First i will define corporate social responsibility (CSR), profitability, competitive advantage and a multinational enterprise. Secondly, i will define what is meant by a company acting in a social responsible manner. Thirdly, i will write how a multinational enterprise’s CSR can be a source of profitability and competitive advantage. Finally i will give an example of multinational that its CSR activities is a source of competitive advantage and profitability and an example of a company that its impact on the environment has taken a toil on the company. I will make suggestions and draw a conclusion.
Concept of Corporate Social Responsibility.
Over the last decade, global business has turned out to be a progressive new business paradigm which multinational corporations have used as a media to bridge the gap apparent in distance, culture, and time in order to achieve their quest for global dominance, (Moitra 2004). There have been increasing demands on multinationals to provide community development programmes and assistance to their host communities especially in developing countries (Amaewhule, 1997). The growing power and ever increasing role by multinationals in taking up responsibilities that should originally be the problem of the government gave way to a series of questions and concerns by the public as to what the responsibility of multinationals is in the society (Luo and Bhattacharya, 2006). In a bid to sustain market competitiveness, satisfy the building curiosity in the general public and enhance business value, many multinational corporations have adopted the practice of corporate social responsibility (CSR).
With the emergence of CSR, multinational corporations have experienced a surge in their business practices, hence their expedition to explore and settle in resource rich nations especially in the developing nations (Hills, 2008). It has been argued that multinationals need to take account of the social, ethical, and environmental... [continues]
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