csr in global context and in international business

WHY NEED CSR?

COMPANIES ADOPTING ‘ETHICAL POLICIES’ OR ‘CODES OF CONDUCT’ STATING HOW THEY INTENTED TO

“BEHAVE” .

MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE

BUSINESS STRATEGY APPROACH

CORPORATE SOCIAL RESPONSIBILITY

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A VOLUNTARY SOCIAL AND ENVIRONMENTAL POSITIVE INITIATIVE

DRIVING FORCES BEHIND INCLUDES NEW CONCERNS AND EXPECTATIONS FROM

CITIZENS, CONSUMERS, PUBLIC AUTHORITIES AND INVESTORS

CONVENTIONAL CSR WATCHDOGS: LABOR UNIONS, CONSUMER GROUPS,

ENVIRONMENTALISTS, NGOS AND ALL STAKEHOLDERS

CORPORATE SOCIAL RESPONSIBILITY

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GLOBAL CONTEXT

INTERNATIONAL BUSINESS

CORPORATE SOCIAL RESPONSIBILITY

NINA MAE P. ALOTA

CSR IN A GLOBAL CONTEXT

CSR AND DEVELOPING COUNTRIESJUSTIFICATIONS FOR CSR

DEFENSIVEPROACTIVE

POTENTIAL ROLES OF GOVERNMENT IN THE CSR AGENDAA MULTIPLICITY OF POLICY INSTRUMENTS

CSR IN A GLOBAL CONTEXT

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.

CSR IN A GLOBAL CONTEXT

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)

CSR IN A GLOBAL CONTEXT

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.

CSR IN A GLOBAL CONTEXT

A MULTIPLICITY OF POLICY INSTRUMENTS

5 distinctive roles for public sector engagement with CSR:1. regulation2. facilitation3. partnership4. endorsement5. demonstration

CSR IN A GLOBAL CONTEXT

A MULTIPLICITY OF POLICY INSTRUMENTS

Factors that may determine the course of action taken by any individual government:1. capacity of constraints2. size of domestic markets for products affected by CSR3. degree of export orientation of the economy4. presence of enterprises willing to champion change5. degree of different stakeholders comfortable working partnership

CSR IN A GLOBAL CONTEXT

A MULTIPLICITY OF POLICY INSTRUMENTS

Areas of legislation:1. competition policy2. basic investment and enterprise frameworks3. rights of access to information and public participation in decision-making

CSR IN INTERNATIONAL BUSINESS

SUSTAINABLE DEVELOPMENT AND ENVIRONMENTHUMAN AND LABOR RIGHTS

BE COMPLIANTBE CONSISTENT

LOCAL ECONOMY AND SOCIETYTRANSPARENCYLEGALITYCONSUMERSSUPPLY CHAINS

CSR IN INTERNATIONAL BUSINESS

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 IN INTERNATIONAL BUSINESS

HUMAN AND LABOR RIGHTS

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

CSR IN INTERNATIONAL BUSINESS

HUMAN AND LABOR 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 intimidationBe an advocate of the abolition of child laborRespect right of privacy and freedom of opinionRespect exercise of political rights and trade unions Refrain from discriminatory treatmentFair compensationHealthy and safe working environment

CSR IN INTERNATIONAL BUSINESS

LOCAL ECONOMY AND SOCIETY

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.

CSR IN INTERNATIONAL BUSINESS

LOCAL ECONOMY AND SOCIETYTypical examples of conduct of multinational companies

that considered to be responsible and have gained wide positive recognitions:Transfer of technologyThe grant of licenses for the use of intellectual property rights at costs compatible with the local marketGranting authority to manufacture products and brands that are protected Training for the development of local skills

CSR IN INTERNATIONAL BUSINESS

LOCAL ECONOMY AND SOCIETY

Development of new products by means of local knowledge and skillsCreation of viably durable forms of collaboration with local partnersCorporate venturing investment in the local start-up capital

CSR IN INTERNATIONAL BUSINESS

LOCAL ECONOMY AND SOCIETYMNC’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.

CSR IN INTERNATIONAL BUSINESS

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.

CSR IN INTERNATIONAL BUSINESS

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 .

CSR IN INTERNATIONAL BUSINESS

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

CSR IN INTERNATIONAL BUSINESS

SUPPLY CHAINS

CSR IN INTERNATIONAL BUSINESS

SUPPLY CHAINSIt 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.

CSR IN INTERNATIONAL BUSINESS

SUPPLY CHAINS

Companies able to observe ethical behavior through the whole production cycle may have positive effects in terms of:

Improvements in market reputationConfidence of the ethical investors and consumersGood relations with the institutions and social

organizations

Thank you!

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