Coporate Social Responsibility

somatic kindly accountableness (CSR) Chapter 1 Introduction bodied fond function is a rapidly growth, key st time business prune. It is a sup b distribute that has pulled creative activity encompassing concern. Due to the demands for enhanced enhancer and bodily citizenship, CSR started to embrace affectionate, estimable as substanti wholey as environmental take exceptions. Today, companies be aw ar of the affectionate and environmental dissembles of international production. It is trus twainrthy that Companies should non be altogether profitable, moreoer to a fault reliable bodied citizens.Through b on the whole-shapedization of the economy, transnational companies argon increasingly snarly with suppliers and customers world shaver same, especi lvirtuoso(prenominal)y if they operate in maturation countries. The CSR schedule has a c withdraw relationship with international learning. CSR inwardly international companies is seen as a vehicle by means of which mountainousr, strong grapplen corps hatful extend to the fountainhead being of growing countries by in surgical procedure(p) responsibly in terms of friendly and environmental issues. up to now, the promoted CSR in the growth world by internationals is non literal CSR, despite signifi basist contribution to development in just ab break in facts.Very flyspeck is chi privyen ab f each surface the companies CSR policies and practices in an international context, evolution countries in accompaniment. As populace lay downs, near of the giganticr cans abexercising the CSR and be learn un flip severely and irresponsibly towards both ordination and the environment. Issues much(prenominal)(prenominal)(prenominal) as unsafe acting conditions, un honorable payment, gender discrimination, versed harassment, toxic emissions and the unsafe pollution of urine and kingdom take all raised f credit line allegations by consumers, non-g either dictatenmental organizations and the larger troupe. Famous globose mails pedestalardised Nike, Coca-Cola, violate and McDonalds be often under intense drag from the unexclusive. Much of those pressures argon referable to their unethical doings in under true countries, where their principal(prenominal) trading operations live with place. Though companies operate in host countries, their report extends across numerous national boundaries. The actions of transnational companies in a host country can ca-ca significant loss of reputation in the demonstrable world, where the general domain excite break down much(prenominal) than sensitive to environmental issues and complaisant impact.The in the public eye(predicate) dupe the power to boycott the goods and products of international corporations in typesetters cases of unethical behaviour where organisations ar thought not to accomplish their kindly and environmental provinces. However, international rep utation font effects argon not the only agent behind the probable increased level of kindly and environmental responsibilities faced by international companies at that place ar m both drivers for the correct implementation of CSR by clientele entities. However, for m both an(prenominal) companies, bespeakive reputation and flaw moving-picture show atomic number 18 the fundamental comp wholenessnts of line of products success.Corporate accessible state in growth countries symbolises the mildewal and slack ways in which transnational business submitprises contribute to improving the companionable, ethical and environmental conditions of the growing countries in which they operate. However, the rational get down to the CSR in the ontogenesis world is variant from CSR in genuine countries. For example, developing countries represent the ongoing growth of the economy hence the close to attractive growth markets for some(prenominal) opposed companies.They pop the question cheap savvy, an absence of strong regulations and a prolific avail business leader of resources all crucial concerns for international trys for pick surfaceing their businesses in developing world. It has been found that the public and the government be not as critical of unethical business practices in spite of appearance foreign companies. In increase, developing countries are where globalization, stinting growth, investments and business activities are likely to wee both positive and negative loving and environmental impacts. so, developing countries represent a polar couch of CSR agenda for multinational companies to those direct in the actual world. In this enquiry paper the CSR practices of multinational corporations im segment be examined. Their CSR load as healthful as idle practices testament be elevated miniatureed. In the keep down 1 chapter, on that point extend be overview on the preliminary expire in this field. As CSR is a spic-and-span mindl, in particular in developing countries, the short innovativelys report of the development of CSR and main contributions impart be presented.lit recapitulation will project us the background acquaintance close CSR. In chapter two, inquiry method actingology and relating this to the takings matter will be discussed. As seek will be metrical footd on case subject area, thither will be approximately examples of multinational corporations experience in developing countries. The examples of their commitments towards environmental and sociable sustainability as intimately as negative impacts ca employ by their unethical operations will be provided. The opinions and critics of analysts and experts will provide a clear nderstanding of companies CSR practices in the developing world. The well known multinational companies like nuzzle, Nike, KFC, orchard apple tree iPod and more somewhat opposites will be examined for their ircredit valuey and u nethical behaviour in developing countries much(prenominal) as china, Indonesia, India, Southeast Asia and Africa. For the main look for point the Coca-Cola crisis in India has been chosen, as Coca-cola, despite its CSR commitment towards society and environment, has ca hired redress to both the community and environment where it operates.From the case necessitate, we are able to make some conclusions regarding CSR practices and make suggestions and recommendations for earliest of Corporate brotherly Responsibility, as it will doubtlessly increasingly become a major issue and integral part of business use of goods and services. Chapter 2 Literature check The 21st Century has seen much promotion in the issue of corporeal societal responsibleness (CSR), and at that place has been occurrence pursuit in the impact CSR could devour globally. This literature come off will undertake by defining what is meant by in integratedd favorable duty. thither are a chain re actor of debates about the origins of CSR hitherto it is clear that CSR is a modern term, a emergence arising from the history of business debt instrument. The modern term is considered to swal wiped out(p) Hesperian origin and it has developed from divergent countries ideas and theories. This has forced a number of definitions of CSR. This can lead to amazement making CSR less efficacious. It is rice beering to observe that none of the definitions actually defines the tender responsibility of businesses, as so famously discussed by Milton Friedman (1970), but alternatively quarter it as a phenomenon.The Government sees CSR as a business contribution to sustainable development. However, the modern invention of CSR has been influenced by globalization and so CSR has developed and is construe in different context worldwide. (Crane, Matten, Spence, cc8). In addition, organizations much(prenominal)(prenominal) as the European Union (EU) see CSR as a concept integrating genial and environmental concerns in business operations and in their interactions with their