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The Social Responsibility Of The Global Firm

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Par   •  16 Octobre 2014  •  265 Mots (2 Pages)  •  991 Vues

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I. The social responsibility of the global firm

A. Corporate social responsibility

CRS has been defined as the obligation of firm to society or more specifically to those affected by corporate policies and practices.

B. Global companies and business ethics

Business ethics has been defined as the critical structured examination of how people and institutions should behave in the world of commerce.

The causes of corruption:

- Administrative resource allocation: price controls, multiple exchange rates.

- Lack of institutional checks and balances and information: absent or powerless public audit.

- Insufficient funding of public services

- Social and cultural factors

- Natural resources

Effects of corruption:

- Discourages domestic and foreign indirect investment

- Skews public capital expenditure in favour of new equipment

- Reduces the productivity of public investments and reduces the collection of taxes

C. Global companies and sustainable development

The most common issues that multinational corporations are confronted with are:

- Global warming and CO2 emissions

- Control of suppliers

- Eco-friendly capital investments

- Waste disposal in the developing world

- Effects on monocultures, deforestation and intensive agriculture

D. Integrating social responsibility policies into business strategies

10 principles:

Human rights:

- Principle 1: businesses should support and respect the protection of internationally proclaimed human rights

- Principle 2: make sure that they aren’t complicit in human rights abuses.

Labour standards:

- Principle 3: businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

- Principle 4: the elimination of all forms of forced and compulsory labour

- Principle 5: the effective abolition of child labour

- Principle 6: the elimination of discrimination in respect of employment and occupation


- Principle 7: businesses should support a precautionary approach to environmental challenges

- Principle 8: undertake initiatives to promote greater environmental responsibility

- Principle 9: encourage


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