Responsibility of International

Business
 Why should business be socially responsible?

• Public Image.

• Government Regulation.

• Survival and Growth.

• Employee Satisfaction.

• Consumer Awareness.
 Corporate social responsibility
• 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.
 Applicability of CSR in India
• Section 135 of the Companies Act provides the
threshold limit for applicability of the CSR to a
Company i.e.
• (a) Net worth of the company to be Rs 500 crore or
more;
• (b) Turnover of the company to be Rs 1000 crore or
more;
• (c) Net Profit of the company to be Rs 5 Crore or more.
Further as per the CSR Rules, the provisions of CSR are
not only applicable to Indian companies, but also
applicable to branch and project offices of a foreign
company in India.
Post the amendment in CSR norms, the institute is reaching out to
PSUs, IT companies and other private corporations for funding
research.
Triple Bottom line
Unethical Approach
• Selling of less demanded goods and services in
underdeveloped country
• Improper usage of goods and services in the foreign country
with under utilization of resources, untrained employees
• Restricted Trade Policy
– Expired technology transfer
– Violation in process of production, Utilization of improper ingredients
 Unethical way Pricing mechanism
Dumping of goods
• Sporadic dumping: liquidating excess stocks
• Predatory dumping (Intermittent dumping):
• Zenith in USA accused Japanese Television manufacturers of using predatory dumping. A charge was leveled against
Japanese manufacturers for false billing and secret rebates to set low predatory prices on T.V. sets in U.S markets. It was
argued that they tried to drive U.S firms out of business in order to gain a monopoly.
• Persistent dumping (Long period dumping):
• firm may use marginal cost pricing abroad while using full cost pricing (covering fixed costs at
home) in domestic market.
• Reverse dumping
• Counterfeit : To imitate something authentic, with the intent to steal, destroy, or replace the
original, for use in illegal transactions, or otherwise to deceive individuals into believing that the
fake is of equal or greater value than the real thing. (Cosmetics, perfumes, Electronics, Clothing
accessories, Shoes – Nike, Adidas)
Gray market : Products that are sold legally, but outside of the brand's
permission. These products can harm relationships with distributors and damage
product reputation. Common gray market goods include cameras, cars, watches
and even pharmaceuticals.
Code of Ethics : It is the responsibility of all CSR people to comply with
this Code: act with integrity – being honest, fair and trustworthy in all business
dealings and relationships; avoid conflicts between CSR's interests and personal
interests; ... act within the laws and regulations affecting business conduct.
https://youtu.be/qlsyjfwkIwU Coca Cola's unethical practices in India
https://youtu.be/bPef7LAi_1k Nestle CSR Film
https://www.livemint.com/Companies/1J The Maggi ban: How India’s favourite
KHsutTXLWtTcVwdIDg0H/The-Maggi-ban- two-minute noodles lost 80% market
How-Indias-favourite-twominute-noodles- share
lost.html