Multinational corporations (MNCs) usually have their resources and assets in more than one country, excluding their home country. Most of their host countries are characterized by high levels of poverty, hence the need for them to assist those in need. MNCs have incorporated social, environmental and financial dimensions in their undertakings for sustainability reasons. Whether social responsibility is enough for a multinational corporation is subject to debate as it depends on the company’s objectives and the host nation’s policies.
The principal goals of international businesses are to achieve goodwill, expansion and additional profits. In order to achieve these goals, involvement in corporate social responsibility without the help of other activities is not enough. It consequently becomes obligatory for an enterprise to be a triple bottom line (TBL) incorporating three dimensions: Social, Financial and environmental to enable it achieve other basic tasks. On the other hand, social responsibility is needed to cater for the well-being of the organization and the society at large. If the firm is involved in giving back to the society, its goodwill and image will improve.
It is correct that the fulfillment of social responsibility is not enough for a business, it has to be a triple bottom line for the attainment of ethical obligations. However, social responsibility should be given a higher priority and no actions of the business that may lead to social loss should be undertaken. Organizations survive and thrive in social settings where they obtain the resources and a market for their products, since consumers of their products and services are members of the society.
There are contrasting opinions about social responsibility and the triple dimension concepts as the latter is a thought at an international level while corporate social responsibility is at a firm’s level. Its main aims are to improve the welfare of the community. The Triple Bottom line approach has the motivation of giving people the first priority by attaching the necessary value on the environment. CSR aims at attaining competitive advantages for a business through minimal improvements…..