Critically analyse the relationship between CSR and MNEs' competitive advantage.
Abstract:Business is defines as a profit seeking activity where companies in return produce goods and services to society. In the past, we can arguably make the statement that this was company's main responsibility. Also how do they gain stakeholder interest in a business's activities was a big question. Now days, Businesses have to consider certain roles as part of their duties towards their activities because consumers have become increasingly sensitive to issues such as the environment and human rights. Also investors would likely respect the consumer's view of a company when evaluating their performance in economically, socially and environmentally areas. In regards to those reasons it is becoming more notable that businesses are trying to satisfy their stakeholders' interest. Companies have figured out a way of doing so. It is thorough their Corporate Social Responsibility programs. First section of this paper is about defining the theory of CSR, and stating why it is becoming an important aspect of company's interest.
Next I am going to explain how practicing this theory would contribute to business growth and development. The conclusion will then try to see if CSR as a tool is beneficial for MNCs.
Introduction:Corporate Social Responsibility (CSR), though known for quite some time, has gained prominence in the recent times, particularly in the last decade of the 20th century. Perhaps the importance of the phrase has grown with the rise in importance or growing clout of the multi-national corporations. Till recently the burden of social responsibility was considered to be on the governments more so in the wake of existence of Marxist and socialist ideology as a counter to the capitalist ideology. With the breakup of the erstwhile Soviet Union and rejection of Marxism in favour of free economy...