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Corporate social responsibility in MNC
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- Brunel University (BU)
This is an essay describing the corporate social responsibility of multinational cooperation and how they expand and exploit business opportunities.
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Module MG10542109030
International Business Environment
Social responsibility is when the business, except adding value to shareholders, also benefits
society. Aiming to contribute toward the welfare of the society ethically. (Ganti, 2021)
multinational corporations (MNCs) such as Hilton, Lego, Ikea & Primark exploit their
business opportunities in other countries. With the world hit by the Covid-19 pandemic, the
world of multinational corporations is looking for a new way to grow their business
opportunities in developing or developed countries.
Social responsibility is the notion that an organisation should balance producing profits and
having an ethical way to do it. Both individuals and businesses should be obligated to work
in the community's best interests. This helps the brand boost its image and reflects its
interests, but if the organisation mistreats the community, the reputation of the brand is
affected.
As a part of helping the environment, Hilton 'are committed to cutting our environmental
footprint in half by 2030' (Hilton, 2019). In addition, Hilton has aimed to address the energy
and carbon emissions of all its hotels worldwide. In 2020, Hilton saw a reduction in utility
consumption as the world came to a standstill because of COVID-19. The hotel change
adopted a partial shutdown of half the building. As the hotel chain returns to normal, they
have aimed to continue practical energy usage. (Hilton, 2020a) The downfall of this is that
they are not doing enough at the moment to help the environment. Hilton could have
adapted solar panels on their hotel roofs to become more sustainable. By Hilton doing this,
they have taken the whole organisation one step forward to becoming socially responsible
for the countries they operate. Also, Hilton has to save on carbon footprint by locally buying
or sourcing supplies instead of coming from around the world.
Hilton is a popular choice when it comes to hotel chains. However, when Hilton decided to
expand into other countries, they looked at the political situation's stability before entering.
This impact on the number of tourists could negatively affect the investment made. For
example, opening a hotel in Syria would not be a good choice as the country is not politically
stable. Still, Mexico would be a better option as they have better political grounds, and
there would be a return on Hilton's investment that they would have made. (Team, 2021)
Hilton opening hotels in other countries has played a vital role in providing many jobs to the
locals. In addition, they have helped many developing countries lower their unemployment
rate. Hilton is taking social responsibility for the communities that have helped many
unfortunate families but now can stand on their own feet. In addition, the education and
skill level has boosted the economies of many countries. (Team, 2021)
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The brand Hilton scream premium with affordable prices and with many perks included. In
addition, Hilton has played a role in helping the local communities by offering them the
chance to use the facilities as their guest would. Hilton, a multinational corporation, has
helped them develop many new cultures and adapt to social changes. (Team, 2021)
Hilton Group has been trying to reduce waste from being in landfills either through
donations, composting or recycling to prevent debris from occurring. The primary source of
wastage is soap. Since the pandemic, soap use has been more, but the leftover bar cannot
be reused, which is where the wastage comes from. Hilton is the first brand to come up with
a way to recycle soap and provide it to third-world countries after a thought
decontamination process. (Hilton, 2020a) They have recycled over 2.5 million pounds worth
of soap landing in landfills.
They were supporting the global communities. Hilton and American Express had teamed up
to provide up to one million free room nights to medical professionals fighting COVID-19 on
the frontline. Hilton and its owners made rooms available at 3,000 locations, providing free
housing to tens of thousands of medical workers as part of the initiative. This was to thank
millions of health care professionals and volunteers who helped during this depressing time.
After a long day of sleep, this was a clean and safe environment, chilled and isolated from
their families. (Hilton, 2020c) Social responsibility is not just for the communities of the
countries. It is also the employees who work day and night to make this happen. As Covid
hit the hospitality industry and saw a standstill, Hilton offered all its employees support
throughout the pandemic. For example, having $500,000 distributed to many different
employees to help with medical expenses and many other things. (Hilton, 2020b) Having the
right PPE available for all employees working during the time.
The main benefit of social responsibility is that it improves the company's public image
when they purchase products or services. Any MNC with a positive image will always have a
more positive impact on sales. There are also many other benefits, buy the company
reducing costs on marketing and PR, which gives them more options to grow without an
extra charge.
Although there are disadvantages of corporate social responsibility when business ideas are
not clear, there are ethical concerns raised with the intentions of the organisation being
beneficial for society.
Like Hilton, Lego is another leading multinational corporation that takes responsibility for
society. Lego has taken a new range from 2018 to integrate new elements from sugarcane
to create soft, durable plastics. (Lego, 2019) Lego work with suppliers that meet the
Responsible Ethanol Sourcing Framework. Since the plant-based brinks had started, there
has been an increase in Lego fans worldwide. Another has also helped the countries'
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