Globalization and CSR

Nowadays corporations adopt globally coordinated strategies. This is the result of the process through which companies, people and in general societies became more connected across national and geographic boundaries in the last decades. This trend is called globalization.
Focusing on the corporation’s reality, globalization is translated into:
  •         Outsourcing: Economically speaking, companies find more convenient to outsource a part of their production process in countries where the labor work is cheaper. They adopt a cost strategy to be more competitive in their market.
  •         Global markets: Companies that decide to operate internationally, by selling their products to customers all around the world.

Global connections and global societies bring a much more intensified competition among the businesses in the markets.

To be more competitive and to extend their life expectancy companies need to pay attention to the ecosystems, societies and economies. Respecting the environment, the culture and communities where we live, will absolutely help them remaining adaptable to changes during the years.
Corporate sustainability is therefore possible through a corporate social responsibility. In other words to be sustainable, corporations need to assume a civil or better socially responsible behavior.
Businesses have responsibility to society, as well as to their stakeholders. That’s the reason why CSR exists. There are many ways in which CSR can be defined, but to keep it short, it is a voluntary set of rules that guides and orients behavior within an organization or sector in order to promote social, environmental and/or ethical behavior.

What a socially responsible company gets in return is a positive impact on its image and reputation, but also a much more satisfied and consequently productive workforce, an easier access to foreign markets and a lot more. What should be described as an evidence is that CSR is possible only if it adds value to the corporate triple bottom line, which is given by the environment, the economy and the society.

However practically there are firms that are known for that and there are studies that can confirm it. Companies with the best CSR reputation are: Microsoft on top and then many other businesses such as Google, BMW, Walt Disney Company, but also Apple, Forbes and so on. 

Microsoft was not put by mistake on top of the list, as its activities included the launch of Microsoft YouthSpark, 1 billion $ contributions to over 18000 non-profits around the world, 795 $ million in software donated to more than 70000 non-profits and the establishment of an internal carbon fee to reduce the environmental impact. 

Jona Shehu