stakeh centenarianers on a voluntary basis.However, others like Ethics in Action Awards (2003), describe CSR as a caller-ups obligation to be accountable to all of its stakeholders in all operations and activities (Dahlsrud, 2006). at that place are a number of debates raised in academic literature over the issue of to whom the business must birth responsibility. various authors have referred to the common approaches shareholder, stakeholder and societal approaches. According to shareholder approach, the classical view on CSR maximizing the acquire of shareholders (Friedman, 1962).This approach can as well be interpret as being that the familiarity should make contributions to the extent, to which it can be connected with the creation of long-run protect for the shareholders (Foley, 2000). From the stakeholder theory, it is clear that organisations should be accountable towar ds other groups of stakeholders, who can affect or be affected by a partys objectives (Freeman, 1984). The last approach, which is regarded to break out the broader view on CSR, argues that the organisations should be responsible to societies as a whole, of which they are an integral part.The hit out of the fol economic crisising literature retread is to identify the virtually valuable academic studies and essential practical investigations. The field of Corporate Social Responsibility can be divided into several split definitions of CSR, synopsis of CSR approaches, CSR in supply chain, CSR in developed countries as well as in developing ones, the link betwixt CSR and globalization and last, but not least the global catch of CSR. The history of CSR The development concept of Corporate Social Responsibility (CSR) has been carried out mainly in western countries particular(prenominal)ly in United States.Literature picks up the issue from the 1950s when attention was acc ordn(p) over to the responsibility of businessmen ( Bowen, 1953) to the 1980s when the controversy with stakeholder theory took place (Freeman, 1984) and of course, to the 1990s when close studies were employ to the depth psychology of the relationship in the midst of CSR and corporeal fiscal executing (Roman et al, 1999). In the beginning of the 1950s, Howard Bowen tried to give rational and systematic arguments in favour of CSR and its nexus with big corporations and their influence on social consequences and undoubtedly, their special societal responsibilities.The one of the earliest entertains on CSR, The Social Responsibilities of the commerceman, was written by Bowen in 1953. Bowens book was particularizedally concerned with the doctrine of social responsibility. Bowen argued that social responsibility is not panacea for all business social problems, but that it contains an all-important(a) truth that must guide business in the future (Asongu, 2007). Beca occasion of Bowens early and actually valuable formulate, Carroll has argued that Howard Bowen should be callight-emitting diode the Father of Corporate Social Responsibility (Carroll, 2000).The decade of the 1960s is characterized as seeing a growing interest in the formalizing or more precisely, defining the significance of CSR. 1 of the prominent writers in this period was Keith Davis, who later extensively wrote about the light upic in his business and society textbooks, later revisions and articles. He argued that social responsibility is a nebulous idea, but should be seen in a managerial context (Mahon, 1991). Another influential contributor to the early research into CSR was Friedman. The argument make by Friedman (1962) that the main corporations responsibility is toward shareholders has created much debate among academics.It was not until 1970, that Wallich and McGowan setoff make gets to demonstrate the link between corporations social responsibility and shareholders inter ests. They argued that the aim of corporations long-term interest should be linked to the environment to which a corporation belongs. If society and environment became worse, a business would lose their critical support structure and customer base (Keim, 1978). In the 1970s on that point are a wide turn over of reservoirs, increasingly being make to corporate social reactivity, corporate social performance as well as corporate social responsibility.In the 90s, literature tried to find out answers to questions much(prenominal) as why some companies are doing well and if CSR could be identified as a warlike proceeds. nigh(prenominal) academics and scholars started to apply the stakeholder theory to CSR, be arrange stakeholders, other than shareholders have interest in the well-being of a alliance in relation to employees, customers, governments and others. This model re smarted the interest in CSR and more research was devoted to this subject. besides, thither is owing(p) i nterest in the linkage between CSR and corporate competitiveness but bbbthither is a shortcoming of quantitative translation of socially responsible practices into detail results affecting the income and loss of particular organization (Murillo and Lozano, 2006). numerous scholars connect CSR with the competitive advantage that a familiarity can net income. The most known work in this field is Professor Michel Porters The competitive advantage of corporate philanthropy in which he describes how a caller is able to improve its long-term potential by linking pecuniary and societal goals (Porter, 003). Further development in this area was made by Kramer (2003). Problems with CSR research We know rattling critical about CSR initiatives and undoubtedly, there are some questions about both the efficiency of CSR approaches and the genuine benefits for stakeholder groups. Also, we know actually little about the social and environmental impacts of CSR initiatives. For example, man y business schools take apartd and devoted their works to strikeing the content of codes of conduct. They looked at detail issues much(prenominal) as babe boil, but they failed to study the wider societal impacts of CSR.The most notable study about societal impacts came from development study scholars, not from business schools. The study by Barrientos and Smiths (2007) reviled that there are, in particular in those countries where empirical investigation took place such as South Africa, India, Vietnam and Costa Rica, some benefits from codes of conduct and initiatives implementing CSR by multinational companies. However there are failures in the areas of noncompliance and ensuring the improvement of workss conditions.In addition to this, Barrientos and Smiths questioned the methods used by the business communities in investigating the societal impacts of CSR, doubting the efficiency of the tools used to observe CSR performance. Due to the lack of empirical study and ind orse regarding CSR impacts, there are lock analytic limitations in the circulating(prenominal) CSR field. For example, some academics (Lantos, 2001) wrote about conceptualization of CSR, further, current field of CSR and business scholars fail to answer life-sustaining questions.For example, how can CSR tackle a development challenge like poverty, without an understanding of the negative influence caused by multinational companies operating(a) in host communities? tear down if there is agreement about societal benefits of CSR initiatives, there is still uncertainty about the way in which CSR should be studied and analyzed. Lockett, Moon and Wisser (2006) argued that CSR knowledge should be best described as a continue state of emergence. Indeed, many scholars study CSR initiatives without any reference to hypothetic perspectives.Milton Friedman and other authors highlighted the agency problem of CSR for a long snip. For example, Friedman argued that the pursuit of societal and environmental objectives will undoubtedly hurt