Corporate social responsibility in relation with International relations A Brief Analysis By Pratik saraswat B.

A LLB 2011 27 For International Relations End term paper

After the fall of USSR on the time period between March 11, 1990 and December 25, 1991, this secured the growth of capitalism in the world, led to the exceptional growth of private corporations. In US alone 1 after the cold war experienced phenomenal economic growth that is it brought the return of prosperity, and in the postwar period the United States consolidated its position as the world's richest country. Gross national product, a measure of all goods and services produced in the United States, jumped from about $200 thousand-million in 1940 to $300 thousand-million in 1950 to more than $500 thousand-million in 1960. The growth had different sources. The automobile industry was partially responsible, as the number of automobiles produced annually quadrupled between 1946 and 1955. A housing boom, stimulated in part by easily affordable mortgages for returning servicemen, fueled the expansion. The rise in defense spending as the Cold War escalated also played a part. After 1945 the major corporations in America grew even larger. There had been earlier waves of mergers in the 1890s and in the 1920s; in the 1950s another wave occurred. New conglomerates -- firms with holdings in a variety of industries -- led the way. International Telephone and Telegraph, for example, bought Sheraton Hotels, Continental Baking, Hartford Fire Insurance, and Avis Rent-a-Car, among other companies. Smaller franchise operations like McDonald's fast-food restaurants provided still another pattern. Large corporations also developed holdings overseas, where labor costs were often lower. Workers found their own lives changing as industrial America changed. Fewer workers produced goods; more provided services. By 1956 a majority held white-collar jobs, working as corporate managers, teachers, salespersons and office employees. Some firms granted a guaranteed annual wage, long-term employment contracts and other benefits. With such changes, labor militancy was undermined and some class distinctions began to fade. Farmers, on the other hand, faced tough times. Gains in productivity led to agricultural consolidation, as farming became a big business. Family farms, in turn, found it difficult to compete, and more and more farmers left the land. An even more important form of movement led Americans out of inner cities into new suburbs, where they hoped to find affordable housing for the larger families spawned by the postwar baby boom. Developers like William J. Levitt built new communities -- with homes that all looked alike -- using the techniques of mass production. Levitt's houses were prefabricated, or partly assembled in a factory rather than on the final location. The homes were modest, but Levitt's methods cut costs and allowed new owners to possess at least a part of the American dream. As suburbs grew, businesses moved into the new areas. Large shopping centers containing a great variety of stores changed consumer patterns. The number of these centers rose from eight at the end of World War II to 3,840 in 1960. With easy parking and convenient evening hours, customers could avoid city shopping entirely.

http://countrystudies.us/united-states/history-114.html

New highways created better access to the suburbs and its shops. The Highway Act of 1956 provided $26 thousand-million, the largest public works expenditure in U.S. history, to build more than 64,000 kilometers of federal roads to link together all parts of the country. Television, too, had a powerful impact on social and economic patterns. Developed in the 1930s, it was not widely marketed until after the war. In 1946 the country had fewer than 17,000 television sets. Three years later consumers were buying 250,000 sets a month, and by 1960 three-quarters of all families owned at least one set. In the middle of the decade, the average family watched television four to five hours a day. Popular shows for children included Howdy Doody Time and The Mickey Mouse Club; older viewers preferred situation comedies like I Love Lucy and Father Knows Best. Americans of all ages became exposed to increasingly sophisticated advertisements for products said to be necessary for the good life. Thus leading to the phenomenal growth of corporations as of today., which however lead to several implications other than being boosting the economy, that is the demerits of rapid business development are

Inflation risk: If the economy grows too quickly there is the danger of inflation as demand
races ahead of aggregate supply. Producer then take advantage of this by raising prices for consumers Environmental concerns: Growth cannot be separated from its environmental impact. Fast growth of production and consumption can create negative externalities (for example, increased noise and lower air quality arising from air pollution and road congestion, increased consumption of de-merit goods, the rapid growth of household and industrial waste and the pollution that comes from increased output in the energy sector) These externalities reduce social welfare and can lead to market failure. Growth that leads to environmental damage can have a negative effect on peoples quality of life and may also impede a countrys sustainable rate of growth. Examples include the destruction of rain forests, the over-exploitation of fish stocks and loss of natural habitat created through the construction of new roads, hotels, retail malls and industrial estates.

