Answer to Question #49633 in Economics of Enterprise for Kingsley

Question

What would be the impact on the global competitiveness of international firms if all nations do not adopt uniform policies that would eliminate sweatshops considering the growing role of Corporate Social Responsibility in the world economy, especially in the developed one

Answer 1

Corporate social responsibility (CSR) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and international norms. In some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law." CSR aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others.
Most consumers agree that while achieving business targets, companies should do CSR at the same time.