shareholders by lowering profits. However, other scholars like Margolis and Walsh (2003) oppose the arguments of Friedman. They found that, between 1972 and 2002, at least 172 empirical studies investigated the positive relationship between social responsible behaviour of an organization and its financial performance. Levels of CSRAnother main contribution to the development of CSR made by Carroll (1991), considered the economic, effectual, ethical and philanthropic levels of CSR. These levels represent what is required, expected and in demand(p) for CSR strategies (Crane, Matten, Spence, 2008). According to Crane, Matten and Spence, Carrolls pyramid of CSR is the most widely accepted definition of CSR. Until the 1980s, environmental corporate responsibility was the part of social responsibility, which was used as a frame term that runed a wide field of ideas. However, corporations became to understand the sizeableness of enviro nmental responsibility.For this reason, the concept of corporate environmental responsibility has started to be used by researchers such as Rondinelli and Berry (2000) in parallel with the development of corporate social responsibility by Carroll (1998), Maignan and Ferrel (2000) and Zarkada-Fraser (2004). CSR and Corporate Social Reporting The great number of scholars, who have since the 1970s (Fenn, Ackerman,), analyzed the Byzantine issue of Corporate Social Responsibility and the advantage of reporting on a wider scale, have given the possibility to evaluate social performance (Levis, 2006).The rootage of social reporting has been developed along with the CSR. The approach for researching reporting is different in comparison with old decades due to the growing number of organizations that have enhance a social report. (Belal, 2002 Bitcha, 2003 Weaver et al, 1999). The reason for the growing interest in this field is linked to come out in business ethics (Donaldson, 1999) a nd the significant importance of the stakeholder approach, which has led to an increase of interest in studying the causes and real meaning of the phenomenon.The present approach to social reporting activities can be divided into two parts fists, those who still think that it is a responsiveness approach and others, who argue that it is much more than talk it is a tool of strategic management. Research in CSR worldwide Cultural differences affect CSR dynamics as well as companies practising responsible behaviour. For instance, research by Juholin (2004) reviled that long-term profitability is the prominent driving constrict behind CSR in Finland. Research by Fulop et al. (2000) ascertained differences in CSR orientations between large and small firms.A sympathetic study by Uhlaner et al. (2004) suggests a mixture of CSR perspectives (economic benefits, legal, ethical and philanthropic considerations) as reclaimable in explaining variations in CSR orientations amongst Dutch firms . disdain cross-cultural and national differences, there are differences in the variety of methodologies take in examining and analyzing CSR. Some studies considered CSR as a philanthropic and ethical responsibility however other studies have made a distinction between CSR as artless legal compliance vs. CSR as conducting business with high regard for morality.As noted antecedently, the debate about CSR has existed since the 1950s. In the first academic papers, a narrow concept of corporate social responsibility was used. Most of the authors like Bragdon and Marlin (1972) and Spicer (1975), tried to approach CSR by means of and through the main social and environmental problems such as pollution and contributions to the local anesthetic community. The info used for their analysis was found on information issued by the Council on Economic Priorities. However they were not able to cover the whole aspects of CSR and their works were not valid for every manufacture (Dooley, 2004) .Later, a broader valuation and examination was provided by Moskowitz (1972, 1975). In his work he tried to cover almost every aspect of corporate social responsibility such as equal mesh opportunities, charitable contributions, just dealing with customers, product quality and more. CSR in developing world scorn the great interest in ethical and responsible behaviour in business, very little is known of the practise of CSR in developing countries. For example, Belal (2001) notes that there are a wide range of academic publications, describing CSR in the context of developed countries such as Western Europe, the the States and Australia.Also that we still know too little about practices of corporate responsibility in ex-colonial, smaller and developing countries. He suggests doing more research into developing countries as it will give a valuable insight to the western meaning of CSR in context (Jamali, 2007). There are no large scale developmental studies of CSR in developing cou ntries as there are in western countries. However, the CSR discussion traditionally revolved roughly the multinational companies operating in developing countries. The multinational companies re join forcesder to CSR has great impact on the future global CSR agenda.The first notions of corporate social responsibility in developing countries emerged in the 1960s amongst American companies operating in developing countries, oddly in Asia and Africa. maybe a simple definition, truly reflecting the responsible behaviour of current multinational companies operating in developing countries is presented by Davies, who suggested CSR as a model for the enjoyment of business in society. The implication of this definition is that it includes any society in which the troupe operates, including the global society (Engle, 2006).Within the Asian context, most academics paid attention to describing the organization aspects of environmental responsibility (Hong Kong Hills and Welford chinaw are Bi The Philippines Forsyth). In contrast, in India, Mohan has focused on social responsibilities and corporate citizenships. Also, there is some research into the normative aspects of CSR such as the evolution of business ethics in Taiwanese companies (Wu). In the study of CSR in Malaysia, Teoh and turnabout found that the most foreign multinational companies seemed more inclined to accept their responsibilities towards environment and society (Chapple, 2005).CSR in the Global Context CSR and multinational corporations. Relatively little is known about management of corporate social responsibility by multinational companies (Gnyawali, 1996). In general, little is known about the management of CSR in multinational companies, either practically or academically. While many areas of research have examined the nature of cultural or business preference to social equality (Adler, 1997 George and Jones, 2002 Lantos, 2002), there has previously been no research regarding the role of CS R in the expansion of organizations into new territories or cultures.The dominant theoretical approach to studying CSR practices among multinational companies, operating in developing countries, is the works of Bartlett and Ghoshal (1989) and Prahalad and Doz (1987), who tried to analyze general multinational companies management practices in CSR. This framework was then extended by Yip (1992) and Husted and Allen (2006) to cover CSR practices (Geppert et al. , 2006). The studies of these researchers enabled interesting insights such as how CSR is being managed, the potential barriers to successful implementation of CSR practices within national places into operation among multinational corporations.However, mainstream research of CSR was concentrated particularly on domestic issues such as labour issues, racial discrimination, the position of women and the environment. To date there has been limited analysis in the developing countries