MNEs

The Business Case
Multinational Enterprises (MNEs) are under considerable pressure to prove their commitment to decent conditions in the workplaces which supply their products, whether its grapes from South America or garments from Asia.  The intensity of pressure varies across industries and corporations, as does the response from the firm.  This section describes the factors which influence a firm’s decision to adopt CSR practices.

Who Practices CSR?
Why Adopt CSR?
Key Stakeholders

The following diagram depicts a CSR cycle in which: (1) Certain incentives, including the avoidance of sanctions, encourage change within the firm; (2) Firms respond by implementing a CSR initiative (e.g. code of conduct, multi-stakeholder initiative, etc); (3) If the firm can credibly show implementation of the CSR efforts and meet other criteria of competitiveness, they will reap a market reward.  The cycle continues as the firm’s achievement attracts increased attention and potential increased financial reward.

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