Topic 1: Corporate Social Responsibility
Despite efforts to standardize and integrate, there are major differences in ideologies, systems of government and laws of different countries. A business manager has to contend with such a reality in the international environment and navigate through a maze of different social, cultural, political, economic and legal systems and yet strive to do things well and ethically at the same time. Dilemmas can arise and international managers have to juggle with different forces in making decisions. For example, certain countries may not have sufficient laws for labor and environmental protection. In order to stay competitive, firms may use such lower standards to their advantage. Nike has in the past used the strategy of going from country to country to exploit the lowest costs available in the so-called sweatshops instead of taking the plight of the workers into consideration. But another firm, the Body Shop has made environmental protection a core business principle and still performed well despite steadfast ethical business practices. Gap has at least been forthcoming about the lack of oversight in some of its international business operations and taken steps to make progress in the area of social responsibility. But because different governments have different levels of power and also different relations with their respective citizens and the world, the resulting practice of international business can vary. Some multinational corporations in the past have literally negotiated with foreign governments to exploit their people so that they got to benefit wholesale while those foreign governments also gained through nepotistic and cronyistic actions, exploitation and oppression. This is becoming a much criticized practice in the advent of concepts such as Corporate Social Responsibility (CSR). Do you think that the situation regarding ethical business practices is improving today and how should international business as powerful globalizers ideally behave in terms of being ethical and socially responsible and yet be viable business entities?
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