Corporate Social Responsibility in Multinationals - Essay Example

? Corporate Social Responsibility in Multinationals Social and Corporate Citizenship Issues facing Multinationals The international market place has significantly transformed over time since the early days. In fact, the market has drastically changed when compared to its framework around fifty years ago. This has consequently meant that organizations operating at the global scene have had to adapt to the constantly changing settings in order to continue functioning effectively. One of the areas that have seen much development is the one of the roles an organization plays in the society through terminologies such as social and corporate citizenship. Times have changed, and this has brought issues such as environmental concerns (Shaheena, 2008). The following are some of the other trends that have arisen in the sphere; Organizations under Constant Scrutiny One notable development over the past decades is that organizations are continually loosing grip of the information that reaches their customers. This is the information era, and everyone seems to know more than they actually do. The fact that people are constantly seeking information, the numerous channels of passing information, and that there is freedom of expression in most nations forces most organizations to lose some grip on the information that gets to the public (Thomas, 2009). This is the reasons why organizations are competing with these outside sources of information by using the same means such as setting up websites along with utilizing popular social media sites. Responsibility as an Organizational value During the past few decades, many organizations have incorporated the elements such as sustainability, responsibility, and respect into their workplaces. Initially, only a handful held this trait since their work demanded so. Examples of such organizations included Ben & Jerry’s, Starbucks, and Tom’s of Maine. In the case of Starbucks, it requires its employees to exhibit such qualities as they have direct contact with the customers. This makes the employees a channel of marketing the organization. However, the new trend is that most organizations today is incorporating such measures into their workplaces. This has been witnessed in organizations such as PepsiCo, Adobe, as well as Walmart. In 1943, Johnson & Johnson was accredited as the first organization to act responsibly towards the community. While the CSR department is deemed as the core steward of this attribute, present trends depict that organizations are using them internally requiring everyone to exhibit good citizenship. Recognition that CSR can foster skills in the workplace It is said by some economic experts that the world economy is still trying to heal its wounds from the economic downturn of 2008. During this period, most multinationals focused on the validity of every job and employee within their realm. The recession caused most organizations of this nature to limit the leadership and training initiatives. This caused a challenge since the heart of any organization can be stated as its employees; they put the welfare of the organization in a destitute place whenever they are not advancing in any way. The future seemed obscured for most of these organizations up until some discovered that CSR held a key to the issue (Thomas, 2009). Organizations such as IBM used CSR to indirectly train its employees. The technique was that activities embedded into CSR such as volunteering are imperative in building skills in employees; mainly through skill-based and pro-Bono volunteering. For instance, IBM commissioned approximately a hundred and fifty thousand workers to perform community service all across the globe. This technique was assumed by other organizations who sought to benefit in the same way. It was possible to do so because the workload was dismal thanks to the recession, but it gave organizations something to mull about. Presently, organizations can consent some of their workforce to this service to the society and consequently develop skills without having to spend a huge lump sum. Communications about CSR This takes root from two perspectives; more and better communication. One of the reasons why CSR was initiated was for the organizations to appreciate the society that makes them. It was never meant for publicity goals. As times have gone, the market has demanded to know more from the organizations around them. It is an illustration of the continued quest by the public to know more about the world around them, and particularly the one that affects them. Regulations have also dictated to the organizations that they have a role to play in informing the public of their doings (Thomas, 2009). In this respect, many organizations have used some of the popular social media sites such as Facebook, blogs, and Twitter to pass information on what they are doing for the society. It may be appropriate to state at this juncture that CSR use of social media is a new trend is aimed to bring in the participation of the community. It is a platform where information changes in a mutually beneficial manner. The organization can gather information about what the community while the residents of the region can learn about the organization operating in their area. This exchange is a new phenomenon in CSR that is proving to be a crucial and beneficial trend for all involved. Measurement, Accountability, and Transparency One element about most of these trends is that even though they were existent more than five decades ago, their range has continually changed due to pressure. For instance, the issue of accountability is one that can be traced back to the industrialization era, but the measures taken then are drastically distinctive from the ones in use today. Multinationals are today expected to be more accountable for their deeds than any other time in history. Over the past few decades, institutions that govern the workings of multinationals have continually sought the impacts that they have to the society and strived to curb all the negative ones (Thomas, 2009). This has resulted in high levels of accountability on the place of multinationals. It has also resulted in a scenario where these organizations are operating at levels that are deemed appropriate with regards to the society’s well-being. The elements of accountability and measurement are topped off by the hint of transparency. There are both benefits and detriments of an organization displaying most of its working in the public. Despite the consequences that may occur, many organizations have shown a great deal of openness by revealing their internal workings. In fact, some refer to this time as the information times where it's never difficult to gather material about any topic. One of the reasons why organizations are willing to reveal a lot about their operations is that the people of this generation are curious and information is never far away; even if the firm does