Name: Unsa Soomro
Roll no: 20S-MSHRM-BS-01
Topic: Corporate social Responsibility in Multinationals
Assigned by: Respected Sir DR Adnan
Table of contents
What is MNC’s?
Definition of CSR AND Its emergence
Merits and demerits of CSR for MNC’s
Global CR RepTrak 100 global survey
Real life best CSR practices by Multinationals
Real life Example of bad CSR practices by Multinationals
Corporate social responsibility strategy and economic business value of
multinational companies in emerging economies: The mediating role of
Example of CSR in advertisement:
Article: Corporate Sustainability Reputation Matters Most During Crises
Greenwashing by Multinationals
What Is a Multinational Corporation (MNC)?
• A multinational corporation (MNC) has facilities and other assets in at
least one country other than its home country. A multinational company
generally has offices and/or factories in different countries and a
centralized head office where they coordinate global management.
These companies, also known as international, stateless, or
transnational .corporate organizations tend to have budgets that exceed
those of many small countries.
What is CSR?
CSR stands for Corporate Social Responsibility and is a business’s
approach to sustainable development by delivering economic, social and
environmental benefits. In essence, CSR looks beyond the company
profits and focuses on benefiting the greater community.
•What is involved?
• A recent Deloitte survey found that 70 percent of millennials acknowledged that a
company’s commitment to social responsibility influenced their choice to work there. With
millennials soon to be the largest generational segment of the workforce, companies
looking to hire these workers will need to embrace CSR in order to attract and retain talent.
Millennials don’t just want to consume products and services made by companies that have
a CSR presence; they want to take part in making these social and environmental changes
also. A recent report from Reputation Institute, as published in Forbes magazine, found that
42% of how people feel about a company is based on their perception of its CSR activities
Emergence of CSR
• CSR first came into existence in the year 1930. It was after the Great Depression in
1929, when two professors of Harvard University, Prof. A.A. Berle, and Prof. C.G.
Means realized that corporations must come forward and take the responsibility.
They also claimed that such a condition would not have taken place if the
corporations had acted responsibly.
• Although responsible companies had already existed for more than a century
before, the term Corporate Social Responsibility was officially coined in 1953 by
American economist Howard Bowen in his publication Social Responsibilities of
the Businessman. As such, Bowen is often referred to as the father of CSR
CSR has changed in the last 20 years for
CSR was a CSR is an
Moral issue Strategic/profit
“We want to do the right issue
thing; we want to spend in
the community” “Ignoring CSR potentially
embracing it creates value”
Advantages of CSR for MNC’s
The potential benefits of CSR to companies include:
• • better brand recognition
• • positive business reputation
• • increased sales and customer loyalty
• • operational costs savings
• • better financial performance
• • greater ability to attract talent and retain staff
• • organizational growth
• • easier access to capital
Demerits of Corporate Social Responsibility for
1. Deviation from the Profit-Making Objective:
A popular economist named Milton Friedman is the biggest criticizer of CSR.
a company is intentionally increasing its expenditure which has no payback or
role in profit-making rather it is a pure outflow with no return.
2. Company Reputation is at stake:
If a company has to comply with the CSR policies,
then it is supposed to inform all the limitations associated
with its own products. If there is any CSR policy violation in
their product then it has to be made public. It can cause bizarre to
the image of the company.
3. Customer Conviction:
At the start, people had good impression about these CSR programs. They
also tend to be more inclined towards companies that have CSR programs.
But as the time passes people become more impatient and start to expect
instant results out of such programs. When they could not notice instant
results or instant impact on the society then they start to feel CSR
programs as mere publicity stunts.
4. Increase in Cost of Production:
CSR programs lead to an extra cost to the company. The increment in cost
forces the company to increase the basic price of the product, which is
ultimately paid by the customer. This is an extra burden on the company,
which is being imposed to customers.
Global CR RepTrak 100 is a global survey that rates multinational companies while
accounting for their corporate social responsibility (CSR) reputation. During January
and February 2019, the study collected the opinion of 230,000 people from the general
public across the 15 biggest economies. What are the companies with the best CSR
• 1. Rolex
• 2. Lego
• 3. Disney
• 4. Adidas Group
• 5. Microsoft
• 6. Sony
• 7. Cannon
• 8. Michelin
• 9. Netflix
• 10. Bosch
Examples of multinationals
with best CSR practices:
• It’s simple; If a company doesn’t continue to offer
high-quality products and services, customers will
stop buying. If businesses don’t treat their workers
well, they’ll leave. And if a company pollutes the
environment, its public reputation will suffer.
• Conversely, if a company is socially responsible,
they improve their reputation, attract the best talent,
build customer loyalty, and turn a healthy profit.
