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 assignmenthelpsolutions.com

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? assignmenthelpsolutions.com

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 assignmenthelpsolutions.com

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 assignmenthelpsolutions.com

Employment practices Minimum wage Minimum age to work Safe work place Adequate breaks Proper equipment to do the work asked assignmenthelpsolutions.com

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. assignmenthelpsolutions.com

Conflicts between corporate strategy and ethical and social responsibilities Shareholder  To make maximum profit  Stay within the boundaries of the law  Increase business revenue and size Stakeholder  Increase company awareness  Increase popularity within the local nation  Meet the needs of multiple groups, staff, local population, consumers Shareholder v Stakeholder assignmenthelpsolutions.com

Carroll’s Corporate Global Social Responsibility Pyramid Figure 1: Corporate Global Social Responsibility Pyramid assignmenthelpsolutions.com

Corporate Social Responsibility Pros & Cons Pro’s 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 Con’s 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 assignmenthelpsolutions.com

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 assignmenthelpsolutions.com

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

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 assignmenthelpsolutions.com

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. assignmenthelpsolutions.com

References Caroll. A.B (2003) Academy of Management Review: A Three-Dimensional 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 assignmenthelpsolutions.com