CSR Practices in the Emerging Economies of Asia

Corporate social responsibility is a management strategy implemented in companies throughout developing countries in Asia. In the forefront is China, which is now becoming a CSR global brand by impacting society and the environment. India is fast catching up to the race where business law forces business to invest in CSR practices. Pakistan and Bangladesh are now members of the global economy, and the industries in respective countries have realized that sustainability enhances their corporate image. The change in the emerging economies is from public awareness and accountability for corporate contribution to society. The chapter put forward the CSR practices by companies in Pakistan, India, Bangladesh, and China.

Corporate Social Responsibility and the Fourth Industrial Revolution

The aim of writing this chapter is to describe the nexus between emerging technology in terms of fourth industrial revolution and corporate social responsibility in the presence of driven challenges and opportunities. This chapter also explains the current implications of the fourth industrial revolution to understand the current challenges, to address and find out opportunities. Similarly, this chapter also analyses that role of information technology overall as a factor of globalization. Furthermore, in term of the emerging issues, which are significant challenges of the world, such sustainable development consists of economic, social, and environmental factors. The discussion reveals that, to achieve sustainable development in the presence of fourth industrial revolution, it is the responsibility of the corporate sector to use all technologies in a socially and economically friendly manner; therefore, the maximum advantages could be derived from its use.

Firm Internationalization and Essence of CSR

This chapter aims to explain the phenomenon of internationalization of firms and companies in the current world. Furthermore, this chapter also explains the importance of the international process and its theoretical background. Furthermore, this chapter also discusses the nexus between corporate social responsibilities with internationalization and its overall essence. The chapter concludes that CSR is an essential pillar for the economic growth and expansion of every firm. The more CSR policies adopted by the companies, the more will be the companies' overall economic profits by directly or indirectly helping society.

Transational Corporations

The money transfer internationally has generated a metamorphosis of the world economy under the supremacy of transnational corporations. The inflows of foreign capital into the host countries' economies is considered a solution to the multiple problems faced, especially by developing countries – unemployment, lack of monetary funds, or high-performance technology. The presence of transnational corporations in the economies of the host countries has proved to be not always beneficial for them, as there are significant discrepancies between their interests as economic agents and national interests. For this reason, the attitude of the public authorities towards foreign direct investments has been nuanced, and differentiated financial and fiscal incentives have been established to maximize their positive impact. Over time, specialists have drawn attention to the negative externalities generated by transnational corporations. International organizations like the UN or the OECD are involved in improving the global corporation's workings to promote corporate social responsibility.

Is the European Union a Pole of Corporate Social Responsibility?

This chapter focuses on the analysis of the efforts made by the European Union authorities to encourage companies in the process of promoting sustainable development and involvement in various CSR actions. On the one hand, at the EU level, many regulations provide the general framework for the voluntary development of CSR programs. On the other hand, public institutions are involved in meeting sustainable development objectives set at the European and international levels. The tools are numerous, having a higher degree of adaptability depending on the company size, activities, and origin of the capital. Over time, the concerns of European institutions have intensified and have targeted not only the social responsibility of companies but also of public authorities, which through specific instruments can impose certain conduct on companies. The companies paid particular attention to ensure the communication of the actions taken and the results obtained with different categories of stakeholders.

CSR Practices in Western Countries

Corporate social responsibility in Western countries has evolved to impact corporate governance, responsible manufacturing, and resource conservation. The citizens are more aware and vigilant for any discrepancy on the part of the corporations. The United States of America and the United Kingdom are considered the yardsticks for CSR practices in Western countries. Countries have enacted a law regulating companies to disclose their CSR practices. The companies also perform CSR practices due to enhancing their brand image and connecting with society. The magnitude of CSR practices depends on company size and financial muscle. However, for public CSR initiative and its reach depends more on the size of the donation.

Socioeconomic Benefits of CSR

Businesses exist for the sole purpose of earning profit. The activities performed during business operations affects society and the economy. The effects depend on the resources used and the type of activity performed by the business organization. Due to public awareness and the United Nations 2030 sustainable vision, the society demands the organization act as a responsible corporate citizen. To ensure its responsibility, organizations strategize CSR initiatives and practices. The CSR practices compensate organizational, operational activities through which it earns premiums by consuming resources. The practices thus remove any doubt of its exploitation of resources. CSR practices and initiatives help to portrays the human side of the corporation. Companies, by their CSR practices, benefit the effected communities, which are affected by their business activities. Society uses the socioeconomic lens to gauge the impact of the company's CSR practice.

Corporate Social Responsibility and Poverty Alleviation

Poverty is one of the significant issues of the world. There are several causes of poverty. Numerous countries of the world adopt sustainable policies for its reduction. There are also direct and indirect responsibilities of the corporate sector to play a vital role in its reduction. The aim of writing this chapter is to explain the significant causes of poverty around the world. Furthermore, this chapter also explains how the private and, more specifically, the corporate sector can influence overall poverty reduction.

The Financial Education

Financial education is a process that must take place throughout the life of consumers, given the intensification of the process of financial and technological innovation materialized in the emergence of new financial products and ways of accessing them. The financial education programs must focus on capitalizing on and use of financial knowledge and skills by children, young people, and women. The education can create responsible financial behavior within consumers to efficiently manage resources throughout life, including periods of the current health crisis. COVID has demonstrated the importance of economic resilience and the ability of consumers to adapt to the turbulence specific to this period. The financial fragility faced by certain categories of consumers during this period demonstrates the need to implement financial education programs. There is a need to adopt radical changes that are taking place in the financial market under the impact of fintech.

CSR on Financial Markets

Financial institutions can make a substantial contribution to promoting the principles of sustainable development among their main stakeholders, namely portfolio investors and financial consumers. The challenges posed by climate change have led to the intensification of the financial innovation process and the emergence of new financial instruments such as green bonds and sustainability indices. Their success was due both to the involvement of international institutions that have developed various voluntary principles for companies and to portfolio investors who understood their role in the new context and bought new types of securities. Therefore, the efforts of both sides are bearing fruit in an environment in which confidence must be regained after the earthquake generated by the international financial crisis and the image crisis that financial institutions are facing.