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Corporate social responsibility in multi national companies(CSR)
CSR In Multi National
Advantages And Disadvantages To
Definition For CSR.
Types Of CSR.
Main Concern Of CSR.
Advantages Of CSR To Multinational Companies.
Disadvantages OF CSR To Multinational Companies.
CSR In Mutinational Companies 2
What Is Corporate Social Responsibility ?
“The idea that business has a duty to serve society in general as
well as the financial interests of stockholders ”.
-Pearce & Robinson
CSR In Mutinational Companies 3
WBCSD (World Business Council for Sustainable
“The continuing commitment by business to behave
ethically and contribute to sustainable economic
development while improving the quality of life of
the workforce and their families as well as of the
local community and society.”
CSR In Mutinational Companies 4
What is a multinational Company?
An enterprise operating in several countries but managed
from one (home) country. Generally, any company or
group that derives a quarter of its revenue from
operations outside of its home country is considered a
CSR In Mutinational Companies 5
Types Of CSR…..
1.Responsibility Towards Society.
2.Responsibility Towards Government.
3.Responsibility Towards Shareholders.
4.Responsibility Towards Employee.
5.Responsibility Towards consumers.
CSR In Mutinational Companies
Main Concerns Of CSR.
Business Standard Labour Security.
Educations and Leadership Development.
CSR In Mutinational Companies 7
Advantages Of CSR To Multinational Companies
1.Improved financial performance.
2.Lower operating costs.
3.Enhanced brand image and reputation.
4.Increased sales and customer loyalty.
5.Greater productivity and quality.
6.More ability to attract and retain employees.
CSR In Mutinational Companies
7. Make a positive image among stakeholders.
8. Access to Capital.
9. Product Safety and Liability.
10. Workforce Diversity.
11. Help to Attract Investors.
12. Improves Business Image And Reputation.
13. Increase in competitiveness.
15. It help to Correct the social problems Caused by the Company.
CSR In Mutinational Companies 10
Disadvantages To Multinational Companies.
According to Milton Friedman (a leading economist) making corporate socially responsible is
useless and even potentially dangerous since it goes against the very basic aim of doing
business: making profit.
It breach of the principle of profit maximization.
CSR may contribute to the dispersion of forces and resources of the company and thus reduce
its economic efficiency.
Many socially responsible actions are unprofitable because of high costs.
Companies expanding their social responsibility increase the price of goods and services.
CSR In Mutinational Companies 11
Fundamental principles of business gets violated.
CSR projects will not be successful.
There are not the special areas of any business.
CSR is to induce them to steal away the shareholders money.
CSR causes to slow down innovations.
CSR In Mutinational Companies 12
Examples for CSR Activities of MNCs…
IBM UK - Reinventing Education Partnership programme Interactions and
sharing of knowledge through a web-based technology - the “Learning
Village” software. Culture of openness and sharing of good practice
AVON - a partnership with Breakthrough Breast Cancer, and its Breast
Cancer Crusade has raised over 10 million pounds since its launch 12 years
TOI’s Lead India campaign, campaign for contribution towards educating
CSR In Mutinational Companies 13
John Keells - In 2015, Cinnamon Resorts in partnership with CARE international Sri
Lanka and John Keells Foundation awarded 100 youth aged 18-26 the opportunity to
participate in the Skills for Youth Programme . This programme was designed to
develop transferable skills in a practical environment including rigorous training and
skill development in three disciplines of hospitality: kitchen, housekeeping and food and
Unilever Sri Lanka- ‘Gamata Saubhagya’ gives new hope to rural communities Delivering on
its commitment to grow its ties with the communities it serves, Unilever Sri Lanka recently
reached out to 10 villages through its ‘Gamata Saubaghya’ initiative to renovate wells,
provide safe drinking water to schools and rebuild community halls. The ‘Gamata Saubhagya’
initiative was launched as a community development project within Unilever Sri Lanka’s
Sunlight Saubhagya micro-entrepreneurship scheme. This scheme is designed to provide a
sustainable source of income to participants, thereby enhancing livelihoods and helping
improve the quality of life.
CSR In Mutinational Companies 14
CSR is a concept where companies voluntarily contribute to a better society. Nowadays CSR
has become an important part of a business organisation, Because business interested
parties have given a more concern towards CSR.
This is directly linked to the organizational culture willing to carry out a wider
organizational change and it is important to see positive results which CSR brings on
ethical, social, organizational and business scale.
There have Several areas to concern ,when companies involve in CSR activities and it’s
responsibilities spread to society ,Government ,Employee ,Shareholders and consumers.
Multinational Companies Can gain many advantages from CSR activities but there have
some issues when companies engage in CSR.
Advantages help to confirm the sustainability and existence of multinational companies.
Finally CSR remove gap between society requirements and expectations.
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