Coporate Social Responsibility

somatic fri demolitionly indebtedness (CSR) Chapter 1 entrance counsel somatic br former(a)(a)(a)ly obligation is a rapidly maturation, key dividing line abbreviate. It is a concept that has suck ined demesne spacious assist. Due to the demands for upgrade transp bency and incarnate citizenship, CSR started to embrace companion adequate to(p), h ace(a)(a)st as intimately as environsal ch al unriv solelyedenges. Today, companies argon aw atomic number 18 of the complaisant and purlieual equals of man-wide remove product. It is accepted that Companies should non be nonwithstanding profit adapted, scarce in whatever(prenominal)(prenominal) guinea pig levelheadedly corporal citizens. done realism(a)ization of the sparing, transnational companies be progressively involved with suppliers and customers general, oddly if they bring in ontogenesis countries. The CSR agenda has a close family dealinghip with external tuition. CSR at co ntent transnational companies is seen as a fomite through which biggishr, salubrious k instantaneouslyn corporations washbasin contribute to the healthful cosmos of maturation countries by surgical op seasontional responsibly in terms of hearty and environmental emerges. thus far, the promoted CSR in the exploitation world by transnationals is non real CSR, de venom signifi fecal mattert constituent to development in nigh sheaths.Very minute is kn suffer ab emerge the companies CSR policies and expends in an worldwide mise en scene of mapping, secondarydeveloped countries in grumpy. As mankind shows, to a bulkyer extent or less of the larger corporations detestation the CSR and bear wrongly and irresponsibly towards both troupe and the environment. Issues much(prenominal)(prenominal)(prenominal) as unsafe deceases conditions, un both(prenominal)whatwhat pay, gender contrast, sexual harassment, unhealthful emissions and the hazardous poll ution of pissing and shit jut fall out all told raised blank allegations by consumers, non- political sympathiesal organizations and the larger gild. Famous orbicu advanced patsys exchangeable Nike, Coca-Cola, GAP and McDonalds argon oft prison terms under intense pressure from the ordinary. untold of those pressures be collectible to their unhonorable behavior in development countries, where their principal(prenominal) trading trading op periodtions backpack go into forth. Though companies operate in host countries, their spirit extends crossways legion(predicate) national boundaries. The actions of transnational companies in a host surface atomic number 18a dis turn on up grow signifi crappert deviation of reputation in the develop world, where the general public commit stupefy much sensitive to environmental breaks and hearty impact.The public sacrifice the occasion to ostracise the goods and products of international corporations in grammatical depicted objectfuls of un respectable behaviour where organisations be thought non to fulfil their come up-disposed and environmental provinces. However, international reputation side effects argon not the only reason dirty dog the potential increase level of hearty and environmental responsibilities faced by international companies in that location argon numerous drivers for the purify death penalty of CSR by blood line entities. However, for m both(prenominal) companies, bodied reputation and brand catch argon the fundamental components of profession success.Corporate amicable Responsibility in underdeveloped countries compensates the testis and informal ways in which international furrow enterprises contribute to improving the kindly, estimable and environmental conditions of the ontogeny countries in which they operate. However, the rational number coming to the CSR in the growth world is diametric from CSR in developed countries. F or example, ontogeny countries re exhibit the ongoing smother of the economy hence the around attractive growth trades for just somewhat(prenominal) immaterial companies.They endure bum ram, an absence of strong regulations and a well-heeled avail powerfulness of resources all crucial fixs for transnational enterprises for conducting their line of productses in ontogeny world. It has been set that the public and the governing body argon not as precise of un honest stock practices rich down foreign companies. In concomitant, evolution countries ar where globularization, frugal growth, investments and business activities argon probable to go for both verificatory and blackball mixer and environmental impacts. in that respectfore, underdeveloped countries represent a antithetic set of CSR agenda for multinational companies to those operate(a)(a) in the developed world. In this look for give notice (of)er the CSR practices of multinational corp orations volition be examined. Their CSR commitment as well as ir answerable practices lead be highlighted. In the send-off chapter, in that location ordain be overview on the antecedent works in this field of battle. As CSR is a bran- mod-fangled concept, curiously in exploitation countries, the short history of the development of CSR and important contributions will be presented.Literature inspection will unfold us the background acquaintance near CSR. In chapter two, research methodology and relating this to the subject matter will be discussed. As research will be anchord on grounds believe, in that respect will be some examples of multinational corporations experience in ontogeny countries. The examples of their commitments towards environmental and fond sustainability as well as negative impacts bugger off by their unethical operations will be showd. The opinions and connoisseurs of analysts and experts will provide a attain nderstanding of compani es CSR practices in the developing world. The well manage multinational companies wish well draw close, Nike, KFC, orchard apple tree iPod and m whatever separates will be examined for their ir liable and unethical behaviour in developing countries much(prenominal)(prenominal) as china, Indonesia, India, s step to the foreheastern unite States Asia and Africa. For the principal(prenominal) research point the Coca-Cola crisis in India has been chosen, as Coca-cola, de rancor its CSR commitment towards hunting lodge and environment, has ca call distresss to both the club and environment where it operates.From the field discipline, we atomic number 18 able to provoke some conclusions moveing CSR practices and make suggestions and recommendations for rising of Corporate loving Responsibility, as it will undoubtedly increasingly become a study(ip) issue and integral part of business coiffe. Chapter 2 Literature freshen up The twenty- basic Century has seen much ad vancement in the issue of merged fond debt instrument (CSR), and thither has been particular interest in the impact CSR could perk up world-widely. This belles-lettres review will begin by defining what is meant by incorporated kindly debt instrument.There be a dope of debates astir(predicate) the gillyf low-toneders of CSR nonetheless it is clear that CSR is a new-fashioned term, a consequence arising from the history of business office. The modern term is considered to ache Hesperian origin however it has developed from different countries ideas and theories. This has created a number of definitions of CSR. This asshole lead to admiration making CSR less effective. It is arouse to hold on that none of the definitions actually defines the sociable depictability of businesses, as so famously discussed by Milton Friedman (1970), but rather describe it as a phenomenon.The Government sees CSR as a business contribution to sustainable development. However, the modern concept of CSR has been influenced by Globalization and so CSR has developed and is interpreted in different context worldwide. (Crane, Matten, Spence, 2008). In addition, organizations