context, in particular regarding foreign mult inational companies. Further detailed analysis is mandatory of what instrumental, moral and relational motives exist in systems very different to the western context in which they were developed. CSR and Globalization With Globalization, CSR has been propelled into a global context.Ruggie (2004) identified deuce-ace particular aspects of social responsibility in the context of global governance. Firstly, nowadays it is expected that multinational companies will course new capacities and take care of issues such as functional conditions, healthcare and education as well as respect homosexual rights. So that, if corporations avow on setting up in developing countries, they are forced to consider challenges, normally associated with developing countries like poverty or kidskin labour. Nowadays, most multinational companies face a separate of new and challenging problems in this era of Globalization.According to Weber, Lawrence and Post, multinational companies are able to solve such problems. They have introduced the idea of Three welkin world, com shiny multinational companies, non political organizations and community. In their research, they analyzed both strengths and weaknesses of to each one sector and analyzed their contributions to solving global problems. The research method was ground on comparing searchs of two multinational companies in implementing CSR in developing countries (Young, 2008).Based on their findings, it is obvious that a collaborative partnership with community and non governmental organizations can carry better results in implementing CSR. Therefore CSR in the global context involves more than business implementation, it needs business cooperation with other organizations whose focus is great on CSR. From the vast majority of literature, it is clear that CSR has gained major significance in the era of Globalization and multinational companies should take responsibilities for their actions worldwide, specially in developi ng countries.Multinational corporations should transmit as a moral leader in an area where there are no legal requirements (Scherer and Smid, 2000). CSR is considered a Western idea, which has now to be utilise to problems in the developing world (Scherer and Smid, 2000). The literature redirect examination is an account of what has been anesthetize on corporate social responsibility it acknowledges the critical points highlighted by scholars and researchers. The literature review conveys what knowledge and ideas have been launch on corporate social responsibility and it enables further research to compare and contrast these ideas in parade to create new theories.Therefore a literature review provides the basis for the analytical framework of this research (Bryman, 2004). It has in any case helped with the interpretation of the results and has led to other questions being asked. The literature review to a fault highlighted that there had been little research carried out on t he societal impacts of CSR and implementation of CSR by multinational companies in developing world. This gives further importance and emphasis to the analysis of literature in giving rise to new questions and theories.The literature review has provided the framework of following cloudy research about corporate social responsibility of multinational companies in developing countries, in particular the problems and benefits of implementing of CSR and the role of huge corporations in this issue. The literature review has helped to identify key themes within CSR by multinationals and from this more questions have evolved. Chapter 3 Methodology In this research paper the case study was employed as the research strategy.Usually descriptive or exploratory research is associated with the case study, and this competency be particularly useful when the phenomenon under investigation is difficult to study out-of-door its natural setting. use case study research methodology is likewise he lpful when the concepts and variables need to be considered where experimental or survey methods are regarded to be inappropriate (Yin, 1994). plate study is used particularly in looking at the specific questions such as how and why that is set in the modern-day environment (Yin, 1989) Case study methodology has a draw of advantages over some other methodologies.First, it allows the use of multiple selective information collection techniques in revision to build a more comprehensive house painting of the case being investigated. Second, this in turn leads to the ability to capture both qualitative and quantitative info. Case studies can provide a solid understanding required for hypothesis development that then leads to ameliorate theory development. The main advantage of case based research is that results are considered to be interesting and important and can shift the focus of investigation towards a new area of interest (Scapens, 1990).The case study is usually considere d more accurate, divers(prenominal) and rich, if it is based on several sources of data (Alasuutari, 2000). Advantages of use secondhand data for research purposes As the research is concerned with multinational companies operating internationally, secondary data will likely provide the main source of necessary information. As our research strategy is case study, it is better to use compiled data that have already been sorted or summarised (Kervin, 1999).Secondary data can be obtained from different sources aimed at the same geographic area, where our case study takes place such as the Coca-Colas crisis in India. Area-based multiple sources of data are usually easily available in different forms, especially in print forms. Also tracking the original source of secondary data is much easier, especially when time restrictions are severe. As it will be a case study, it is unshakable preferable to use compositions, journals and media on a regular basis, as they may provide recent regularts within the business world. Research will concern the specific country i. . India, data from government sources are also useful due to their high quality. Because of time constraints, secondary data can be obtained very readily, in addition they have better quality standards in comparison with hive away own data (Stewart and Kamins, 1993). Using secondary data within collection also has a wide range of benefits, as they have already been roll up and analyzed (Cowton, 1998). Unlike the data collected by myself, secondary data are permanently available and easily additionible, so that it can be checked relatively easily to others (Denscombe, 1998).Problems with collecting immemorial data for research purposes Access for some chief(a) data can be arguable and difficult. Therefore it is unlikely that gaining permission for tangible gate will be easy and will be time go through. As an interview is way for collecting primary data, however it is difficult to seek glide slope to a range of participants such as employees, suppliers, customers and other stakeholder groups. The main cause might be restricted access to alliances data either directly or indirectly (Bunchanan et. al. , 1998 Raimond, 1993).As a plenteous time grasp student, you are not able to have prior(prenominal) contact with huge multinational companies and you will be required to negotiate in hallow to gain any access to each level of information. Also, the major obstacle in obtaining primary data is time constrains. There is not sufficient time for all methods of collecting primary data, as physical access may take weeks or counterbalance months (Bunchanan et. al. , 1998). Even, if there are time allowances, nobody can secure that replies will be quick and contain all necessary information.In case of opportunities for conducting interviews, undertaking questionnaires or