RMIT International University Vietnam

BUSM 4692 – Managing International Business Responsibility

A1-Understanding CSR

Subject Code:
BUSM 4692

Subject Name: Managing International Business Responsibility

Location & Campus RMIT Vietnam, HCMC

Student Name: Nguyen Le Thien Quynh

Student Number: S3777295

Your Teacher: Mr. Thanapat Kijbumrung

Word Count: 1100

I declare that in submitting all work for this assessment I have read, understood and agree to the
content and expectations of the Assessment declaration.

CSR can help both international business and society, including when it comes to conflicts between the
two
 I. Introduction
After the context of the global crisis in 2008, there was a question regarding the business
responsibilities, and corporations had responded by practicing a common term “Corporate Social
Responsibility”, known as CSR. This essay is aimed to take a debate step in analyzing the
relationship between CSR, global businesses and communities, thus investigated the interest
conflict between two parties and the benefit of CSR from resolving the issues.

II. Analysis of CSR

With an inexorable rise of CSR, reports from NGOs, journal, web-based formal platform had
contributed to the debate of the mentioned topic (Crane, Matten & Spence 2014). Despite of the
controversy, there are some similarities between different author’s understanding about CSR.
Carrol (1979) contemplated that CSR is the corporation or business, in general, responsibility
encompasses the legal, economic, and discretionary expectation which the communities required
on the business at the specific time. Besides, World Bank asserts CSR as the commitment of the
firm in meeting sustainable development, in associating with their employees, local
communities, at largely to improve the life’s quality, which also benefits the business and
business’s growth (Moon 1955).

Since there was not perfect definition for CSR, the two definitions chosen had covered the main
concept of CSR. The accelerate economic growth trends had always been accompanied with
social and environmental affairs. Reported by UN, 3,000 firms would face the penalty of $2.2tn
of the environmental damage (Jowit 2010), which confirmed businesses are the main driven of
the surroundings harmful. Georg (2011) found that corporations also a feasible solution for
public goods and international regulation issue. Therefore, enterprises are the critical connection
between the economy and pioneer in the global trend regarding the corporate social
responsibility.

How can CSR contribute to international business? (give examples)

Stated by Ryeol (2015), practicing the CSR theory could benefit the corporations in maintain a
unique position with customer relationship which is critical in international business.
Additionally, CSR takes a vital role in building brand image and reputation through the
coordination of stakeholders (Kurucz, Colbert & Wheeler 2008). Reported by Nielsen, a
customer’s survey over 60 countries concluded that roughly 66% of clients willing to purchase
for a brand that applying the CSR (Cooke 2019). Undoubtedly, CSR assists in improving the
long-term profits for global corporations since from the instrumental perspective, CSR knowns
as an imperative tool to influence the consumer’s attitude and behavior (Karen, Andrew & Paul
2006). Effective practice of CSR could advance firms in becoming the leading choices of
customers who concerns about environmental issues (Cooke 2019). Take Starbucks as an
example, since 1971, the business had always concentrated on ethical and social responsibilities.
By partnering with Ethos Water, Starbucks help bringing clean water source to over 1B people
who do not have access to it (Involvesoft Marketing 2016). The firm launched the C.A.F.E
program which ensuring the product quality, showing their responsibility towards the
environmental and moral aspects (Harnrungchalotorn & Phayonlerd n.d). This action had
differentiated Starbucks with their rivals, by focusing on the community before themselves, and
becoming one of the leading coffee chains in the world.

How can CSR help societies? (give examples)

Apart from huge advantages that CSR brought to the businesses, stakeholders and society also
inherit numerous favors from the implementation of CSR. Researched by Mullerat (2020), a
company that boasts of responsible behavior seems to attract talents and retain outstanding staffs,
as workers prefer working in company with good reputation (Ksiezak 2016). Firms that maintain
good relations with the workers normally had lower turnover rates, namely Google, in 2007, the
business had proudly voted by Fortune magazine to be the best workplace as Google offers free
meals, spa, and medical care for employees (Cochran 2007). Moreover, due to the scale and its
influence, socially responsible firms also have higher opportunity to build up relationship with
the government (Ksiezak 2016) and enjoy the competitive advantage (Cramer, Schuler &
Rehbein 2002). Motivating the CSR programs that related to climate, education, technology, also
involve in solving the society problems (Ksiezak 2016). Nestle’s is one of the typical examples,
which they supported health and education of children in Sri Lanka, Bangladesh and India. In
2010, Nestle had run a campaign “Safe Kids Initiative”, mainly to raise awareness regarding the
nutrition, and assists the residents combat malnutrition that resulting from the insufficient
nutrient amount. The events succeeded to spread the message with approximately 7,104
registrations (Nestle n.d).

How might the interests of business and societies conflict (give examples)?

CSR is the most dynamic and challenge problems for any modern firms (Rahman et al. 2013),
but also the great way for organization to upgrade reputation and brand awareness toward the
sustainability development. However, stakeholders had much higher expectation in CSR as it
related to the social goals and welfare (Taran, Harrisburg & Bett n.d). There was an increasing in
intensity of conflicts between firms and communities. The case of pollution found in Unocal
corporations could be a suitable example in this context. Despite of the creation of jobs from the
mining industries, the existence of the industrialization has not only exploited the natural
resources but also degraded the environment. Moreover, it recognized that firms had released
strict standard requirements for workers from local community, which had raised intense
between the businesses and residents (Dulkiah, Sulastri & Sari 2019). Another situation occurred
with Walmart, the giant retailers focused on New York’s charities and built a store in their
community. However, the action is claimed to be brand promotion and not in favor of charities
(Covert 2014). It can be seen that choosing CSR activities could be problematic since the
stakeholder’s group interest is odds compare with others (Taran, State & Bett n.d).

Explain at least one way in which CSR might help resolve such conflicts (give examples)

Initially, CSR activities will only be resulted in enhancing reputational equity if the
stakeholders are aware the benefit it might brought in (Taran, Harrisburg & Bett n.d). Regarding
Cedillo (2013), the remedies that can solve the conflicts between parties related to the interest
sharing about the economic rational, communal and political values, meaning the firms should
take responsible in defining the appropriate strategies that satisfy the social requirement. In 2005,
Walmart in Bangladesh addressed the issue regarding child labor by releasing “Standard for
Suppliers” report with strict requirements and had been authorized as a “Global Legislator” in
CSR (Cristina al et. 2012). Additionally, after the lawsuit about water scarcity in 2000, Coca
Cola had entered to the partnership with WWF, which improving the water usage with the
community, developing framework to preserve the water source (Cristina al et. 2012).

III. Conclusion
Shortly, I agree with the statement that the application of CSR can benefits the development of
international businesses also the community. Even though there is an existence of interest
conflicts between two parties, however, the suitable practical of CSR would lead to the win-win
circumstance or could know as a feasible solution for both.
IV. References
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Cochran, P 2007, ‘The evolution of corporate social responsibility’, Business Horizons, pp. 449- 454,
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Cooke, J 2019, ‘Corporate Social Responsibility: Benefits for Business and Community’,
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Cristina al et. 2012, ‘Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect

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