Academic journal article Competition Forum

MNCs' Social Responsibilities in Bangalore

Academic journal article Competition Forum

MNCs' Social Responsibilities in Bangalore

Article excerpt


Bangalore, an emerging city in the global IT and industrialized India, has in the last decade encountered an influx of multinational corporations (MNCs). These MNCs have created unprecedented opportunities for individuals and firms in and around the city. In the meantime, MNCs also seem to have created disturbance in the social and economic milieu. This paper addresses the centrality of CSR in today's business world, the making of Bangalore as an industrial cluster hub, and the role of MNCs in tackling social problems. It is suggested that even though MNCs, in their commitment to CSR, are influenced by existing national business systems, they can be more responsive and an actor that energizes the national business environment, and subsequently alleviates emerging problems associated with industrialization and globalization.

Keywords: Multinational Corporations; Corporate Social Responsibility: Bangalore


In recent years, it has become clear that accelerating economic progress in a developing country always involves a commitment to participate actively in the global marketplace. The traditional economic self-sufficiency approach, despite its appeal during the 1950-1980 periods, has experienced major set backs as trade and economic liberalization and openness philosophies spread across the globe. This has given multinational corporations (MNCs) new opportunities to operate in markets which for a long time were not part of their usual territories. India is one of those countries which for several decades espoused socialist thinking and policies and consequently shied away from active economic involvement in the global marketplace.

Today's India is experiencing a thriving economy and its involvement in the global marketplace is increasingly intensifying. Both developments have eased the influx of MNCs into India and allowed these corporations to engage in a wide range of economic activities including high tech, heavy machinery, pharmaceutical, and agriculture. The influx of MNCs, however, raises concerns related to MNCs' social responsibility. This is especially true not because India has suffered significantly during its colonial past but also because India has not yet developed regulatory systems and standards to effectively protect the environment and workers. Furthermore, Indians, despite their high rate of unemployment, have been sensitive to the need to provide a balance between the quest for economic development and environmental protection.

In India, the competitive regional environment, especially the availability of skilled and relatively cheap labor, appears to lure MNCs in large numbers. Though there are about six major metropolitans which have been the primary destination for MNCs, Bangalore captures the lion share. Bangalore, as it will be shown later, has plenty of universities, a relatively fairly developed infrastructure, and a high concentration of engineers and scientists. It is considered to be a rising world city. The city, too, presents, in a succinct way, the emerging economic pattern in a rising world stars such as India and China where traditional sectors live side by side with high tech and modern service industries (e.g., financial and consulting firms). The sudden and conspicuous presence of MNCs in Bangalore, however, has brought into the open the pressing concern of whether or not MNCs are willing to meet their social responsibility adequately. This paper is designed to examine MNCs' roles and their commitment to social responsibility in Bangalore. The paper attempts to contribute to and refocus the growing debate on corporate social responsibility in emerging markets by tackling both traditional and emerging issues.


Business globalization and increasing public sensitivity to corporate scandals and possible immoral conduct have situated corporate social responsibility at the heart of business operations and organizational involvement in the marketplace. …

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