Industrial Clusters and Corporate Social esponsibility

Question: Discuss about the Industrial Clusters and Corporate Social esponsibility. Answer: Introduction: Corporate Social Responsibility is the overall involvement of business to sustainable development. The researcher has chosen this topic to investigate because, developing countries leads to globalization, strong economic growth and huge amount of business activities that has a direct effect on social and environmental impact on the society. Corporate Social Responsibility plays an important role in humanizing the governance, moral, labour and environmental circumstances of the developing countries in which they maneuver. The importance of Corporate Social Responsibility is to capitalize on the positive communal outcomes of business activities. Research Objectives: The objectives of the research are as follows: To highlight the importance of Corporate Social Responsibility. To investigate the impact of Corporate Social Responsibility in Developing Countries. To critically analyze the growth of Corporate Social Responsibility. To understand the value of Corporate Social Responsibility in developing economies. Research Questions: The questions of the proposal are as follows: What is the major role of Corporate Social Responsibility in Developing Countries? What is the role of government in implementing Corporate Social Responsibility? How the concept of Corporate Social Responsibility has evolved over the years? Key Literature Sources: The key literature sources for this proposal are as follows: The Journal of Business Ethics (Boulouta and Pitelis 2014). Special issues on Industrial Clusters and Corporate Social Responsibility in Developing Countries (Lund-Thomsen, Lindgreen and Vanhamme 2016). The Current Situation and Development Trend of Global CSR (Shin 2014). Communicating Corporate Social Responsibility in Singapore (Pang, Mak and Lee 2015). Corporate Social Responsibility (Carroll 2015). Role of CSR in Developing Countries: From every small medium size enterprises to big multinational organization, every business entity consists of stakeholders and their impact on the society. The impact can be both negative and positive. The role of Corporate Social Responsibility is to examine the impact of business in the society and the positive outcomes of its operations on the environment (Boulouta and Pitelis 2014). The practice of successful CSR in the organization has driven the concerns of many investors to invest in the companies thus creating a financial advantage in developing economies. The major role of Corporate Social Responsibility is to increase the efficiency of business operations and thus developing countries with better organization and improving their economies. The efficiency in business operation is achieved in the following ways: Operational Cost Reduction: CSR provides initiative for investment in the environmental competence measures such as waste reduction and effective use of energy that yields profits through cost savings that are encouraging than commercial investments (Lund-Thomsen, Lindgreen and Vanhamme 2016). Increasing Reputation: Companies with good performance in sustainability of the environment are able to build good reputation, whereas providing poor performance can lead to poor brand value. CSR is important to organizations as creates an attention among media and consumers (Boulouta and Pitelis 2014). Better empathy with the Government: The government provides both formal and informal license to operate it is necessary for the organization to extend their business operations. CSR initiates meticulousness in meetings social and environmental requirements thus facilitating better corporate liaison with the government departments (Lund-Thomsen, Lindgreen and Vanhamme 2016). Role of Government in Implementing CSR: There are various roles played by the government to implement CSR in developing the country, they are as follows: Enhancing the benefits of foreign direct investment: The government initiates national investment strategies with various foreign investors to facilitate expertise in social savings education and training. Thus creating an effective benchmark to decrease the financial gap within the domestic business market (Shin 2014). Promoting social business practices: Government draws motivation from the CSR program to promote socially accountable firms and business enterprises domestically regardless of the involvement of international country. Thus shaping the subject matter of those interventions with CSR linked concerns (Pang, Mak and Lee 2015). Aligning business activities to achieve social objectives: The government provides clear goals of their public policy statements and frameworks for addressing all the critical issues of trade offs among the various social and environmental considerations that will enable to take strategic decision making of the business. The government also encourages strategies like national sustainable development to promote CSR in the country (Carroll 2015). Evolution of Corporate Social Responsibility: Corporate Social Responsibility is one of the most important steps towards sustaining the environment and creating healthier business concepts for the consumers. The concept of CSR has changed drastically over the few decades. From the realm of nice to do it has come up to the realm of need to do as people are getting much aware of the adverse effects of the environment and the need of sustainability (Brown, 2013). Many multinational companies along with domestic enterprises have made major changes in their CSR policy. Previously the concepts of CSR activities were irrelevant to the organization strategies and goals whereas now the companies have begun to approach CSR in a different strategic technique that provides the organization to earn competitive advantage in the society (Vogel and Trapp, 2014). Although the organizations have taken initiatives to consider CSR as their core responsibility but CSR is still equated with philanthropy and it is not incorporated with the interior bu siness strategies (Moon, 2014). Therefore, it is necessary for the organizations to understand the importance of CSR and take adequate measures to promote it in their day-to-day business operations. Research Methodology: Research methodologies are the various techniques through which the research is conducted. There are three types of study in a research such as exploratory, descriptive and hypothesis testing research. For conducting this research proposal, the researcher has chosen descriptive research study. Descriptive Research: The Descriptive research study is developed with actual concepts and theories and a clear concise concept about the topic. The research proposal is being prepared after taking into deliberation of information, journals and books. Data Collection Method: For conducting a research, data collection is one of the most important tools. The collection of data can be done both using primary data collection method and secondary data collection method. In this research proposal, the researcher has chosen secondary data collection method that includes surveys from various articles available online, journals and books are critically analyzed and evaluated. References: Boulouta, I. and Pitelis, C.N., 2014. Who needs CSR? The impact of corporate social responsibility on national competitiveness. Journal of Business Ethics, 119(3), pp.349-364. Brown, D. H. (2013). Corporate social responsibility. Carroll, A.B., 2015. Corporate social responsibility. Organizational Dynamics, 44, pp.87-96. Lund-Thomsen, P., Lindgreen, A. and Vanhamme, J., 2016. Special Issue on Industrial Clusters and Corporate Social Responsibility in Developing Countries. Journal of Business Ethics, 133(1), p.5 Moon, J. (2014).Corporate social responsibility: A very short introduction. OUP Oxford. Pang, A., Mak, A.K.Y. and Lee, J.M., 2015. Communicating Corporate Social Responsibility in Singapore: Toward More Effective Media Relations. In Role of Language and Corporate Communication in Greater China (pp. 127-148). Springer Berlin Heidelberg. Shin, K.Y., 2014. The Current Situation and Development Trend of Global CSR. In Corporate Social Responsibility Reporting in China (pp. 61-77). Springer Berlin Heidelberg.. Vogel, A. L., Trapp, L. (2014). Corporate Social Responsibility.