Corporate Social Responsibility Multi-NationalsIntroductionCorporate Social Responsibility (CSR) for the business is a self regulatory mechanism for businesses organizations such that a multinational business enterprise or organization is able to follow the stipulations set up by the governments, follow the ethical standards required and also follow international norms. The initiative behind the Corporate Social Responsibility is to reciprocate the gains obtained by the business establishments to the environment, community, consumers, stakeholders and members of the public under which the business organization’s services extend. Through Corporate Social Responsibility, a business organization indulges in activities of public interest like community growth and development and though elimination of practices that could be harmful to the public and the environment.
In view of the above description it is sufficient to say that Corporate Social Responsibility is a process of intentional inclusion of the public interest in to the corporate decision making of a business enterprise with regard to benefitting the triple bottom line which is composed of people planets and profit. Background for CSREvery business organization is established so as to make profit and therefore be beneficial to the stakeholders who are either the promoters, employees or the shareholders.
To realize this goal a good operational climate should exist between the organization and these stakeholders. The organization should obtain full support from the employees, customers and the shareholders. Therefore such an organization owes these people a kind of appreciation from this support it has obtained from the community. This is therefore the driving force that propels Corporate Social Responsibility. By performing these duties the organization is assured of support by these stakeholders and the government and is able to become more profitable.
CSR for Multi-nationalsAccording to the Atkins (2006) the Corporate Social Responsibility is a challenge to many organizations and thus there is a need to put these organizations on their toes such that they do not become irresponsible. Many business multinationals are under risk of forgetting their roles in undertaking development projects for the communities around which they exist. Corporate Social Responsibility is new concept that a multinational organizations can use toward achieving social equity and stability in the world where we are far from gaining the responsibility and equity we deserves.
Arguments have been put forward that a business organization has no role to play towards the welfare of a community and the customers since such an organization will only be acting as the government. Critics argue that any business’ main reason of being established is economical in nature and therefore should not indulge in any social responsibility (Manne, 2006). On the other hand proponents argue that Corporate Social Responsibility is not only beneficial to the community but also profitable and propels advancement and growth of these organizations.
In fact actions of social responsibility should aim at complementing the works and the responsibilities of the government. Any such action of social responsibility should be relevant to the community (Friedman, 2002). The governments of nations worldwide should give guidelines on the Corporate Social Responsibility code of conduct and in so doing the multinational companies will be provided with legal framework on their operations.