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CSR: How can your corporation best behave in a socially responsible and ethical way toward the societies it has entered?

Library Research Project

We are witnessing a large number of multinational corporations (MNCs) getting involved in philanthropies and local communities'development activities (such as providing financial aid to remove illiteracy and poverty, creating health and safety awareness programs, etc.) in the countries in which they have operations. Discuss the following:

1. Why are MNCs getting involved in such activities? Are they displaying a sense of social responsibility, or is this merely good business?
2. Does motivation matter if either way the effort contributes to society? Why or why not?
3. What is the responsibility of the multinational corporation in the countries in which it has business?
4. How can your corporation best behave in a socially responsible and ethical way toward the societies it has entered?

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1. Why Multinational Corporations (MNC) are getting involved in philanthropies and local communities, and whether it is a display of social responsibility or merely good business:

Multinational Corporations get involved in philanthropies and local communities as a strategic move to make a positive impression and raise their company profile with the local community. This helps them creating a positive image within the area and therefore make doing business in these regions easier. Since the world is becoming more globalized, flat and competitive, and people have become more informed and are able to analyze a companies business operations and its effect on their local communities, it has been imperative that multinational corporations show they are not only responsible in their way of doing business but that they also care about the local communities. Through this their business operations become more accepted in these markets and they are able to build up goodwill, and enhance their reputation and their brands (Reputation Institute, 2011).

The activities of MNC on social responsibility have mainly been justified based on the premise of the need to balance between shareholder interest and interests of other stakeholders in the business. Studies done to link the relationship between corporate social responsibility and corporate performance of a business found that higher social performance resulted to higher financial performance due to increased goodwill of the companies' products, enhanced brand and good reputation that the business builds (Reputation Institute, 2011). Likewise it has been found that most business often align their social and philanthropic activities with their business strategies and would therefore most likely get involved in activities that make good business sense to their ...

Solution Summary

This solutions discusses corporate social responsibility and multinational corporations in 978 words, with three references.