why should company follow social responsibility?

Question

multinational companies should follow social responsibility in which maner and for what reason.

Answer 1

Corporate Social Responsibility (CSR) is about businesses and other organizations going beyond the legal obligations to manage the impact they have on the environment and society. In particular, this could include how organizations interact with their employees, suppliers, customers and the communities in which they operate, as well as the extent they attempt to protect the environment. (The Institute of Directors, UK, 2002)

Nowadays with increasing calls for transparency in reporting, companies are supposed to state how they have been socially responsible in their business practices. Those found wanting will find it harder to obtain investment funds, customers might boycott them, and they will be marginalised eventually.

For example, as more and more companies become multinational, so they are grappling with ways to be sensitive to the cultures of the countries in which they operate, while holding firm to their core corporate codes of conduct. As the pressures mount on business, so the quality of corporate reporting in this area is rising fast, while the establishment of new standards is becoming increasingly sophisticated. The evolution of all these developments will impact the ways in which firms do business and much more – including the prospects for global warming, and the social and economic development of most nations.

The link will give you more info on CSR

Answer 2

Because it is the right thing to do and is probably more profitable in the long run. Like look at China right now, scrimping on quality of their products that they import to us, and getting a bad reputation.

Being socially responsible, like caring for your employees and such, leads to a good reputation which is good for business.