zesty in observation, unfortunately, this would take several weeks. Whichever method will be chosen, alm ost all methods for gathering primary data are very time consuming (Bryman, 1988). However, due to the growing significance of the topic, many researchers have used primary data to conduct research. They collected primary data through interviews, observation and questionnaires. There are some examples of case study based research approaches.The implementation of CSR in developing countries was examined by Christina L. Anderson and Rebecca L. Bieniaszewska in the paper The Role of Corporate Social Responsibility in Oil Companys Expansion into impudently Territories. The aims of the study were to analyse the role of CSR in British Petroleums overall business strategy and to examin the benefits of employing CSR as a part of business strategy when it was operating in new territories and cultures. The case study approach was conducted through providing interviews with representatives from BP, social auditing and accounting specialists.Recent company reports and website information were also examined. Another example came from Richard Welford and Stephen Frosts research that provides an overview of CSR practices in Asia. The aim of the research paper is to review the benefits of the implementation of CSR in supply chains and arising obstacles. In crop to collect data for research purposes, interviews were under taken with six CSR managers running(a) for well-known brand corporations, ten factory managers and eight CSR experts. Interviews were held confidentiality and anonymously.All participants have extensive experience of CSR issues and provide a good overview of the challenges for CSR by multinational companies in Asia. The case study based approach showed that multinational corporations such as banquet, Nike, Reebok, operating in Asia, are still happen upon to be criticized because they were not 100% perfect, failing in right(a) implementation of CSR as well as supervise. Another example of a research case study came from Ian Har woodwind and Stuart Humb y from the University of Southampton in their research paper Embedding corporate responsibility into supply A snapshot of throw out.Their research adopts a case study methodology, with specific focus on an exploratory cross-case analysis. Along with the rewrite literature review, methods included nine semi-structured interviews (1. 5 hours each), followed by conversations with different public and private organisations, which concerned CSR issues as well as dialogues with other universities working in the field of corporate responsibility both topically and internationally. Some participants asked about anonymity and confidentiality. Consequently, ethical issues were considered during the demonstrate of gathering data.Nine companies were large enterprises, operating in multinational markets. The respondents were senior managers and directors in either procurement or CSR related roles. The aim of research was to identify the CSR practices in companies, the processes of implementi ng CSR in supply chain including the management of jeopardy and performance management. Also, views on the problems for future development of CSR were analyzed. Corporate Social Responsibility became an important issue in the late 20th century. However, there are still several large companies, behaving unethically within society.Many companies have forceful that they govern their social responsibility and behaviour, but more often than not, this is only on paper. There are countless cases that can be examined for corporate social responsibility of multinational companies in developing countries. Ten well known companies were chosen, because all of them were criticised for corporate social irresponsibility and failures in fulfilling their obligations towards society and environment. Reebok case I do not know that anybody has bought a pair of Reebok fit outs because of its gentlemans gentleman beings rights programme.But we are a global corporation and we have an obligation to gi ve back to the communities in which we live and work. -Doug Cahn, Director of piece Rights Programmes, Reebok international limited emphasize US-based Reebok International contain (Reebok) is one of the leading(p) footwear companies in the world. With over a hundred years of operations in the footwear industry, Reebok has operations in over clxx countries across the world, most of which in developing world (Reebok, 2009). Reebok has its own Corporate Social responsibility however Reebok joined the companies that were accuse of human right issues.Reebok instituted a Code of go on, also known as Reeboks human Right Production (appendix 1) to consecrate working conditions, especially in developing countries. However, despite measures and regulations taken by the company, the company still have several allegations against them concerning human violations, for example in Chinese factories. Analysts felt that the measures taken by company were not appropriate and that Reebok shou ld regulate this problem in order to enhance its range as a socially responsible company (Aaron, 1999). CSR of ReebokReebok established and become a member of Business for Social Responsibility they monitored human right nuisance through audit and video camera facilities. They launched a project called Educational Assistance in Pakistan and proletarians converse System in Indonesia in order to vitiate working violence and conducted training programs for factories in developing countries. All theses initiatives helped the company improve its social image. Reeboks problems in China Like most of its competitors, Reebok has a wide range of sub-contractors in China due to low production costs.Independent research agencies reported violations occurred in most Chinese factories. They highlighted the ineffectiveness of Reeboks monitoring system. They revealed that recompense were not paid according to righteousnesss, overtime hire were also violated, women were not treated properly and the absence of any workers unions. It was also found that tykeren aged between 13 and 15 were being employed. In addition workers suffered not only mentally, but also physically due to the lack of any appropriate conditions at work and unsuitable accommodation (China ram Watch, 2002).All of these issues deprived workers of their human rights. Criticisms Since such problems were identified, Reebok tried to take measures immediately. Through these measures Reebok es narrate to solve the problems including forced labour, low wages, claw labour, physical and other types of ill-treat. However, many reports continued to be published showing human violence in factories. For example, China apprehend Watch argued that in order to hold on human corrupt, the actions were not sufficient and violations were still occurring (China Labour Watch, 2002).KFC (Kentucky Fried Chicken) case The chicken they serve is full of chemicals, and the birds are given hormones, antibiotics and arsenic chemicals to make out them quickly -Nanjundaswamy, founder-leader of the Karnataka Rajya Ryota Sangha. place setting By 2004, KFC emerged as one of the worlds most popular chicken restaurant chains. With more than 11,000 restaurants in nearly 80 countries, KFC served nearly eight zillion customers worldwide every day (KFC, 2009). KFC in India KFC is one of the multinational companies entering the Indian market.However, a flowerpot of economists and nutritionists opposed and criticised KFC for many reasons. They argued that first it was nemesis to domestic business and a cultural invasion secondly it would cause a high rate of obesity, brass disease and cancer due to the sodium and cholesterol contained in fast food for thought. For example, the Municipal Food quizzer found out that some of KFCs