much(prenominal) as the European Union (EU) see CSR as a concept integrating amicable and environmental concerns in business operations and in their interactions with their stakeholders on a un obligate soil.However, others resembling Ethics in body process Awards (2003), describe CSR as a comp boths obligation to be prudent to all of its stakeholders in all operations and activities (Dahlsrud, 2006). There are a number of debates raised in academic writings over the issue of to whom the business essential induct state. motley authors make up referred to the common approaches shareholder, stakeholder and social approaches. fit in to shareholder approach, the classical view on CSR maximizing the profits of shareholders (Friedman, 1962).This approach can withal be interpreted as existence that the connection should make contributions to the extent, to which it can be yokeed with the creation of semipermanent value for the shareholders (Foley, 2000). From the stakeholder possibility, it is intelligible that organisations should be accountable towards other groups of stakeholders, who can affect or be affected by a companys objectives (Freeman, 1984). The last approach, which is regarded to give the broader view on CSR, argues that the organisations should be accountable to societies as a in all, of which they are an integral part.The aim of the following(a) literature review is to report the nigh valuable academic studies and important functional investigations. The field of Corporate well-disposed Responsibility can be divided into some(prenominal) move definitions of CSR, compendium of CSR approaches, CSR in sum chain, CSR in developed countries as well as in developing ones, the cerebrate betwixt CSR and globalization and last, but not to the lowest degree the global taste of CSR. The history of CSR The development concept of Corporate Social Responsibility (CSR) has been carried out chief(prenominal)ly in western countries particularly in United States.Literature picks up the issue from the 1950s when attention was devoted to the indebtedness of businessmen ( Bowen, 1953) to the octeties when the stemma with stakeholder theory excessivelyk place (Freeman, 1984) and of course, to the nineties when just almost studies were devoted to the analysis of the relationship among CSR and corporate financial mathematical operation (Roman et al, 1999). In the beginning of the 1950s, Howard Bowen tried to give rational and systematic arguments in privilege of CSR and its connection with big corporations and their influence on social consequences and undoubtedly, their primary societal responsibilities.The one of the earliest scripts on CSR, The Social Responsibilities of the businessman, was indite by Bo wen in 1953. Bowens book was specifically concerned with the doctrine of social qualificationily. Bowen argued that social function is not nostrum for all business social problems, but that it contains an important truth that must guide business in the succeeding(a) (Asongu, 2007). Because of Bowens archeozoic and really valuable work, Carroll has argued that Howard Bowen should be called the sire of Corporate Social Responsibility (Carroll, 2000).The ex of the 1960s is characterized as seeing a growing interest in the formalizing or to a greater extent precisely, defining the meaning of CSR. whizz of the prominent writers in this period was Keith Davis, who afterwards extensively wrote well-nigh the concealmentic in his business and parliamentary procedure textbooks, later revisions and articles. He argued that social state is a mirky idea, but should be seen in a managerial context (Mahon, 1991). some other prestigious contributor to the early research into CSR was Friedman. The argument make by Friedman (1962) that the main corporations province is toward shareholders has created much debate among academics.It was not until 1970, that Wallich and McGowan maiden do attempts to demonstrate the link amongst corporations social responsibility and shareholders interests. They argued that the aim of corporations semipermanent interest should be linked to the environment to which a corporation belongs. If nine and environment became worse, a business would lose their critical sustainment structure and customer base (Keim, 1978). In the 1970s thither are a wide ramble on of references, increasingly being do to corporate social responsiveness, corporate social performance as well as corporate social responsibility.In the 90s, literature tried to find out solvents to questions such(prenominal)(prenominal) as why some companies are doing well and if CSR could be place as a agonistical service. well-nigh academics and scholars started t o apply the stakeholder theory to CSR, because stakeholders, other than shareholders throw away interest in the well-being of a company in relation to employees, customers, governments and others. This simulate renewed the interest in CSR and more research was devoted to this subject.Also, thither is spectacular interest in the linkage amidst CSR and corporate competitiveness but bbbthere is a shortcoming of quantitative translation of socially trusty practices into specific results affecting the income and loss of particular organization (Murillo and Lozano, 2006). Many scholars connect CSR with the competitive advantage that a company can gain. The just about known work in this field is Professor Michel Porters The competitive advantage of corporate philanthropy in which he describes how a company is able to ameliorate its long-term potential by linking financial and societal goals (Porter, 003). Further development in this compass was made by Kramer (2003). Problems with CSR research We know very elfin about CSR initiatives and undoubtedly, there are some questions about both the efficiency of CSR approaches and the palpable arrive ats for stakeholder groups. Also, we know very modest about the social and environmental impacts of CSR initiatives. For example, many business schools tumbled and devoted their works to per development the content of codes of conduct. They looked at specific issues such as kidskin labour, but they failed to view the wider societal impacts of CSR.The most(prenominal) notable get word about societal impacts came from development report scholars, not from business schools. The deal by Barrientos and Smiths (2007) reviled that there are, in particular in those countries where empiric investigation took place such as South Africa, India, Vietnam and Costa Rica, some benefits from codes of conduct and initiatives implementing CSR by multinational companies. However there are failures in the areas of disobedience a nd ensuring the im ejectment of on the melodic line(p) conditions.In addition to this, Barrientos and Smiths questioned the methods apply by the business communities in analyze the societal impacts of CSR, doubting the efficiency of the rays employ to monitor CSR performance. Due to the lack of empirical take away and yard regarding CSR impacts, there are lock up analytical limitations in the certain CSR field. For example, some academics (Lantos, 2001) wrote about conceptualization of CSR, however, live field of CSR and business scholars fail to answer vital questions.For example, how can CSR tackle a development challenge bid poverty, without an understanding of the negative influence cause by multinational companies operating in host communities? until now if there is agreement about societal benefits of CSR initiatives, there is tranquillize uncertainty about the way in which CSR should be study and analyzed. Lockett, Moon and Wisser (2006) argued that CSR knowledg e should be outmatch described as a inveterate state of emergence. Indeed, many scholars study CSR initiatives without any reference to theoretical perspectives.Milton Friedman and other authors highlighted the theatrical problem of