Posted: October 20th, 2022

CORPORATE SOCIAL RESPONSIBILITY IN DEVELOPING WORLD ESSAY

CORPORATE SOCIAL RESPONSIBILITY IN DEVELOPING WORLD

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Corporate Social Responsibility in Developing World
From sole proprietorship companies to complex international companies, each business has its stakeholders and its effects on society, both constructive and negative. The aim of the concept of Corporate Social Responsibility (CSR) is to examine the impacts of a business in society and to promote the positive impacts of a business in society. CSR has been defined as a business strategy that aims at producing lasting benefits for both the business and the society. Progressively, CSR is becoming a tactical platform for safety and health management in a company. Corporations that are said to be in front line in supporting social, human, and mental resources are perceived as employers of choice. Instead, it contributes to the community through other ways such as enhancing local human capital, safeguarding the environment, and promoting a culture of transparency and accountability. Promoting employees’ welfare in a company has a number of benefits to the company and society, and may be used as a management tool within the company. This paper will provide arguments for and against the contention that by adopting in Corporate Social Responsibility programs which enhance the developments of workers’ health in developing nations, multinational corporations not only have a positive impact on the local population but also create opportunities for themselves. The paper will use two Bangladesh disasters to support its stance.
CSR have a high potential for environmental and pervasive social benefits to the company. Because they are implemented through the corporation’s value the impacts of CRS programs are clear. For instance, when a company promotes the working condition for it workers and gives healthcare to it employees, productivity increases. Similarly, when a company reduces pollution and waste in its production activities, the operating cost decreases, and society enjoys a clean environment. Carroll and others stated that companies engage in CSR because they believe the public strongly support it. In the modern world, the public assumes that, as an addition to pursuing profits, companies should be responsible for safety and health of their workers, and welfare of their stakeholders and communities, even though making things better for them makes companies forgo some profits. CSR influence development of workplace health and safety management and integrate health and safety into overall business management. Occupational health and safety issues are integrated into the companies’ CSR in dissimilar degree. Usually, health and safety issues are a major part of CRS in companies operating high-risk sectors, like chemical processing industries. Implementing CSR is usually connected to better organisation performance of the company. The above contention was confirmed by a research performed in 2006 in 300 companies with a diverse approach to CSR. Economic performance was relatively better in 150 corporations that had CSR.
The most common challenge of CSR is that different decision makers are engaged in different business units and engage in dissimilar versions of CSR with diminutive ultimate impact or cohesion. The end result is that the organisation’s CSR programs are sizable in the aggregate, but their significance in a single issue is limited. Besides, CSR programs are overseen by operation managers and thus, there can be a conflict of interests between managers and owner of the company. Such conflict resulted in the collapse of Rana Plaza in 2014. On the evening of 23 April 2013, clothing factory workers of Rana Plaza building located in Savar Bangladesh, begged the management to take notice of abrupt cracks that appeared in foundations and walls. The management ignored the request stating that the building owner had hired an engineer who pronounced the eight-story building save. The following morning the management request all workers to take their responsibilities as the building was repaired. Just 30 minutes later the building collapsed killing more than 1,000 individuals and injuring more than 2,000 workers. This case highlights one of the most cited argument against CSR, that management has one role, maximizing profits for its shareholders or owners. Carroll et al., argue that social issues will never be the concern of businessmen and social issue are resolved by the unfettered working of the free market economy.
The contention that CRS has a positive impact on environmental and pervasive social benefits to the company may be illustrated using Bimbo Company. For example, in Bimbo Bakery Company broad environmental and social CSR initiatives have contributed in creating loyal and committed workforce and more robust supply chain than promote brand loyalty, support company expansion, and guarantee a healthy and well-educated workforce for production and distribution facilities. Bimbo Bakery has comprehensive CSR programs aimed a meeting the social welfare requirements for its more than 100,000 workers. This company gives free education for its workers, and supplementary medical care to fill the gaps in what is given by the government through the health plan. It also gives financial aids for their dependent’s health needs. Bimbo is also committed to making use of biodegradable packaging, minimizing carbon emissions, energy, and water use, and solid waste in its production systems. Despite the above-stated advantages associated with CSR, the Rana Plaza disaster shows that in developing the world CRS has failed to protect the safety of workers.
