Growth Of Supply Chain In Different Firms Commerce Essay

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Best Practices of Green Supply Chain around the world. Nowadays, companies on trade world market are moving to implementing green supply chain in their daily work and in their future plans, since most of world-class companies have succeeded in reengineering their supply chain in order to meet stakeholders' and environments' requirements. Actually, globalization, technological development, and huge competition are pushing companies to adopt high standards to stay in the market.

The term "best practice" started to emerge in the trade world in the 21st century where corporations found their selves striving to survive on the market yet they should create value or be distinctive in their operations.

Companies recently are benchmarking other companies' best practices, and they develop and implement them in order to complete customers' needs and satisfaction which will differentiate in their field, so corporations have to really locate their problems and compare them with other companies doing the same business so they can take best practices, follow them and fit them to their own values and operations.

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D. Blanchard defined Best Practices in his book "Supply Chain Best Practices": "Best practices" don't just happen by throwing a lot of money at your supply chain problems. ... It takes money, but it also takes time, talent, energy, focus, commitment from senior management, and a lot of guts to pull off a supply chain transformation. Those are the qualities that the best-run companies in the world share and it's why they're on top".

In this part, we will be showing examples of leading companies and practices in implementing green supply chain and sustainability:

Procter & Gamble

Procter & Gamble (P&G) is an American multinational company that manufactures a wide range of well know consumer goods. Its headquarters are based in the USA yet it has plants, industries, warehouses, and retailers all over the world; therefore P&G is dealing with different cultures and customer groups which force it to monitor its daily activities especially manufacturing and supply chain. Consequently in end of 1990s they have started implementing environmental sustainability and social responsibility in all their affiliates and had distinguished experience which became a business model for lots of companies.

P&G sustainability purpose is to improve lives now and for generations to come.

P&G insured sustainability through the products and services they offer, so manufacturing these goods in an environmentally responsible mode that develop the way of living for all people around the globe aiming for it.

At P&G, sustainability is based on five sustainability strategies: products, operations, social responsibility, employee engagement, and stakeholders' engagement.

1. Products

P&G believes that customers should have a profound understanding in the product and the sustainability meaning in order to get their outcome that fulfill their needs

At P&G, every sustainability innovation begins with a deep understanding of consumers. Because we are in touch with consumers' lives, we can make innovation decisions based on their needs. So customer's innovation is distributed between 2 sides, starting by niche customers that want to innovate and seek for sustainable products even if they have to sacrifice performance or value; yet on the other hand some consumers do not care about sustainability and how to develop it, so they just buy "basic living" goods for their families ignoring sustainability. Nevertheless the majority of those customers take the advantages of the 2 extreme sides of customer groups who change their purchasing decisions but keeping on performance and value, therefore P&G focuses their force on this main segment.

As a second key element to improving sustainability, P&G have created a Life Cycle Assessment thinking strategy (Figure 7) where they follow the whole process of manufacturing which started from purchasing raw materials to delivering goods to the end costumer, so they observe each step of the process (product life cycle) and they try to reduce its environmental impact by using new technologies.

We will take as an example the product Ariel which is a laundry detergent, P&G Life Cycle Assessment showed that once using the product by the end user in heating wash water it is consuming lots of energy comparing to all the other steps in the product life cycle. Therefore they have concentrated all their researches on this step in order to apply sustainability, so they have invented a preparation for this product to be used in cold water in order to avoid heat water when using it.

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Figure 7: Life Cycle Assessment

On the other hand, changing the formulation in some items might be a solution for improving sustainability, yet P&G have found a new tactic which consists of making some changes on the package of the item in order to meet sustainability requirements.

Innovative design is applied to their products as well as their packaging. So P&G begun working on reducing the packing of the products since at the first phase it will reduce the energy waste to create a big package, and second it will reduce the shipping cost and space; in addition they have worked with suppliers that provide renewable packages such as sustainable sugarcane-derived plastic, Bamboo, and Bulrush. Furthermore, their new strategy for 2012 is to create packages 100% free of Polyvinyl Chloride (PVC) and which is a big challenge to replace it by another affordable material, knowing that nowadays PVC is used in around 1.5% of their product packaging.

In Gillette product for example, P&G have partnered with Be Green Packaging a modeled fiber supplier which offered advanced packages with reduced plastic for all Gillette products packages, the concept here is doing more with less.

