Question

Critically discuss corporate environmental responsibility and accountability from a developing country context.
(Topic 10)

Answer 1

Developing countries or emerging markets are different from the developed countries in terms of economic development, standard of living of people and in some other ways. One reason why many companies in todays time have chosen to shift their base to developing market as the cost of labor is very low and government in order to attract industries does offer many tax incentives to the companies. From a developing market perspective companies does have social, environmental and ethical obligation. It is important that even though the cost of labor in emerging markets are low, it is the obligation of the corporates to make sure that they are paying enough to their employees so that they are able to live a certain standard of life, employees are not being exploited to reduce cost. The corporate obligation towards the environment is very important as it should take action in order to prevent polluting the environment in which it is operating. The corporate should not act in manner where it is completely disregarding the environment and discharging its pollutant in the river or polluting the air. Many emerging markets do not have established laws related to deal with markets and environment because of the lack of the development, even in that circumstances it is the obligation of the corporates to make sure that they take action to not cause damage to the environment.