
C I T I Z E N S , C O N S U M E R S , P U B L I C
A U T H O R I T I E S A N D I N V E S T O R S
C O N V E N T I O N A L C S R W A T C H D O G S : L A B O R
U N I O N S , C O N S U M E R G R O U P S ,
E N V I R O N M E N T A L I S T S , N G O S A N D A L L
S T A K E H O L D E R S
CORPORATE SOCIAL
RESPONSIBILITY
OVERVIEW

GLOBAL CONTEXT
INTERNATIONAL BUSINESS
CORPORATE SOCIAL
RESPONSIBILITY
NINA MAE P. ALOTA

CSR IN A GLOBAL CONTEXT
CSR AND DEVELOPING COUNTRIES
JUSTIFICATIONS FOR CSR
DEFENSIVE
PROACTIVE
POTENTIAL ROLES OF GOVERNMENT IN THE CSR
AGENDA
A MULTIPLICITY OF POLICY INSTRUMENTS

CSR AND DEVELOPING COUNTRIES
The concept of CSR aims to examine the role of business in
society and to maximize the positive outcomes of
business activity.
Governments, companies and NGOs in many middle-and-
low-income countries have accelerated the process of
adaptation of the developed country-driven CSR agenda
through greater direct engagement.

JUSTIFICATION FOR CSR
TWO BROAD SETS:
DEFENSIVE-minimizing the potential bad effects of CSR on
local communities, environments and markets when
imposed through international supply chains and
investments
PROACTIVE-increase the domestic public benefits of CSR
practices in economic, social, and environmental terms
(there is various kinds of partnership initiative that seek
to transfer knowledge and expertise, foreign investment)

POTENTIAL ROLES OF GOVERNMENT IN THE CSR
AGENDA
Spans social, economic and environmental spheres
including issues of corruption, poverty reduction and
human rights.
Goals differ from country to country. However, a broadly
defined goal of public engagement in CSR is the
alignment of business activities and public policy. It’s
clear vision may increase the likelihood of success of
corporate contribution to national development.

5 distinctive roles for public sector engagement with CSR:
1. regulation
2. facilitation
3. partnership
4. endorsement
5. demonstration

Factors that may determine the course of action taken by
any individual government:
1. capacity of constraints
2. size of domestic markets for products affected by CSR
3. degree of export orientation of the economy
4. presence of enterprises willing to champion change
5. degree of different stakeholders comfortable working
partnership

Areas of legislation:
1. competition policy
2. basic investment and enterprise frameworks
3. rights of access to information and public participation
in decision-making

CSR IN INTERNATIONAL BUSINESS
SUSTAINABLE DEVELOPMENT AND ENVIRONMENT
HUMAN AND LABOR RIGHTS
BE COMPLIANT
BE CONSISTENT
LOCAL ECONOMY AND SOCIETY
TRANSPARENCY
LEGALITY
CONSUMERS
SUPPLY CHAINS

SUSTAINABLE DEVELOPMENT & ENVIRONMENT
Today’s generation must invest for the future and stop
borrowing from the future generation by wasting the
resources at present.
And so there’s a need to promote new economic
development model, based on the context corporations
should go beyond the minimum, this will bring turn to
better consumer favor, product and process innovations,
and raw material savings.

CSR Demands:
Be Compliant – operational conduct of the enterprise
should not be lower than the standards
Be Consistent – have partners of the same kind in
adopting the same observance and recognition of rights

Enterprises must protect the primary rights of its workers
wherever it operates and strive to observe the following:
Refrain forced or obligatory labor and intimidation
Be an advocate of the abolition of child labor
Respect right of privacy and freedom of opinion
Respect exercise of political rights and trade unions
Refrain from discriminatory treatment
Fair compensation
Healthy and safe working environment

Large international enterprises bring extraordinary impact
on the development of less-developed countries.
However, problems occur in the differences on
technological capability of the host country’s lack of
capacity to adapt.
Involvement of stakeholders is necessary in terms of
relevant decisions that would contribute to the
development of the territory or to the host country in
particular and that it reduces investment risks.

Typical examples of conduct of multinational companies
that considered to be responsible and have gained wide
positive recognitions:
Transfer of technology
The grant of licenses for the use of intellectual property
rights at costs compatible with the local market
Granting authority to manufacture products and brands
that are protected
Training for the development of local skills

Development of new products by means of local
knowledge and skills
Creation of viably durable forms of collaboration with
local partners
Corporate venturing investment in the local start-up
capital

MNC’s sincerity to develop the host company or country is
to invest on the fixed assets if allowed by the host. These
assets (like buildings) means one thing, they will be here
for long if not for good.
“CSR in action” – giving out a portion of their income for
projects like maintenance of roads, improvements of
public hospitals, adoption of a school and other activities
that should have been rendered by the government.
These would give a good feedback from the community and
create good reputation for the company.

TRANSPARENCY
Corporate transparency - is a form of deep-rooted
managerial initiative which evolved into a philosophy of
removing walls and facilitating free and easy public access
to corporate information. It involves openness,
communication and accountability.
Transparent measures include financial disclosure
statements, the freedom of information legislation,
budgetary review, audits and religious compliance.

LEGALITY
Prerequisite of CSR is to go beyond the law provisions in
order to contribute to the establishment of a fair and
sustainable development.
The enterprises that prefer a CSR strategy declare to the
public and to the stakeholders that they do not
participate to illegal engagements .

CONSUMERS
Enterprises know that their reputation and their success
depends on their commitment towards consumers. Those
who chose social responsible behavior watch consumer-
stakeholder as a client and as a “collaborator” in pursuing
their CSR strategy. Thy were not only concern health and eco-
sustainability of the goods but also to prove its not produced
by means of exploitation of human resources.
“aware consumption” – represents a new approach in acquiring
growing importance in the market by promoting a production
that is safe and compatible with a sustainable and fair
development

SUPPLY CHAINS

SUPPLY CHAINS
It become very complex due to market globalization and often
outsourced in countries where human right protection is low
or there are no environmental regulations, or tolerance of
hard labor is high due to absence of choices.
These represents critical point for enterprises that have chosen
to adopt a socially-responsible conduct.
The lack of ethical control becomes a commercial and financial
risks.

SUPPLY CHAINS
Companies able to observe ethical behavior through
the whole production cycle may have positive effects in
terms of:
 Improvements in market reputation
 Confidence of the ethical investors and consumers
 Good relations with the institutions and social
organizations

CSR in Global Context and in International Business

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