2. Operations

Procter & Gamble focused on their supply chain operations in its all phases to include not only their factories, but also suppliers' engagement, and logistics operations in order to improve their environmental profile.

When manufacturing products, P&G's concerns are to reduce waste of water, energy, and CO2 emissions; therefore they have pushed all their manufacturing plants to use sustainable features such as energy-efficient systems, special and environmental friendly lighting equipment, solar and wind power energy.

When delivering the final product, P&G aims to select the most efficient transportation mode in compliance with the customer need of products, and the cost to be paid. They have aimed as well to remove additional costs and delays in loading and unloading goods along with empty returns for containers and trucks.

In May 2010, P&G have launched the Supplier Environmental Scorecard that targets to rate and improve the environmental assessment of their suppliers.

3. Social Responsibility

Social responsibility explains P&G goal to invest in the future generations and to improve their lives even in the countries where they do not operate.

So we will state below the main acts where P&G act socially responsible.

Live, Learn and Thrive is P&G's corporate cause, which concentrates on assuring education and developing life skills for children in need. Since 2007, P&G has improved the lives of over 315 million children. This cause varies based on the need of each country citizens, in Africa for example people are in need of secured hygiene life like nontoxic water, and medicaments; yet Asian and Latin people seek for educational opportunities etc…

As a part of P&G mission, employees around the world volunteer to share their beliefs, operational knowledge, and skills with children or youth in need, adding to this buying some materials that will help improving life for those people, therefore millions of US dollars are donated by employees for this purpose.

In times of natural disasters, P&G work in parallel with disaster relief partners in order to help the ruined countries to recover, for example their distinguished assistance in Haiti and Chile earthquakes in 2010.

4. Employee Engagement

Procter & Gamble sustainability strategy is based on Employees performance in and outside their workplace; therefore P&G designed programs that will enhance employees to apply sustainability in all their tasks.

On earth day, events are fixed for all P&G employees all over the globe alone or as a team called "Green Teams" will be asked to give their opinion on a certain subject related to sustainability and they will be taken into consideration in next year's plans.

By end of year 2005, P&G have started to operate in new innovative locations from their partnership with Jones Lang LaSalle where they will be responsible of energy, water, waste reductions, and managing printing by purchasing new printers from Xerox which will reduce paper waste (print two-sided, scanning, etc…); this will be accompanied by educating employees to deal with this new workplace and to act socially responsible.

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5. Stakeholders Engagement

P&G acknowledge that their huge advancement couldn't be done without their different partnerships that developed their growth strategy into sustainability.

They have worked transparently with their stakeholders to allow them constant autonomy to innovate taking into consideration the environmental issues.

For example, they have created a new approach for sustainable packaging which aims to create a common language with their customers in order to collect their feedback and improve sustainability accordingly; this approach was first launched in June 2010.

Maersk Line

Maersk Line is the leading shipping line and oil and gas exploration company which owns more than 600 vessels (container vessels, tankers, ferries, etc…) and a huge number of containers (around 3.9 million containers), it operates in around 135 countries all over the over the world.

Maersk Line started thinking socially responsible and environmental friendly in early 1980s when they started thinking about reducing CO2 emissions in order to reduce their fuel cost, which can be completed by reducing the vessels speed.

Due to the oil crisis in late 1980s and early 1990s, they felt threatened by this issue and begun thinking about reducing the energy waste, therefore they have created new vessels more environmental friendly and started implementing their sustainability practices with their partners and stakeholders.

At Maersk, they attempt to build a long-term value by balancing social and environmental responsibility by keeping and even enhancing their profitability.

So as a member of Clean Cargo Working Group who set a clear carbon performance so companies can measure their performance, Maersk studies their lines, routings, ships etc…

Maersk focuses on the below four areas as a part of their sustainability program.

1. Health and Safety

Maersk group aims to ensure health and safety to all their employees and assets worldwide, so employees doing business should always be protected in the oil field and the liner from piracy and from physical problems caused by their activities.

In order to reduce piracy which still the main maritime security concern for all operating liners, Maersk Group has invested heavily in reducing piracy (around USD 200 million in 2011) to protect their vessels and employees. They started using trained armed guards on board each vessel which are communicated with the relevant authorities; plus they informed all their captains to sail at a higher speed through piracy waters or conflict regions; and training courses were held to inform their crew how to deal with piracy activities and prevent them.

