As corporations pursue growth through globalization, they have encountered new
challenges that impose limits to their growth and potential profits. Government regulations,
tariffs, environmental restrictions and varying standards of what constitutes labour
exploitation are problems that can cost organizations millions of dollars. Some view ethical
issues as simply a costly hindrance. Some companies use CSR methodologies as a
strategic tactic to gain public support for their presence in global markets, helping them
sustain a competitive advantage by using their social contributions to provide a subconscious
level of advertising [7, 94-106]. Global competition places particular pressure on
multinational corporations to examine not only their own labour practices, but also those
of their entire supply chain, from a CSR perspective.
The World Business Council for Sustainable Development
in its publication "Making Good Business
Sense" by Lord Holme and Richard Watts, used
the following definition. "Corporate Social Responsibility
is the continuing commitment by business
to behave ethically and contribute to economic
development while improving the quality of life of
the workforce and their families as well as of the
local community and society at large".
Corporate Social Responsibility (CSR) is becoming
an increasingly important activity to businesses.
It has become a public relation tool of global
corporations to convince consumers it is OK to keep
buying. As globalisation accelerates, large corporations have progressively recognised the
benefits of providing CSR programs in their various locations. CSR activities are now
being undertaken throughout the globe.
Everyone judges companies. Whether you invest in them, buy from them, work for
them, or just live near them, it is difficult not to form an opinion. The most visceral of all
judgments pertain to the firm's moral actions. Had a company placed greater emphasis on
its treatment of...