Question

Discuss the concept of international social responsibility. What role does it play in the relationship between a company and its host country?

Answer 1

First let us understand the meaning of international social responsibility. It is considered as a commitment of MNC’s to contribute in the quality of life of the employees and their families, local community, society and further contribute to the sustainable economic development of the host country.

The companies utilize the resources on the host country such as labor, nature, environment, infrastructure etc. They are taking too much from the society then they have the responsibility to give something back to the society. So the companies give back to the society and it is their social responsibility.

CSR plays a significant role with the host country here is a glimpse for same.

• By the CSR activities the companies can make their reputation in the host country. The brand image is improved. Further the company can attract more customers and make a customer base through the social responsibilities.
• The second relationship I would take is the customer retention and customer attraction. The ultimate goal of the companies is to maximize their profit and CSR can help in that. More customers means pore revenues. Not only new customers can be made but customers can be retained by the CSR activities and ultimately that will lead to profit generation.
• The employees will also want to work with those companies. The company can attract more good employees and they can be motivated and retained easily by these strategies. As CSR activities gives the employees a satisfaction.
• Because of these activities the company will be able to attract more and more investors. So need of capital will not be a big issue for the company.