As a result, Maersk has improved maritime security to 50% in 2011, knowing that the piracy activities were still the same but the takeover achievement decreased.

On the other hand, to ensure employees protection at work place, they have put the safety concern as an important point on the agenda of their Executive Board meetings; in addition they have set a common goal towards increasing their safety performance which will be reached by a clear strategy controlled by a trained Safety Team who will present quarter and annual reports which will be took into consideration in the yearly assessment where the best team in applying continuous sustainable health and safety measures will be rewarded to keep them motivated.

2. Social Responsibility

At Maersk they have developed a modern style for social responsibility that focuses on labour, human rights, diversity, and community involvement.

Therefore they have protected all their employees all over the world by common labour principles took from international labour conventions and laws which aim to protect them, in addition they can give their feedback about their concerns by reporting to a dedicated department.

As a multinational company, Maersk follows diversity in terms of race, gender, religion, etc… when recruiting employees, plus they treat all their employees equally and fairly; this diversity is a strong competitive advantage to the company and improve marker growth due to different talents and mentalities.

Starting 2011, Maersk Group takes action on the UN Guiding Principles on Business and Human Rights which manage the human responsibilities between companies and the countries operating in, so Maersk took them as standards especially in merging and acquisitions.

As a part of their social responsibility, Maersk are involved in the community where they operate and provide too many benefits like auditing and sharing best practices with small companies and even helping them in case of disasters.

3. Climate and Environment Change

Maersk knows that their operations have a major impact on the environment, therefore they goal to minimize those impacts in order to act environmental friendly, so they took the initiative to be ahead of the game and started thinking about 4 dimensions: reduce CO2 emissions, fighting pollution, protecting Biodiversity, and managing equipment lifecycles.

As result of these 4 dimensions, they have created in February 2011 the new ship class named Maersk Triple E class; Triple E stands for Economy of scale, Energy efficiency, and Environmentally improved. This vessel can move 18,000 Twenty Equivalent Unit (TEU) and which is 16% greater than Maersk Emma the world's largest container ship, its new design's able to carry more containers without enlarging the vessel dimensions comparing to Maersk Emma; this vessel is slower than other Maersk vessels due to the "slow-steaming" strategy that lowers 37% the fuel consumption and reduces to 50% the CO2 emissions per container. This vessel is 90% recyclable due to the materials used when building it.

4. Responsible Business

As a part of their sustainability program, Maersk are implementing main standards in their culture in order to act in a responsible way, so they started by fighting corruption inside Maersk premises and between employees and in their daily business and strategies with customer and suppliers and even stakeholders, yet in some cases, when dealing with governance employees in some countries staff is obliged to pay in order to facilitate their operations; employees can report every corruption case via their own new internal system. In addition, Maersk Group conduct yearly a huge number of purchases with various suppliers worldwide, yet Maersk aims to impose their own code of conduct to their suppliers in order to reduce the culture and mentality differences, and this code of conduct carries on Maersk's standards in terms of going green and working socially responsible, etc…

Maersk have set a perspective to sustainable shipping industry from 2012 to 2050.

Freight Forwarders

In the freight forwarding industry, companies are acting as 3PL providers by completing all or some of the supply chain stages depending on their customer's demand; therefore they are the totally involved towards their stakeholders due to their daily huge activity considered as harmful to the environment. So we will show below the best practices applied by different multinational freight forwarders based in 3 different parts in the world.

DB Schenker the German freight forwarder and one of the Europe's leading freight forwarders, is working to reduce to CO2 emissions from their operations by using preferred carriers who used advanced fleet in sea, air, and land freight, and maximizing the use of rail transport due to their low emissions. The company's using new technologies in their facilities as energy saving lightings, air conditioners, and using wind power production. They are working to reduce noise especially the one caused by rail transport by collaborating with the International Union of Railways (UIC) to seek for new technologies that will reduce the noise caused by the rail operations.

Agility the Arab based freight forwarder and which has a good experience in implementing sustainability in their operations; so they started focusing their efforts on developing green supply chain that allow Agility and its stakeholders to share their energy concerns; so customers can present claims about Agility energy consumption, Greenhouse Gas and CO2 emissions over their website or in a mailbox at their facilities. As a next step, they are working to minimize energy and packaging waste by using recyclable packages, envelops, etc… using new thin packages made to reduce shipment chargeable weight as a part of their economy of scale study.