1. ORIX Corporation USA:
•Philanthropy in the Hands of Employees
• ORIX Corporation USA has broken the mold on corporate giving. Eschewing
marketing platforms and top-down decision making, the organization created an
entirely employee-led foundation. Since 2009, employees from every rank and
division of the company have served on the board of ORIX Foundation, a separate
nonprofit entity that has invested more than $16 million and thousands of
volunteers hours into community organizations that employees personally care
about. Now ORIX is looking to expand this democratic approach by sharing it with
other businesses. This year, they are launching CARE, a collaborative effort of
corporations seeking to engage employees and address critical community issues
like children’s literacy.
2. Once is never enough----Google
• According to the journal Nature, data centers are estimated to use
200 terawatt hours each year, which represents approximately 1
percent of global electricity consumption.
• Google has one of the largest data center networks on the planet, and
they recognize the responsibility that comes with it. Here’s what
they’ve implemented to combat this issue:
• 1. Designed servers from the ground up to last longer.
• 2. Recycle components from old servers into new ones.
• 3. Sell old servers on the secondary market.
• As a result of these initiatives, Google has increased the number of
remanufactured units and sold over 2 million machines each year to
• Key takeaway: Set specific targets to measure your progress towards
a circular economy within your organization.
3. LEGO: Developing Young Minds Through
• LEGO’s CSR initiatives work toward LEGO’s mission of building a better
world for children. Because they recognize that playing is not only fun but a
vital tool for learning, LEGO has trained thousands of their employees to
become “Play Agents.” LEGO Play Agents help children engage in the kind
of healthy play that encourages learning and growth.
• Furthermore, Most notably, LEGO has made promises to reduce its negative
environmental impact, even to completely eradicate it. In 2018 LEGO
launched plant-based polyethylene bricks to soon replace their standard
plastic bricks. These bricks are sustainable and can considerably reduce non-
environmentally friendly waste. LEGO also has tackled the inevitable waste
problem by going above and beyond and planning to have absolutely no
waste by 2025.
1. Fake Rides – Uber
In 2014, Uber was accused of hiring
employees to order and cancel 5,560
rides from ride-sharing competitor Lyft
Key takeaway: Seek ways to learn
from competitors instead of trying to
bring them down.
2. Account Fraud – Wells Fargo
In 2016, The Consumer Financial Protection
Bureau found that employees of Wells Fargo
opened up 3.5 million unauthorized
customer accounts. The bank was slapped
with a $2 billion fine, had to fire over 5,000
employees, and CEO John Stumpf was forced
Key takeaway: Avoid coercive tactics to
motivate employees and inspire them to do
their best work instead. Focus on ethical
sales practices like customer relationship
management, cold emailing and networking
Corporate social responsibility strategy and economic business value
of multinational companies in emerging economies: The mediating
role of corporate reputation
• Corporate social responsibility (CSR) and business value of multinational
corporations are significantly tied to corporate reputation. In this work, we
investigated the mediating influence of corporate reputation of multinational
companies (MNCs) on their CSR strategy and economic business value. The study
adapted a quantitative methodology with a sample of respondents from
multinational corporations in Ghana—an emerging economy. Drawing from 267
employees of MNCs in Ghana, a structural equation modelling and bootstrapping
analysis are used to assess the hypothesized relationship. The results showed that
CSR strategy positively and significantly predicts economic business value and
corporate reputation of MNCs. Findings also showed that corporate reputation
mediates the relationship between CSR strategy and economic business value of
MNCs operating in emerging economies. This study suggests that good corporate
reputation significantly influences MNCs' strategy in corporate responsibility and
economic business value. Thus, management of MNCs can enhance their corporate
business objectives through sustainability practices.
Article: Corporate Sustainability Reputation Matters Most During
Nareuporn Piyasinchai April 22, 2021
Example of CSR in advertisement:
GE’s “Balance the Equation” takes on women’s
underrepresentation in STEM
What Is Greenwashing?
• Greenwashing is the process of conveying a false impression or
providing misleading information about how a company's products are
more environmentally sound. Greenwashing is considered an
unsubstantiated claim to deceive consumers into believing that a
company's products are environmentally friendly.
Brands called out for greenwashing in 2020
Using kids to sell natural gas
• In a video campaign by Singapore’s Energy Market Authority to tell the city-
state’s energy story, one episode used children to talk about Singapore’s
main source of power: natural gas. “We need electricity to power many
• Industry watchers such as Assaad Razzouk, the chief executive of
renewables firm Sindicatum, were not impressed. “Seriously, Energy Market
Authority? Using kids to greenwash natural gas? Natural gas is just as dirty
as coal. Whoever named it Natural Gas instead of “Highly Explosive
Climate-Change-Accelerating Fossil Fuel” wins top branding award,” he
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