CSR Policies in Developing Countries

The research explores the issues related to CSR policies in organizations operating in countries with low levels of CSR regulations. The study reveals that a shift from traditional mentality is needed for management to attain success in business, and proper implementation of CSR activities can help avoid complex situations like those mentioned in this report.

Running head: CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction......................................................................................................................................3
Issues Highlighted in the Article.....................................................................................................3
Importance of the Issues..................................................................................................................4
Methodology....................................................................................................................................4
Results..............................................................................................................................................5
Important Findings...........................................................................................................................5
Applicability of the Results.............................................................................................................6
Literature Gaps................................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The following report is based on the analysis of the Corporate Social Responsibilities of
an organization. The researcher has highlighted the CSR practices of the business organizations
and examined the relations that exist between the legal guidelines of the country. The article that
has been selected for analysis has drawn up the conclusions from a large number of databases
which includes sample studies from 23,000 companies of 114 different countries in the globe
(Liang and Renneboog 2017). Apart from highlighting the common issues of the article the
researcher has also described the main methodology that has been used to complete the research
that is being analyzed as well as pointed out the different results that the article has concluded.
The gaps in the literature have also been identified to increase the scope of the research.
Issues Highlighted in the Article
The following article has dealt with Corporate Social Responsibilities and the approach
taken by different companies in different countries depending upon the laws and regulations in
each of those countries. However there are some problems in implementing the CSR programs
in different countries as in some countries the laws to implement them are tougher while in the
others the laws to regulate such are not so tough in nature. The authors have also found out that
the management of most of the companies lacks the intent to implement the CSR activities. They
take the advantage of the lower ratings of CSR in most of the countries. Thus the most common
issue identified by the following authors is the lower level of CSR activities implemented by the
companies in the common law countries whereas the opposite happens in the countries with
Scandinavian law countries (Liang and Renneboog 2017)

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.
Importance of the Issues
The following issues are of great importance as because CSR is one of the most
important considerations of the global industrial front. It is one of the most important task of the
companies to undertake CSR activities as a part of their operations in different countries.
However the research has shown that most of the organizations take advantage of the slack
regulations and laws of the country and hardly undertakes CSR activities. Thus such operations
can invite different complex situations. The authors of the particular text have described the
findings to be of two fold in nature (Cheng Ioannou and Serafeim 2014). If the activities are
considered at the Macro level then the role of legal origin in driving the finance and the other
economic outcomes comes into question however the Macro level does not support the following
and describes CSR to be the welfare mechanism for the shareholders of the organizations. Thus
CSR is considered to be a blend of both rules and the choice of the organizations in
implementing them in the organizational framework.
Methodology
The methodology is considered to be the most precious part in the conduction of a
research. A proper and effective methodology selection can help the research to be successful in
nature. The researchers have used the post positivism research method to deduce the results as it
involves a scientific approach to render the conclusions. On the other hand the researchers used
the deductive approach to find the philosophy of the research. The use of the deductive
philosophy helped the researchers to address the specific needs of the research. The information
regarding the CSR activities of the companies in the different countries was evaluated both by

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using primary as well as secondary data. The primary data was obtained by the conduction of a
survey whereas the secondary data was obtained from earlier researches on CSR and the journals
and articles of different companies. The primary as well as the secondary data was useful to
deduce the results of the research.
Results
The researchers have visualized the distribution of the sustainable development channels
in different industries all around the globe by using the adjusted Vigeo sustainable country
ratings. The ratings are scaled according to eight different types that represent the degree of
sustainable development. This includes different types of developmental categories like
environmental responsibility, social responsibility and institutional responsibility of the country
where the company operates (Littell and Doh 2015). The dark color in the ratings category
indicates a high sustainability of the business while a fair color may indicate a less sustainability
of the business. The effective methodology used by the researchers helped them to get a clear
picture of the CSR activities in different parts of the world (Liang and Renneboog 2017). The
Scandinavian and European countries like France and Germany generally have a strict regulation
and thus the companies operating there have to maintain the CSR rules to stay sustainable. As
mentioned earlier it is just the opposite in most of the other countries having not so strict
regulations.
Important Findings
The findings of the research are directly related to the results. As mentioned in the
results section there is a huge gap in the laws and regulations of most of the European countries
with the other countries of the world. These countries follow strict regimes and adhere to

