Csr Initiatives of Mncs: Opportunities and Challenges
Introduction
In recent times, there has been an acceleration of multinational corporate activity, generating wide attention and criticism. In the era of globalization, Multinational corporations (MNCs) that conduct business across national boundaries in many countries are no longer able to conduct destructive and unethical practices under protective radar. With a dramatic proliferation of media attention, propagation of nongovernmental organizations (NGOs) and global information sharing, there is a surging demand from civil society, consumers, governments and shareholders for corporations to conduct sustainable business practices. The corporate response has often meant an adoption of ‘a new consciousness’ (Anupama Mohan, 2006). In fact, 95 per cent of the 250 largest global companies now report on their CSR activities (KPMG, 2011).
The main focus of this paper is to critically discuss corporate social responsibility initiatives of multinational corporations operating in global arena and to build around the idea that in order to stay competitive and at the same time remain as ‘responsible entity’ in the eyes of stakeholders MNCs ought to implement CSR initiatives as an integral part of their business strategies in the context of opportunities and challenges emerging markets imply.
The paper is structured as follows:
The next section provide a review for some of the relevant literature regarding drivers of CSR in MNCs. Necessarily selective approach has been taken to review the literature due to its complexity and size. This is followed by an overview of major CSR practices by MNCs worldwide. The paper then concludes with a consequent discussion of the importance of CSR initiatives to MNCs overall business strategy and sustainability of their businesses.
Drivers of CSR initiatives
There are numerous drivers of CSR from MNCs, including powerful institutions, such as government and stock exchanges. These drivers put requirements into place along with voluntary
In recent times, there has been an acceleration of multinational corporate activity, generating wide attention and criticism. In the era of globalization, Multinational corporations (MNCs) that conduct business across national boundaries in many countries are no longer able to conduct destructive and unethical practices under protective radar. With a dramatic proliferation of media attention, propagation of nongovernmental organizations (NGOs) and global information sharing, there is a surging demand from civil society, consumers, governments and shareholders for corporations to conduct sustainable business practices. The corporate response has often meant an adoption of ‘a new consciousness’ (Anupama Mohan, 2006). In fact, 95 per cent of the 250 largest global companies now report on their CSR activities (KPMG, 2011).
The main focus of this paper is to critically discuss corporate social responsibility initiatives of multinational corporations operating in global arena and to build around the idea that in order to stay competitive and at the same time remain as ‘responsible entity’ in the eyes of stakeholders MNCs ought to implement CSR initiatives as an integral part of their business strategies in the context of opportunities and challenges emerging markets imply.
The paper is structured as follows:
The next section provide a review for some of the relevant literature regarding drivers of CSR in MNCs. Necessarily selective approach has been taken to review the literature due to its complexity and size. This is followed by an overview of major CSR practices by MNCs worldwide. The paper then concludes with a consequent discussion of the importance of CSR initiatives to MNCs overall business strategy and sustainability of their businesses.
Drivers of CSR initiatives
There are numerous drivers of CSR from MNCs, including powerful institutions, such as government and stock exchanges. These drivers put requirements into place along with voluntary
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