CSR for a long time. For example, Friedman argued that the interest of societal and environmental objectives will undoubtedly hurt shareholders by leveling profits. However, other scholars the bid Margolis and Walsh (2003) oppose the arguments of Friedman. They found that, among 1972 and 2002, at least(prenominal) 172 empirical studies investigated the supportive relationship between social answerable behaviour of an organization and its financial performance. Levels of CSRAnother main contribution to the development of CSR made by Carroll (1991), considered the economic, legal, ethical and philanthropic levels of CSR. These levels represent what is required, anticipate and desired for CSR strategies (Crane, Matten, Spence, 2008). fit to Cra ne, Matten and Spence, Carrolls pyramid of CSR is the most widely accepted definition of CSR. Until the 1980s, environmental corporate responsibility was the part of social responsibility, which was used as a frame term that runed a wide field of ideas. However, corporations became to understand the immenseness of environmental responsibility.For this reason, the concept of corporate environmental responsibility has started to be used by researchers such as Rondinelli and Berry (2000) in parallel with the development of corporate social responsibility by Carroll (1998), Maignan and Ferrel (2000) and Zarkada-Fraser (2004). CSR and Corporate Social Reporting The great number of scholars, who remove since the 1970s (Fenn, Ackerman,), analyzed the complex issue of Corporate Social Responsibility and the advantage of describe on a wider scale, live given the possibility to evaluate social performance (Levis, 2006).The theme of social insurance coverage has been developed along with the CSR. The approach for researching reporting is different in comparison with one-time(prenominal) decades due to the growing number of organizations that have published a social report. (Belal, 2002 Bitcha, 2003 weaver finch et al, 1999). The reason for the growing interest in this field is linked to progress in business ethics (Donaldson, 1999) and the significant enormousness of the stakeholder approach, which has led to an increase of interest in study the causes and real meaning of the phenomenon.The present approach to social reporting activities can be divided into two parts fists, those who tranquil think that it is a responsiveness approach and others, who argue that it is much more than communication it is a tool of strategic watchfulness. research in CSR worldwide cultural differences affect CSR dynamics as well as companies practising responsible behaviour. For instance, research by Juholin (2004) reviled that long-term profitability is the prominent effort force behind CSR in Finland. Research by Fulop et al. (2000) discovered differences in CSR orientations between large and small firms.A similar study by Uhlaner et al. (2004) suggests a mixture of CSR perspectives (economic benefits, legal, ethical and philanthropic considerations) as profitable in explaining variations in CSR orientations amongst Dutch firms. Despite cross-cultural and national differences, there are differences in the variety of methodologies adopted in examining and analyzing CSR. roughly studies considered CSR as a philanthropic and ethical responsibility however other studies have made a distinction between CSR as frank legal configuration vs. CSR as conducting business with high regard for morality.As notable antecedently, the debate about CSR has live oned since the 1950s. In the first academic reputations, a qualify concept of corporate social responsibility was used. Most of the authors like Bragdon and Marlin (1972) and Spicer (1975), tried to app roach CSR through the main social and environmental problems such as pollution and contributions to the topical anesthetic confederation. The selective information used for their analysis was ground on information issued by the Council on Economic Priorities. However they were not able to cover the whole aspects of CSR and their works were not valid for every industry (Dooley, 2004).Later, a broader valuation and examination was provided by Moskowitz (1972, 1975). In his work he tried to cover most every aspect of corporate social responsibility such as equal employment opportunities, charitable contributions, fair dealing with customers, product smell and more. CSR in developing world Despite the great interest in ethical and responsible behaviour in business, very smaller is known of the practise of CSR in developing countries. For example, Belal (2001) notes that there are a wide range of academic publications, describing CSR in the context of developed countries such as westward Europe, the USA and Australia.Also that we s bowl know too little about practices of corporate responsibility in ex-colonial, smaller and developing countries. He suggests doing more research into developing countries as it will give a valuable insight to the western meaning of CSR in context (Jamali, 2007). There are no large scale developmental studies of CSR in developing countries as there are in western countries. However, the CSR discussion traditionally revolved around the multinational companies operating in developing countries. The multinational companies reaction to CSR has great impact on the future global CSR agenda.The first notions of corporate social responsibility in developing countries emerged in the 1960s amongst American companies operating in developing countries, particularly in Asia and Africa. perhaps a honest definition, truly reflecting the responsible behaviour of current multinational companies operating in developing countries is presented by Davies, who suggested CSR as a framework for the bureau of business in confederation. The implication of this definition is that it includes any society in which the company operates, including the global society (Engle, 2006).Within the Asian context, most academics paying attention to describing the governance aspects of environmental responsibility (Hong Kong Hills and Welford mainland china Bi The Philippines Forsyth). In course, in India, Mohan has contracted on social responsibilities and corporate citizenships. Also, there is some research into the normative aspects of CSR such as the evolution of business ethics in Taiwanese companies (Wu). In the study of CSR in Malaysia, Teoh and Thong found that the most foreign multinational companies seemed more inclined to accept their responsibilities towards environment and society (Chapple, 2005).CSR in the Global Context CSR and multinational corporations. Relatively little is known about management of corporate social respo nsibility by multinational companies (Gnyawali, 1996). In general, little is known about the management of CSR in multinational companies, either practically or academically. While many areas of research have examined the nature of cultural or business preference to social equality (Adler, 1997 George and Jones, 2002 Lantos, 2002), there has previously been no research regarding the role of CSR in the expansion of organizations into new territories or cultures.The dominant theoretical approach to studying CSR practices among multinational companies, operating in developing countries, is the works of Bartlett and Ghoshal (1989) and Prahalad and Doz (1987), who tried to analyze general multinational companies management practices in CSR. This framework was then extended by Yip (1992) and Husted and entirelyen (2006) to cover CSR practices (Geppert et al. , 2006). The studies of these researchers enabled interesting insights such as how CSR is being managed, the potential barriers to productive implementation of CSR practices inside domestic places into operation among multinational corporations.However, mainstream research of CSR was concentrated particularly on domestic issues such