This essay sample on Critical Analysis Of Corporate Social Responsibility provides all necessary basic info on this matter, including the most common “for and against” arguments. Below are the introduction, body and conclusion parts of this essay.
Research in management and organization studies on Corporate Social Responsibility (CARS) suggests that even though a large number of issues are addressed from child labor to environment degradation. The orthodox research on CARS plays within quite narrow parameters and that too from the perspective of economically advanced countries. The body of knowledge available on the subject suggests that until recently very little was said regarding CARS processes and projects in the third world countries or emerging markets.
This is bizarre as well as perplexing since it is in the third world that the power buses of industrial capitalism is most nakedly and routinely apparent. It also happens to be the place where most the interventions in CARS occur on behalf of western corporations. Lack of emphasis on CARS in Pakistan as is the case with third world Is In line, with the dearth of relevance of the west’s authoritative CARS discourse to those most affected In the region.
Every time CARS issues pertaining to emerging markets or Third World Countries are addressed, they are seen through the ideological and theoretical lens of the West and tend to address the sensibilities of western audiences as per their standards. If the literature on CARS is aimed at clearly aspiring the issues pertaining to the developing countries, then It needs to engage properly with the Third World where prevalent Issues are unlikely to change.
If one looks at some of the major CARS initiatives in Pakistan , it can safely concluded that informal institutions also play a very pivotal role in determining the kind of CARS the multi-nationals intent to undertake. Telethon Pakistan , a Norwegian telecoms company that had nothing to do with education sector chose to open schools in remote areas of Pakistan in order to promote education. The general perception amongst the masses saw it as a way of bribing the local population of the village that was initially hostile towards Telethon’s entry in their region .
This was following a massive campaign to boycott Norwegian and Danish products after the famous incident of 2005 , where the local newspapers of the respective countries apparently published caricatures in the name of ‘Freedom of Speech’ , offending Muslim population across the world . There were incidents where Telethon’s communication towers were taken down by the locals in the remote & under-developed areas near the border. The boycott followed by vandalism to the property hampered Telethon’s progress .
Telethon’s effort clearly paid off since it did manage to win hearts and minds of the local population eventually. Let did something that government had failed to do until now. They were able to build and sustain schools in those remote border areas where government initially failed to reach out to. These sponsored school were equipped with all the necessities that the local government schools lacked. They even trained the local staff for the school which opened up Job opportunities as well.
Another CARS initiate by Telethon called ‘Escapism’ won Best Mobile Money and Best Service for Women Awards in February 2014 in Barcelona at 19th annual mobile global awards . The first and largest branches banking service in Pakistan was announced winner in the following two categories: Best Mobile Money Service and Best Mobile Service for Women in Emerging Markets. The initiative was meant to provide financial inclusion to the unbaked population of Pakistan.
Telethon made use of innovative products and strong distribution channels in combination with a high performing team to achieve this feat. It can be concluded that both CARS initiatives were influenced by the on ground situation in the country and informal institutions played its role Just like it has already been playing in media advertising for a longer time. Although there is extensive literature dedicated to development of theories explaining CARS, it still remains a poorly defined phenomenon.
Obviously, CARS is an inevitable stage of development of a liberal market economy: CARS strategy incorporated into corporate governance can positively influence a share price or, in case of failures in implementation of CARS practices (we all remember BP oil spill in 010), this influence can be almost fatal; CARS activity can strengthen a brand perception or destroy it forever etc. In other words, the more sensitive, demanding and educated a particular market, society or government is, the higher the chance that CARS programs are developed, implemented and monitored.
CHILD LABOR FIASCO Soccer or football is the most popular sport in the world. And for many, this means to 85 per cent of the total world demand for high-quality hand-stitched inflatable balls. The factories of Shallot supply 40 million footballs a year, and that number rises o 60 million in European Championship or World Cup years. According to legend, the success story of Shallot as world capital of football production started with a man who repaired a leather ball for British colonial military officers about a century ago, and then began making his own balls.
He was called Seed Sahib’s, and the city has named a street after him Soccer ball production has a long history and it currently happens to be responsible for approximately 60 to 70 percent of the world’s hand stitched soccer ball production with leading international brands (I. E. Nikkei and Aids) sourcing almost exclusively from there. The city of Shallot in Pakistan produces as many as 60 million hand-stitched footballs in a World Cup year employing over 1 lack workers across hundreds of manufacturers.
