MNCs and Corporate Social Responsibilities: a. Why do MNCs (any corporation for

Question

MNCs and Corporate Social Responsibilities: a. Why do MNCs (any corporation for that matter) engage in socially attractive activities? b. Is there a business case for CSR? Explain. c. Some people are against CSR; explain why. d. Is there enforcement mechanism for CSR? How do we know if a MNC’s CSR has real social, economic, and environmental impacts? e. Discuss two cases where a MNC adopted a stricter standard after conflict arose over the practice of a MNC that affected workers and/or consumers. f. An alternative approach to CSR practices is for a government to collect tax from MNCs and undertake activities that correct the negative externalities of MNCs. Do you support this approach? Explain why.

Explanation / Answer

a. Companies enggage themselves in socially attractive activities to mitigate or manage risk, improve brand image, manage capital, competition differentiation, innovation and help the society.

b. There are many cases on CSR like American Express: business case for CSR

c. There are several reasons why some people are against CSR. Reasons like people think investing money in CSR is cheating shareholders of their profits, people believe firms have their own business agenda behind CSR, cost of CSR is added in price of products, etc.

d. Laws for enforcing CSR is not same across the world, most countries do not have CSR enforcing, few countries have weak laws. For eg. India has a law that big companies have to spend 2% of their profit on CSR. CSR will have real impacts if tangible and intangible effects could be empirically tested for difference made bt CSR.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.