Building a new facility inside Dubai Free Zone where they consolidate shipments coming from all over the world to be segregated and sent as one container to each destination, and this will be responsible to reduce cost and advance environmental responsibility. Installing fluorescent light bulbs, turning electricity off during off-peak hours, controlling air conditioner settings and conducting an employee awareness campaign.

Expeditors the leading US freight forwarding company reflects that sustainability is based on three main supports "people, planet, and profit" which are interconnected between each other where the main activity of the company is toward their planet their working on in order to make profits, knowing that this activity should provide reassurance and not harmful to their staff who run their activities; therefore they have started collecting information from all their offices all over the world separately from their employees, customers and suppliers, so they can meet their stakeholders recommendations. So, as a non-asset owning 3PL company, Expeditors are aiming to deal with airlines, shipping lines, or even train companies who have a new environmental friendly fleet, reducing paper use by a strong IT system, working on video conference which reduce travelling costs for employees whom need to attempt meetings or conferences in a specified country, increasing the use of biodegradable products and packages, investing in promotions that improve their image and encourage going green strategies.

2.2 Social Responsibility in different organizational contexts

Social Responsibility is nowadays adopted by different organizations that vary from the private sector, including multinational and local organizations, to the public sector and in different parts of the world like in developed and developing countries; therefore we will discover below these different contexts of applying social responsibility in these different areas and sectors and how they act together in order to keep a green planet and improve sustainability.

Social responsibility in the public sector

The government has played a unique role in enhancing social responsibility and assuring the needed environment for the companies to perform and apply their corporate social responsibility concepts by generating new ideas and policies responsible to reduce environmental and social costs whereas on the order hand to maximize profits.

So in order to facilitate the path towards applying CSR, The World Business Council for Sustainable Development in 2002 stated the that CSR is the obligation of all parties engaged in any business activity to lead to a more sustainable activity by working with the shareholders in order to create value and advance their quality of life.

What will be the role of the public sector in implementing CSR? And how do governments promote CSR?

Bell, D. V. J. 2002 have discussed the importance of the interference of the public sector in developing CSR, by implementing their own vision and goal towards CSR accomplished by the implementation of CSR in their facilities, adding to this a new fiscal policy, and setting sustainability standards.

So we will develop below the main roles of the public sector in implementing CSR,

 Mandating

The government plays a significant role in mandating private sector enterprises and which appears by defining minimum standards for business performance implanted within legal context; therefore public sector can set some standards for the industries to control their CO2 emissions by obliging them to use special environmental friendly equipment, plus pushing them to include this policy in their plans and objectives and developing the technological innovation.

 Facilitating

In this part, the public sector will motivate the companies to apply CSR and improve their environmental performance, for example they can reduce taxes and customs on all green equipment (hybrid cars, filters to reduce waste, environmental friendly lights, printers, etc…), encourage companies to take loans with low interest rates on researches and innovations leading to social responsibility appliance.

 Partnering

Partnership is a must in the CSR program since it shares knowledge between public, private sector, and social society in solving environmental and social issues; therefore public sector may take private sector and social society advices and best practices in implementing CSR in their own offices and activities.

 Endorsing

In this part, the public sector will support the companies in their speeches, policies, and even giving awards for companies who apply green supply chain and employment diversity like the case of the U.K. Government support in 2002 for the employee diversity.

These four roles may not always be followed by the governments, yet they may select the role that fits with their policies, or even merge between 2 or 3 roles that may develop their strategies like the case of the US government who merged Partnering and Endorsing, and Mandating in year 2000 by arranging for conferences between energy and nuclear public sectors and some leading enterprises in the private sector in order to set some standards that will be generated in the future.

Crane & Matten, (2007: 488-499) indicated that apart from combining CSR into their own operations, numerous government organizations also take initiatives in promoting CSR within their range of influence, therefore governments recognize well that they have to simply and create incentives to organizations since CSR is a voluntary work.

The United Nations also issued a set of rules and initiatives that were adopted by corporations and governments, for example the British Government has adapted many steps in order to help companies adopting CSR, like creating CSR academy able to teach people about CSR; Gardner, 2006 viewed that the European Union have started investing in CSR to compete the British-American experience towards social responsibility by adapting the CSR roles already discussed.

South Korean government in June 2012 and as step for promoting CSR has allowed all governmental and private sector employees to come to their daily work in summer time wearing shorts in order to avoid the high use of the Air Conditioner which will increase the energy consumption, and they recommended that only the employees having meetings and conferences to wear suits and neck ties during their meeting.