not pass on the information, there are other sources. Most organizations would not like the public to use “other sources” to retrieve information (Shaheena, 2008). The Bribery Act This act is quite comprehensive in nature; after receiving Royal Assent, it repealed all other prior statutory and common law relating to the issue of bribery. Regarding this topic, the act has stern requirements of organizations that carry out operations in the United Kingdom. The act asks all the organizations under its realm to be liable of their deeds. The offense is both on strict liability and vicarious liability. The only form of defense for an organization is to prove that when acts of bribery took place, it had set up adequate measures to ensure that prevent them from happening. Since the act was taken up in 2010, it can be considered as a new trend in CSR, but only in the United Kingdom (Sheikh, 2011). New Systems on Corporate Behavior and Ethical Standards The Bribery Act was a new system that was incorporated into the governance of multinationals along with domestic organizations and sought to bring forth generally better outcomes when the government detected some laxity. The governments along with other neutral institutions all across the globe act as intermediaries with the goal of ensuring that all parties (organizations and the members of the society) can benefit by providing a fair platform to carry out their operations. In this case, the act meant that the deed of bribery was dealt with in the best manner possible. The act is not only applicable to organizations, but on a larger scope. Although it took some time to be passed, the act meant that there was a better platform for all involved to reap more benefits. Bribery is a vice that adversely affects all (Sheikh, 2011). This section of the paper seeks to answer the question of the ways through which new systems of governance can revolutionize corporate behavior while at the same time maintain high ethical conduct. New Requirements The Bribery Act required organization of the land to operate on a different platform. They had to set up a mechanism to detect and deal with bribery or else the government would have to take stern action. It is notable that the organization in its position is more likely to deal with the issue of bribery unlike the government that is mainly engrossed in other activities. Organizations operate freely with minimal interference in the United Kingdom, just like other many countries, and this means that it (organization) has a better chance of fighting vices such as bribery. The government has little control over running of these organizations and hence deeds such as those of bribery may go unnoticed. Bribery is a vice that against upholding ethical standards in society, and hence a new system of governance such as the act above changes corporate behavior to deal with it. In this case, the Bribery Act may be viewed from different perspectives. On one hand, it is a limitation to economic growth by requiring enterprises be agents of law; while on the other hand, it promotes honesty and ethics in the industry (Sheikh, 2011). In general, the act is a big plus in the sector as is one of the ways that new forms of governance can be used to uphold high ethical standards. Vesting Roles The issue of corporate social responsibility came about when it was realized that organizations should take up some social roles from where they operate from. As time has gone by, these roles have continually surged due to the changing times. The sphere has also grown and consequently led people to apprehend the fact that the organizations owe their existence to the society around them. Hence, they ought to show gratitude by playing a supporting role in social matters. The regulations that govern these organizations today are inclining towards ensuring that they play a part in these matters. By so doing, organizations are going to be active while at the same time maintaining the ethical standards required in the industry (Nick, 2008). New systems of governance can require multinationals along with domestic firms to meet some social matters within their community. This does not in any way impede the ethics required in the industry. Forbid Acts For some time now, one of the key roles that the issue of CSR has achieved is banning some deeds that were considered harmful to the society. This is a very common and known role that organizations have had to deal with over the past few decades. In many ways, it has uplifted the ethics to a whole new level that was not witnessed before. For instance, the issue of pollution is one that has amassed a lot of concern from most stakeholders (Nick, 2008). In the United Kingdom, the issue has gone to the extent of determining the rate of taxes to be levied on motor vehicles. As time moves on, new regulations come up with the aim to foster a harmonious relationship between firms and the society guided my superior knowledge than before. It is common to overhear that the authorities have banned the use of a certain pesticide on farms, or that firms should play a vital role in planting trees. Forbidding the use of the pesticide only upholds the ethics. Impart new trends The field of corporate social responsibility is constantly changing and this requires the firms to keep up with contemporary trends. There are global institutions that have a direct impact on the operations of organizations in relation to the society. For instance on the issue of the environment, there are global standards that have to be met in accordance to agreements made by these institutions. The standards are constantly advancing and this requires the organizations to keep up by adopting them (Nick, 2008). In most cases, ethics are considered and upheld. Support for Organizations Governments and other regulatory authorities always try to seek a balance when making requirements for organizations to meet. One of the major concerns is that the organizations in one’s realm are not on a similar platform as those of competing economies. When such a condition arises, most governments seek to make adjustments so as to have an advantage rather than holding setbacks. Some of the endeavors in this kind of move can be witnessed in areas such the green technology where new systems of governance are instituted for good courses while at the same time upholding good ethics (Nick, 2008). Reference List Nick, F., 2008. A Survey of Managers' Perceptions of Corporate Ethics and Social Responsibility and Actions That May Affect Companies' Success. Journal of Business Ethics, 82(3), 680-697. Shaheena, J. 2008. Corporate Social Responsibility and the Social Enterprise. Journal of Business Ethics, 81 (2), 355-370. Sheikh, S., 2011. The Bribery Act 2010: commercial organizations beware! International Company and Commercial Law Review, 22 (1). Thomas, H., 2009. Strategy Development: Conceptual Framework on Corporate Social Responsibility. Journal of Business Ethics, 85 (3), 505-517. Read More