Why Corporate Social Response Matters Essay Example | Topics and Well Written Essays - 2000 words

Why Corporate Social Response Matters - Essay Example When the businesses do align their strategies according to the principles, then they can ensure that technology, market and finance develop in such a manner that can be beneficial to the economies as well as societies all over the world (United Nation Global Impact, 2011). 1.2 Roles in Promoting CSR In the current times, there have been changes in the corporate world with the evolution of time. After the financial crisis that took place in the year 2008, the companies have started focusing upon the Corporate Social Responsibility (CSR) initiatives by means of promotions of transparency as well as responsibility. United Nations (UN) has instigated the UN Global Compact whose main objective is to promote CSR thereby directing upon human rights, anti-corruption, environmental causes as well as labor rights. ... been observed that UN has made planning to involve 20,000 companies by the year 2020 so that the values of the Compact can be turned into universal values endorsed by the business world (Chul-Ki, 2011). 1.3 Impact on Private Sector CSR The private sector plays a major role in the progress of most of the countries by generation of the employment opportunities, generation of new technologies and thereby enabling equitable economic growth. The function of the private sector is not just obliging of its economic activities but also it has a significant role to play in context of social responsibilities towards its stakeholders, environment as well as communities in which the business tends to operate. There are many reasons behind the incorporation of UN Global Compact in private sector for participation in the voluntary corporate governance within a non-regulatory model. The three main reasons are the financial crisis within the United Nations, the alteration in the leadership and the id eological shifts. Structural alterations within the organizations are also defined as one of the significant reasons behind the invitation of Global Compact in the organisation (Arevalo & Fallon, 2008). UN Global Compact tends to encourage the private sector to embrace, endorse and take into account numerous core values in the context of human rights, labor standards as well as environmental practices (United Nations. Economic and Social Commission for Asia and the Pacific, United Nations. Economic and Social Commission for Asia and the Pacific. Development Research and Policy Analysis Division, 2004). 1.4 Cases of Successful Intervention in Private Sector CSR The United Nations Global Compact has successfully intervened in the private sector as has been observed in case of Ford Motors. It