International Business - Essay Example | Topics and Well Written Essays - 2750 words

International Business - - Essay Example This paper is a business report that explores the issue of complicating stakeholder responsibility for expanding companies. The paper explores expansion in terms of factors involved and how this exposes companies to increased population and different types of stakeholders. The paper also explores the linkage between stakeholders’ responsibility and the foreign direct investment. Expansion of business has become a normal concept today. The emergence of the multinational corporations and the internationalization of existing companies is viewed as an indication of growth. As businesses expand, the revenue is expected to increase and so is the reputation and the customer coverage (Branco & Rodrigues 2006). Further, such an internationalization also affects the responsibility of the business to the community and the people. This means that the more a company expands internationally, its stakeholder responsibility becomes more complex (Melà © 2008). This can be viewed to happen for two main reasons. First, the stakeholders’ environment, socially and economically drastically change as the company secures a stakeholder base in the new country. Secondly, the number of people that the company or business has a responsibility towards increases and their demographic characteristics change (Hooijberg & Schneider 2001). Corporate social responsibility (CSR) are t he basic strategies that companies conduct their business in a way that is socially friendly, ethical and responsive to the community needs in development and safety. The companies are required to go an extra mile and put up measures to benefit the community that literary accommodate them (Winch 2004). Theories such as utilitarian, managerial and relational theories of CSR supported by works of other scholars in the area could be used to suggest that CSR becomes an international concern due to globalized nature of business that knows no border. CSR