ABSTRACT
Corporate social responsibility encompasses the economic, legal, ethical and philanthropic, or discretionary expectations that society has of an organization at a given point of time. For the MNE, like other business firms, economic responsibilities are paramount, including, for instance, such principles as to how and where profit may be derived and disbursed. Such principles often vary from one country to another, as do the legal systems that govern company operation. For example, Chinese labor laws often are not enforced, and foreign investors discover that China’s legal system resolves few disputes. Ethical responsibilities include activities and practices that are expected or prohibited by society, even though they may not be codified into law. Such responsibilities encompass norms, standards, and expectations that reflect what employees, consumers, shareholders, and the global community regard as fair, just, and consistent with the respect for, and protection of, stakeholders’ moral rights.