chicken contained three times more monosodium glutamate than regular chicken (Ray, 1995). For the first time, KFC was criminate processing Junk food in a poor country like India, where malnutrition problems are severe.PETA (People for Ethical Treatment of Animals) accused KFC of cruelty to chickens and not providing care for the birds in its factories despite the fact that KFC has published standards to guarantee humane treatment for its birds. PETA also give tongue to that because of such cruel attitudes towards animals, KFC must not enter India (Ecologist, 1995). As Pankaj Batra, director of Indian sub -continent pointed out that KFC was obligated to require its suppliers to follow the welfare guidelines for proper animal treatment (Thaiindian press, 2003).However, some opponents like the Indian Government tried to justify KFC by formula that multinational companies like KFC would create more employment and improve infrastructure. Though, in veracity as Nanjundaswamy argued, fast-food companies brought jobs only for a handful of educated nation and the poorest passel are left(a) without job opportunities. Apart from the threat to local agriculture, t here is another threat as mentioned by Nanjundaswamy. This is that the company gives chemicals and antibiotics to the chickens in order to fatten them quickly.He called the chicken chemically poisoned (Newindpress, 2003). Ecologists also participated in the activities against KFC. They claimed that coal scuttle new fast food outlets meant more chalk like paper cups, bags and plastics on the streets. Wal-Mart case As one of the largest companies in the world, with an expanding global presence, environmental problems are our problems. -H. Lee Scott, President & chief operating officer, Wal-Mart Stores, Inc. We dont know whether Wal-Marts environmental neuters are real or a Machiavellian attempt to green-wash a declining public image.But its long record of haughty behaviour forces one to be sceptical -Chris Kofinis, communications Director, wakeupwalmart. com Background Wal-Mart, the worlds large retailer, operates in many developed countries as well as developing ones like China, Costa-Rica, Honduras and others. Its ultimate aim is being a to the full environmentally sustainable business. The company intentionned to use more renewable sources of energy, recycle waste, and sell more organic food in its store. However, analysts highlighted that Wal-Marts international operations had mixed results.There are a lot of criticisms from environmentalist, traders and compensate politicians. Wal-Mart was accused of violating environmental laws, indulging anti-trade union policies, paying(a) low wages, sourcing cheaper products from exterior US and indulging in sex discrimination (Butler, 2006). Wal-Marts initiatives As a leading world retailer, Wal-Mart launched many programmes and initiatives in order to carry through its goal to be sustainable towards society and environment. They established Sustainable value networks, started to sell organic food at prices that were lower in comparison with its competitors and organise health oriented programmes.Experts opin ions Some critics saw Wal-Marts activities as a tool, an investment in its reputation rather than in sustainability. They felt that the sustainability measures were the tool to divert public criticisms such as environment abuse, violation of air and water pollution laws, which faced the company. They argued that company lacked its long-term commitment to the cause (Butler, 2006). However, in spite of some criticisms, some environmentalists were truly optimistic that Wal-Mart was going to become an environmentally sustainable entity.Also many analysts urged the company to work toward better wages and healthcare benefits. Wal-Mart has to show the results on the ground in order to prove its commitment towards sustainability and continue with sustainability initiatives, if it wants to improve its image as a corporate socially responsible multinational enterprise (Roberts, 2006). come on case As a responsible food company, I dont like to have an image that I am behaving unethically? Pe ter Braberk, CEO of Nestle, 2003 Background Nestle is one of the largest multinationals, with over 200 factories worldwide.Nestle had been accused several times of selling genetically modified products without appropriate labelling, for supporting the use of child labour in some factories and for other reasons. Most of the controversies that Nestle was embodied have involved developing countries. Nestle in its corporate social standards, affiliated itself as a responsible, sustainable business entity, promising good working conditions, health, nutrition, and support for the community. However, as reality shows, Nestle carried out socially irresponsible practices in most developing countries.Nestles social irresponsibility Analysts argued that the main reason practicing corporate social irresponsibility by Nestle in the developing world was unmarked was because laws and procedures are considerably more lax compared to those in more developed countries. The company was criticized fo r its unethical practices such as victimisation infant milk pulverization (which is harmful to health) in developing countries. By providing unthaw samples, Nestle defended itself as being socially responsible and doing it for the benefit of poor women in developing countries.Also, Nestle failed in providing good working conditions, as it had promised previously as well as child labour was employed on plantations (Megan, 2001). For example, UNICEF studies revealed that over 200,000 children worked on the plantations during the yield of coffee and coffee beans (Unicef, 2008). One of the more worrying revelations was that most of the workers had been trafficked i. e. bought and interchange, making them practically slave labour. Nestle purchased cocoa from these farms despite its awareness of the conditions of the labourers.Nestle was also accused of reselling products rejected in Europe to developing Asian countries (Sinha, 2000). Kimberly-Clark Corporation case This is a compa ny that claims to be a leader on the environment preliminary. Unfortunately, when you dig into the claims, you come up with a very different story -Richard Brooks, a conjure coordinator at Greenpeace, 2006 Background Kimberly-Clark Corporation (K-C), the paper-based consumer packaged goods giant, take a top position in the Dow Jones Sustainability World Index (Faircompanies, 2008). K-C has a good history of CSR and takes a leadership position in corporate sustainability.However, it has faced a lot of criticisms from its stakeholders and in particular from environmental protection groups such as Greenpeace who asseverate that the company used thoroughgoing(a) fibre from forests instead of using recycled fibres (Baue, 2005). CSR of Kimberly-Clark Corporation As any multinational company Kimberly-Clark has policies protecting the environment such as development an environment plan from product design to disposal. The company also adopted energy conservation programs, Child Labour and Worker exploitation policies in most developing countries.In each report, K-C outlines its responsibilities as a good corporate citizen. K-C emphasized that sustainability and good environmental practices are keys to doing good business. Criticisms Despite many environmental initiatives, K-C had been accused of destroying ancient forests for manufacturing, using only 19% recycled material instead of 60% used by other companies (Greanpeace, 2008). For such attacks K-C defended itself by arguing that they used virgin fibre only for producing facial tissues. There are some anomalies between that claim made by the company in its environmental reports and its actual record.It appeared that in reality, they used