Social obligations in global business

  

Date Posted: 11/2/2012 2:03:40 PM

Posted By: 27922152  Membership Level: Bronze  Total Points: 86

Social obligations in global business

Social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large. Social responsibility is seriously considered as the impact of the company’s action to the society. Creation of a better social environment benefits both the society and the business. Societies gain through employment opportunities while business gain from a better community which is a source of its workforce and a consumer of its products and services.

Key area of concern to a global business is environmental protection.Organisations should protect and improve the physical environment. Businesses should do more than is required by law to eliminate water, soil, air, solid waste and noise pollution. Since global business control a lot of resources of societies in which they operate in different countries, it has a crucial responsibility to use those resources in a way that does not pollute the environment. Such practices include deforestation, oil spills and waste dumping.

Multinationals have an obligation to improve the safety of products and the work environment. Any business is expected to remove from the market place products that are defective or potentially harmful. In addition, a global company should engage in workplace responsibility and take greater precautions to protect the workers in their workplace by providing protective devices and putting in place appropriate measures to compensate workers who get injured while performing their duties.

Philanthropic components of corporate social responsibility are to perform in a manner consistent with philanthropic and charitable expectations of society; to engage managers and employees in voluntary and charitable activities within their local communities, to provide assistance to private and public educational institutions. To assist disadvantaged members of the society i.e. street children and people with physical challenges and/to contribute towards supporting the informal sector especially the juakali sector. Developing facilities to meet employees and societal needs for socializing and leisure i.e. sport facilities or supporting such kind of activities. Generally a global enterprise should engage voluntarily in those projects that enhance a community's quality of life.

Multinational corporations are required to obey the laws of the land in which they operate i.e. to make a full and truthful disclosure about their product, the positive and negative qualities of a product especially when advertising. They are required to perform in a manner consistent with expectations of government and law; to comply with various state and local regulations; to be a law abiding citizen; to produce goods and services that at least meet minimal legal requirements. In addition they are required to conduct its operations in accordance with internationally accepted principles of good governance.

Multinational companies should engage in fair competition and support the development of appropriate competitive laws. They should not give or receive either directly or indirectly, bribes or other improper advantages for business or financial gain. In addition global companies are required to establish mutual beneficial relations with their suppliers, customers and business partners and adhere to ethical business practices.
In a nutshell, companies that want to be viewed as socially responsible must do more than is required by law.



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