Corporate Social Responsibility and Multilateral Organizations Essay Example

there is no definitive proof linking ethical conduct and profitability for corporations, engaging in CSR can bring about positive effects on reputation management, brand distinction, talent acquisition and retention. Additionally, it may attract governmental support through subsidies, licenses, and limited interventions. For stakeholders such as customers, employees, investors,civil society groups,enforcement agencies,and government bodies;CSR offers opportunities for well-being by providing high-value products/services and ensuring transparency in performance. Multilateral organizations, defined as aggregations of three or more states working together on issues relevant to all member states according to the Global Energy Network Institute, play a crucial role in shaping stakeholder attitudes towards CSR. These organizations are typically non-governmental (and non-profit) NGOs that are active in various areas including environmental concerns and societal issues such as human rights, hiring practices, child labor, discrimination, and more. Various international organizations like the United Nations (UN), International Labor Organization (ILO), Greenpeace International, UNESCO, WHO, FAO, Amnesty International, and FLO have significant roles in promoting CSR.

Although diverse organizations have different goals, they share similar objectives. These objectives encompass creating a favorable public image, promoting sustainable societal development, enhancing community living conditions, and advocating for government intervention in addressing corporate misconduct. NGOs play a crucial role in monitoring corporations' adherence to standards and their societal impact. They take necessary action when required, as exemplified by the Shell case.

In 1995, Shell received a license from the UK authorities to dispose of the Brent Spar, an oil storage facility, in the North Sea. Greenpeace took various actions to stop this decision, including distributing leaflets, boycotting Shell products, and organizing protests (Greenpeace International, 2007). Within two months, the protests expanded from the UK to other

European countries and had a significant negative impact on Shell's profits. As a result, Shell had to announce that it was reversing its decision to dispose of the Brent Spar.

Shell faced an additional challenge in Nigeria during the same period, which involved environmental damage. This issue received global attention from NGOs and led to more protests against Shell. To address these crises, Shell launched the "Society's Changing Expectation" project in 1996. Since then, the company has actively researched and developed renewable energy sources while also working to reduce carbon dioxide emissions and their impact on global warming. Currently, Shell is internationally recognized as a leading corporate citizen (Frynas, 2009, p.7, 22-23). Another example that can be mentioned is Nestle.

In the 1970s, Nestle faced a boycott by the Infant Formula Action Coalition (INFACT) in America due to accusations of unethical marketing practices regarding infant formula in underdeveloped nations. This boycott expanded to Australia, Canada, New Zealand, and Europe. It endured from 1977 until 1983 when Nestle committed to discontinuing deceptive advertising methods and encouraging breastfeeding (Soule, S.).

The globalisation in recent decades has not benefitted the entire world as many people thought. In addition to its profit-related strengths, globalisation has also led to problems such as environmental pollution, waste of resources or "cast-off culture", regional unemployment, and cultural disappearance (Crane A, 2009, p.109; Wikipedia, 2010).

According to McIntosh et al. (2007, p.21), international organizations focus on developing, administering, and promoting standards, codes, and certifications that ensure both sustainable business development and the welfare of humanity. NGOs have developed standards like ISO 14001, SA8000, AA1000, and GRI, which are widely adopted by many organizations worldwide (McIntosh et al., 2003,

p.77). The ISO 14001 standard, belonging to the 14000 series, provides a framework for environmental management. Its purpose is to raise awareness and understanding of environmental responsibility among an organization's workforce and external stakeholders, ultimately influencing their behaviors in production and consumption. ISO14001 addresses concerns such as the natural environment, waste management, energy consumption, nuisance prevention, and external safety.

This paragraph outlines the criteria of SA 8000, which address various human rights issues in the global workforce. These criteria include child labor, forced labor, health and safety, freedom of association, discrimination, working hours, wages, and management systems (SAI, 2008, p.3). One benefit of SA 8000 is its ability to become ingrained in an organization's culture, leading to behavioral changes among both managers and employees. These criteria focus on promoting ethical performance within organizations. The core principles of AA1000 are inclusivity, materiality, and responsiveness.

The aim of this criterion is to ensure the organization's commitment to social and ethical accounting, auditing, and reporting (McIntosh et al, 2003, p.113, hypertext transfer protocol: //www.accountability.org/about-us/index.html). Following scandals such as Enron, WorldCom, Tyco, etc., AA1000 has become a popular standard that helps protect investors and stakeholders from the lack of transparency in an organization's performance. GRI provides guidelines for the "transparent and reliable exchange of sustainability information" between the organization and its stakeholders. The report analyzes the organization's economic, environmental, and social impacts during its operations. GRI is valuable in defining the benchmark for organizational performance in relation to norms, codes, standards, and voluntary initiatives.

