Development of long-term customer

Running Head: MANAGEMENT 0
BUSINESS ETHICS

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Corporate Social Responsibility (CSR) and International Business
In this competitive era, corporate social responsibility (CSR) has become the standard
business practice holding many areas under business strategic decision such as environment
protection, employee well-being, community and society. Baumgartner (2014) stated
corporate social responsibility as “a business approach that adds to sustainable development
by providing social, economic and environmental benefits for all stakeholders”. The aim of a
business enterprise is different than CSR as corporate social responsibility is not a goal to be
followed in itself, however, rather, an integral aspect of everyday operations of an
organisation that emphasis on long-term value creation. There are many reasons why
business relies on corporate social responsibility and one reason from that bundle can be
innovation which is one of the most needed things for the sustainability of today’s business
life cycle. Taking an example, with fast-rinse technology, Unilever is undertaking innovation
practices through various products like hair conditioner that run via less water (unilever.com,
2019). Furthermore, undertaking CSR practices requires corporate to proactively implement
various strategic and significant plans so as to protect the stakeholder interest. In this
competitive business landscape, many companies perceive CSR as an integral part of the
executive strategy strengthening organisation structure in terms of risk management,
increasing capacity of innovation, cost savings and development of long-term customer
relationship.
Corporate social responsibilities practices engaged by international organisations can
be categorised under CSR for global talent acquisition and retention, reputation management
and branding, regulatory requirement and philanthropic initiatives and engagement. Horisch,
Freeman & Schaltegger (2014) stated that best and skilled human resources all over the
countries seek to work for companies that practice good corporate citizenship and where they
can develop their skills and capabilities. The base for CSR as a practice in an organisation for
recruiting and retail international talent for international companies found in both theory and
operations where it is founded that just as businesses gain success in the marketplace by
satisfying the consumer needs, they can also manage their workforce greatly through seeing
them as internal consumer, satisfying their requirement via a convincing menu of “job-
yields” (Du, Bhattacharya & Sen, 2015). These job yields comprise of healthcare assistances,
appropriate pay, bonuses, work roles and when developed effectively, can bring to more
employment satisfaction and performance. When an international company involved in CSR

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undertakings that are both definite and significant, the values of a business are discovered and
it can lead to an “Employee Value Proposition” signifies as “the all-inclusive addition of all
individual experience and obtain while they are connected to the organisation.” It can help
organisation to practice its operations and strategies effectively in the market while retaining
a skilled personnel base.
As per study by Tai & Chuang, (2014), certain motives that stimulate employees to
work for an organisation that involved in CSR practices comprise of goodwill protection,
work and lifecycle balance, self-improvement and link to organisation. In this modern era,
international businesses prosper and succeed on their employee diversity when carrying in the
finest personnel having top capabilities and skills in the market and from different areas over
the globe in order to offer competitive edge to the enterprise. Considering example of Xerox,
an American global company has effectively established positive brand goodwill in the
community by straightly connecting their employees in community development programs.
Hence, it can say that a positive brand reputation makes it easier for organisations to get
skilled and competent employees for a longer period of time while reducing the cost and
bringing more productivity. On the other hand, business may suffer big loss both tangibly
(financial) and intangibly (goodwill) if they lose faith on CSR practices. Taking example of
Volkswagen, a global car manufacturer face huge less in terms of goodwill when the
company discards ethical standards in engineering with a complete failure in association with
CSR. The brand goodwill hampered when its vehicles freeing 40 times the allowed limit of
nitrogen oxide and also leaving the resignation of the CEO (theconversation.com, 2015).
In relation with international business, brand reputation management and corporate
social responsibility also play an important role as the better an organisation does at securing
its reputation and developing brand trust, the more it will be successful while attaining
competitive differentiation. The key drivers of a good reputation include financial
performance of company, mission and leadership, services and products, behaviour towards
employees, emotional application, environmental and social responsibility (Saeidi et al,
2015). However, even if these drivers are effectively practised, an organisation reputation
also relies on how various stakeholders distinguish the diverse aspects of its behaviour and
performance. Here, a solid CSR performance can lead to creating difference. The extent to
which these help the brand can be understood with the example of Wall Street who was
found to indulge in a Scandal of backdating (Godelnik, 2013), however, due to its strong
corporate governance, the company with heightened overall reputation help the company