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Corporate Social Responsibility

It is about how companies take responsibility for the world at large.

CSR is a voluntary social and environmental positive initiative to establish an image


of environmentally and socially Responsible Business.

Corporate Social responsibility in a Global Context

CSR and Developing Countries

The concept of social responsibility aims to examine the role of business in society
and to maximize the positive societal outcomes of business activity.

In practice much of the business that has so far been labelled CSR has been driven by
the concerns of investors, companies, campaign groups and consumers based in the world’s
richest countries

Justification for CSR

Two Broad Sets

1. Defensive Justification- refers to minimizing the potential adverse effects of CSr on


local communities, environments, and market when it is imposed through
international supply chains and investment.
2. Proactive Justification- 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 CSR agenda

A first broadly define goal of public engagement in CSR is the alignment of business
activities and public policy to achieve societal goals. A clear government vision of how it
wants to address issues where there are potential trade-offs between economic, social and
environmental considerations, as in the case of the country’s natural resource endowment for
socio-economic development, may increase the likelihood of success of corporate
contribution to national development.

A Multiplicity of Policy Instrument

5 distinctive role of public sector engagement

1. Regulation
2. Facilitation
3. Partnership
4. Endorsement
5. Demonstration

CSR IN INTERNATIONAL BUSINESS


Practicing CSR on a level of sincerity that satisfies the minimum based on
shareholder’s opinion can make the company noticeable in local and international markets
which lead to shareholders’ confidence.

Different ranges of application of CSR in the International Perspective

1. Sustainable Development and Environment


2. Human and Labor Rights
3. Local economy and Society
4. Transparency
5. Legality
6. Consumers
7. Supply Chains

SUSTAINABLE DEVELOPMENT AND ENVIRONMENT

Today’s generation should invest for the future and therefore, should stop borrowing
from future generations by squandering resources at present

HUMAN AND LABOR RIGHTS

CSR Demands

1. BE compliant- operational conduct of the enterprise should not be lower than the
standards
2. Be consistent- have partners of the same kind in adopting the same observance and
recognition rights

Enterprises must protect the primary rights of its workers wherever it operates and strive to
observe the following

1. Refrain forced or obligatory labor and intimidation


2. Be an advocate of the abolition of child labor
3. Respect right of privacy and freedom of opinion
4. Respect exercise of political rights and trade unions
5. Refrain from discriminatory treatment
6. Fair compensation
7. Healthy and safe working environment

LOCAL ECONOMY AND SOCIETY

Large international enterprises bring extraordinary impact on the development of less-


developed countries.

Typical examples of conduct of multinational companies considered to be responsible and


have gained wide positive recognitions:
1. Transfer of technology
2. The grant of licenses for the use of intellectual property rights at costs compatible
with the local market
3. Granting authority to manufacture products and brands that are protected
4. Training for the development of local skills
5. Development of new products by means of local knowledge and skills
6. Creation of viably durable forms of collaboration with local partners
7. Corporate venturing investment in the local start-up capital

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.

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 enterprise that prefer a CSR strategy declare to the public and to the stakeholders
that they do not participate to illegal engagements

CONSUMERS

The enterprise’ success depend on their commitment towards consumers

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

Positive effects of Ethical behaviour in production cycle

1. Improvements in market reputation


2. Confidence of the ethical investors and consumers
3. Good relations with the intstitutions and social organizations