CSR in globalised era

19 May 2010

In the fast changing business world, only one thing has remained intact – CSR.

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      Though this concept has been known for years, but the development pace is different in each country. McKinsey CSR survey, published by The Economist, showed that Europeis the leader in this area particularly the western European countries like Britain, Germanyand Scandinavian countries. With CSR activities, businesses in these countries have reaped continued social supports.



       CSR in Europefocuses mostly on the environment, particularly when global warming and greenhouse gases are the highlight. Following are welfare benefits, for all to live happily even in their retirement; and responsibility to customers who deserve quality and safe products at reasonable prices. Last but not least, they see the need of human rights protection and all businesses take care of their employees in line with the human rights law.



       In the survey, some Asian countries were highlighted as the CSR leaders, led by Japan which has launched more social projects particularly in renewable energy technology development which is now more advanced than those in the western hemisphere.



       The USis the slowest, among developed countries. Slowing it down could be economic complications which need huge efforts to address. The UShas been heavily attacked for its failure to recognise the Kyoto Protocol, to minimise carbon emission. On the contrary, the USpointed its fingers to Chinaand India, saying that they should be more responsible for the huge power consumption.



        Yet, in the smaller scale, some American companies are notable in their CSR efforts, like Wal-Mart. It was found that most Americans are concerned with health coverage as well as job losses, following the massive outsourcing to countries with cheaper labour.



         Regarding developing countries, in the BRIC group – Brazil, Russia, Indiaand China– Russiapays least interest in CSR while Brazilis the most active thanks to supports from the private sector and NGOs. Indiaalso deserves attention and by tradition, businesses are returning benefits to society, but mostly through donations. Foundations are established or donations are delivered for the construction of hospitals and schools. But Indiais lagging behind in terms of employees, as the working environment is relatively below standards.



         China, attacked for violation of human rights, product contamination and copyrights violation,  is pushing hard for CSR. Much of the effort is originated by the government, as private companies or NGOs in the country are not as strong as those in other countries. Within 4-5 years, some concrete results should be seen, as Chinais a fast learner.



         CSR, though having one definition, can be applied differently in each nation, depending on their backgrounds and fundamentals.



 



By Teerayout Wattanasupachoke


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