CSR on International Business Paper

Running head: CSR ON INTERNATIONAL BUSINESS
CSR on International Business
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2IMPACT OF CSR ON INTERMNATIONAL BUSINESS
Abstract
This paper mainly discusses about the impact of CSR on International business. It also talks
about the several trends in the history of emergence of CSR. There is also the discussion of the
pros and cons of the corporate and social responsibility of the well known International
companies. The paper also goes on towards the discussion of the legal obligations that the
companies must always take into consideration while adopting the CSR activities. There is also
the example of many well known companies that have been often highly criticized because of the
unethical and illegal activities that were taken up by hose companies. It also talks about the
newest adaptations that have been made in UAE as a part of the joint effort towards taking up of
the CSR activities.
The importance of Corporate Social Responsibility on International Business
Introduction
CSR or the corporate social responsibility is a very important aspect of any and every
business organization in the present day business scenario. In this modern day the needs and
demands of people have underwent a sea change (Boulouta and Pitelis 2014). The business
organizations have also realized that in order to flourish in the long run they need to take up
several over additional responsibilities apart from just satisfying their customers. As a result of
this the companies have started this new approach called the CSR or the corporate social
responsibility. This is basically a new and innovative business model that enables the business
organizations to promote sustainable development for all their stakeholders. This can be done by
generating several social, economic and environmental benefits for each and every stakeholder.
It is also very important for the multinational companies to be able to utilize their corporate

3IMPACT OF CSR ON INTERMNATIONAL BUSINESS
social responsibility as a part of their overall business. This will not only benefit the society but
also will be quite helpful towards the business organization itself. It is also very much essential
for the Multinational companies to make sure that they are very much capable in taking up their
responsibility towards the environment and also towards all their stakeholders (Boulouta and
Pitelis 2014). This paper will be dealing with the influence of corporate social responsibility over
the International Business.
Research Methodology
Qualitative analysis method has been used in order to get an overview of the emergence of CSR
in the historical framework. Different aspects of CSR of the international companies have been
described. This analysis has also dealt with the kinds of CSR that the global companies can deal.
The results also show what can be the pros and cons of adopting the CSR activities.
Hypothesis
 CSR activities will help in increasing the brand loyalty of the international companies.
Brands loyalty is one of the most important aspects of the present market scenario. In order
to survive in the long run, the companies will have to provide their customers with something
that is beyond the reach of their competitors (Brammer and Mellahi 2015).
 CSR of the international companies can make the company reputation suffer.
In order to carry on the CSR, the companies will need extra fund that will ultimately be
gathered from the customers itself. This will make some additions in the usual price of the
products. As the area of operation of internal companies is large they deal with many
different customers. Each of them has a different mindset (Soeberg and van Zandwijk 2016).

4IMPACT OF CSR ON INTERMNATIONAL BUSINESS
As a result of this, many customers may refuse to pay the extra additional price and switch
over to alternatives.
 CSR will enhance the overall production, popularity and goodwill of the International
business.
Customers will not be reluctant to pay a bit more for purchasing the products of the company
if they see a noble cause behind it like the company’s effort to help the poor children for
education, or compensating the customer losses, or donating for some social service (Tai and
Chuang 2014).
The research question and the purpose of the research
To analyze the importance of corporate social responsibility in international business
 1930s- The term CSR for the first time came into act. It was perhaps because Professors
A.A Berle AND Prof C.G Means at the Harvard University wanted to work upon
something that would make the organizations much more responsible towards taking up
more responsibilities after the Great Depression.
 1960s-1970s- All the companies were being encouraged to take up the different CSR
activities related to the social, environmental, economic activities.
 1980s-1990s- IUCN created a world conservation strategy as per which the business
organizations were asked to contribute towards a more stable economy, and also help in
supporting the poverty stricken population. The triple bottom line business model was
also invented.