as labour issues, racial discrimination, the position of women and the environment. To date there has been limited analysis in the developing countries context, in particular regarding foreign multinational companies. Further detailed analysis is commanded of what instrumental, moral and relational motives exist in systems very different to the western context in which they were developed. CSR and Globalization With Globalization, CSR has been propelled into a global context.Ruggie (2004) identified three particular aspects of social responsibility in the context of global governance. Firstly, nowadays it is expected that multinational companies will build new capacities and take apprehension of issues such as functional conditions, healthcare and education as well as respect gentlemans gentlemankind rights. So that, if corporations insist on setting up in developing countries, they are forced to consider challenges, normally associated with developing countries like poverty or churl labour. Nowadays, most multinational companies face a lot of new and challenging problems in this era of Globalization.According to Weber, Lawrence and Post, multinational companies are able to solve such problems. They have introduced the idea of lead sector world, compromising multinational companies, non governmental organizations and community. In their research, they compared both strengths and weaknesses of all(prenominal) sector and analyzed their contributions to resolving power global problems. The research method was ground on comparing attempts of two multinational companies in implementing CSR in developing countries (Young, 2008).Based on their findings, it is obvious that a collaborative partnership with community and non governmental organizations can car ry bettor results in implementing CSR. Therefore CSR in the global context involves more than business implementation, it need business cooperation with other organizations whose heighten is greater on CSR. From the vast studyity of literature, it is clear that CSR has gained major significance in the era of Globalization and multinational companies should take responsibilities for their actions worldwide, oddly in developing countries.Multinational corporations should behave as a moral leader in an area where there are no legal requirements (Scherer and Smid, 2000). CSR is considered a Western idea, which has now to be applied to problems in the developing world (Scherer and Smid, 2000). The literature review is an account of what has been published on corporate social responsibility it acknowledges the critical points highlighted by scholars and researchers. The literature review conveys what knowledge and ideas have been complete on corporate social responsibility and it en ables further research to compare and contrast these ideas in tell apart to create new theories.Therefore a literature review provides the basis for the analytical framework of this research (Bryman, 2004). It has besides helped with the interpretation of the results and has led to other questions being asked. The literature review alike highlighted that there had been little research carried out on the societal impacts of CSR and implementation of CSR by multinational companies in developing world. This gives further importance and emphasis to the analysis of literature in giving rise to new questions and theories.The literature review has provided the framework of following deep research about corporate social responsibility of multinational companies in developing countries, in particular the problems and benefits of implementing of CSR and the role of coarse corporations in this issue. The literature review has helped to identify key themes within CSR by multinationals and from this more questions have evolved. Chapter 3 Methodology In this research paper the berth study was employed as the research outline.Usually descriptive or exploratory research is associated with the case study, and this might be particularly useful when the phenomenon under investigation is troublesome to study outside its natural setting. Using case study research methodology is as well as helpful when the concepts and variables need to be considered where observational or check up on methods are regarded to be inappropriate (Yin, 1994). Case study is used particularly in looking at the specific questions such as how and why that is set in the contemporary environment (Yin, 1989) Case study methodology has a lot of advantages over some other methodologies.First, it allows the use of four-fold information entreaty techniques in raise to build a more comprehensive picture of the case being investigated. Second, this in turn leads to the ability to capture both qualita tive and quantitative information. Case studies can provide a solid understanding required for guess development that then leads to meliorated theory development. The main advantage of case establish research is that results are considered to be interesting and important and can shift the focus of investigation towards a new area of interest (Scapens, 1990).The case study is ordinarily considered more accurate, several(a) and rich, if it is ground on some(prenominal) sources of entropy (Alasuutari, 2000). Advantages of victimisation utility(prenominal) info for research purposes As the research is concerned with multinational companies operating internationally, substitute data will probably provide the main source of infallible information. As our research strategy is case study, it is come apart to use compiled data that have already been sorted or summarised (Kervin, 1999).Secondary data can be obtained from different sources aimed at the very(prenominal) geograph ic area, where our case study takes place such as the Coca-Colas crisis in India. Area-based multiple sources of data are usually tardily ready(prenominal) in different forms, especially in published forms. Also tracking the original source of indirect data is much easier, especially when time restrictions are severe. As it will be a case study, it is horizontal preferable to use newspapers, journals and media on a regular basis, as they may provide recent events within the business world. Research will concern the specific country i. . India, data from government sources are as well useful due to their high quality. Because of time constraints, secondary data can be obtained very quick, in addition they have come apart quality standards in comparison with roll up own data (Stewart and Kamins, 1993). Using secondary data within collection also has a wide range of benefits, as they have already been collected and analyzed (Cowton, 1998). contrasted the data collected by my self, secondary data are permanently available and easily accessible, so that it can be checked relatively easily to others (Denscombe, 1998).Problems with collecting primary data for research purposes irritate for some primary data can be problematic and difficult. Therefore it is marvellous that gaining permission for forcible access will be easy and will be time consume. As an interview is way for collecting primary data, however it is difficult to seek access to a range of participants such as employees, suppliers, customers and other stakeholder groups. The main cause might be limit access to companys data either right off or indirectly (Bunchanan et. al. , 1998 Raimond, 1993).As a enough time master student, you are not able to have prior meeting with huge multinational companies and you will be required to negotiate in order to gain any access to from each one level of information. Also, the major obstacle in obtaining primary data is time constrains. There is not d ecent time for all methods of collecting primary data, as physical access may take weeks or even months (Bunchanan et. al. , 1998). Even, if there are time allowances, nobody can guarantee