The Globalization of Corporate Responsibility

In today’s global marketplace, where ideas are as coveted as any other commodity, emerging market corporations are showing Europe and North American-based companies new approaches to sustainable business practices, the author writes. He suggests we pay close attention to how rivals from emerging economies tackle what has come to be known as Corporate Social Responsibility (CSR).

He cites among other examples the Future Steel Vehicle project, led by WorldAutoSteel, a steelmaker consortium from established and emerging markets. It has produced a concept car with a battery electric platform that uses advanced steel technology and has a body that is 35 percent lighter than conventional steel, plus a five-star safety rating. This was achieved at no additional overall cost and with no increase in the environmental impact of production.

The author’s company built lagoons to circulate clean factory water to a nearby river. The area is now designated by the UK as a Site of Special Scientific Interest and an important habitat for wildlife.

Whether one considers CSR to be an afterthought for corporations that can “afford” to consider matters other than profit, or believes sustainable business is an integral part of creating value, entrepreneurs and corporations from emerging markets have something to offer that is unique and has impact, the author says. The question for the West is whether to respond or, at its own peril, ignore the next great wave of competition and innovation from upstart rivals.