A new approach to multinational social responsibility

Multinational business activity has expanded dramatically since the end of World War II. The increased presence of foreign corporations and the generally strategic significance of such presence for host countries, has increasingly confronted both sides with the need to develop guidelines governing the conduct of such operations.The new voluntary approach to guideline development suggested here is based on the proposition that the fundamental aim of business activity is the satisfaction of socially desirable needs. Under this approach, MNC's should attempt to operate in a socially desirable manner in all countries of operations. Social desirability determination will be made on the basis of whether activities in particular countries will be seen, by majority concensus of all publics on which corporate activity impacts, to bring about welfare improvements in the countries concerned. Periodic public opinion polls, or more informal methods in the less developed countries, are seen to provide the necessary inputs for the development of overall corporate guidelines for action, which in turn will influence strategic corporate decisions. The long run benefits resulting from such conduct are seen to outweigh temporary gains that could accrue to corporations through the pursuit of profitable but socially undesirable activities.