Contribute to the improvement of the community:

Corporate Social Responsibility is not just about charity.

One of the main goals of sustainable development is to ensure

that the prosperity of the organization is aligned with the development of the community. NGOs form alliances with businesses and corporations to promote additional certifications, in the form of "labels," which directly impact society. One well-known label is the FairTrade label, which is issued by the Fairtrade Labelling Organizations International (FLO).

This is an alternative to traditional trade that fosters mutually beneficial relationships between manufacturers and consumers. Fairtrade offers manufacturers the chance to cover the expenses of sustainable production by improving the terms of trade. At the same time, clients are empowered by Fairtrade to combat poverty through their everyday purchases. Key features of this label include ensuring equity and providing long-term growth opportunities for manufacturers, especially farmers, while also offering customers high-value products and services.

The improvement of the community is achieved through a Premium that is incorporated in the monetary value and reinvested in the communal fund. This fund is utilized by farmers and workers for social, economic, and environmental purposes. Xanhshop.com, a pioneering social enterprise in Vietnam operating under the Fairtrade label, serves as an example. The company actively works towards establishing a strong connection between farmers and consumers. It pays farmers a price that is 5% higher than the market price and engages them in the post-harvesting process.

The company's goal is to enhance their revenue and production capacity by employing denudation, winnowing, and packaging methods. They offer customers products that have high added value, are environmentally friendly and chemical-free, and also nutritious. Moreover, they allocate a portion of the premium price towards improving community access to clean water, toilets, and libraries for children.

Advocating for Legal Reforms Non-governmental organizations (NGOs) employ strategies like

strikes or protest campaigns to gradually influence governments into addressing concerns in social, environmental, and economic domains.

The Kyoto Protocol, promoted by the United Nations Framework Convention on Climate Change (UNFCCC), is an international agreement signed by countries to address global warming and has shown its significant impact on a country's overall performance. This agreement represents governments' shared acknowledgment of environmental issues and their dedication to resolving them. To ratify this protocol, a country must establish its own regulations and successfully decrease greenhouse gas emissions from industrial areas or face penalties for not meeting the collective objectives. The Kyoto Protocol is widely seen as an accomplishment in both environmental and political arenas by much of the world.

In addition, authorities are playing a greater role in promoting sustainable development through corporate social responsibility (CSR) initiatives that encompass economic, social, and environmental aspects. One such initiative is the CSR program introduced by the European Commission in July 2002 which aims to improve transparency and credibility. This program offers benefits not only to multinational corporations but also small businesses (Smith, N.C., 2003, p.4).

Media and Corporate Social Responsibility (CSR): The media has a crucial role in communicating information to different stakeholders, including customers, employees, investors, and governments. Its main function is to raise awareness about various issues and collaborate with NGOs to implement necessary changes in organizational behavior. Moreover, the media holds the power to influence stakeholder actions and diminish violations of environmental, social, and ethical values.

Public Awareness of Issues: Acting as a watchdog, the media closely monitors corporations' activities regarding their products or services. Through its network, any misconduct by corporations becomes exposed to the public eye, resulting in

appropriate actions being taken.

The instance of Shell organization garnered media attention causing the news to spread rapidly across Europe and resulted in a significant boycott. Nike faced a similar situation when media exposed the child labor abuse in their subcontractors' mills in Pakistan, Vietnam, and Indonesia. The Chinese toys industry also suffered damage when the media alerted the public about the lead pigment and small magnets in Chinese-made toys (MSNBC, 2007; Canada.com, 2008).

Enforcing changes in corporate performance:

In addition to informing the public about corporate wrongdoing, the media collaborates with NGOs to put pressure on corporations to make necessary improvements. An illustrative example is Vedan, a formerly renowned Monosodium Glutamate manufacturer in Vietnam.

Two years ago, the incorrect operations of Vedan's mill, resulting in the "decease" of Thi Vai, were exposed. Media outlets, including newspapers, television, and social networks like the internet, have played a significant role in bringing an end to the organization. A Google search for Vedan yields 781,000 results. Additionally, the case has been extensively covered in prominent newspapers and magazines such as Youth News, Thanh Nien, Nguoi Lao Dong, Sai Gon Giai Phong, Saigon Times, and others. Since 2008, Vedan has faced a long-lasting boycott throughout Vietnam.