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different policies which make it a must for the companies to implement CSR policies that are
beneficial for the employees and the society. On the other hand these same companies may or
may not follow the CSR rules when they operate in other countries with least rules and
regulations. It is up to the management of the company to implement CSR activities which may
be beneficial for the society. The case of Milk Scandal in China has been illustrated by the
researchers to highlight the negligence of most of the organizations in adhering to different CSR
policies (Clapp and Rowlands 2014). The researchers have also used other example like the
Deepwater Horizon oil spill and the Indian Ocean Earthquake as an example of such a crisis.
Thus this shows that absence of a proper CSR strategy can cause serious damage to the countries
where a firm operates.
Applicability of the Results
As mentioned in the earlier section, the absence of substantial CSR initiative can cause
serious damage to the reputation of the business as well as cause problems to the operations of
the business. The results thus indicate that a shift from the traditional mentality is needed by the
management of the organizations to attain success in the business. Therefore the business
organizations operating in countries with low level of CSR regulations must make it a point to
implement proper CSR activities (Carroll 2015). The implementation of proper and effective
CSR policies will help the organization to avoid complex situations like the mentioned examples
of the following research in the future. The results of the following research can be and must be
implemented by the organizations to achieve sustainability and limit the possibility of any
damage. The applicability of the results can also help them to earn brand reputation as CSR
activities are aimed towards the development of the societies as a whole.

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Literature Gaps
The research has been conducted in a proper and efficient manner with utmost accuracy
to most of the details. However there are still some issues and concerns that the researchers have
failed to identify in the work . Though most of the Asian countries have a low level of CSR
regulations, there are certain trade regulations and other tax related policies that the companies
have to face while starting or operating their business in these countries. Therefore these
companies face a tough time while doing business and thus it is hard for them to implement the
CSR policies after ensuring the completion of all the other criteria. The researchers have also
failed to identify the specific cause of the absence of the regulations in most of the developing
countries and how to bring at par with that of the legally developed countries.
Conclusion
The researchers have presented a well constructed report on the issues that are related to
the CSR policies of the organization. The use of the deductive approach to come to the
conclusion of the research has been useful to find out the exact results of CSR activities in
different legal countries of the organization. The researchers have been able to identify the
important issues related with the topic of the following research and are also successful in
determining the importance of such issues. The researcher has also analyzed the results of the
research and has identified the applicability of the research in the different business
organizations. The thorough analysis of the research will help the readers to get an idea of CSR
related activities and its importance in operating a smooth business operation.

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References
Bhattacharya, C.B., Korschun, D., Sen, S. and Routledge, H., 2017. Corporate social
responsibility. Journal of International Law, 26(2).
Carroll, A.B., 2015. Corporate social responsibility. Organizational dynamics, 44(2), pp.87-96.
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to
finance. Strategic Management Journal, 35(1), pp.1-23.
Clapp, J. and Rowlands, I.H., 2014. Corporate social responsibility. The Essential Guide to
Global Environmental Governance. Routledge: London, pp.42-44.
Liang, H. and Renneboog, L., 2017. On the foundations of corporate social responsibility. The
Journal of Finance, 72(2), pp.853-910.
Littell, B. and Doh, J.P., 2015. Corporate social responsibility. In The Routledge Companion to
Non-Market Strategy (pp. 121-136). Routledge.
Pedersen, E.R.G. ed., 2015. Corporate social responsibility. Sage.
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Suliman, A.M., Al-Khatib, H.T. and Thomas, S.E., 2016. Corporate Social
Responsibility. Corporate Social Performance: Reflecting on the Past and Investing in the
Future, p.15.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.