That is a historical background is necessary to lean about corporate social responsibility2 In 1909, the London Evening Standard accused the confectionary company Cadburys of knowingly profiting from the widespread use of slaves on cocoa plantations in the Portuguese colony of Sao Tom. The public was shocked: the company was not only one of the most famous brands in the British Empire, but also an exemplar of compassionate capitalism founded in the Quaker religious tradition. Cadburys sued the Evening Standard for libel. But over the course of the trial, Lord Cadbury, head of the firm and a figurehead of virtuous capitalism, was forced to admit that he not only knew slaves were being used, but actually regarded it as essential to his companys prosperity. A century later, in 2000, the company found itself once again accused of buying slave-farmed cocoa beans from West Africa in a media assault by the full spectrum of the British press, from the Daily Mirror to the Financial Times. Acting with others in the industry, Cadburys (now Cadbury Schweppes) denied the allegations. In contrast with the 1909 case, this time the indus2

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try condemned the use of slavery outright, but to no avail, because it was unable to prove that it really knew what was happening on cocoa farms. The fact that human rights advocates seemed to know little more did not matter: these groups held the moral high ground and the industry could do nothing to displace them. Once again, the company lost in the court of public opinion Therefore indicating that corporate activity up to a degree depended on their public image. Also during industrialization, civil unrest were provoked at periods of time From the late 1770s, there were numerous popular, frequently violent, protests aimed at resisting industrialization or improving the lives of those affected by it. Information about human exploitation spurred various reform movements, such as Wilberforces anti-slavery society, while the UKs first Factory Acts were passed in 1819 and laws to control conditions in mines were passed in 1842.In addition to government intervention, it was around this time that writers such as Carlyle and Arnold began to suggest how heads of industry might behave, marking the start of the era of Victorian philanthropy. Robert Owen had already set up his mills at New Lanark and was an instigator of the early Factory Acts. He strove to establish a new model of industrial development in Scotland and the USA, based on the belief that a mans character was formed by his surroundings, and the conditions under which he worked and lived. This vision was developed later in the century by the likes of Cadbury and Rowntree, who established villages at Bourneville and New Earswick respectively, within which their workers could live in supportive communities with open spaces, shops, and schools in easy reach becoming the first corporate(s) to undertake measures for the benefit of the workers, that is witout being charging the workers for the services for the benefits. In Indian context the most suitable example would be Jamshedpur also known as Tata Nagar, housing the first steel mill in India situated in Jharkhand, for its initiative of creating a Green City. Therefore corporate social responsibility can be defined as3a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. The term "corporate social responsibility" came in to common use in the late 1960s and early 1970s, after many multinational corporations formed. Business ethics and development of business ethics for a key part in the corporate social responsibility programs, which may be under taken to fulfil the responsibility of CSR. There are many approaches to CSR the most common being philanthropy. which includes monetary donations and aid given to local organizations and impoverished communities in developing countries. However it may be criticised on the grounds that it does not develop the skills of the local community Another approach is garnering increasing corporate responsibility interest. This is called Creating Shared Value, or CSV. The shared value model is based on the idea that corporate success and social welfare are interdependent. A business needs a healthy, educated workforce, sustainable resources and adept government to compete effectively. For society to thrive, profitable and competitive businesses must be
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http://en.wikipedia.org/wiki/Corporate_social_responsibility

developed and supported to create income, wealth, tax revenues, and opportunities for philanthropy. CSV received global attention in the Harvard Business Review article Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility by Michael E. Porter, a leading authority on competitive strategy and head of the Institute for Strategy and Competitiveness at Harvard Business School; and Mark R. Kramer, Senior Fellow at the Kennedy School at Harvard University and cofounder of FSG Social Impact Advisors.

Corporate social responsibility

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business) is a form of corporate self-regulation integrated into a business model.CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest (PI) by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. CSR is the deliberate inclusion of PI into corporate decision-making, that is the core business of the company or firm, and the honouring of a triple bottom line: people, planet, profit.

INTERNATIONAL RELATIONS
International relations (IR) (occasionally referred to as international studies (IS)) is the study of relationships between countries, including the roles of states, inter-governmental organizations (IGOs), international nongovernmental organizations (INGOs), non-governmental organizations (NGOs) and multinational corporations (MNCs). It is both an academic and public policy field, and can be either positive or normative as it both seeks to analyze as well as formulate the foreign policy of particular states. It is often considered a branch of political science (especially after 1988 UNESCO nomenclature), but an important sector of academia prefer to treat it as an interdisciplinary field of study. Aspects of international relations have been studied for thousands of years, but IR became a separate and definable discipline in the early 20th century.

CONCLUSION
Organizations are coming to realize the bottom-line benefits of incorporating sustainability into their DNA. Its beneficial for attraction and retention and its the right thing to do. HR is a key organizational leader and can take the lead or partner with other executives to work cross-functionally to integrate CSR objectives into how business gets conducted.

The firm of the future is expected to have undergone significant transformation such thatCSR no longer becomes managed as a separate deliverable, but is part of the experience of being an employee in an organization that lives its values. For human resource professionals embarking on CSR or deepening their CSR experience, this roadmap can help them understand their role in sustainability and CSR and how they can foster an environment that embeds a CSR ethic in the way we do business around here. The Worlds economies are becoming increasingly interdependent, and countries around the globe are continuously looking outward to take advantage of new opportunities. International partnerships and exchanges in the areas of social, educational and cultural development and democratic governance are also becoming more prominent as nations seek information and experiences from other jurisdictions. That is how corporate social responsibility and international relations are connected. And action taken in one case affects other.