Corporate Social Responsibility in International Business

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Global Business Issues

Table of Contents
Introduction....................................................................................................................................1
Conclusion.....................................................................................................................................5
References....................................................................................................................................6

Introduction
Global business issues are basically adversely affecting the international community as well as
the environment at the same point of time. These are range from severity from small issues that
can impact everyone at international risk that can protect the overall survival of the overall
human race or their society. It has been essential for an organization to provide business with
the latest opportunities for growth and profitability in the near future. Moreover, if the
international business were so simple for everyone that can significantly analyze the risk
related to going global operations for a longer period (Aguinis and Glavas, 2012).
Corporate social responsibility is considered as a self-regulating organisational model that can
assist various companies to be socially accountable to their stakeholders. In relation to
engaged with the CSR is basically related with the social course of business a company is
operating their business in the ways that can help society and other aspects instead of
contributing positively to the overall growth and sustainability in near future time. It is a wide
concept that would take plenty of forms which relies on various financial institutions. CSR is the
most important step in the development of the community. These activities could assist a
positive bond among employees and the department. It would help in boosting morale and also
encourage employees to connect with the nation at the same point of time.
According to the mentioned case study, it has been seen that there is an ongoing debate in
relation to traditional aspects related to corporate social responsibility. It would develop an
inherent tension among both shareholders and stakeholder. The financial sectors of the UK
economy are consists of lenders, bank and insurance providers. Most of them are responsible
for selling a wide range of products and services to diverse customers. In order to regulate
proper balance among this department, there is certain legal authority such as Sale of goods
and services act (SOGA) and other financial conduct authority to deal with customer compliant
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as well as protect them from any kind of misconduct and fraud (Cheng, Ioannou and Serafeim,
2014).
CSR tends to promote a specific vision for their business accountability to a large scale of
stakeholder or other investors. The concept of CSR is being underpinned through certain ideas
which are corporate no longer act as a secluded economic entity operation. There are various
current issues that are associated with the CSR in the present period of time. Such as the
shrinking role of government, it means that they have applied on certain legal rules and
regulation that can deliver social and environmental aims in the business operations. It has led
to the exploration of both voluntary and non-regulation aspects related to the CSR. Similarly,
demand for maximum disclosure is another issue from the stakeholder that consists of
suppliers, society, investors any other persons. Increase in customer interest is another
valuable issue because there are certain ethical aspects of companies that exert an effective
emergent impact on the purchase decision of customers. According to recent research, it has
been found that a maximum number of customers reported that they are having either reward
based in relation to their social performance.
There has been growing investor's pressure which is a huge challenge for the financial firms
such as HSBC and other financial companies. It has been determining that maximum number
of the quarter with sharing own business that can take into account as ethical consideration at
the same point of time. There is a competitive labor market because a maximum number of
employees is increasingly searching for their other benefits that could seek out most of the
employer’s practice that matches their own principles.
In relation to hiring more skilled and capable employee's financial companies are being forced
to improve the working structure of the company (Crowther and Seifi, 2018). There are various
ways to resolve the issues related to CSR. Some of them forge a real strategic connection. A
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bank is more probably used to promote cancer problems. This is not so easy for the companies
to provide a proper link between internal as well as external departments of an organisation.
There is various financial organisation or agency such as LV which is a mutual provident
organisation that assists their members as well as other poor families from the valuable amount
of capital support.
There are some other ways through which the implication of CSR issues can be resolved more
easily. The strategic decision for collecting maximum money to organise specific programs in
relation to promote corporate responsibility toward society is being taken into account.
Integration programs must be taken into account rather than operating in Silos. CSR tends to
remain a valuable branch that can help in creating the latest opportunities for integration that
are often missed among various companies.
There is various kind of fundamental theory which is helpful in order to control the business
risks that are associated with the financial institutions. The stakeholder theory of CSR has
become one of the valuable aspects that are having a direct alternative as well as have
