Promoting Organization Citizenship
With advancement in technology world has become a global village. Companies are reaching far away territories and brands are recognized globally. Multinationals have emerged as the driving force of economy as they don't find themselves restricted for resources and target market to any physical geography. Companies design their product at a different facility, test it, mass produce it and market it in different localities according to their goals, all to keep cost low and profitability high. This phenomenon has enabled them to establish their presence across the globe.
Though globalization created new opportunities for firms as it opened new prospective markets, new sources of cheap labor and friendlier laws, it also presented companies with unique challenges in form of highly aware customer and more demanding stake holders. Now all stake holders from customers to share holders, employees to suppliers and from government to local communities expect a positive, ethical dealing from companies. Because of their massive presence and impact on economy, societies / people's perception and expectations from these multinationals are rapidly changing.
Corporate Social Responsibility (CSR) might seemed a "too good to be true" idea a few years or a decade back, has now taken the main stream role in forming companies policies. Now people are more aware and expect more than a quality product, they want companies to give back to society in which they are operating. That is the reason a growing number of multinationals and known brands are teaming up with governments and NGOs to bring a positive change in society. Going green by controlling waste, reducing carbon footprints by local resourcing and launching charitable work are only few examples of activities that companies undertake to establish a positive image in society.
Becoming more ethically responsible may appear simple straight forward solution for increasing expectations of stakeholders in a globalized community but in reality it is not. Businesses are considered and designed to be profitable, that's the only way they can sustain in the competitive world, now a complete shift in perception is required. Now companies are not created just for profit but for...
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