So after discussing the public sector role in implementing social responsibility, we will move closer to see how the different types of organization in the private sector implement CSR.

Social responsibility in the private sector

The private sector is made from large (or multinational) corporations and small and medium sized organizations (SMEs), therefore we will start by discussing below how company size affects in applying CSR.

Most of the people debate that applying CSR will be handled easily in large corporations formed by a board of directors and managers, so whose interest should those large companies consider when applying CSR? Should it be the interest of the stakeholders or those of the owners?

Big companies willing to act socially responsible will affect directly or even indirectly their environment, therefore they will be subject to observation and criticism comparing to the SMEs in case they will not meet their requirements which may lead to taking corrective actions by stakeholders that will negatively affect their activities and obviously their profit. As a result, those large companies should have a set of structured policies and standards which will be set by the responsible department and communicated to the employees by their direct managers as code of conducts that will be controlled and assessed by annual reports that will measure how much the company is meeting the prospects of their stakeholders.

Unlike large companies, in SMEs we will find a different situation showing that a little number of SMEs in the world is aiming to apply CSR comparing to the huge number of large companies adopting this process, and in case adopted the process will be totally different and un-formal.

SMEs are mainly owned and managed by one person or a small group of people who are responsible of CSR decisions which means that they will use their own standards without big plans and reports despite the case of large companies.

SMEs' CSR activities affect their very close environment or stakeholders whom will not create a wide pressure group in observing and controlling them.

(Spence & Schmidpeter, 2002) developed that constructing personal relations with their stakeholders are the main goal of using CSR in order to grow their market share.

CSR and civil society organizations

In addition to the role of private and public sectors, we should not ignore the important role of civil society organizations and nongovernmental organizations that first talked and energized the demand of social responsibility and sustainability such as child labor, thinking about the environment, applying diversity, safety workplace conditions, etc…

Therefore, that civil society organizations role will go beyond watching the activity of the organizations and writing reports to develop the consciousness of the community in order to reject any unsustainable activity, doing so they will create a pressure group that can punish the abusers.

Civil Society organizations has built partnerships with different companies so they can develop their socially responsible thinking by auditing their behavior and giving some advice due to their vast experience in implanting CSR, on the other hand companies should allocate a capital for this purpose.

As CSOs have set implementing corporate social responsibilities on their top priorities for the future, they have written their policies and best practices to be as standards for the companies in order to improve their social and environmental behavior. We will add to this the activities by some CSOs in providing free or paid training sessions to organizations having a limited knowledge or willing to update their knowledge in applying CSR and making conferences for people willing to increase their knowledge in this field.

CSR in different regions of the globe

After discussing the private and public sectors with NGOs actions towards implementing CSR, we will move to observe how do different countries around the globe deal with CSR strategies taking into consideration the different cultures and development of the economy of those countries.

CSR in developed countries

Due to the social and environmental anxieties that first appeared in the late 1960s and early 1970s, the US government created rules and regulations to control the concerns. The laws adopted included pollution and hazardous waste control (Federal Water Pollution Control Act, The Clean Air Act Amendments of 1977), the workplace (The Occupational Safety and Health Act of 1970, The Equal Employment Opportunity Act of 1972) and consumer protection (The Consumer Product Safety Act, The Federal Hazardous Substances Act). And which obliged corporations to follow the regulations stated by even the state where they operate or the national US government, knowing that the government did not accommodate any reporting on their performance to the public.

Obviously, CSR is originated from the US business who first thought about putting its standards, writing down their notes which lead to best practices that are applied and transmitted in most of their universities, and composed its language known as technical words or expressions. Therefore we can insure that this is related to the specific characteristics of the US business system (Matten & Moon, 2004b).

So, due to the American society policies based on capitalism, free markets, appreciation of self-skills, freedom, performance, adding to this the high income of risk takers and innovators, this has led to start thinking automatically about some social issues in order to carry on their markets and society for example education, security, safety, healthcare, and public venture that formed the CSR basics and starts expanding in order to meet the society and market requirements.

Yet, US companies started sharing their CSR reports voluntary with the public in 1990s in order to avoid criticism on some CSR issue, taking as example Nike after claims of mistreating child labour values in Asia. In addition, CSR reports are used lately in order to show the companies high standards in applying CSR and used obviously as a marketing weapon as well therefore CSR reporting is still unregulated.

