1.
CSR In Multi National
Companies
The McDonald’s Corporation

2.
Content:
Definition For CSR.
Multinational Companies.
Types Of CSR.
Main Concern Of CSR.
Advantages Of CSR To Multinational Companies.
Disadvantages OF CSR To Multinational Companies.
Conclusion.
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What Is Corporate Social Responsibility ?
“The idea that business has a duty to serve society in general as well as
the financial interests of stockholders”.
-Pearce & Robinson
•Corporate social responsibility (CSR) is a type of international private business self-regulation that aims to
contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering
or ethically-oriented practices.
•India is the first country in the world to make corporate social responsibility (CSR) mandatory, following an
amendment to the Companies Act, 2013 in April 2014. Businesses can invest their profits in areas such as education,
poverty, gender equality, and hunger as part of any CSR compliance.
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WBCSD (World Business Council for Sustainable Development)
“The continuing commitment by business to behave ethically and contribute to
sustainable economic development while improving the quality of life of the
workforce and their families as well as of the local community and society.”
Example:
Some of the most popular CSR activities are philanthropy and community volunteer
efforts. For example, a large manufacturer may donate money to land and wildlife
preservation and organize and sponsor volunteer, environmental clean up efforts.
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5.
What is a multinational Company?
 An enterprise operating in several countries but managed from
one (home) country. Generally, any company or group that
derives a quarter of its revenue from operations outside of its
home country is considered a multinational corporation.
• A multinational corporation is a corporate organization that
owns or controls production of goods or services in at least one
country other than its home country.
CSR In Mutinational Companies 5

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Types Of CSR…..
1. Responsibility Towards Society.
2. Responsibility Towards Government.
3.Responsibility Towards Shareholders.
4. Responsibility Towards Employee.
5. Responsibility Towards consumers.
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Main Concerns Of CSR.
 Community Involvement.
 Business Standard Labour Security.
 Environmental Protection.
 Labour Security.
 Educations and Leadership Development.
 Human Right. 7

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Advantages Of CSR To Multinational Companies
1.Improved financial performance.
2.Lower operating costs.
3.Enhanced brand image and reputation.
4.Increased sales and customer loyalty.
5.Greater productivity and quality.
6.More ability to attract and retain employees.
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Contd..
7. Make a positive image among stakeholders.
8. Access to Capital.
9. Product Safety and Liability.
10. Workforce Diversity.
11. Help to Attract Investors.
12. Improves Business Image And Reputation.
13. Increase in competitiveness.
15. It help to Correct the social problems Caused by the Company.
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11.
Disadvantages ToMultinational Companies.
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 According to Milton Friedman (a leading economist) making corporate socially responsible is
useless and even potentially dangerous since it goes against the very basic aim of doing business:
making profit.
It breach of the principle of profitmaximization.
CSR may contribute to the dispersion of forces and resources of the company and thus reduce its
economicefficiency.
Many socially responsible actions are unprofitable because of high costs.
Companies expanding their social responsibility increase the price of goods and services.

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Examples for CSR Activities of MNCs…
 IBM UK - Reinventing Education Partnership programme Interactions and
sharing of knowledge through a web-based technology - the “Learning Village”
software. Culture of openness and sharing of good practice
AVON - a partnership with Breakthrough Breast Cancer, and its Breast Cancer
Crusade has raised over 10 million pounds since its launch 12 years ago
TOI’s Lead India campaign, campaign for contribution towards educating the
poor.
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 McDonald's preaches that they are “passionate about [their] food and take great care that what [they]
serve every day is safe, great quality, offers choice and is produced in a responsible way”. They source
food regarding three key areas: Ethical Practices. Environmental Protection.
 McDonalds is an international fast-food chain, who's Corporate Social Responsibility (CSR) is written
as: ... “This makes them appear like a company who like to involve themselves with their customers
and communities, in order for them to appear ethical and socially active”.
 This means treating their employees with fairness, respect and dignity, and following practices that
protect health and safety for the people working in their facilities, all in compliance with national and
local law.
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McDonald’s Corporate Governance is written on their official company website
that their ‘success is built on a foundation of personal and professional
integrity. Hundreds of millions of people around the world trust McDonald’s.
We earn that trust everyday by serving safe food, respecting our customers and
employees and delivering outstanding Quality, Service, Cleanliness and Value
(QSC&V). We build on this trust by being ethical, truthful and dependable.’

15.
CONCLUSION
 CSR is a concept where companies voluntarily contribute to a better society. Nowadays CSR has
become an important part of a business organisation, Because business interested parties have given a
more concern towardsCSR.
This is directly linked to the organizational culture willing to carry out a wider organizational
change and it is important to see positive results which CSR brings on ethical, social,
organizational and businessscale.
There have Several areas to concern ,when companies involve in CSR activities and it’s
responsibilities spread to society ,Government ,Employee ,Shareholders and consumers.
Multinational Companies Can gain many advantages from CSR activities but therehave
some issues when companies engage in CSR.
Advantages help to confirm the sustainability and existence of multinationalcompanies.
Finally CSR remove gap between society requirements andexpectations.