Corporate Social Responsibility in International Business
MET AD 655
Spring 2014
Professor: Jung Wan Lee
by
Levent Corbaci
Flavia Hungaro
Shuo-Feng Wang
The Practice of Corporate Social Responsibility in International Business
Introduction:
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Corporate Social Responsibility or ‘corporate citizenship’ has become a driving factor
indicating success for many companies.
CSR is a factor that can provide a company with a competitive advantage and therefore
more profitability.
A core element of reputation can be used to help establish trust and goodwill amongst
stakeholders.
There are 4 overarching categories of CSR: Legal, Ethical, Philanthropic and Economic.
The Practice of Corporate Social Responsibility in International Business
Research Questions
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Based on the social and environmental issues, companies can differentiate products from
the other products in the market.
There is still a large scale investors and the stock market do not clearly reward or punish a
company .
Measuring the Value Of Corporate Philanthropy: Social Impact, Business Benefits, And
Investor Returns.
How is CSR more profitable in developing nations.
The Practice of Corporate Social Responsibility in International Business
Literature Review:
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In general, this term refers to contributions a company desires to promote in the
community, the environment, and to the society that it operates.
In recent decades, some scholars have been arguing that profit maximization should not be
the only purpose of a company.
CSR has been associated to the idea of “doing good,” and it has changed the way many
companies may behave internally and externally.
Another way of approaching this topic is looking at CSR from a different perspective. Instead
of just targeting the “doing good” approach, the responsibility of “avoiding the bad,” thus
preventing corporate social irresponsibility (CSI) must also be considered.
Another point of importance brings attention to how different countries may approach CSR
standards.
The Practice of Corporate Social Responsibility in International Business
Analysis:
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Each company’s CSR distinguishes the company in the international business realm
The companies are:
The Practice of Corporate Social Responsibility in International Business
Case Analysis I
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Nestle:
History begins back in 1866, when the first European condensed milk factory was opened in Cham,
Switzerland by the Anglo-Swiss Condensed Milk Company.
Henri Nestlé, a German pharmacist is a founder.
Baby Food : Cerelac, Gerber Graduates, NuturNes, Nestum.
Bottled Water: Nestle Pure Life, Perrier, Poland Spring, S. Pellegrino
Cereals: Chocapic, Cini Minis, Cookie Crisp, Estrelitas, Fitness, Nesquik
Chocolate & Confectionery: Aero, Butterfinger, Cailler, Crunch, KitKat, Orion, Smarties, Wonka.
Coffee: Nescafe,Nespresso.
Dairy: Carnation, Coffee-Mate, La Laitiere, Nido
Drinks: Juicy Juice, Milo, Nesquick, Nestea.
Healthcare Nutrition: Boost, Nutren Junior, Peptamen, Resource.
Ice Cream: Dreyer’s, Extreme, Haogen-Dazs, Movenpick, Nestle Ice Cream.
And more: Petcare, Food Service, Culinary, Chilled and frozen foods…
The Practice of Corporate Social Responsibility in International Business
Case Analysis: Nestlé
The Practice of Corporate Social Responsibility in International Business
Case Analysis II
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Starbucks:
Starbucks Corporation is an American specialty coffee company.
The company founded in 1971 in Seattle, Washington.
20,000 sores in over 60 countries with 200,000 employees.
Starbucks differentiates itself by offering high quality fresh-roasted whole beans from
different parts of the globe.
Starbucks also provides pastries, fresh food, mugs and accessories.
Starbucks’ main goal is equal to any other company in the globe-make PROFIT, however the
generation of profit MUST be aligned with “Corporate Social Responsibility”
The Practice of Corporate Social Responsibility in International Business
Case Analysis II continued:
The Practice of Corporate Social Responsibility in International Business
Case Analysis III
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Coca Cola:
Coca Cola is a soft drinks sold in stores, restaurants, and vending machines throughout the
world.
It is produced by The Coca Cola Company of Atlanta, Georgia.
History begins in 1886. It is often referred to simply as Coke since 1944.
Sustainable Packaging and Recycling.
Consumer Behavior and Disposal.
Collecting and Sorting.
Recycle and Replenish.
Protect and Reduce.
Health Care.
The Practice of Corporate Social Responsibility in International Business
Case Analysis III continued:
The Practice of Corporate Social Responsibility in International Business
Results and Findings:
Similarities
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Implementation and further expansion of such
practices
Nestle and Starbucks are committed to promote fair
trade practices in their supply chain – they both
proactive and protecting their farmers.
Follow similar pricing guidelines for pricing models
where they assure price stability, guaranteeing that
premium price is paid to their farmers.
Starbucks and Coca Cola invest great deal in the
area of recycling and packaging
Nestle and Coca Cola focus on nutritional education
Differences
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Nestle focuses on more human rights- child labors,
repairing schools.
Coca Cola and Starbucks focus on community
engagement and health programs.
Starbucks implementing LEED-certified stores
Coca Cola develops Source Water Protection Plans
for each production site.
Nestle focuses on using water more efficiently in
their manufacturing and distribution process in their
supply chain.
The Practice of Corporate Social Responsibility in International Business
Discussions and Conclusions
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We would argue the latter to be true as the evidence has shown each company [Coca Cola,
Nestle, and Starbucks] had each had success with their own individual strategies.
According to listing, [Forbes.com] Nestle on top with 10th place, then Coca Cola 27th,, and
Starbucks falls to lowest, in 82nd place.
CSR is crucial now in order to achieve goals.
The transparency has allowed customers anywhere in the globe to be informed and
knowledgeable in a timely manner.
We, as a customers know them for a whole lot more- what the company values, that the
company is willing to give back even without a huge return fiscally, and that they are taking
responsibility with dedication all over the world.
The Practice of Corporate Social Responsibility in International Business
 Thank you
 Levent Corbaci
 Flavia Hungaro
 Shuo-Feng Wang