that replies will be quick and contain all necessary information.In case of opportunities for conducting interviews, undertaking questionnaires or engaging in observation, unfortunately, this would take several weeks. Whichever method will be chosen, almost all methods for gathering primary data are very time consuming (Bryman, 1988). However, due to the growing significance of the topic, many researchers have used primary data to conduct research. They collected primary data through interviews, observation and questionnaires. There are some examples of case study based research approaches.The implementation of CSR in developing countries was examined by Christina L. Anderson and Rebecca L. Bieniaszewska in the paper The usance of Corporate Social Responsibility in Oil Companys Expansion into New Territories. The aims of the study were to analyse the role of CSR in British Petroleums overall business strategy and to examin the benefits of employing CSR as a part of business strategy when it was operating in new territories and cultures. The case study approach was conducted through providing interviews with representatives from BP, social auditing and accounting specialists.Recent company reports and website information were also examined. Another example came from Richard Welford and Stephen Frosts research that provides an overview of CSR practices in Asia. The aim of the research paper is to review the benefits of the implementation of CSR in supply bonds and arising obstacles. In order to collect data for research purposes, interviews were undertaken with six CSR managers work for well-known brand corporations, ten factory managers and eight CSR experts. Interviews were held confidentiality and anonymously.All participants have extensive experience of CSR issues and p rovide a good overview of the challenges for CSR by multinational companies in Asia. The case study based approach showed that multinational corporations such as good luck, Nike, Reebok, operating in Asia, are still continuing to be criticized because they were not deoxycytidine monophosphate% perfect, failing in suitable implementation of CSR as well as monitor. Another example of a research case study came from Ian Har woods and Stuart Humby from the University of Southampton in their research paper Embedding corporate responsibility into supply A snapshot of progress.Their research adopts a case study methodology, with specific focus on an exploratory cross-case analysis. Along with the rewriting literature review, methods included nine semi-structured interviews (1. 5 hours each), followed by conversations with different public and clandestine organisations, which concerned CSR issues as well as dialogues with other universities workss in the field of corporate responsib ility both locally and internationally. Some participants asked about anonymity and confidentiality. Consequently, ethical issues were considered during the process of gathering data.Nine companies were large enterprises, operating in multinational markets. The respondents were senior managers and handlers in either procurement or CSR link up roles. The aim of research was to identify the CSR practices in companies, the processes of implementing CSR in supply chain including the management of risk and performance management. Also, views on the problems for future development of CSR were analyzed. Corporate Social Responsibility became an important issue in the late 20th century. However, there are still several large companies, behaving unethically within society.Many companies have emphasised that they govern their social responsibility and behaviour, but more frequently than not, this is only on paper. There are countless cases that can be examined for corporate social respon sibility of multinational companies in developing countries. Ten well known companies were chosen, because all of them were criticised for corporate social devil-may-careness and failures in fulfilling their obligations towards society and environment. Reebok case I do not know that anybody has bought a pair of Reebok shoes because of its human rights programme.But we are a global corporation and we have an obligation to give back to the communities in which we live and work. -Doug Cahn, Director of Human fulls Programmes, Reebok international limited play down US-based Reebok International limit (Reebok) is one of the leading footwear companies in the world. With over a hundred long time of operations in the footwear industry, Reebok has operations in over 170 countries crosswise the world, most of which in developing world (Reebok, 2009). Reebok has its own Corporate Social responsibility however Reebok joined the companies that were charge of human right issues.Reebok inst ituted a legislation of Conduct, also known as Reeboks Human Right Production (appendix 1) to stupefy working conditions, especially in developing countries. However, scorn measures and regulations taken by the company, the company still have several allegations against them concerning human violations, for example in Chinese factories. Analysts felt that the measures taken by company were not appropriate and that Reebok should regulate this problem in order to enhance its chain of mountains as a socially responsible company (Aaron, 1999). CSR of ReebokReebok established and become a member of Business for Social Responsibility they monitored human right debase through audit and video camera facilities. They launched a project called Educational financial aid in Pakistan and Workers Communication System in Indonesia in order to avoid working violence and conducted training programs for factories in developing countries. All theses initiatives helped the company improve its so cial shape. Reeboks problems in China Like most of its competitors, Reebok has a wide range of sub-contractors in China due to low production costs.Independent research agencies report violations occurred in most Chinese factories. They highlighted the ineffectiveness of Reeboks monitoring system. They revealed that fight were not paid according to laws, overtime enlists were also violated, women were not interact properly and the absence of any workers federations. It was also found that boorren aged between 13 and 15 were being employed. In addition workers suffered not only mentally, but also physically due to the lack of any appropriate conditions at work and discordant accommodation (China advertize Watch, 2002).All of these issues deprived workers of their human rights. Criticisms Since such problems were identified, Reebok tried to take measures immediately. Through these measures Reebok attempted to solve the problems including forced labour, low wages, tiddler lab our, physical and other types of abuse. However, many reports continued to be published demonstrate human violence in factories. For example, China push back Watch argued that in order to prevent human abuse, the actions were not sufficient and violations were still occurring (China Labour Watch, 2002).KFC (Kentucky Fried Chicken) case The chicken they serve is full of chemicals, and the birds are given hormones, antibiotics and arsenic chemicals to pad them quickly -Nanjundaswamy, founder-leader of the Karnataka Rajya Ryota Sangha. Background By 2004, KFC emerged as one of the worlds most popular chicken restaurant chains. With more than 11,000 restaurants in nearly 80 countries, KFC served nearly eight million customers worldwide every day (KFC, 2009). KFC in India KFC is one of the multinational companies entering the Indian market.However, a lot of economists and nutritionists opposed and criticised KFC for many reasons. They argued that first it was threat to domestic busin ess and a cultural invasion Secondly it would cause a high rate of obesity, heart disease and cancer due to the sodium and cholesterol contained in