MGT2IMG Assessment 4: Analysis of MNCs and CSR Practices Report

This report examines the increasing involvement of Multinational Corporations (MNCs) in Corporate Social Responsibility (CSR) and sustainable business practices. The analysis explores the motivations behind these actions, considering whether they stem from a genuine sense of social responsibility, a strategic business approach, or a combination of both. The report includes an introduction, a main body discussing objectives, scope, and limitations, and a conclusion summarizing the findings. It provides examples such as Starbucks and Facebook to illustrate different aspects of CSR, from ethical sourcing to privacy breaches. The report also addresses the limitations of CSR, such as cost, and the potential conflicts between company objectives and societal benefits. The conclusion emphasizes the importance of CSR for long-term market sustainability and overall societal development.

Managing across
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Executive Summary
Corporate social responsibility is related to adopt a lot of activities which are related to
enhancement in overall societal well being and development. In CSR, companies perform
different functions for maximizing development of environment and society. Main objective of
CSR is to ensure environmental protection along with societal and environmental development.

Table of Contents
INTRODUCTION.......................................................................................................................................4
Main Body...................................................................................................................................................4
Objective.................................................................................................................................................4
Scope.......................................................................................................................................................5
Limitations..............................................................................................................................................5
CONCLUSION...........................................................................................................................................7
REFERNCES..........................................................................................................................................8

INTRODUCTION
Corporate social responsibility is a business model which helps companies to be self
regulated in terms of their roles and responsibilities towards society (Jamali and Karam, 2016).
In CSR activity, organization perform a lot of activities in order to enhance overall societal and
economical well being. It is analyzed that CSR activities are important for both customers as
well as company. It not only provides an opportunity to big and multinational companies to
contribute towards society but also enhance their overall market image. In addition to this, under
CSR function organizations also identifies their responsibility towards different stakeholders and
fulfill it with an aim to bring empowerment within society. The main purpose of corporate social
responsibility is to give back to the society. In present time, companies often adopt CSR
activities in order to formulate positive image of brand in market place. The present report is
based on the reason due to which multinational companies are getting involved within CSR
activity. Under this, it is going to analyzed that organizations are truly concern about society or
it’s only for getting good business.
Main Body
Objective
The main objective of current project is to analyze CSR practices which are being
adopted by different companies in an efficient manner. The report aims to identity the reason due
to which organizations are getting involved in corporate social responsibility.
It is analyzed that there are a lot of benefits can be received through CSR activities. By
this way, company can improve its existing brand image which is vital for enhancing current
market share. Further, it is also helpful in societal and economic development which leads a
country towards higher success and growth. By adopting CSR activity, organization can connect
with its customers effectively which will eventually inflate overall sales and profit margin. For
instance, Starbucks is known worldwide for its CSR function reason being it has achieved a lot
of milestones in the overall journey (Jones, Baker and Lay, 2017). It is known for ethically
sourced coffee, creating a global network of employees and more They Sometimes, there might
be other reasons for some companies for adopting CSR activity. They are not likely interested

towards economical and societal well being but only want to formulate good image in market
place. For instance, Face book has recently went through with some allegations to breach the
privacy agreement by sharing personal data of users. It harmed the image of company and put an
adverse impact over its market position.
Scope
The current project has the scope of improving CSR activities of company. Companies
can do the CSR in different manner by contributing towards environment, education, health and
more. It has wide scope of improvement which will bring growth and development for whole
society and economy at large. It will help to formulate ample of strategies for development of
society and economy of country.
CSR has a scope of making improvement within educational setting. Some companies
contribute a part of their overall profits in enhancing level of education. For instance, Starbucks
also contributes a significant part of their profit for undertaking a college program for their
employees. Likewise, Microsoft is also running a program called YouthSpark program with an
aim to create educational opportunities for children across the globe. Apart from this, companies
also work under CSR model for removing poverty and other social evils present within society.
For this purpose, they collaborate with NGO’s and start their own program for helping
vulnerable segment of society (Rim and Kim, 2016). They also work to empower women by
providing equal opportunities to women employees in terms of salary, incentives and other
benefits. For example, Amazon has been launched a separate store for women entrepreneur
where they can sale their products. By this way, they are empowering women through providing
them an authentic platform for selling products.
Limitations
The current project has some limitations in terms of getting appropriate data and
information regarding CSR activities. It is analyzed that most of the companies do not reveal the
true data regarding their contribution towards economy and society. Apart from this, time and
cost is also a constraint of project which might create issues in receiving positive outcomes.
There are a lot of limitations associated with CSR activity which need to analyze by company
while getting involved in activities related to corporate social responsibility. It required huge cost

which can be easily bear by multinational companies but cannot be afford by small enterprises.
On other side, now it has become essential for each and every organization to give contribution
towards development of society. Further, there are also issues regarding clash between objectives
of company and social benefit. Sometimes, it might possible that something which is good for
organization is put negative impact over society. So, managers need to prioritize one objective
(Chomvilailuk and Butcher, 2018). While adopting CSR, organizations need to reveal a lot of
information which might used by unauthorized parties in against of business entity. Due to this,
company have to face a lot of difficulties and negative impacts which also might hamper its
existing reputation in market place. Sometimes, if an organization failed to maintain its CSR
activities effectively then it might put negative impact over its goodwill. So, there are ample of
limitations associated with CSR which also need to consider by companies while adopting CSR
activities.

CONCLUSION
With above discuss, it is summarized that corporate social responsibility is an activity
under which companies put efforts for societal well being and growth. Now, it has become
important for each and every business entity to undertake CSR functions so that they can sustain
in market place for longer run. Maim concept behind CSR is to give something back to society
and environment as eventually company receives all the resources from environment. So, it is
their moral duty to do give values in return. The main objective of CSR is to ensure overall
growth and development of society by providing them required products and services. It is
concluded that CSR has great scope of improvement and upliftment by removing poverty,
enhancing level of education and more. Further, organizations put a lot of efforts in terms of
enhancing level of education within society, improving health conditions and so on. Discussion
has been carried out about limitations of CSR such as cost, negative impact over existing
reputation and more. It is summarized trough above discussion that main reason due to which
multinational companies getting involved in sustainable practices is having a sense of social
responsibility. In present time, companies are highly aware about their roles & responsibilities
towards society thus adopt a lot of practices for overall societal well being and development.

REFERNCES
Books and Journals
Chomvilailuk, R. and Butcher, K., 2018. The impact of strategic CSR marketing
communications on customer engagement. Marketing Intelligence & Planning.
Jamali, D. and Karam, C., 2016. CSR in developed versus developing countries: A comparative
glimpse. In Research handbook on corporate social responsibility in context. Edward
Elgar Publishing.
Jones, S., Baker, M. and Lay, B.F., 2017. The relationship between CSR and tax avoidance: an
international perspective. Austl. Tax F., 32, p.95.
Louche, C. and Idowu, S. eds., 2017. Innovative CSR: From risk management to value creation.
Routledge.
Rim, H. and Kim, S., 2016. Dimensions of corporate social responsibility (CSR) skepticism and
their impacts on public evaluations toward CSR. Journal of Public Relations
Research, 28(5-6), pp.248-267.