Corporate social responsibility, which is a form of business ethics, is crucial to the long-term survival of an organization. While it’s possible to get customers quickly with fraudulent marketing, it’s not easy to keep them. As soon as customers discover the real image of a business, they are compelled to go with their competitors. In order to avoid this scenario, organizations must establish good relationships with stakeholders by implementing business ethics and corporate social responsibilities. The relationship between a company and its suppliers will ensure that the raw materials/supplies are delivered on time. In the same vein, building a good relationship with suppliers will result in timely delivery of the right quality and quantity of raw materials/ supplies.
Business ethics can benefit a company in that it shows its commitment to morally correct behavior. So, the stakeholders become interested in helping a company to beat the competition. This is the reason business ethics, corporate social responsible and other topics are so hotly debated. Companies in every country strive to engage in ethical business practices as well as corporate social responsability. Pfannkuch (2016) argues that stakeholders are more interested in a company that has a good reputation. In East Asia, the corporate social responsibility is the main theme. This is true for Japan, China, Korea and other major East Asian nations. The corporate responsibility is not just about establishing good relationships with community members and other stakeholders but also about protecting the environmental. As members of these communities, the organizations are always looking for worthy ventures. The public will benefit from these ventures, which include healthcare, parks and support for different sports activities. In order to have a positive relationship with their community, large corporations will identify and support the services that are most needed. Debra (2013) states that, despite the different levels at which corporations are responsible for their reputations, they have been forced to put together community programs in order to combat this. Pegadaian was criticized in Indonesia for being the source of poverty. However, they have developed programs that counteract this criticism, including donating ambulances and health services free to the central Jakarta area. In the same way, in Vietnam and Cambodia, workers’ rights and heritage preservation are important to companies. Angkor Gold’s community support program includes health and family planing education sessions, digging of wells, and plating fruits trees. HSBC partnered Maison Chance and Dariu Foundation with the communist Vietnamese government to provide various programs for disadvantaged kids.
There are many similarities and differences in the business practices of East Asian nations. The level of corporate social responsibility can explain the differences in the challenges faced. This is why, despite the fact that China faces issues, these are not as pronounced due to the more advanced corporate responsibility programs. Indonesia’s corporate responsibility, which is at a younger stage than Singapore and Malaysia’s, places more emphasis on philanthropy. In Indonesia, for example, the programs that are launched are designed to address reputational problems. The seriousness with which corporate responsibility is taken by different countries can also be seen. Malaysians, for example take corporate responsibility very seriously. Kuala Lumpur’s stock exchange encourages businesses to include this in their filings. The Kuala Lumpur stock exchange has encouraged many companies listed on the main board to adopt corporate responsibility policies. Singapore’s corporate responsibility sector is progressive and encourages companies to find ways to be good citizens in their communities. These companies don’t wait until scandals occur to implement corporate responsibility programs.
In addition, it is notable that the government has implemented CSR guidelines in Korea and Japan. These three countries are subject to external pressures that encourage all companies to become involved in CSR. These countries have fewer major scandals, and if they do occur, the companies must follow the CSR guidelines. Carbon emission limits are set for oil/energy companies or those that pollute. Andriesse van Helvoirt (2010) argues that such companies are still required to compensate local residents even when they don’t exceed these limits. This includes sponsoring community projects such as tree plantings, digging wells and building schools. These countries have developed CSR guidelines.
Higgins and Debroux, (2009) state that companies are guided by standards to be able to compete in the international market. It is noteworthy that CSR has been promoted in some countries due to government guidelines. Vietnam and China are two examples where the Chamber and Commerce monitors corporate social responsibility and rewards companies every year that follow the guidelines. So, the CSR guidelines are followed by companies to win awards and build their reputation. As soon as they appear in reports by the government, stating that they are the best to work for and the best when it comes to corporate responsibility or best places to work, they gain a positive image in the public eye. One could argue that despite the fact that CSR is an issue in many countries in East Asia, the companies address it differently depending on the type of programs they implement and how CSR is extended. Businesses in Korea and China are better able to conduct business in countries that support and guide CSR. Companies also conduct business more ethically in countries with advanced corporate responsibility. In such companies, scandals are not a concern. Instead they always try to find ways to have a good relationship with their communities and other important stakeholders.