Today, Vedan's gross revenues have significantly declined and there are few stores in Vietnam that sell its products. Additionally, under media pressure, the Vietnamese government has conducted an investigation on Vedan and recently Vedan has been sued for damages totaling billions of VND. (Dantri, 2010; TuoitreOnline, 2010; TienphongOnline, 2010)

Influence Stakeholders' values and beliefs:

With the help of advanced technologies, the media network provides access for people to enhance their understanding of the current world. Furthermore, media also raises

concerns about specific issues, which in turn impacts the citizens' behavior. An example of this can be seen in the food industry where one of the heated issues in the past decade involves Genetically Engineering (GE) or Genetically Modification (GF) of food.

Throughout history, there has been a belief that genetically modified (GM) food could be a beneficial solution for impoverished nations facing economic challenges. However, the media has intervened to educate people about the potential pros and cons of GM food on human health. Through media channels, consumers have actively reevaluated the significance of GM food and many are now showing a greater interest in organic alternatives. Furthermore, media influence has also affected the attitudes of investors when it comes to business investments.

According to a report from INSEAD's Centre for the Management of Environmental Resources, investors view CSR as a significant factor in assessing non-financial risks (Management Issues, 2003). By comparing the number of investors interested in industries such as nuclear power, tobacco, and alcohol with those who invest in Microsoft, Shell, or IKEA, we can observe a clear shift in investors' attitudes towards CSR. Additionally, the media has the ability to influence employees' attitudes and performance. A 2004 survey conducted by British Telecommunication revealed that 49% of their workforce expressed pride in working for the company due to its reputation for corporate culture.

Additionally, the Chairman of British American Tobacco has acknowledged that the number of people unwilling to work for the company has been increasing, despite the company providing good working conditions (Vogel D., 2005, p. 58).

Reduce the violation of social, ethical, and environmental values:

The media has aided corporations in educating and promoting stakeholder

actions towards corporate social responsibility (CSR). For example, Timberland, a company that produces and sells footwear, clothing, and accessories, has introduced the "Be an Earthkeeper Hero" campaign. This campaign encourages individuals to create videos about environmental protection and share them on changents.com, a social network that connects change agents (i.e. people who contribute to improving the world) to those who support their efforts.

Through this video competition, Timberland aims to promote the efforts and commitment of individuals towards environmental stewardship (CSR Wire, 2008; http://changents.com/). The media plays a critical role in raising public concern and eliciting responses from citizens in relation to global warming. Various movies have been made about the end of the world in an attempt to alert people about environmental issues. Additionally, there are numerous articles, studies, pictures, and social media content on television, newspapers, books, Facebook, Twitter, Myspace, and YouTube that highlight greenhouse gases, depletion of natural resources, and irresponsible company practices leading to environmental damage. Campaigns such as Earth Hour, which involve famous actors and actresses, have successfully influenced people's attitudes and behaviors towards the environment.

Furthermore, media also contributes to the revolution and development of human existences. Media has raised moral considerations about discrimination in Africa, recent wars in Afghanistan and Iraq, the mistreatment of sex slaves and child labor in Third World countries, financial misconduct in large corporations, and more. Through spreading the true information, creating waves in communities, and supporting the operation of NGOs, media has contributed to the progress of the world.

Summary

Corporate Social Responsibility directly relates to people and corporations' views on ethics and virtues. However, whether something or an action is considered ethical

or unethical greatly depends on the set of values and beliefs of the judge.

Child labour maltreatment is considered a crime in developed countries, but in poor countries, it is seen as an extra source of income for families. Each component in society has their own interests and concerns towards a particular company. Investors focus on a high return on investment (ROI), clients prioritize the quality and convenience of the product, employees value good working conditions and opportunities for success, and governments aim to ensure that corporations contribute to economic and social development. Due to inconsistencies in society's perception of ethics and virtues, organizations and media play a critical role in establishing standards and guiding individuals and corporations towards long-term, healthy development. While the forms and actions may vary, they have significantly contributed to changing stakeholders' attitudes towards corporate social responsibility (CSR).

Books

1. Argenti, P. A., 2009. Corporate communication, 5th edn. McGraw-Hill/Irwin, NY.
2. Carroll, A. B.

&A; Buchholtz, A.K., 2003. Business and society: ethics and stakeholder management, 5th edition.

Thomson South-Wester, Australia.

, 2009. Beyond corporate societal duty. Oil multinationals and societal challenges. Cambridge University Press, NY.

, &A; Coleman G., 2003. Populating corporate citizenship. Strategic routes to socially responsible concern.

Prentice Hall, Great Britain.
Soule, S. A., 2009. Contention and corporate societal duty. Cambridge University Press, NY.
Vogel, D., 2005.

The market for corporate social responsibility and the limitations of virtuousness are explored in a publication by The Brookings Institution titled "The Possible and Bounds of Corporate

Societal Duty".