Principles that are freely adopted without external constraint enable companies to find solutions and make improvements that regulations alone could not achieve. Recommendations require the commitment of executives running the business and the development of expertise and internal processes. Above all, responsible business conduct requires a sustained effort by everybody in the company. A key element of a company's organizational development is promoting the importance of responsible business conduct and ensuring that new managers are well versed in this area.
If contemporary business trends were made the yardstick, it would not be an exaggeration to state that business communities have become more homogenous. Multi National Corporations (MNCs) serve as perfect instances of this shift. MNCs are investing in major parts of the world, and the boundaries between nations are melting. The channels of communication have become open, and globalization is the norm. However, amidst this entire happening, there are serious concerns that overshadow the race towards more finances, profit and successes. Theses concerns are oriented toward a 'greater common good,' or in a more formal jargon, 'Corporate Social Responsibility'. ...
Theses concerns are oriented toward a 'greater common good,' or in a more formal jargon, 'Corporate Social Responsibility'. The World Business Council for Sustainable Development defines Corporate Social Responsibility (CSR) as, "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" (The World Business Council for Sustainable Development, 2006, p. 10). The European Commission advocates that CSR not only means fulfilling legal expectations, but also going beyond compliance and investing more into human capital, environment and relations with stakeholders.
This paper will present a review of the recent literature regarding MNC investment into Corporate social Responsibility policies and practices. First, a review of the purpose for public policy development by management will be outlined. Next, several theories of the conceptualization of CSR shall be presented. Thirdly, MNCs and CSR in developing nations shall be detailed in terms of quantitative and qualitative empirical evidence. Finally, a conclusion shall synthesize the main points of the argument and show the value of MNCs investing in Corporate Social Responsibility with regard to maintaining a competitive edge in the market place and aligning with the social norms of a globalized world.
A Survey of the Literature
An Overview of the Topic
Post-modern business discourse is focused on the economic and social consequences of corporate practices (Lantos, 2001). The need for MNCs to adopt a Corporate Social Responsibility approach and to implement it in spirit is immense in the current business scenario. The competition