Corporate Responsibility in the Global World
Corporate Responsibility is the commitment of business to contribute to sustainable economic development, working with employees, the local community and society at large to improve their quality of life. Thus environmental concerns are part of a company’s corporate responsibility. The advantages to the organization, which implement corporate responsibility, are clear: That organization creates positive image, trust in the product or in marketing to the customer, authority and public. On the other hand, the disadvantages are high costs and changes in work procedures. Business involvement with community changed its shape and level during the years, managing activities such as money contribution to needed bodies, helping workers volunteering in the community, involvement in educational activities, and involvement in health and welfare activities. Changes in the global order brought the requirement for corporate responsibility to a new level. As multinational organizations expand their activities in different countries, the problems of cultural diversity and different management perceptions and different attitude to the firm’s responsibility raise. In order to determine what is accepted ethically or morally, multinational companies must consider the implications of their decisions on a variety of stakeholders in the origin country as well as in the foreign countries in which they operate. Overall, the debate that should be taken place is over what does stand behind the actions that are taken by the organizations with the Corporate Responsibility. Which stakeholders are taking under account? Do organizations have the right to push their employees over the edge under the flag of keeping the environment? Do donations to the community or to the school system gives the organization the right to use dangerous materials or take over the environmental resources?
Keywords: Social Responsibility, Globalization
Dr. Orna Steiner Lavi
Head of the School, Business School, University of Derby