Comparison between the US and China.
2.1. Recent trends in the CSR US and China.
2.2. Impact of CSR on MNE's operating in US & China.
2.3. Predicting possible consequences of CSR on MNE's.
The selected issue was economic corporate social responsibility (CSR) of the US and China. CSR is the strategy made by corporate companies as a part of corporate governance to ensure that company's operations are ethical and beneficial to society. Over the past two decades, we can see huge concerns for CSR (Kudlak and Low, 2015). CSR started with the intension of the welfare of individuals and society. In the present study, the CSR comparison is made between the USA and China under various headings
China is adopting Mandatory CSR regimes not only due to great global economic change but it is focusing to become a market-based economy and wanted to gain superpower status in the economy. Though it is heavily influenced by international or western CSR standards it is willing to develop a unique standard for CSR. China's recent CSR trends are admirable but due to its dependency on federally mandated legislation and high regulations resulted in increased bureaucracy (Conrad, 2013). So Chinese CSR has been ineffective and it is significantly low compared to the US. In the case of the US CSR is moving less enthusiastically giving statutory approval to it and the US has not taken any supporting steps to its implementation. The approaches are taken by both countries have not resulted in the implementation of the most effective CSR model as both countries rely on the government to achieve the desired outcome
(Ji &Miao, 2020).
MNE's are often faced with many challenges in developing and newly emerging markets which includes bridging the gap between formal and informal institutions, infrastructural issues, and inadequate knowledge about local culture and local market expectations (Marquis & Raynard, 2015).MNE need to understand and gain about the market sentiment and derive strategies according to the market requirements. So developing countries like China should focus on these things to become a globally competitive economy. Along with these things it needs to ensure corporate governance at its full potential to survive in the global market.
2.2.1. Predicting Possible Consequences of CSR on MNE's
According to Marquis and Raynard (2015), the gap between formal and informal institutions, improper infrastructure, lack of knowledge about local culture, and markets are the major problems faced by MNE'c in developing economies. With these hindrances also there is a huge potential for MNE's to grow in developing economies like China. For these, they need to adopt stakeholder management along with meeting the needs of consumers and investors. But it will be difficult to manage stakeholders in the situation of conflicting objectives. So the Strategic CSR approach is proposed and this will enable companies to operate profitably and also improves the quality of life of local people ("Strategic Corporate Social Responsibility: A Perspective from Indian and China",n.d)
The future of CSR depends on the economic crisis the world will face and government response to them. In times of bad economic crisis, it is very difficult to invest in CSR. But the sustainable aspect of CSR will surely influence the citizens and the government to meet our responsibility on future generations
Ji, H., &Miao, Z. (2020). Corporate social responsibility and collaborative innovation: The role of government support.Journal of Cleaner Production,260. doi.org/10.1016/j.jclepro.2020.121028
Kudlak,R.,Low,K.Y.,2015.Special issue dedicated to CSR and corporate suatainability :a review and commentary. Long Range Planning 48(3),215-227.doi:10.1016/j.lrp.2015.03.002
Strategic Corporate Social Responsibility: A Perspective from India and China. (n.d).retrieved fromhttps://www.icainstitute.org/publications/strategic-corporate-social-responsibility-a- perspective-from-india-and-china/
Conrad, J.M.(2013). The business of business: comparing corporate social responsibility initiatives in china and the united states. Ga. J. Int'l & Comp,41. Retrieved from
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