CSR and challenges faced by MNCs Essay Example | Topics and Well Written Essays - 2500 words

CSR and challenges faced by MNCs - Essay Example 3). Multinational Corporations (MNCs) are found to experience intense pressure for performing socially responsible activities in their global operations. However, the corporate social responsibility (CSR) from the global perspective and its management by the MNCs are still less understood. There has been an increased promotion of CSR activities followed in the business environment worldwide. In addition to this, various voluntary initiatives and global guidelines are emerging to facilitate improvement of CSR in global operations. MNCs can be considered to be consisting of differentiated network which are significantly complex in nature. They are associated with internal heterogeneity and are required to face various complex situations related to managing across units that are globally diverse and dispersed (Barlett, Doz, and Hedlund, 1990). MNCs have to face diverse environments related to their stakeholders spread over all their international operations in various geographical areas of the world. The MNCs are required to address diverse issues of their stakeholders in diverse contexts and multiple levels of their operations. Managing of CSR by MNCs globally also involves cross border management and transfer of CSR activities across different geographical locations where they operate. MNCs are also required to manage the local CSR practices that are suited to the regional and local context of their subsidiary units. Hence, the MNCs have to face multiple and demanding challenges regarding management of their CSR activities across the globe. This paper entails about all those demanding challenges that are being faced by most of the MNCs worldwide today and how they are managing to do so in an effective manner to ensure their sustainable growth and development in future. CSR and Challenges Faced by MNCs The interests of the society are recognised through the CSR practices followed by an organisation and it takes the responsibility of the various impacts that its b usiness activities can have on the shareholders, employees, community people and the external environment. CSR can help in serving different purposes for a business organisation. It helps to ensure the fact that the business process is being conducted by the organisations in an ethical way and in alignment with the corresponding interests of the community. It helps in responding in a positive manner to the emerging priorities in the society. CSR serves the purpose of developing willingness amongst the organisations to act beyond the regulatory confrontation. It also helps in maintaining a balance between interests of the shareholders of the company and the wider community. As mentioned earlier, corporate social responsibility has received renewed attention in the business world in the recent years. CSR is now considered to be a critical issue that is needed to be followed by the MNCs mainly because of the increasing demands and expectations from the society, and are also driven by v arious factors like the campaigns organised by the NGOs, managers of the companies who are ethical minded, and seeking opportunities to improve the reputation of the organisations. It is unfortunate that most of the companies begin with big words and come up with responsibility policies and statements,