Several MNCs are known to have negative affects in conflict or post-conflict areas. I do believe that costs of operating in high-risk and conflict environment do make the corporations to be socially irresponsible. The best example is the H.B. fuller case, where corporation are continuing their irresponsibility even though they know that the glues they are selling are being used negatively. In order for corporation to help promote in the fragile environments, corporation should design their business so that accepting countries make as much profit as possible. When they start seeing profits, those countries will eventually build themselves. In some cases, CSR will not be an additional cost for business. For example, when Nike was in the news for having their contractors hire children’s in the Asian factories, I am sure that for some time their profit went down. Therefore, corporations should always practice CSR because bad image about the company can really hurt them in long-term profits. In my opinion, it also reduces business risk due to the same reason.
One problem that many MNC’s entering conflict areas make when creating their business strategy is that they base their plan on the impact it will have on their profits rather than the impact on the conflict level. MNC’s need to incorporate all stakeholders’ concerns into their strategy and value their impact on the conflict as much as they due the numbers on their balance sheet. Companies must take on a proactive strategy that implements policies that help to reduce the conflict. Companies must use their influence to promote sustainable decision making that promotes all elements economic, social and environmental.
CSR should be an important aspect of any company. That being said, in rough economic times it is only natural that companies will sacrifice some of its CSR in order to try and survive as a company. It is definitely important for companies to maintain strong CSR in conflict areas because an example needs to be set for the local businesses and citizens, which they have not seen before. However, a businesses number one goal is to survive and if that means sacrificing certain CSR practices, well then how can you really blame the company? In my opinion I do believe that a medium can be found, and that companies (if they really want to) can make the company succeed while practicing strong CSR.
I was also interested in the other side of this issue. While I found the three motivation dynamics very interesting in how they relate to diaspora investment I also wondered if things could go both ways. On the financial front I thought it was interesting how the opportunity for personal gain was also paired with the desire to move monetary resources into their country of origin. Also, I found it interesting how socially diaspora desire recognition and social credit from the members of their home community. This ties into the question of whether or not they still feel this social pull during times of conflict. Post conflict economies often draw interest many potential investors and it would be interesting to see if the motivational dynamics that are factors for diaspora following conflict are still apparent during conflict in their home countries.
I agree with the statement concerning CSR as it pertains to money. I also believe that CSR is much more than money and that it truly requires the sincere care of a corporation for its success. I think that CSR needs to be integrated into post conflict zones immediately following conflict in order to restore economic growth in a socially responsible way. In Dr. Riddle’s paper dealing with diaspora foreign investment in post conflict economies she outlines the different motivational dynamics, two of which were social motivations and emotional motivations. I feel that these motivations have the ability to breed socially responsible business practices due to their sincere and deep running loyalty to their country of origin. Also, if diaspora are working to increase the conditions in their home country they are more willing to implement socially responsible policies and practices in order to provide continued success for themselves and members of their communities.