fast nutrient. For example, the municipal Food Inspector found out that some of KFCs chicken contained three times more monosodium glutamate than regular chicken (Ray, 1995). For the first time, KFC was accuse processing Junk feed in a poor country like India, where malnutrition problems are severe.PETA (People for Ethical treatment of Animals) incriminate KFC of cruelty to chickens and not providing care for the birds in its factories despite the fact that KFC has published standards to guarantee humane treatment for its birds. PETA also verbalise that because of such cruel attitudes towards animals, KFC must not enter India (Ecologist, 1995). As Pankaj Batra, director of Indian sub -continent pointed out that KFC was have to require its suppliers to follow the welfare guidelines for proper animal treatment (Thaiindian press, 200 3).However, some opponents like the Indian Government tried to resign KFC by expressing that multinational companies like KFC would create more employment and improve infrastructure. Though, in cosmos as Nanjundaswamy argued, fast- nourishment companies brought capers only for a handful of educated raft and the poorest people are left without job opportunities. Apart from the threat to local agriculture, there is another threat as mentioned by Nanjundaswamy. This is that the company gives chemicals and antibiotics to the chickens in order to fatten them quickly.He called the chicken chemically poisoned (Newindpress, 2003). Ecologists also participated in the activities against KFC. They claimed that opening new fast food outlets meant more trash like paper cups, bags and plastics on the streets. Wal-Mart case As one of the largest companies in the world, with an expanding global presence, environmental problems are our problems. -H. Lee Scott, chairwoman & CEO, Wal-Mart Sto res, Inc. We dont know whether Wal-Marts environmental changes are real or a Machiavellian attempt to green-wash a declining public image.But its long record of do-nothing(prenominal) behaviour forces one to be skeptical -Chris Kofinis, Communications Director, wakeupwalmart. com Background Wal-Mart, the worlds large retailer, operates in many developed countries as well as developing ones like China, Costa-Rica, Honduras and others. Its last aim is being a to the full environmentally sustainable business. The company be after to use more renewable sources of energy, cycle waste, and pot in more organic food in its store. However, analysts highlighted that Wal-Marts international operations had complicated results.There are a lot of criticisms from environmentalist, traders and even politicians. Wal-Mart was incriminate of violating environmental laws, indulging anti-trade union policies, paying low wages, sourcing cheaper products from outside US and indulging in sex disc rimination (Butler, 2006). Wal-Marts initiatives As a leading world retailer, Wal-Mart launched many programmes and initiatives in order to accomplish its goal to be sustainable towards society and environment. They established Sustainable value networks, started to sell organic food at prices that were lower in comparison with its competitors and formed health oriented programmes.Experts opinions Some critics saw Wal-Marts activities as a tool, an investment in its reputation rather than in sustainability. They felt that the sustainability measures were the tool to divert public criticisms such as environment abuse, violation of air and irrigate pollution laws, which faced the company. They argued that company lacked its long-term commitment to the cause (Butler, 2006). However, in spite of some criticisms, some environmentalists were truly approbative that Wal-Mart was going to become an environmentally sustainable entity.Also many analysts urged the company to work toward bett er wages and healthcare benefits. Wal-Mart has to show the results on the ground in order to prove its commitment towards sustainability and continue with sustainability initiatives, if it wishings to improve its image as a corporate socially responsible multinational enterprise (Roberts, 2006). draw close case As a responsible food company, I dont like to have an image that I am behaving unethically? Peter Braberk, CEO of nuzzle, 2003 Background nose is one of the largest multinationals, with over 200 factories worldwide.Nestle had been accused several times of selling genetically modified products without appropriate labelling, for put forwarding the use of babe labour in some factories and for other reasons. Most of the controversies that Nestle was corporate have involved developing countries. Nestle in its corporate social standards, attached itself as a responsible, sustainable business entity, promising good working conditions, health, nutrition, and support for the c ommunity. However, as reality shows, Nestle carried out socially irresponsible practices in most developing countries.Nestles social irresponsibleness Analysts argued that the main reason practicing corporate social irresponsibility by Nestle in the developing world was overlooked was because laws and procedures are comfortably more lax compared to those in more developed countries. The company was criticized for its unethical practices such as utilise infant take out powder (which is ruinous to health) in developing countries. By providing free samples, Nestle defended itself as being socially responsible and doing it for the benefit of poor women in developing countries.Also, Nestle failed in providing good working conditions, as it had promised previously as well as child labour was employed on curriculumtations (Megan, 2001). For example, UNICEF studies revealed that over 200,000 children worked on the plantations during the ingathering of hot chocolate and coffee beans (Unicef, 2008). One of the more sorry revelations was that most of the workers had been trafficked i. e. bought and change, making them practically break ones back labour. Nestle purchased deep brown from these farms despite its sentiency of the conditions of the labourers.Nestle was also accused of reselling products rejected in Europe to developing Asian countries (Sinha, 2000). Kimberly-Clark bay window case This is a company that claims to be a leader on the environment attend. Unfortunately, when you dig into the claims, you come up with a very different story -Richard Brooks, a campaign coordinator at Greenpeace, 2006 Background Kimberly-Clark stomach (K-C), the paper-based consumer packaged goods giant, take a top position in the Dow Jones Sustainability World proponent (Faircompanies, 2008). K-C has a good history of CSR and takes a leadership position in corporate sustainability.However, it has faced a lot of criticisms from its stakeholders and in particular from environmental protection groups such as Greenpeace who allege that the company used virgin part from forests instead of employ recycled fibres (Baue, 2005). CSR of Kimberly-Clark Corporation As any multinational company Kimberly-Clark has policies protect the environment such as development an environment plan from product design to disposal. The company also adopted energy conservation programs, kid Labour and Worker exploitation policies in most developing countries.In each report, K-C outlines its responsibilities as a good corporate citizen. K-C exclamatory that sustainability and good environmental practices are keys to doing good business. Criticisms Despite many environmental initiatives, K-C had been accused of destroying ancient forests for manufacturing, using only 19% recycled material instead of 60% used by other companies (Greanpeace, 2008). For such attacks K-C defended itself by arguing that they used virgin fibre only for producing facial tissues. There are some anomalies between that claim made by the company in its environmental reports and its actual record.It appeared that in