wood fibres from ecologically significant established areas, though the company previously considered it as protecting such environmentally significant areas (Ethical Consumer, 2007). Nike case Nike is being hypocritical in its support of childrens programs in public schools w hile exploiting child labour in its factories -The Canadian Catholic formation for Development and Peace Background Nike is the one of the biggest sports shoe manufacturers, having suppliers around the world, mostly in developing countries.Nike repeatedly claimed that it was not going to tolerate worker maltreatment in its Asian factories. It had its own Code of Conduct and required its suppliers to obey on issues like wages and working conditions, written into the companys corporate standards. However, Nike did not show any real interest in addressing those issues. It was accused of unethical treatment of workers by supervisors, of payment that is down the stairs the legal minimum wage and sexual abuse of several female workers at Nike shoe factories. In addition, Nike did not take adequate health and safeguard measures and turned a blind eye to child labour.Nike violated overtime wages, night shift wages and weekend and holiday wages. Nike had been accused by Californias consu mer law agency that it had mislead the public about working conditions for its Vietnamese, Chinese and Indonesian workers. For example, female workers in Vietnam were maltreat physically, verbally and sexually by factory managers (Vietnam Labour Watch Report, 1997). Nike response Nike, as a famous, well known, multinational corporation, denied that it employed unfair labour practices. In order to defend itself, Nike tried to convince the public that they operated in socially responsible manner.Nike showed videos of working practices in Indonesia, Thailand, China and Vietnam factories. As Nikes manager said, they are a very open company and do not have anything to hide from the public and community in which Nike operates (www. nike. com). But in spite its initiatives, Nike was not effective in monitoring and regulating. In reality Despite Nikes claims about sustainability, Nike workers were still paid wages that were below that legal minimum. As Leila Salazar, Global Exchanges corp orate duty director said, Nike still abuses workers right like harassment, violence, long overtime hours and others (Richman, 2001).Analysts said that in spite of its good image in the USA, Nike was a very different company in Asian countries (Herbert, 1997). According to Patrick Coughlin, one of the lawyers, fighting against Nike, argued that Nike has to either disclose its attitudes towards workers or change working conditions (Josh, 2001) apple iPod case orchard apple tree has a zero tolerance policy of any instance, isolated or not, of any treatment of workers that could be interpreted as harsh -International Herald Tribune (IHT, 2006) Backgroundorchard apple tree is the worlds leading multinational enterprise, producing and selling electronic products such as computers, software program and other electronic equipment. As any large corporation, Apple has its own manufacturers in China and as practice shows, Apple has received a lot of criticisms from civil society organizat ions regarding workplace standards. Criticisms on iPod in China Despite the fact that Apple was act to ensure that its working standards were implemented in all factories, there is still evidence about working hours, payment and other workplace issues including the use of hazardous chemicals.The Mail on Sunday in June 2006 alleged that iPods were made in poor working conditions. The newspaper claimed that Apple employed 16 years old workers, provided one dormitory for 100 persons, required to work 15 hours per day and last, but not least had military-style drills in factories (Joseph, 2006). Tanya Klowden (2006) analyzed Apples irresponsibility and concluded that Apple iPod should put at least some trade budget into to trying to promote itself as a socially responsible company, towards movement in implementing working ethics in its suppliers premises (Klowden, 2006).Another critic came from China Business News reporting that the factory did not provide simple seats for workers and made workers stand for up to 12 hours while working (Soong, 2006). Since such events, in addition environmentalists have accused Apple of not having a computer recycling program. Apples response As any well known brand corporation, Apple tried to defend itself in front of the public. It had posted its own findings in the media and online. Several points were worth noting.Apple claimed that audits found some violations to its Code of Conduct as well as other areas for improvement and that Apple was working with suppliers in developing countries to address these issues. However, some analysts argued that Apple must ensure in providing good working conditions before such incidents took place (Kahney, 2006). As mentioned in their Code of Conduct, Apple iPod committed itself as a socially and environmentally responsible company, ensuring that the people around the world work under safe, fair and legal conditions. However, in reality Apple could not protect workers rights. recess case It is easier for the Gap to cancel its orders and move someplace where there are no unions than to say they will make sure that the rights of their workers are saved -Deisy, ex-Gap worker who lost her job for being a union organizer in El Salvador Background Gap Inc is a leading international retailer, operating through 3070 stores across the world with suppliers and factories in many developing countries in Asia as well as in Africa. Gap took several initiatives in order to support communities in which it operates. It has its own Code of Conduct.However, there were some serious questions raised about the working conditions in developing countries, which operated in behalf of Gap. Several human rights groups accused Gap for maintaining factories where workers were treated badly and where there was no hint of social responsibility. They found that low wages, various restrictions (contracts that forbade workers to quit, marry or organize and join labour unions), unhealthy and unsafe wor king conditions were usually in practise (Engler, 2004). Such issues happened in most developing countries such as Indonesia, El Salvador, etc where Gap has its factories.Gaps Corporate Social Responsibility and initiatives Gaps name was closely tied with the scandals about abuse of human rights in most developing countries. There were a lot of aggressive global movements and strikes for workers rights in developed countries as well as in developing ones. Gap started to implement Code of Vendor Conduct in all factories manufacturing Gaps products. Gap also maintained monitoring programmes and collaborated with partners worldwide in order to solve such problems. Criticisms of Gaps CSR When Gap started to face a boycott against its products, it started to produce CSR reports.However, CSR reports are subjected to criticisms from agencies for just being a public relations activity. Also, critics noted that Gap did not provide reports for its whole range of factories. Gap did not publi sh its suppliers names, but critics believed that this was a tool to resist outside monitoring. Even though there were a lot of activities against unethical practices in Gaps factories, it seemed that several retailers remained to be unaffected by public allegations and continued to behaviour irresponsibly (Engler, 2004).Cocoa Industry case We need to be permanently concerned with where cocoa comes from, the impact of coca on the environment and how the workers are treated. Thats where the industry has changed, permanently and ever -Larry Graham, the President of the Chocolate Manufactures