Social Responsibility in

International Business

International Business

Lidhiya BabuNisha V.S

Exporting Jobs or Abusing People?

• Minute Maid

• Tropicana

• Nestle

• Nike

Corporate Social Responsibility

Corporate Social Responsibility is

the set of obligations an organization

undertakes to protect and enhance

the society in which it functions.

Examples of Companies with Commitment to Corporate Social Responsibility

• L.L. Bean

• Toyota

• Lands’ End

• 3M

• Dell Computer

• DaimlerChrysler

• BP

• Honda

Areas of Social Responsibility

Organizationalstakeholders

General socialwelfare

Natural environment

Social Responsibility Hot Spots

Approaches to Managing Social Responsibility

Obstructionist

Defensive

Accommodative

Proactive

Approaches to Social Responsibility

LeastResponsible

MostResponsible

Obstructionist Defensive Accommodative Proactive

Obstructionist Stance

• Do as little as possible to address social or environmental problems

• Deny or avoid responsibility

• Examples

– Astra

– Nestle

– Danone

Defensive Stance

• Do what is required legally, but nothing more

• Corporate responsibility is to generate profits

• Example

– Philip Morris

Accommodative Stance

• Meet ethical and legal requirements and more

• Agree to participate in social programs

• Match contributions by employees

• Respond to requests from nonprofits

• No proactive behavior to seek such opportunities

Proactive Stance

• Strong support of social responsibility

• Viewed as citizens of society

• Seek opportunities to contribute

• Examples

– McDonald’s

– The Body Shop

– Ben & Jerry’s

Managing Compliance Formally

Legal Compliance

Philanthropic GivingEthical Compliance

Informal Dimensions of Social Responsibility

Whistle blowing

Organizational Leadershipand Culture

Evaluating Social Responsibility

A corporate social audit is a formal

and thorough analysis of the

effectiveness of the firm’s social

performance.

Difficulties of Managing Corporate Social Responsibility Across Borders

The state

Civil societyThe market

Actors in Policy Formulation Process

Difficulties of Managing Corporate Social Responsibility Across Borders

Anglo-Saxonapproach

Continental European approach

Asianapproach

The Anglo-Saxon Approach

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Anglo-Saxon countries view the state, the market, and civil society as separate, competitive, and antagonistic. When the government must contract with the private sector to purchase goods or services, such contracting should be done through an open and competitive bidding process.

The Asian Approach

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Many Asian countries rely on close cooperation between the private sector and the government.

The Continental European Approach

In the European Union, the three actors have a much more cooperative way of working with one another. In Germany, for example, large employer associations bargain with umbrella labor organizations under the watchful supervision of the government. In general, public policy process is based upon creating consensus among the three actors. Cooperation, not competition, is the hallmark of this approach.

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Regulating International Ethics and Social Responsibility

• Foreign Corrupt Practices Act (FCPA)

• Alien Tort Claims Act

• Anti-Bribery Convention of the Organization for Economic Cooperation and Development

• International Labor Organization (ILO)

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

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