The sector has been under the scrutiny of intense western based CARS initiatives since 1995 when child labor was exposed. The firms ran out of new workers since child labor was abolished. Western buyers may have had a clear conscience, but the children of Shallot began toiling in the local brickwork’s instead. Before Child labor became an issue the balls were sent to villages where families including children stitched the alls and sent them back to the subcontractors who in turn exported it to their western brand. Many of the Shallot soccer ball manufacturers felt their industry was placed in jeopardy by them being forced to give abandon child labor. They interpreted the media campaign and the intervention as acts of politico-economic imperialism designed by malevolent Western entities to undermine Pakistanis sovereignty and economic reputation through sensationalistic and fabricating evidence of human rights abuses in its industry. “l This interpretation is reflected in the following headline typical for the time: Western Propaganda against Child Labor doing Great Harm to Economy (Mali, 1996: 4).
This conspiracy reading was also expressed in interviews given by prominent Shallot soccer ball manufacturers as illustrated in this quote from a senior director of one large business: We have seen fake pictures of tiny children stitching footballs .. They were staged to depict the horrors of child labor and they were deliberately planted to give Pakistan a bad name’ (Mir, 1996). “2 It was a view not Just held by the local business elite, but also by other employees as the following quote from a firm manager demonstrates: Why are corporate social standards coming in?
They [the West] are bonding us. They are hiring our businesses to keep [us] in their command. All bad things are reserved for us to make and then [we hear] abuse [from the West]. All materials, dirty work, sent to us. When we do it, [they] use international law and say we are damaging environment and fine us…. Ship breaking in South Asia. All scrap sent to third world and when pollution, give bill [to us]. They rob us with both hands. “3 The perception in Shallot is that the West is out to politically dominate a developing country such as Pakistan.
First ‘dirty work is sent to the developing world. -II feel like a foreign agent’:Nags and corporate social responsibility interventions into Third World child labor Farad Raff Khan source:’ co. UK/ acrimoniousness’s. An accepted, the West imposes its corporate social standards, telling the developing country how to behave and undermining its sovereignty and autonomy as well robbing it through imposing fines for CARS noncompliance. According to industry sources, domestic producers have managed to acquire about 35% of the total orders floated globally for the upcoming Fief World Cup .
This s a sharp decline from the 70-80% acquired in 98 & 02 World cups. The local football industry earned $164 million in export earnings in the financial year 09, as against an average of $221 million per annum earned during financial years 2005-08. Shortfall in the power and gas sector is not making it any easier for the industry, and word of mouth is that numerous businesses have failed to meet their required deadlines denting their reputation.
CONCLUSION Regulators all around the world are now increasingly holding the corporate sector ‘responsible’ for its impact on society, the economy and the environment. This is Ewing seen through increased regulatory behavior to guide companies in driving corporate social responsibility. Companies are run differently than Nags or not for profit organizations. The main goal and first most priority of any for profit organization is to maximize its profits .
CARS is seen as means to brand it all by some of the multi-nationals. The fact that most of these companies venture into areas where they have their factories is also very telling . By law companies are required to spend some percent of their pre-tax profits on CARS in Pakistan Just like other developing countries . The percentage varies in efferent countries. Some companies spend way more on CARS than they are required by the law, their rationale is that it’s an investment and it will come back to them in the long run. Important because companies are interlinked with a wide range of political, economic and social, formal and informal institutions that affect their behavior. At the same time, it is also necessary to take into consideration that companies not only adapt to institutional contexts, but also frequently play an active role in shaping those contexts, which means that the only feasible way to make business all over the world unconscious and responsible is further liberalizing and closer collaboration between companies, governments and societies.
Still, one question is what tools to choose in order to minimize these gaps between regions and adjust business attitudes. Should they be new types of taxes, stricter forms of regulations and punishments, strengthened blaming and shaming activities of Nags and media, or better social education? And another question: is it possible at all? References Dads M (1989) Machines as the Measure of Men: Science, Technology, and Ideologies of Western Dominance. Ithaca: Cornell University Press. Awn S (1996) Child Labor in the Football Manufacturing Industry.