Globalization, Corporate Social Responsibility, and Poverty highlight the importance of Customer Social Responsibility as a means to achieve the growth of a private sector, a way for poverty reduction and a source of equitable distribution of wealth. The article also describes various development stages in CSR that gradually increases its scope in the present time and in the years to come. Many organizations have stepped in for the development of CSR. Details of organizations involved in the development of CSR are explained in Globalization, Corporate Social Responsibility, and Poverty.
Globalization, Corporate Social Responsibility, and Poverty:
The role in the development of CSR concept and its implementation in countries has further been supported by the World Bank through the World Bank Institute and United Nations. The article elaborates that the concept of CSR dates from the early 1990’s when the global deregulation enhances the importance to regulate the activities of foreign investors, customers, and environmental protection. CSR has provoked debates on the relationship between business and society. The global deregulation that relates to consolidations of US large organizations, Great depressions of 1930’s give rise to the development of CSR. The article highlights the era of the 1960’s and 1970’s when the implementation of CSR become an international issue and need to establish codes of conduct for the activity of Transnational Companies (TNCs) became evident.
The role of CSR in poverty reductions is the main theme of the article. Many examples and facts are given to elaborate that does CSR works directly for the poverty reduction.
The most important theme of the article is that the CSR has not expressly dealt with the impact of business activities on poverty. The CSR emerges as a development issue. Over the few years, the definition of development has changed and has shifted from economic growth to social dimensions that are explained in the United Nations Development Program.
The article also explains the importance of foreign direct investments (FDI) in relation to poverty reduction. FDI can help in reducing poverty provided that it does not bring income inequality.
The article also highlights one of the important factors leading to poverty that is a distribution channel. The goods and services produced by the company are limited to a particular market where the access of the poor is not possible. The article also argues the fact that the TNC’s do not much contribute towards the poverty reductions. Hence, if these companies adopt CSR whether it is going to play any role in poverty reduction.
The article also gives insights to the fact that the CSR has a great relationship with the companies growth. Hence, the companies failing to adopt CSR will find a diminishing market for themselves.
Hence, the article concludes that this fact is very doubtful that the CSR will help in increasing the growth without increasing the income inequality and ultimately poverty reduction. The CSR does not play a key role in poverty reduction. There are a lot of factors that hamper the performance of CSR as a key driver to reduce poverty. The article thus well depicts many areas that can help reduce poverty but are not properly channeled.
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