CSR is an evolving business practice that incorporates sustainable development into a
company’s business model. It has a positive impact on social, economic and
environmental factor<\/p>\n\n\n\n
CSR in International Business<\/p>\n\n\n\n
A popular definition of CSR comes from the World Business Council for Sustainable
\nDevelopment which states that it is<\/p>\n\n\n\n
\u201cthe continuing commitment by business to behave ethically and contribute to
\neconomic development while improving the quality of life of the workforce, their
\nfamilies and the local community and society at large.\u201d<\/p>\n\n\n\n
CSR initiatives engaged in by
\nMultinational companies<\/p>\n\n\n\n
CSR initiatives engaged in by Multinational companies(MNCs) can be categorised
\nthus:<\/p>\n\n\n\n
CSR for global talent acquisition and retention<\/p>\n\n\n\n
CSR for branding and reputation management<\/p>\n\n\n\n
CSR as regulatory requirement<\/p>\n\n\n\n
CSR as philanthropic engagement\/initiative<\/p>\n\n\n\n
- CSR for global talent acquisition and
\nretention<\/li><\/ol>\n\n\n\nThe basis for CSR as a strategy for acquiring and retaining global talent for MNCs is
\nthat in both theory and practice it has been observed that just as companies succeed in
\nthe market by fulfilling the needs of the irrespective customer base, they can manage
\ntheir employees best by viewing them as internal customers, fulfilling their needs
\nthrough a compelling menu of \u201cjob products\u201d.<\/p>\n\n\n\nBy engaging in CSR initiatives that are both specific and relevant, the values of company are revealed and as such, its values can act as an \u201cEmployee Value Proposition\u201dwhich is \u201cthe holistic sum of everything people experience and receive while they are a part of a company.\u201d This can be effective in building and sustaining a talented employee base.<\/p>\n\n\n\n
- CSR for branding and reputation
\nmanagement<\/li><\/ol>\n\n\n\nCSR can impact companies\u2019 reputation positively, helping them improve their reputation with stakeholders and be more resilient in times of crisis. Still, companies need to work hard to make sure stakeholders are aware of their efforts and that these efforts are sincere. Only then the promise of CSR-reputation relationships can be fully realized.<\/p>\n\n\n\n
- CSR as regulatory requirement<\/li><\/ol>\n\n\n\n
CSR regulation by government may come in the form of requiring that Environmental
Impact Assessment report be produced before any development that would have a major impact on the environment and communities around it is carried out detailing measures that would be taken to mitigate its adverse effects.<\/p>\n\n\n\n- CSR as
\nphilanthropic engagement\/initiative<\/li><\/ol>\n\n\n\nthe context of CSR as a philanthropic engagement and initiative of charity can better be understood. CSR, as many have argued, is not corporate philanthropy as in giving money away just because of some sentimental reasons, given that there is an overflow of financial capabilities; CSR is about giving back to the community voluntarily and in a mutually
beneficial way, yet not totally within the remit of business activities. CSR is an engagement in enlightened self-interest. Organizations make long-term investments usually buying intangible investments in the long run by making tangible payments in the near term.<\/p>\n\n\n\n\u201cCompanies are finding an increasing need to depend on value adding activities such as corporate philanthropy in order to distinguish themselves from their competitors and cultivate goodwill among st their stakeholders. The money they plough into philanthropic activities should not be viewed as a sunk cost. Instead companies should view it as an investment for the good of the overall firm\u201d<\/p>\n\n\n\n
Policy implication of CSR<\/p>\n\n\n\n
Good CSR practices need framing of code of conduct<\/p>\n\n\n\n
CSR practice need legal back up, apart from voluntary philanthropy<\/p>\n\n\n\n
CSR should be synergy of government -private \u2013social organizations<\/p>\n\n\n\n
- Good CSR practices need framing of
\ncode of conduct<\/li><\/ol>\n\n\n\nFraming \u2018Code for good CSR practices\u2019 requires extensive deliberations among various stakeholders. The key stakeholders are management of corporate entity\/body, employees of corporate body, government regulatory authority, members of community and Non-Governmental organizations.<\/p>\n\n\n\n
The process for development of \u2018Code for good CSR practices\u2019 may commence with a discussion session on CSR during regular training \/orientation\/on-job training programmes taken by the corporate body\/company.<\/p>\n\n\n\n
- CSR practice need legal back up, apart
\nfrom voluntary philanthropy:<\/li><\/ol>\n\n\n\nAlthough the forced changes do not bring lasting solution, there is need for consensus on basic objectives and purposes of CSR and common strategy for the same. Once this consensus is achieved, law makers can work for necessary amendment in Companies Act and CSR may be made compulsory for all corporate citizens (provided they have profit). Such legal sanctity may boost CSR activities in the country.<\/p>\n\n\n\n
- CSR should be synergy of government
\n-private \u2013social organizations<\/li><\/ol>\n\n\n\nGovernment, Business Associations (CII, FICCI etc.), Spiritual organizations,
Gandhian Institutions and other social organizations may come together to form the lasting strategy for effective CSR.<\/p>\n\n\n\nIt would be ideal if government fund is supplemented by fund provided for CSR activities by corporate bodies. It will have \u2018synergy effect\u2019. Such an approach would be in line with Gandhian Principle of Trusteeship. However, the association should be voluntary. Non- Governmental Organizations (NGOs), too, may be made party to such association. All three agencies \u2013 Government or their Agencies, NGOs and
Corporate bodies, will work together to make the society prosper<\/p>\n\n\n\n![\"\"](\"https:\/\/www.intraders.org\/news\/wp-content\/uploads\/2019\/10\/intraders-journal.jpg\")
http:\/\/www.intraders.org<\/a><\/figcaption><\/figure>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":"
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- CSR should be synergy of government
- CSR practice need legal back up, apart
- Good CSR practices need framing of
- CSR as
- CSR as regulatory requirement<\/li><\/ol>\n\n\n\n
- CSR for branding and reputation