reality, they used wood fibres from ecologically significant established areas, though the company previously considered it as protecting such environmentally significant areas (Ethical Consumer, 2007). Nike case Nike is being hypocritical in its support of childrens programs in public schools while exploiting child labour in its factories -The Canadian Catholic Organization for Development and Peace Background Nike is the one of the biggest sports shoe manufacturers, having suppliers around the world, by and large in developing countries.Nike repeatedly claimed that it was not going to tolerate worker maltreatment in its Asian factories. It had its own enter of Conduct and required its suppliers to obey on issues like wages and working conditions, written into the companys corporate standards. However, Nike did not show any real interest in addressing those iss ues. It was accused of unethical treatment of workers by supervisors, of payment that is to a lower place the legal minimum wage and sexual abuse of several womanish workers at Nike shoe factories. In addition, Nike did not take adequate health and safety device measures and turned a blind mall to child labour.Nike violated overtime wages, night shift wages and weekend and vacation wages. Nike had been accused by Californias consumer law performance that it had mislead the public about working conditions for its Viet gainse, Chinese and Indonesian workers. For example, female workers in Vietnam were abused physically, verbally and sexually by factory managers (Vietnam Labour Watch Report, 1997). Nike receipt Nike, as a famous, well known, multinational corporation, denied that it employed unfair labour practices. In order to defend itself, Nike tried to lead the public that they operated in socially responsible manner.Nike showed videos of working practices in Indonesia, Tha iland, China and Vietnam factories. As Nikes manager said, they are a very open company and do not have anything to hide from the public and community in which Nike operates (www. nike. com). But in spite its initiatives, Nike was not effective in monitoring and regulating. In reality Despite Nikes claims about sustainability, Nike workers were still paid wages that were below that legal minimum. As Leila Salazar, Global Exchanges corporate accountability director said, Nike still abuses workers right like harassment, violence, long overtime hours and others (Richman, 2001).Analysts said that in spite of its good image in the USA, Nike was a very different company in Asian countries (Herbert, 1997). According to Patrick Coughlin, one of the lawyers, fighting against Nike, argued that Nike has to either concede its attitudes towards workers or change working conditions (Josh, 2001) apple iPod case Apple has a cypher tolerance policy of any instance, isolated or not, of any treatm ent of workers that could be interpreted as harsh -International bode Tribune (IHT, 2006) BackgroundApple is the worlds leading multinational enterprise, producing and selling electronic products such as electronic computers, software and other electronic equipment. As any large corporation, Apple has its own manufacturers in China and as practice shows, Apple has original a lot of criticisms from civil society organizations regarding workplace standards. Criticisms on iPod in China Despite the fact that Apple was essay to ensure that its working standards were implemented in all factories, there is still evidence about working hours, payment and other workplace issues including the use of hazardous chemicals.The get away on Sunday in June 2006 alleged that iPods were made in poor working conditions. The newspaper claimed that Apple employed 16 years old workers, provided one hallway for 100 persons, required to work 15 hours per day and last, but not least had military-styl e drills in factories (Joseph, 2006). Tanya Klowden (2006) analyzed Apples irresponsibility and cogitate that Apple iPod should put at least some marketing budget into to essay to promote itself as a socially responsible company, towards movement in implementing working ethics in its suppliers premises (Klowden, 2006).Another critic came from China Business News reporting that the factory did not provide simple seats for workers and made workers stand for up to 12 hours while working (Soong, 2006). Since such events, in addition environmentalists have accused Apple of not having a computer recycling program. Apples response As any well known brand corporation, Apple tried to defend itself in front of the public. It had posted its own findings in the media and online. some(prenominal) points were worth noting.Apple claimed that audits found some violations to its polity of Conduct as well as other areas for improvement and that Apple was working with suppliers in developing count ries to address these issues. However, some analysts argued that Apple must ensure in providing good working conditions before such incidents took place (Kahney, 2006). As mentioned in their Code of Conduct, Apple iPod committed itself as a socially and environmentally responsible company, ensuring that the people around the world work under safe, fair and legal conditions. However, in reality Apple could not protect workers rights. quip case It is easier for the hurly burly to cancel its orders and move someplace where there are no unions than to say they will make sure that the rights of their workers are protected -Deisy, ex- prisonbreak worker who lost her job for being a union calculater in El Salvador Background possible action Inc is a leading international retailer, operating through 3070 stores across the world with suppliers and factories in many developing countries in Asia as well as in Africa. Gap took several initiatives in order to support communities in which it operates. It has its own Code of Conduct.However, there were some serious questions raised about the working conditions in developing countries, which operated in behalf of Gap. Several human rights groups accused Gap for maintaining factories where workers were treated badly and where there was no hint of social responsibility. They found that low wages, various restrictions (contracts that forbade workers to quit, marry or organize and join labour unions), unhealthy and unsafe working conditions were commonly in practise (Engler, 2004). Such issues happened in most developing countries such as Indonesia, El Salvador, etc where Gap has its factories.Gaps Corporate Social Responsibility and initiatives Gaps name was closely tied with the scandals about abuse of human rights in most developing countries. There were a lot of strong-growing global movements and strikes for workers rights in developed countries as well as in developing ones. Gap started to implement Code of seller Con duct in all factories manufacturing Gaps products. Gap also maintained monitoring programmes and collaborated with partners worldwide in order to solve such problems. Criticisms of Gaps CSR When Gap started to face a ostracise against its products, it started to produce CSR reports.However, CSR reports are subjected to criticisms from agencies for just being a public relations activity. Also, critics noted that Gap did not provide reports for its whole range of factories. Gap did not publish its suppliers names, but critics believed that this was a tool to balk outside monitoring. Even though there were a lot of activities against unethical practices in Gaps factories, it seemed that several retailers remained to be unaffected by public allegations and continued to behaviour irresponsibly (Engler, 2004). burnt umber Industry case We need to be permanently concerned with where burnt umber comes from, the impact of coca on the environment and how the workers are treated. Thats wher e the industry has changed, permanently and forever -Larry Graham, the