challenges to shareholder value (Kim, Park and Wier, 2012). It has been arguing that the total
amount of stakeholder anxiety group has been developed wisely. The stakeholder has aimed to
impact on overall business that must not be underestimated. The stakeholder theory is entirely
given maximum emphasized on special aspects rather than other unrelated corporation.
The business ethical theory of CSR is another important theory that relies on large social
obligation and moral aspects that are associated with the development of society. It consists of
various aspects related to the changing and emerging trends of social responsiveness and
issues. Similarly, ethical values are always inspired by Kantian ethics that is associated with
normative principles such as social justice and human rights. The corporate citizenships such
as corporation are essential aspects that help in removing social issues that are associated
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with the business operations. The shareholder value theory is also one of the essential theories
that are responsible for social responsibility towards social development (Brammer, Jackson
and Matten, 2012). It is justified as one of the most valuable responsibilities that are often
considered as strategic aspects for competitive benefits in the near future. These theories
would help in addressing all the specific business problems that are affecting the performance
of the company in the near future time. Political and economic aspects like democracy and
international investment have been examining as effective determinants of CSR in low-income
nations.
The relationship between corporate social responsibility and financial performance in both
domestic and international level are subject to extensive analysis of the overall growth for the
company (Grayson and Hodges, 2017). There is the most common reason for the divers as
well as measurement issues which are pertaining to the concept of CSR. This article focuses
on reviews of best alternative and methods that have been deployed in the empirical literature
relationship of corporate society. In the financial point of view which is associated with the
corporate growth of small and medium-size companies is more conditioned rather than ever by
a competitive market. This analysis has aimed to determine the strategic incorporation of
community responsibility action which is mostly related to the stakeholders that contribute to
improving the overall competitiveness of various financial organisations.
Hence, the presence of a direct relationship among the development of CSR has been
examined from a multi-stakeholder perspective. This study states that an inconsistent outcome
of corporate social responsibility with relation to the financial performance which is due
because of the complexity of relationships among economic variable (Hopkins, 2012). The
complexity of behavior from the nation of CSR is un-separable from their environment point of
view. It would help to bring close impact on empirical analysis of the results that can help the
companies to increase the market value and position for a longer period. The economic
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variable can lead to the complexity of CSR relation which domestic and international business
at the same time. The overall implication has been seen in domestic as they are always trying
to improve their working ability as well as remain valuable in the competitive market. In the
case of international level CSR assist in increasing their potential growth and capability that can
be profitable for the company. It has been seen that CSR has been growing drastically because
it is the most important factor for various employees, customer and team leader (Khan,
Muttakin and Siddiqui, 2013).
Conclusion
It would seem to be an easier concept which is followed in both domestic as well as
international context. In fact, plenty of business strategy has been followed by different
companies that can help in analysing the viability of their business. This would make customer
motivated and toward the company can chances of increase maximum return can be enhanced
in the near future. Most of the foreign industries tend to place a high value on CSR that can
lead to a consistent training program for their staffs and team so that they can increase their
positive viewpoint toward the organisation growth in near future. The overall suggestion could
increase maximum sustainability through promoting corporate social responsibility both at
domestic as well as the international level (Flammer, 2013). It can also assist in creating an
opportunity for the business in order to attain their goal in coming time.
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References
Aguinis, H. and Glavas, A., 2012. What we know and don’t know about corporate social
responsibility: A review and research agenda. Journal of management, 38(4), pp.932-968.
Brammer, S., Jackson, G. and Matten, D., 2012. Corporate social responsibility and institutional
theory: New perspectives on private governance. Socio-economic review. 10(1). pp.3-28.
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to
finance. Strategic management journal, 35(1), pp.1-23.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
Flammer, C., 2013. Corporate social responsibility and shareholder reaction: The
environmental awareness of investors. Academy of Management Journal. 56(3). pp.758-
781.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Hopkins, M., 2012. The planetary bargain: Corporate social responsibility matters. Routledge.
Khan, A., Muttakin, M.B. and Siddiqui, J., 2013. Corporate governance and corporate social
responsibility disclosures: Evidence from an emerging economy. Journal of business
ethics. 114(2). pp.207-223.
Kim, Y., Park, M.S. and Wier, B., 2012. Is earnings quality associated with corporate social
responsibility?. The accounting review. 87(3). pp.761-796.
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