Question

Corporate social responsibility (CSR) is internationally regarded as a self-regulating business model and is often seen as a measure of company’s commitment to protect people social welfare and environment. No matter how to define CSR, it helps orient a company operating activities and processes from saving money through operational efficiency to bringing good reputation to company. Therefore, it is also treated as a business imperative for the 21st century multinational companies (MNCs).

CSR can take many forms depending on the company and industry. It matters for MNCs because if the society does not agree with how the MNCs do business, they may lose customers. Some MNCs hold the view that the CSR practices in the headquarters are universal and so there is no need to adapt and localize those initiatives to their overseas subsidiaries. Many of those practices however are not executed smoothly in the overseas subsidiaries. For example, some global CSR focuses are diluted in developing countries due to specific subsidiary resources and host market characteristics.

1. Select one Western-based multinational company with footprints in one of the following emerging markets in Asia:  Indonesia; or  Thailand

2. The chosen Western-based MNC must be operating in one of the following industries:  Food;  Cosmetic products; or  Furniture

Question: Write a report to evaluate the effectiveness of CSR practices in the chosen emerging market and suggest what the selected MNC should do to better execute CSR practices in the subsidiary by tackling the cultural differences.

Guidelines: 1. Briefly discuss the CSR practices of the selected MNC in the chosen emerging market.

2. Choose two concepts (or theories) below to justify why implementing CSR plan is so important for the selected company in the chosen emerging market: ethical responsibility, sustainable business and environmental exploitation.

3. Evaluate the social impacts of the selected MNC’s CSR practices in the chosen emerging market. Give evidence of the social impacts.

4. Suggest what the selected MNC should do to better tackle the difference in belief, value, attitudes and/or custom so as to improve the overall effectiveness of CSR execution in the chosen emerging market. You can study the corporate cultural difference between the headquarters in Western country and subsidiary in the chosen emerging market; and examine the industry practices, regulation, legal requirements or other aspects in the chosen emerging market that might alter the way of CSR practices.

5. Please write in report format. The report should include proper citation and reference as well as a brief conclusion.

Answer 1

Company Chose : Procter & Gamble - based in Cincinnati in the United States, Procter and Gamble (P&G) is a consumer products giants with operations in more than 180 countries across the globe.

As per the company's 2018, corporate citizenship report , their objective is "to maintain and enhance our reputation through a strong ethics, and compliance culture that supports conserving resources, protecting environment , improving social conditions, respecting human and labour rights and empowering individuals and the communities in which we live,work and serve".

Globally the objectives of the companys CSR program follows the mantra of "Live, Learn and thrive " - all their initiatives are focussed towards one or more of these aims - from hurricane relief in US to distributing consumer products to under privileged communities through KindDirect in UK.

CAse Market : Indonesia.

Indonesia is a thrid world country. In Indonesia, elementary and junior high school is mandatory for all children. However the govt. has limited funds and hence focusses on elementary and junior high school. However nearly 40% of the children who dropped out of elementary school did so because of lack of support at the pre-elementary level.

One of the programs that P&G runs in Indonesia is called Balita Cerdas which provides children below 6 years access to education before they join elementary school P&G partnered with UNICEF and a local organisation , Rumah Zakat to develop ECD programs for the toddlers . They also constructed an ECD school with full interactive educational equipment. In order to ensure sustainability, they partnered with local community volunteers to develop them as teachers . From their goal of 1000 children in 2008 ,they are now expanded the prorgram to more than 10,000 children a year

In order to further strengthen the community pillars, the company has partnered with multiple supermarkets and hypermarkets to propagate their theme of Balita Cerdas and raise funds for the same - further the CSR is built in partnership with many of the company's top selling brands including Pantene, Pampers etc. So for every piece of  these brands sold, the company makes a small contribution to the CSR. The comany exploits local cultural nuances by running many of these programs during the holy month of ramadhan when every person has to donate to charity. As per govt statistics, nearly 26 million children below the age of 6 dont have access to ECD facilities. Their CSR program has impacted many lives and made these young children confident and able and motivated to pursue education till atleast high school.

I think the company has done a good job of choosing a cause that it relevant to the local market and without deviation from their global guidelines. In developed western countries where there are entrenched and well established public schools, this is not important and they can choose other methods of serving the society, however this initiative in Indonesia is in line wth their global principle of "Live, learn and thrive" and will contribute to the society at large

Source " 2018 P&G corporate Citizenship report

Forbes magazine