The CSR ‘Brand:’ Enhancing National Image
through Corporate Social Responsibility*
Joe Phillips**
Abstract
As the 20th century drew to a close, the production model for many global buyers evolved into one where buyers no longer owned the means of production. These transnational corporations (TNCs) not only moved their manufacturing bases to less developed countries (LDCs), but they now use independent subcontractors located in LDCs rather than possess the factories. As revelations grew that many local contractors have poor working conditions and weak environmental controls, questions arose regarding the TNCs’ social responsibility for this proxy production system. Public groups and media in developed countries, along with non-governmental organizations, pressured TNCs to take responsibility. Some have embraced the idea of corporate social responsibility (CSR); others have not. Whether a nation’s TNCs, and its medium-sized enterprises (MEs), pursue CSR abroad will affect the home country’s global image. In effect, the CSR policies of TNCs and MEs can create a ‘brand’ image for their home country. This image could affect foreign workers’ desire to relocate to the country, foreign capital’s willingness to invest there, international consumers’ acceptance of its products, and even tourists’ travel plans. This paper explores CSR’s rise, the opportunity it creates for developed countries, such as Korea, to improve their ‘brand’ image, and methods for improving a TNC and ME’s CSR.
I. The Beginning: A New Global Production Model
During the 1990s, the United States and much of Europe were awash with news reports about apparent ‘sweatshop’ conditions at factories in less developed countries (LDCs). The plants manufactured products for large, transnational buyers. The following account is typical:
“Workers [in less developed countries] commonly report oppressive conditions that include no benefits, nonpayment of wages, forced overtime, sexual...