Corporate Social Responsibility in Developing Countries: Ethical Issues and Recommendations

This presentation discusses the ethical issues faced by multinational corporations in developing countries and provides recommendations for addressing them. Topics include working conditions, child labor, and enforcing contracts with third world contractors.

Social Sustainability
Presenter

Introduction
 Most MNCs ignore the corporate social responsibility
role that they have in developing countries.
 They are driven for profits alone rather than
improving third world life.
 Most organizations violate human rights
 The conditions that exist in their third world
operations are different from their domestic countries

Ethical issues
 Ethical differences between developed countries and developing countries.
This makes the MNC ignore the ethical issues that they need to
uphold.
They succumb to local needs rather than ethical values.
 Different economic situations in developing countries
Developing countries make it difficult to address some policies.
The poverty levels in the countries affect participation by children.
Child labor is for family benefits

 Poor way of enforcing contracts with third world
contractors.
MNCs do not have adequate guidelines for business
operations.
Less interest in human capital investment by MNCs.
Business is driven by output rather than input issues.
Lack of binding agreements between contractors in
relation to legal requirements.

Recommendations
 Addressing of working conditions in Pakistan.
Implementation of Pakistan and ILO labor
laws.
Regulating the number of hours worked by
children to seven hours.
Developing solutions for domestic
challenges in Pakistan.
Developing child related programs to

 Implementing US labor and industrial guidelines like
the Trade and Overseas Private Investment Corporation.
Negotiating terms with Pakistan contractors.
Developing ways of implementing the policies and
meeting the needs of the organization.
Balancing between business and human rights.

References
 Adeola, F. O. (2001). Environmental Injustice and Human Rights
Abuse: The States, MNCs, and Repression of Minority Groups in
the World System. Human Ecology Review, 8(1), 39-59.
 Baxi, U. (2016). Human Rights Responsibility of Multinational
Corporations, Political Ecology of Injustice: Learning from Bhopal
Thirty Plus? Business and Human Rights Journal, 1(1), 21-40.
 Chiwalo, M. (2016). Multinational Corporations: Corporate Social
Responsibility versus Environmental Problems. European
Scientific Journal, 12(17), 241-260.

 French, L., & Wokutch, R. E. (2005). Child Workers,
Globalization and International Business Ethics: A
Case Study in Brazil’s Export-Oriented Shoe
Industry. Business Ethics Quarterly, 5(3), 1-40.
 Kolk, A., & Tulder, R. v. (2002). Child Labor and
Multinational Conduct: A Comparison of
International Business and Stakeholder Codes.
Journal of Business Ethics, 36(1), 291-301.