International Business: The New Realities, 5th Edition

Successes and Failures of CSR

Failure to adopt CSR behaviors can have adverse, even ruinous, consequences. Efforts by the China National Petroleum Company (CNPC) to raise money on the New York Stock Exchange in 2000 were partly depressed by the firm’s activities in Sudan, which human rights groups had criticized. The Shell Oil Company has faced protests and lost revenues due to its oil-drilling activities in Nigeria, which were seen as harming community interests and generating excessive pollution. Walmart executives were accused of engaging in bribery in Mexico, India, and China. Walmart was required to pay a penalty of nearly $300 million, and spent more than $800 million on legal fees, internal investigations, and enhanced ethical compliance. ...