Relationship of globalization, corporate social responsibility and poverty
Tong, Elijah Rio BSACT4 November 26, 2013
Globalization, Corporate Social Responsibility and Poverty Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. The corporate social responsibility, on the other hand, is the company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. It encompasses not only what companies do with their profits, but also how they make them. As companies pursue growth through globalization, these firms bump into lots of challenges that limits their growth and potential profits such as government regulations, environmental restrictions, labor exploitations and other ethical issues which is seen to be a costly hindrance against international growth. Because of these challenges, global companies see a public relation tool that will work out these problems in order to convince consumers, to gain public support for the presence in global markets and to sustain a competitive advantage through social contributions for a subconscious level of advertising with the help of the CSR. Nowadays, as globalization progresses, emerging markets recognizes various benefits of providing CSR programs such as the generation of brand equity, increased employee loyalty, polished image and larger gains in CSR ratings. If multinational companies just do businesses for profit purposes, they cannot make society happy. But if these companies involve themselves in socially corporate responsible activities, it can reduce poverty and increase economic stability although poverty reduction has not been an explicit element of CSR. By emphasizing social dimensions of development, stimulating commerce and development at the bottom line of the pyramid, multinational companies could radically improve the life of billion people and help brining people a more stable, less dangerous world. Consequently, CSR
Globalization, Corporate Social Responsibility and Poverty Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. The corporate social responsibility, on the other hand, is the company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. It encompasses not only what companies do with their profits, but also how they make them. As companies pursue growth through globalization, these firms bump into lots of challenges that limits their growth and potential profits such as government regulations, environmental restrictions, labor exploitations and other ethical issues which is seen to be a costly hindrance against international growth. Because of these challenges, global companies see a public relation tool that will work out these problems in order to convince consumers, to gain public support for the presence in global markets and to sustain a competitive advantage through social contributions for a subconscious level of advertising with the help of the CSR. Nowadays, as globalization progresses, emerging markets recognizes various benefits of providing CSR programs such as the generation of brand equity, increased employee loyalty, polished image and larger gains in CSR ratings. If multinational companies just do businesses for profit purposes, they cannot make society happy. But if these companies involve themselves in socially corporate responsible activities, it can reduce poverty and increase economic stability although poverty reduction has not been an explicit element of CSR. By emphasizing social dimensions of development, stimulating commerce and development at the bottom line of the pyramid, multinational companies could radically improve the life of billion people and help brining people a more stable, less dangerous world. Consequently, CSR