However, the US companies are increasing their CSR reporting due to the following reasons: to manage the expectations of their stakeholders, which is explained in indicating theory, to communicate their values and standards to the public known as impression management theory, and to confirm that their activities are meeting the social standards. (Campbell, Craven, and Shrives, 2003).

To what level do companies in Europe and the U.S. discuss CSR in their web sites?

So in the USA, the government will not interfere in implementing corporate social responsibilities in their companies and society, therefore the companies will take action in promoting CSR on their websites and by CSR reports; yet in other developed countries, the government will take the action in issuing the rules and regulations related to social issues and which will oblige the citizens and the companies working on their territories to abide with.

US companies are more developed in terms of applying, using, and promoting CSR on their websites such as delivering healthcare, reducing climate change, and stopping pollution; and which is not appearing till now on the European companies' websites since those issues are handled by the governments whom will impose those regulations. But Multinational companies (MNCs) has brought their models to Europe through their foreign jobs and which may contradict with European companies actions in implementing CSR, therefore those MNCs are leading the European market now in terms of implementing and promoting corporate social responsibility.

So as a result, the differences between US and European companies in CSR is mainly the excitement of US companies to stick into CSR procedures like insuring healthcare and taking care of the global environment.

In other parts of the world like Far East developed countries, we can notice a group of rules set by the governments to apply CSR in the companies towards people and environment where they operate, for examples the state owned companies who work to insure good working conditions, long-term employment, social services, and health care.

However, we can link the CSR progress in the European Union and the Far East recently to the following reasons, due to globalization MNCs are obliged to work with their own values in implementing CSR in such countries with poor governance, healthcare security, and fighting environmental change. Plus, some of the countries have noticed the need to interfere in order to set new regulations that suit with the big progress of CSR in the world, by enhancing decision for private actors in increasing privatization of public corporations along with open markets strategies knowing that those countries will play a big role in setting the right rules for renewing their local societies suiting with applying corporate social responsibility taking as example supporting education and addressing joblessness. Furthermore, we can add the global pressure groups and stockholders as NGOs whom strengthened the growth of CSR by showing to the public their weak points in order to collaborate within their departments so that they can meet the social requirements.

Frequently the CSR discussion in developed countries reveals longstanding and continuing negotiations in the whole society taking for example the need to movement to direct companies towards social rights for different races, religions, or social groups.

CSR in developing countries

As discussed before, MNCs played a unique role in spreading the CSR culture all over the world especially in developing countries; yet multinationals use those developing countries as a source of cheap raw materials and labor.

Therefore we have noticed accordingly many movements from social groups against MNCs abusing social responsibility taking as examples the defective work of Coca Cola in India by destroying local agriculture due to privatization of the nation's water resources in order to be extracted and sold in bottles, which led to water lacks of water in many sites in the country; adding to this Nestlé's forced child labor in bad conditions inside Cacao firms in Ivory Coast that caused the need of more awareness in the performance of many MNCs.

Unlike developed countries, developing countries do not offer any rules aiming to meet CSR standards, yet they have high corruption, low healthcare and labor protection, low market empowerment, etc…, so the main role of MNCs here will be in collecting the reports from their suppliers of even their affiliates in developing countries and bringing their working conditions considered as socially responsible in their home countries adding to this augmenting the investment in these countries that aim into development and pushing forwards the social responsibility standards.

In addition, we cannot ignore the need of some local companies such as SMEs in developing countries to implement CSR in their operations in order to lead by example and empower their economies through encouraging the green transportation modes, improving education and healthcare, and changing the local culture of the citizens to be more familiar with social responsibilities.

Furthermore, the governances of developing countries play a role in pushing forward CSR which varies between countries depending on their development stage, economy, and culture. So, governments here may ask for MNCs which have a wide experience in CSR to help them developing their infrastructures or their public firms by signing BOT contracts (Build Operate and Transfer) which will be a good investment to both the country and the company since they will build high standards infrastructures managed in a socially responsible way and that will be transmitted lately to the government. We can add as well the signed contracts with NGOs that will offer coaching and training sessions to top managers in order to explain the need and long term benefits of CSR.

Yet, many critics claim that national companies and developed governments have a high political interest in developing countries which leaves more suspicions in the developing governments decisions. (Frynas, 2005).