International Business: CSR and Cultural Issues in Canada Report

This report analyzes the critical intersection of Corporate Social Responsibility (CSR) and national culture within the context of international business, specifically focusing on the Canadian market. It identifies key findings related to CSR, highlighting the challenges multinational enterprises (MNEs) face due to cultural differences among employees, and the importance of inclusive practices. The report examines the CSR initiatives of companies like PepsiCo and Kinross Gold Corporation, while also addressing environmental issues such as environmental damage from mining and deforestation. It provides suggestions for MNEs to improve their CSR strategies, including using less energy, developing sustainable products, incorporating diversity policies, and adhering to Canadian regulations. The report emphasizes the need for stakeholder engagement and the adoption of eco-friendly practices to mitigate environmental impacts and foster inclusive workplace cultures.

Running head: INTERNATIONAL BUSINESS
International Business
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4.1 Key Findings
CSR or the corporate social responsibility is one of the major aspects that are being taken
up the organizations in the modern day scenario. Apart from this the difference IN National
Culture is also one of the major issues. As different employees belong from different culture and
religion, it can often become tough for the organization to maintain their CSR. This is because
employees belonging from one particular culture will naturally not be able to abide by the
customs followed in Canada unless there are proper cross cultural trainings developed. In order
to make sure that the companies are able to follow CSR initiatives properly, they will have to
give equal importance to all the employees.
MNEs in Canada usually face several issues related to the changing rules and the
regulations of the country and the different societies (Kim ET AL., 2018). This is mainly because
there are different norms and policies that are being implemented on a day to day basis. It makes
this really tough for the MNEs to carry on with this. The two socially responsible companies in
Canada are from the PepsiCo and Kinross Gold Corporation.
4.2 Issues & Challenges
 High chances of environmental damage are one of the severe issues of CSR. This is
because mining is such an activity that usually has a huge impact on the environment.
This is because in order to carry on all the mining activities the organizations like
Kinross Gold Corporation, has to carry on with the activities like that of drilling and
mining. These tend to create a stress over the environment and this in turn creates a huge
damage. It is because of this reason that the company focuses on tailing and waste

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management as well. They maintain the Canadian safety guidelines so that they can carry
on with their works in a proper way (Kinross.com. 2020). Canadian Dam safety
guidelines are used by the organization so that they are able to reduce the environmental
impacts that can be created by them.
 L’Oréal SA is another well known company that faces challenges with CSR issues.
Dforestation is one of the environmental issues that they can suffer from. As Palm oil and
Shea butter from their core ingredients and are obtained from plants, this might make
them damage the environment as they need clear large patches of forests to be cleared
This can create a huge stress on land and also harm the environment.
 Proper Stakeholder engagement is one of the major aspects because this has to make sure
that there is an overall inclusion of culture. A CSR initiate can be conducted properly
only if there is a properly only if there is a proper recognition of all the different
employees irrespective of their cultural backgrounds.
 Pepsi Co. works with the large number of employees coming from many different
cultural and ethnic backgrounds. In order to solve this issue they have to hire employees
from different backgrounds and also give them the right respect and employment
(PepsiCo. 2020).
 Water wastage is another harmful impact that can be created on the environment. Pepsi
Co, is another company that tries to abide by the socially responsible guidelines. This is
because of the fact that they have several manufacturing plants that are spread across
different places. Apart from this, as they have a large number of bottles like Gatorade
bottles which need proper cleaning and washing. Therefore there is a chance that local
communities might be affected and suffer from lack of water.

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4.3 Suggestions for MNE
 Companies like Kinross try to take the initiate of using less energy so that there is less
emission of green house gas effects. (Kinross.com. 2020) Life cycle assessments are used
as the decision making tools so that they are able to reduce the overall amount of energy
that is used in carrying on with their activities.
 Cosmetic manufacturing companies like L’Oréal , must develop sustainable products so
that they are able to develop eco friendly resources. This will also enable them to reduce
their carbon footprint and they will be able to manage their production in a sustainable
manner.
 MNEs like Kinross mining company must focus more over their diversity policies so that
they can include more number of local people. This will enable them to work over the
issue of local employment and also give a boost to the diversity in the workforce.
 MNEs have to make sure that they are using the eco friendly products and also green,
pollution free products for their CSR initiatives so that there is no damage caused to
environment.
 Companies that have to use huge amount of water must make sure that they are using the
other sources or the other alternative sources of energy. For an instance Pepsi Co. is
trying to use the air in place of water so that they can actually work over their issues.
 MNEs in Canada has to abide by the laws and rules made by the Global Affairs Canada.
This will make the MNEs follow the rules and regulations and thus the issues will be
solved (international.gc.ca. 2020).They have to carry on with their trade and commerce
activities by ensuring that cars and vehicles are running on environment friendly
products.

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 MNEs must try to solve the Global crisis issues by making sure that they are being able
to form an inclusive workplace culture. In order to do so they are following the policy of
championing an inclusive workplace, where they try to celebrate and also embrace the
overall cultural differences.

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References
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