What is the responsibility of Western countries toward the economic development of developing countries?" I think it is relevant to CSR.

 This week, I read some articles about "What is the responsibility of Western countries toward the economic development of developing countries?" I think it is relevant to CSR. 

Most of the time, when we talk about globalization, it is all about economic growth, international trade, and information interchange. Many big multinational companies benefit from globalization. However, does it really benefits those developing countries where these companies are operating? In the beginning, most of them just tried to lower the cost of production by producing their products in those low-income and low-wage countries. 

After some negative effects on their brand, such as child labor and poor working conditions in Nike's foreign factories, they must change their strategies to redeem their brand image. They started to improve the working conditions and published detailed information about its supplier policies, audits, and remediation processes. But, do these processes enough to help and those developing countries? I think it is more likely to unequally distribute the benefits back to where they came from. Most companies are trying to benefit from those direct investments, not doing charity to take care of the local laborers. However, after some remediation processes such as CSR programs, the local laborers did get jobs, get paid more, and learned some new skills. 

One of the key factors is the crucial resources, techniques, technologies, and knowledge is controlled by these big companies and Western countries. Education is the key to better competitive advantages. If those developing countries can build their own excellent education systems, they may not be just developing countries anymore. However, most developing countries are dragging by their corrupt bureaucracy. High efficient governments can lead their residents to follow up the steps of a better future, whereas corrupt bureaucracy just makes things worse.

I think, in the past, there are no clear responsibilities for companies or Western countries to do anything for developing countries since it is an ethical issue and making money is all business owners care about the most. However, if enterprises do their businesses more kindly, honestly, with integrity, and effectively implement CSR programs, it is also a way to gain their profits by increasing sales and consumer loyalty. 

Reference

New Idea. (2019, December 11). Nike Sweatshops: The Truth About the Nike Factory Scandal. New Idea. https://www.newidea.com.au/nike-sweatshops-the-truth-about-the-nike-factory-scandal.