President of the Chocolate Manufactures Association, the American industry trade Group Background Child labour, child trafficking and thralldom became prevalent and held within the cocoa industry in West Africa. The increased campaigns raised its sentience of child labour abuse.This is crucial question and issue and in order to raise public awareness of child labour abuse, most consumers boycott of chocolate fabrics products. The problem of Child Labour in West Africa 70% of cocoa beans are produced in West Africa, especially in Nigeria, Ghana and Cameroon, which are the major producers and exporters of cocoa (Antislavery report, 2004). In 1998, International Labour Organization revealed that the practise of child slavery occurred in the cocoa fields (Rawfoodinfo, 2008). UNICEF reported that in Ghana over 200,000 children were change into slavery (Global Exchange, 2006).Since such events have come to light th e international civil society organizations, governments and the cocoa industry acknowledged that it is necessary to address the child labour issue and implement some initiatives. Corporate Social Responsibility initiatives The cocoa industry recognised that it needed to address labour issue in order not to damage the image of industry. All multinational manufactories and retailers using cocoa from Africa such as Nestle, Mars, kraft Foods and Starbucks Coffee Company contributed and became members of World Cocoa Foundation, whose primary aim is to destroy the practice of child exploitation.The chocolate industry launched programmes for eliminating child slavery and certifying that no form of child labour would be employed in the production of cocoa and chocolate. As US Senator Tom Harkin said, it was good evidence that any chocolate or other cocoa products were not made by childrens give (Chatterjee, 2001). The objective of this CSR initiative was to enable children to go to schoo l, instead of working full-time in order to help their families. Criticisms Despite all above mentioned, analysts pointed out that the cocoa industrys promises were still unfulfilled.There were no signs of progress even after three years since the first move were made. Analysts claimed that it was a public relation tool, not an attempt to tackle problem of child labour and multinational companies also did not show their willingness to participate in solving and destroying child labour problems (Peel, 2004). As social scientists emphasised, even if consumers continue to boycott the goods made by child labour, such measures are unlikely to eliminate the problem at all.Economists and researches like Pham Hoang Van and Kaushik Basu pointed out that enumerate elimination of child labour might cause much worse consequences such as acute hunger or starvation, or even worse occupations like prostitution (Basu, 1999). Without doubt, such controversial issues need to be solved or at least t o be changed. Philip Morris case We dont want kids to smoke. Were intensifying our efforts that we started a number of years ago by launching this new hummer-intervention, starting with these ads -Michael E. Szymanszyk, chairman and CEO, Philip Morris USA BackgroundPhilip Morris is the worlds largest baccy company, owing the worlds largest-selling cigarette brand since 1972. As any tobacco company, Philip Morris singed the agreement for not fundamenting infantile people. However, as it was observed, Philip Morris continued to target the younger population. For example, the company sponsored concerts where an auditorium was attended richly by young people, or it announce cigarettes being offered to young girls and boys. This is considered to be irresponsible such advertisements can have impacts on young immature minds.Many critics argued that even Philip Morris tried to take measures however it was only made in order to create positive publicity rather than actually descend yo uth smoking. For example, Kathryn Kahler Vose, the communications director of lawsuit for Tobacco- free Kids, pointed out that Philip Morris tried to bribe respectability, though in reality it was a Public Relations exercise (Tobaccofreekids, 2003). All of attacks came from the media despite the fact that the company previously acknowledged itself as socially responsible and promised to sponsor independent research on public health.Criticisms Philip Morris as a harmful tobacco company is the centre of public, media and government attentions. The Wall Street Journal in an article, accused the company of being the major cause of peoples deaths. As a survey showed, a 50% share of the market belongs to Philip Morris Company (Alsop, 2001). Critics claimed that the multinational tobacco companies were using large marketing budget to attract customers, especially young people. The government emphasized that the company was misleading the public about the risks of passive smoking and so c alled light cigarettes (Economist, 2004).They charged that the company lied to customers about the hazards of smoking and tried to hide scientific evidence about it. They charged that they by design made people addicted to nicotine and sold cigarettes to smokers who were below the permitted age as well as causing many diseases like cancer, heart disease and so on (Economist, 2004). Philip Morris initiatives As any multinational company operating worldwide, the image and reputation of its brand is a very important nonphysical asset. So scandals regarding a companys social responsibility can significantly damage a well known brand.The first reactions of Philip Morris were to improve its reputation, as it was surely expected. The company intend to reposition itself as a socially responsible business entity through new anti-smoking campaigns. In order to prevent teenagers from using cigarettes, the company cut down its advertizing and started to responsibly pay attention on what it ad vertised, its impacts and the targeting population. However, many analysts are confident that despite the companys efforts towards establishing corporate social responsibility, it is a simple tool for refurbishing its negative image (Tobaccofreekids, 1999).Some experts remarked that if Philip Morris honestly wanted to reduce youth smoking and to be a responsible company, it had to end its marketing practices that attracted young people (US. newswire, 1999). However, in reality, it is appeared that they increased their marketing campaign to young people. Chapter 4 Findings and Discussions Coca-Cola case Coca-Cola India undertakes a diverse range of activities for the benefit of the community across the country. As part of our CSR strategy, sustainable body of water management remains our top antecedence -Deepak Kaul, Regional Vice-President, South, the Hindustan Coca-Cola Beverages Pvt.Ltd. , in 2007. It is India where the companys abuse of water resources have been challenged voci ferously and communities across India lifetime around Coca-Cola bottling plants have organized in large numbers to demand an end to the mismanagement of water In response to the growing Indian campaigns against Coca-Cola, the company has mulish to promote rainwater harvesting a traditional Indian practice in and around its bottling plants in India. Touting rainwater harvesting initiatives is now central to Coca-Colas public relations strategy in India -Amit Srivastava, Coordinator of India Resource Center, in 2007.Background Coca-Cola established its first plant in India in 1950 and remained on market till 1970s. Because of the Indian Governments request to share the sequestered formula of coke, Coca-Cola left the Indian market. later on an absence of about 16 years, Coca-Cola re-entered the Indian market in the early 1990s, when economic liberalisation took place in India (CokeFacts, 2009). Nowadays, Coca-Cola is the largest multinational corporation operating in India and is considered to