Corporate Social Responsibility On Internationally Operating Organizations

Corporate Social
Responsibility
On Internationally Operating Organizations
What is Corporate Social

Responsibility?
CRS or Corporate Social Responsibility
Its an unwritten understanding that assumes companies are Obligated

socially to look beyond only the objective of making profit
Socially obligated to support other principal groups in society out-with the

immediate needs of staff, shareholders and or stakeholders
Financial CRS, environmental CRS, and social CSR are often included
business strategies.
assignmenthelpsolutions.com
Moral and Ethical issues
Ethical issues affront international business differences areas, this

could include the laws, different regions cultures it can also cover
economic development and political systems.
Human Rights
Corruption
Moral Obligations
Issues within the environment
Employment practices
Human Rights
Basic human rights in the western world are by law

Rights such as freedom of association,
freedom of speech,
freedom from political repression
These basic human rights we live by are not by law enforced or

respected in many countries
What is the responsibility of a international company in a country

where basic human rights are trampled on?
Corruption
Throughout history we have been aware of the problem and impact of

Corruption across the world. Even in todays society where we have
regulations in place to prevent this it still occurs
Businesses across the globe have gained economic advantages

though bribery and back handed deals usually with government
officials
The United States passed the Foreign Corrupt Practices Act to fight
corruption
Outlawed the paying of bribes to foreign government officials to
gain business
Issues within the environment
Home nations Environmental regulations are often enforced.
Host nations regulations are usually inferior if at all
Issues arise as no one individual is responsible for the Environment,

most of the environment is public so who should be responsible for it?
The tragedy of the commons occurs when a resource held in common

by all, but owned by no one, is overused by individuals, resulting in
its degradation
Employment practices
Minimum wage
Minimum age to work
Safe work place
Adequate breaks
Proper equipment to do the work asked
Corporate Strategy & Social And Ethical Responsibilities
Corporate strategy
Corporate strategy involves long term company-wide decisions and actions that can
help an organization achieve its objectives. (Hill and Jones, 2008). It takes into
account the environment through its structure of resources and competencies with
the aim of achieving and exceeding the expectations of the stakeholder.
Corporate responsibility
Corporate responsibility Is a company's moral obligation and efforts that go beyond
what may be required by regulators or environmental rules. Its what companies
should look at beyond profit making.
Conflicts between corporate strategy and

ethical and social responsibilities
Shareholder v Stakeholder
Shareholder
Stakeholder
To make maximum profit
Increase company awareness
Stay within the boundaries

of the law
Increase popularity within the

local nation
Increase business revenue

and size
Meet the needs of multiple

groups, staff, local
population, consumers
Carrolls Corporate Global Social

Responsibility Pyramid
Figure 1: Corporate Global

Social Responsibility
Pyramid
Corporate Social Responsibility

Pros & Cons
Pros of CSR
Improved innovation,
competitiveness and market
positioning
Better risk management abilities as
you are more aware of the
environment and the full scope of
the company
Improved reputation in the market
Better equipped to adapt to
changes
More robust accepted in the
community as it shows an ethical
side giving a social license to
operate
Cons of CSR
By utilising the recourses available

to you in society it makes for higher
profit
It can give company's too much
power.
There is no one directly responsible
for CSR as no one in the company
is accountable directly to society
Legislation and Guidance

Legislation
These are regulations and obligations required by law that companies must
implement and abide by.
Guidance
Are what companies are influenced to do in order to go beyond legal
requirements
Legislation and Guidance relating

to Corporate Social Responsibility
Environmental CSR
Legislation
Environment Act 1995
Marketplace CSR
Legislation
Sale of Goods Act 1979
Consumer Protection 1987
Guidance
Considering land
use/biodiversity
Reducing packaging/improve
labeling
Guidance
Promoting diversity. For example,
by promoting positive role models
Engaging in cause-related
marketing
Legislation and Guidance relating

to Corporate Social Responsibility
Community CSR
Legislation
National Parks and Access to the
Countryside Act 1949
The Conservation of Habitats
and Species Regulations 2010
Guidance
Loaning facilities and assets
Liaising with local communities
Workplace CSR
Legislation
Employment Protection Act 1978
The National Minimum Wage Act,
1998
Guidance
Respecting rights to free assembly
and collective bargaining
Listening to and involving
employees
Characteristics of Socially
Responsible Companies
Ensure a safe work environment.

Uses clear and simple advertising- don't mislead.
Offers medical assistance.
Promotes recycling.
Helps displaced workers with placement.
Gives money to charities.
Sponsors educational causes.
References
Caroll. A.B (2003) Academy of Management Review: A ThreeDimensional Conceptual Model of Corporate Social Performance
World Bank Group (2003) Corporate Social Responsibility Practice:
Strengthening implementation of corporate social responsibility in
global supply chains
Hill, C. Jones, G. (2008) Essentials of Strategic Management, Hill
&Jones, South-Western College Publishing
Finbar, M. (2014, December).Unit 7.2 Global Business Strategy.
Lecture conducted from Btec, Abu Dhabi.UAE
Hill, C W L (2013) International Business, The McGraw-Hill Companies,
Inc

Corporate Social Responsibility On Internationally Operating Organizations

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Corporate Social

What is Corporate Social

Its an unwritten understanding that assumes companies are Obligated

Socially obligated to support other principal groups in society out-with the

Moral and Ethical issues

Ethical issues affront international business differences areas, this

Basic human rights in the western world are by law

These basic human rights we live by are not by law enforced or

What is the responsibility of a international company in a country

Throughout history we have been aware of the problem and impact of

Businesses across the globe have gained economic advantages

Issues within the environment

Home nations Environmental regulations are often enforced.

Host nations regulations are usually inferior if at all

Issues arise as no one individual is responsible for the Environment,

The tragedy of the commons occurs when a resource held in common

Minimum age to work

Safe work place

Proper equipment to do the work asked

Corporate Strategy & Social And Ethical Responsibilities

Conflicts between corporate strategy and

To make maximum profit

Increase company awareness

Stay within the boundaries

Increase popularity within the

Increase business revenue

Meet the needs of multiple

Carrolls Corporate Global Social

Figure 1: Corporate Global

Corporate Social Responsibility

By utilising the recourses available

Legislation and Guidance

Legislation and Guidance relating

Legislation and Guidance relating

Ensure a safe work environment.

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