CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility: AVEC India & AVEC China

Corporate Social Responsibility: AVEC India & AVEC China

Introduction

The phenomenon of globalization has created many issues for business organizations. The most important issue multinational companies face when they are required to operate in different environment. Similarly they are also face challenges in the recruitment of workforce, because to manage diversified workforce is quite challenging task. But some companies manage their diversified workforce in such a way, that the same challenge proves as an important asset for the company. Similarly there are other issues related to the operation of multinational companies. Multinational organizations that have origin in US or European countries face significant problems when they operate in Least Developed Countries (Wild et al, 2006, pp.5).

LDC's provide opportunities of growth and their markets are so huge and capable enough to accommodate the increase in production. Similarly these markets offer cheap labor and at the same time, provides cheap raw material. That is the main reason why best performing multinational companies find it most appropriate to enter in least developed countries. The aim of this research paper is to identify different sort of problems multinational companies face when they enter in the market of least developing countries and the latter part of this research paper will provide detailed analysis of Corporate Social Responsibility mainly focusing of the example of AVEC India and AVEC China.

Literature review

Business organizations especially manufacturing companies are the major contributors of pollution. Developed countries which enjoy high rate of growth are also main contributors of pollutions. They also create impediments to the efforts aimed at reducing the pollution. Business organizations are considered the main contributor of environmental degradation and therefore they are required to play an important role in environmental sustainability. Environmental issues, ethical business practices and welfare of the society, where they operates all comes under the purview of corporate social responsibility. In general, Corporate Social Responsibility is the comprehensive framework of self made rules and regulation which is aimed to reduces the hazards which are deliberately or undeliberately inflicted upon the society and natural environment (Sarkis, 2001, pp.666).

High ranking companies pay special attention to corporate social responsibility and they are effectively involved in the research program that can provide to earn goodwill for the companies. Discussion about the corporate social responsibility seems to reflect managerial and theoretical discussion that argues that it is not only good to do the right thing but it leads to do things in better way. So in this way the concept of corporate social responsibility has moved from theoretical aspect to reality. Many scholars find it necessary for the organizations to define their role in society and they are required to apply ethical and social standards to their business. In today worlds, organizations show their commitment to CSR, but many organizations are struggling with this effort (Lindgreen, 2010, pp. 01).

Quality and corporate social responsibility are strongly interlinked with each other as respect and ethics are intertwined with each ...