CHAPTER 01: MANAGING INTERDEPENDENCE
Social Responsibility and Ethics

THE SOCIAL RESPONSIBILITY OF MNCs
Multinational corporations (MNCs) and multinational enterprises (MNEs) have been, and to be, at the center of debate regarding corporate social responsibility (CSR), especially in less developed countries (LDCs). CONGA in Peru for instance.

The criticisms of MNCs have been lessened in recent years by the decreasing economic differences among countries, by the emergence of less developed countries' (LDCs) multinationals, and by the greater emphasis on social responsibility by MNCs.

it is clear that there are long-term competitive benefits deriving from Corporate Social Responsibility CSR, much of which results from the goodwill, attractiveness, and loyalty of the various stakeholders connected with the company. MNC Stakeholders
Home Country Owners Customers Employees Unions Suppliers Distributors Strategic allies Community Economy Government Host Country Economy Employees Community Host government Consumers Strategic allies Suppliers Distributors

MNC

Society in General (global interdependence/standard of living) Global environment and ecology Sustainable resources Population’s standard of living

While making good faith efforts to implement CSR, companies operating abroad face confusion about the cross-cultural dilemmas it creates, especially how to behave in host countries, they have their own differing expectations and agendas. Recommendations about how to deal with such dilemmas include: • Engaging stakeholders (and sometimes nongovernmental organizations, or NGOs) in a dialogue. • Establishing principles and procedures for addressing difficult issues such as labor standards for suppliers, environmental reporting, and human rights. • Adjusting reward systems to reflect the company's commitment to CSR

Think about what kind of actions