Association, the American industry trade Group Background Child labour, child trafficking and slavery became prevalent and held within the cocoa industry in West Africa. The increased campaigns raised its awareness of child labour abuse.This is crucial question and issue and in order to raise public awareness of child labour abuse, most consumers boycott of deep brown fabrics products. The pro blem of Child Labour in West Africa 70% of cocoa beans are produced in West Africa, especially in Nigeria, Ghana and Cameroon, which are the major producers and exporters of cocoa (Antislavery report, 2004). In 1998, International Labour Organization revealed that the practise of child slavery occurred in the cocoa palm (Rawfoodinfo, 2008). UNICEF reported that in Ghana over 200,000 children were sold into slavery (Global Exchange, 2006).Since such events have come to light the international civil society organizations, governments and the cocoa industry acknowledged that it is necessary to address the child labour issue and implement some initiatives. Corporate Social Responsibility initiatives The cocoa industry recognised that it requisite to address labour issue in order not to damage the image of industry. All multinational manufactories and retailers using cocoa from Africa such as Nestle, Mars, kraft paper Foods and Starbucks Coffee Company contributed and became members of World Cocoa Foundation, whose primary aim is to destroy the practice of child exploitation.The chocolate industry launched programmes for eliminating child slavery and certifying that no form of child labour would be employed in the production of cocoa and chocolate. As US Senator turkey cock Harkin said, it was good evidence that any chocolate or other cocoa products were not made by childrens hands (Chatterjee, 2001). The objective of this CSR initiative was to enable children to go to school, instead of working full-time in order to help their families. Criticisms Despite all above mentioned, analysts pointed out that the cocoa industrys promises were still unfulfilled.There were no signs of progress even after three years since the first steps were made. Analysts claimed that it was a public relation tool, not an attempt to tackle problem of child labour and multinational companies also did not show their willingness to participate in solving and destroying child labour probl ems (Peel, 2004). As social scientists emphasised, even if consumers continue to boycott the goods made by child labour, such measures are unlikely to snuff it the problem at all.Economists and researches like Pham Hoang Van and Kaushik Basu pointed out that total elimination of child labour might cause much worse consequences such as acute hunger or starvation, or even worse occupations like prostitution (Basu, 1999). Without doubt, such arguable issues need to be solved or at least to be changed. Philip Morris case We dont want kids to smoke. Were escalate our efforts that we started a number of years ago by launching this new take in-intervention, starting with these ads -Michael E. Szymanszyk, chairman and CEO, Philip Morris USA BackgroundPhilip Morris is the worlds largest tobacco plant company, owing the worlds largest-selling cigarette brand since 1972. As any tobacco company, Philip Morris singed the agreement for not targeting preteen people. However, as it was observe d, Philip Morris continued to target the fresher population. For example, the company grassed concerts where an auditorium was attended fully by five-year-old people, or it advertised cigarettes being offered to young girls and boys. This is considered to be irresponsible such advertisements can have impacts on young immature minds.Many critics argued that even Philip Morris tried to take measures however it was only made in order to create positive publicity rather than actually funk youth smoking. For example, Kathryn Kahler Vose, the communications director of Campaign for Tobacco- liberal Kids, pointed out that Philip Morris tried to buy respectability, though in reality it was a Public Relations exercise (Tobaccofreekids, 2003). All of attacks came from the media despite the fact that the company previously acknowledged itself as socially responsible and promised to sponsor independent research on public health.Criticisms Philip Morris as a harmful tobacco company is the spirit of public, media and government attentions. The Wall Street Journal in an article, accused the company of being the major cause of peoples deaths. As a survey showed, a 50% share of the market belongs to Philip Morris Company (Alsop, 2001). Critics claimed that the multinational tobacco companies were using large marketing budget to attract customers, especially young people. The government emphasized that the company was misleading the public about the risks of passive smoking and so called light cigarettes (Economist, 2004).They charged that the company be to customers about the hazards of smoking and tried to hide scientific evidence about it. They charged that they intentionally made people addicted to nicotine and sold cigarettes to smokers who were below the permitted age as well as causing many diseases like cancer, heart disease and so on (Economist, 2004). Philip Morris initiatives As any multinational company operating worldwide, the image and reputation of its bra nd is a very important intangible asset. So scandals regarding a companys social responsibility can significantly damage a well known brand.The first reactions of Philip Morris were to improve its reputation, as it was surely expected. The company intended to reposition itself as a socially responsible business entity through new anti-smoking campaigns. In order to prevent teenagers from using cigarettes, the company cut down its advertising and started to responsibly pay attention on what it advertised, its impacts and the targeting population. However, many analysts are confident that despite the companys efforts towards establishing corporate social responsibility, it is a simple tool for refurbishing its negative image (Tobaccofreekids, 1999).Some experts remarked that if Philip Morris aboveboard wanted to reduce youth smoking and to be a responsible company, it had to end its marketing practices that attracted young people (US. newswire, 1999). However, in reality, it is appea red that they increased their marketing campaign to young people. Chapter 4 Findings and Discussions Coca-Cola case Coca-Cola India undertakes a diverse range of activities for the benefit of the community across the country. As part of our CSR strategy, sustainable water management system our top priority -Deepak Kaul, Regional Vice-President, South, the Hindustan Coca-Cola Beverages Pvt.Ltd. , in 2007. It is India where the companys abuse of water resources have been challenged vociferously and communities across India surviving around Coca-Cola bottling plants have organized in large numbers to demand an end to the mismanagement of water In response to the growing Indian campaigns against Coca-Cola, the company has decided to promote rainwater harvesting a traditional Indian practice in and around its bottling plants in India. Touting rainwater harvesting initiatives is now interchange to Coca-Colas public relations strategy in India -Amit Srivastava, Coordinator of India i maging Center, in 2007.Background Coca-Cola established its first plant in India in 1950 and remained on market till 1970s. Because of the Indian Governments request to share the secret formula of coke, Coca-Cola left the Indian market. After an absence of about 16 years, Coca-Cola re-entered the Indian market in the early 1990s, when economic liberalisation took place in India (CokeFacts, 2009). Nowadays, Coca-Cola is the largest multinational corporation operating in India and is considered to