How Globalization is Affecting Corporate Social Responsibility: Dynamics of the Interaction Between Corporate Social Responsibility and Globalization

Abstract

This chapter outlines the possible challenges in the redefinition of the relationship between corporations and society through a discussion of the dynamics influencing the current state of corporate social responsibility under the forces of globalization. Both corporate social responsibility and globalization are dynamic concepts which are interacting with each other in the process of continuous development. As globalization influences the role of corporations in society, redefinition of the rights and responsibilities of the corporation influences the outcomes of globalization. The objective functions and guiding moral principles of corporations are suggested to influence how societal aspirations are reflected into corporate social responsibility. At its current state of development, we observe a general acceptance of social responsibility by corporations. However, they seem to assume social responsibility as a means to achieve their objective of profit and value maximization based on their self-interest rather than promotion of common good. Differences in the objective functions and the moral principles guiding corporations in the west and the east are proposed to provide opportunities for cross-fertilization in the redefinition of corporate social responsibility. This redefinition may provide solutions to the pressing problems of globalization. © Güler Aras and David Crowther 2010.