In some corporation, health and safety may be considered a relatively important aspect of CSR. Advocatesof CSR stress on the interdependence between society and business as companies depend on society’s intangible and tangible assets. They maintain that the objective of the company is not to make the profit only but the companies should use a certain fraction of the profit to create a better society. The rationale is that companies create many social problems, thus, they should help in solving them. From a self-interest perspective, one may identify that CSR has positive impacts on the company itself, as they enhance the company’s reputation and reduce scandals. Both promote public trust and confidence in the abilities of the management to control fraud and promote production. Safwat held the companies with good health and safety CSR policies enjoy a good relationship with it employees and civil society which offer it a competitive edge in the market.
In developing the world CSR has been objected as they have failed to protect the safety and health of the workers. This failure may be demonstrated using catastrophic workplace fire disaster in Tazreen fire Bangladesh. On the night of 24thNovember2012 fire broke in Tazreen Fashion Company. The Tazreen fire claimed lives for more than 100 workers. Survivors of this tragedy stated that the management locked one exit door and informed the workers that the fire alarms were untrue, thus delaying well-timed evacuation. The Bangladesh Occupational Safety, Health and Environment Foundation (OSHE) conducted an independent investigation to identify failures that resulted in a fire that resulted in a huge number of deaths and injuries. The team carried out field investigation, visited the site, and met with victims and workers of the factory. The team identified the company had poor safety measures. For instance, there were no emergency or fire exits or stairways. The fire extinguishers were insufficient and were unavailable during the fire. Besides, there was just one main exit which was located on the ground floor which was not wide enough to accommodate the huge number of employees in the company.
Well-managed CSR programs create environmental and social value, while supporting a corporation’s business visions and minimising operating costs, and promoting relations with major society. One of the major objections of CSR has been that companies, particularly in third world countries, are not well equipped to handle social activities. This line of argument holds that managers are oriented towards operations and finance and do not have the required social skills to implement CSR programs. Tazreen case demonstrates that lack of enforcement of corporation regulations and laws, weak labor unions, high level of corruption and absence of consumer rights make violation of CSR rampant in developing the world. Bangladesh is an emerging economy. Because of global demand and competitiveness, the CSR standards and practices are being adopted in Bangladesh. There are challenges in implementing CSR appropriately in Bangladesh. In this regard, there should be effective implementation of CSR in developing the world for better performance. In order to implement and create a corporation-wide CSR visions, senior managers, and their staffs are required to be committed to this priority. For corporation engaging in a broad range of CSR programs managed by separate managers, is undoubtedly challenging. CSR programs are supposed to be managed by one CSR officer, Although CSR officer cannot be conceivably available at all CSR programs, and his /her surrogate should be well-informed of all programs. It should be the role of CSR officer to make sure CSR priorities and topic (sample nursing essay examples by the best nursing assignment writing service)s are incorporated into operating committee discussions.
In conclusion, CSR refers to the company’s commitment to improving society well-being through unrestricted business activities and contribution of corporate resources. The benefits of CSR may be multidimensional affecting employees’ recruitment and retention, and promoting competitive advantage of the company, protecting business reputation, and enhancing performance. Competitive advantage justification holds that by engaging in CSR activities companies can improve their competitiveness. The demands of stakeholders are considered as opportunities, not constants. Companies manage their resources strategically to meet those demands and use any available opportunity for the benefit of society and company. The major advantages of CSR it promotes business reputation, increases competitive advantage, and creates a win-win situation between the company and society. Advocates of CSR hold that it helps the company strengthen its reputation by proving that it can meet the needs of its stakeholders and gain profit at the same time. Despite the advantages associated with CSR, some countries in the third world hide behind dishonest and deceptive CSR schemes that depend on corporate-funded monitoring and codes of conduct stipulated in websites to conceal worker abuse. This implies that the impacts of CSR in a company are not always positive. The companies should understand the circumstances of various CSR programs and pursue those programs that show convergence between company’s economic goals and its social objectives.

Bibliography
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