Companies should develop a deep understanding and appreciation for the national culture and history of the countries in which they set up their production facilities. The basis for the relation of culture and CSR is dependent on the size of the company, its products and services offered and the markets operated in. Companies are confronted with pressing problems such as consumerism, poverty, state rum mandatory health facilities, inadequate healthcare, HIV infected workforce, corruption, restrictions on trade, organized and unorganized business sectors, non-implementation of rules on work culture and environmental protection.
Thus, companies are expected to be whole-heartedly committed towards the development and sustainable improvement of the macro-economic situations. It should implement measures which go beyond statutory mandates of the country they operate in. With globalization and outsourcing as an emerging business model, in order to enjoy efficient and effective supply chain models and economies of scale, companies are expected to be well versed with the practices undertaken by its subsidiaries, suppliers, contractual partners and license holders.
As far as the statutory regulations are concerned, the national level policy should incorporate the concept of welfare state in their policies. A nation should have structured policies aimed at reducing corruption, red tapism and promoting fair and equitable distribution. A nation should be perceived as safe, friendly and peaceful. This would ensure economic growth of a nation.
3. The Outer Universal Level
The general standards laid down by the UN and the ILO need to be practiced. However, few areas of contention are collective bargaining of workers, human rights, gender equality, environment protection, free trade, corporate governance, financial transparency etc. In order to overcome such conflicts, in addition to taking care of social responsibility and understanding of cultural relativism, economic justice has to be taken special care of. Thus, social costs need to be assessed in every political scenario. A balance has to be struck between total control and absolute laissez-faire at the macro-level. This makes proactive involvement of international bodies indispensable in ensuring social justice and economic welfare in an accountable and transparent manner.