What should be a leader's role in practicing corporate social responsibility (CSR)? Give examples of some firms known for initiating successful socially responsible corporate programs

Question

What will be an ideal response?

Answer 1

The leaders of global companies must practice corporate social responsibility (CSR) which can be defined as a company's obligation to pursue goals and policies that are in society's best interests. Organizations can demonstrate their commitment to CSR in a variety of ways, including cause-marketing efforts or a commitment to sustainability. Starbucks enlightened human resources policies have played a key part in the company's success. Company employees are treated as partners, who work 20 hours or more per week, are offered health benefits, stock options, and other benefits. In a socially responsible firm, employees conduct business in an ethical manner. In other words, they are guided by moral principles that enable them to distinguish between right and wrong. At many companies, a formal statement or code of ethics summarizes core ideologies, corporate values, and expectations. GE, Boeing, and united Technologies Corp., are some of the American companies offering training programs that specifically address ethic issues. Johnson & Johnson, the ethics statement is known as "Our Credo." The issues of CSR become complicated for the global company with operations in multiple markets. The chief executive of a global firm in a developed country or government policymakers have the dilemma of selecting home country or developed countries' ethical standards. On the other hand, in developing countries, globalization's opponents accuse companies of undermining local cultures, placing intellectual property rights ahead of human rights, promoting unhealthy diets and unsafe food technologies, and pursuing unsustainable consumption. Environmental degradation and labor exploitation are also key issues. A company's reputation can very quickly get tarnished if activists target its policies and practices. In addition, companies that do business around the globe may be in different stages of evolution. Thus, a multinational firm may rely on individual country managers to address CSR issues on an ad hoc basis, while a global or transnational firm may create a policy adopted by the headquarters.