MIB PRESENTATION

By :
Rishika Gupta (03012303910)
Shweta Mishra (04512303910)

Social Responsibility Of a Global Firm

WHAT IS GLOBALIZATION ?
It is a process of interaction and integration among the people , company and government of different nation. Prime driving force -international trade and investment & IT

THE GLOBAL IMPACT OF GLOBALIZATION

WE LIVE IN AN ERA OF GLOBALIZATION

A

Utopian Vision Bringing the world closer together Real agent Super Companies with prime motive of profit maximization

WHAT IS A GLOBAL FIRM ?

Global firm is a company with multinational branches and headquarters such as Walmart , Coke , Toyota, Sony, Microsoft etc.

GLOBAL FIRM AND CORPORATE SOCIAL RESPONSIBILITY Dumping ground to dispose off the surplus production and outdated technology. Pool of cheap labor and raw material. Cashing millions

CHANGING SCENARIO

WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

CSR

is a form of corporate self-regulation integrated into a business model. functions as a self-regulating mechanism whereby business ensures its active compliance with the spirit of the law, ethical standards, and international norms.

BEYOND COMPLIANCE WITH LAW

Compliance with law constitutes a mandatory minimum standard for corporate conduct. CSR incorporates standards of behaviour that may be EXPECTED but are not required under a societys legal statutes.

CSR helps meet the social expectations in absence of statutory devices.

DRIVERS OF CORPORATE SOCIAL RESPONSIBILITY?

KEY DRIVERS OF CSR

Enlightened self-interest - creating a synergy of ethics and a sustainable global economy where markets, labour and communities are able to function well together. Social investment- contributing to physical infrastructure and social capital is seen as a necessary part of doing business.

KEY DRIVERS OF CSR

Transparency and trust- increasing expectation that companies will be more open, more accountable and be prepared to report publicly on their performance

Increased public expectations of business

WHY GLOBAL FIRMS ARE IN FAVOR OF CSR?

Increased activities by civil groups Governmental regulation Social responsibility Capability of huge firms to discharge social obligation Quick acceptance in foreign society

WHY CSR?

After Shell Oil was spotlighted trying to sink an oil platform in the North Atlantic in 1996, and then accused of ecological and labor abuses in Nigeria It began reporting on its global social and environmental efforts. It also initiated $50 million in annual social investments in Nigeria.

WHY CSR?

Nike, targeted over its use of child labor, contributed 7.7 million dollars to the International Youth Foundation to find the Global Alliance for Workers and Communities to monitor labor conditions in its contract factories overseas.

WHY GLOBAL FIRMS GET TARGETED OVER CSR?

In March 2002, Ronnie Cummins, the director of the US Organic Consumers Association, said his organization had targeted Starbuck's Coffee over issues related to social responsibility because "they're the only big coffee company in the world that pretends to be socially responsible."

WHY GLOBAL FIRMS GET TARGETED OVER CSR?

Activist groups had targeted Nike because it had large profit margins and could presumably pay higher wages, it had been one of the first companies to move its operations overseas, it was a market leader.

DOES CSR AFFECT THE BOTTOMLINE?

Some activists have argued that adopting CSR standards allows companies to build brand value cost of building brand value with social responsibility initiatives is usually cheaper through advertising and public relations.

But many corporate executives disagree. Ben Stimson, group head of a British broadcasting service, said: I don't see any evidence in the short term that successful community programs increase sales.CSR is not important for the immediate bottom-line impact as the longer-term positive effects on reputation

CONCLUSION
Combining the moral, ethical and business point of view ,CSR is gaining mandatory acceptance amongst the rising global firms.