The expansion of world trade and investment has led to the increasing integration of the world economy in recent decades—a process often referred to as “globalization.” Total trade in developing countries, exports and imports, rose from less than $1.5 trillion in 1990 to $3.8 trillion in 2002, while foreign direct investment in developing counties grew even faster during this period, from $22 billion to $154 billion. Some view globalization as fostering economic growth, increasing employment, and improving living standards in both developed and developing nations. At the same time, others view globalization as resulting in negative social impacts and raise concerns about the expanding activities of multinational corporations, particularly in developing countries. U.S. multinational corporations are now faced with difficult issues, such as the treatment and conditions of foreign workers in corporate supply chains, environmental and health issues associated with production in diverse local communities, and human rights issues associated with authoritarian governments in countries where multinationals operate. In addition, some negative incidents involving U.S.-based companies have been widely publicized, hurting their own and the United States’ image, such as the use of sweatshops in the manufacture of clothing and other products. In another example, a U.S.-based company recently came under allegations that its overseas mining operations produced toxic waste that have caused illnesses. U.S. corporations are increasingly building operations or buying products from sources in developing countries. However, the legal, regulatory and ethical environments in which U.S. businesses and their suppliers operate vary across countries. For example, some have asserted that developing countries have inadequate or poorly enforced environmental and labor laws. Given the limited capacity of some developing countries, CSR advocates argue that corporations themselves must establish and maintain codes of conduct regarding operating standards in these environments. Companies face increasing pressure from nongovernmental organizations (NGO), the media, “socially responsible” investor groups, and other stakeholders to adhere to high standards globally in their own operations and throughout their supply chains. In addition, some members of Congress have shown support for CSR-related policies, similar to those advocated by working groups convened by the Kenan Institute. In response to these business challenges and outside pressures, companies are increasingly adopting “corporate social responsibility” programs. For example, recently U.S. electronics companies signed a joint code of conduct to protect working conditions, workers’ rights, and the environment in the electronics industry supply chain. A number of U.S. companies have instituted programs to address HIV/AIDS and other diseases in their operations in developing countries, for example, by raising awareness or providing access to treatment. Most recently, U.S. companies provided nearly $453 million to relief efforts in the wake of the tsunami that hit South and Southeast Asia and East Africa in December 2004. Despite these efforts, some CSR advocates call for more government action to promote CSR, with some noting that several national governments in Europe have put in place mechanisms to encourage or require the adoption of CSR practices. Global CSR is an umbrella concept that can best be understood by describing the different definitions used for the term, the actions businesses take to practice CSR, and the roles of key players involved in CSR. Although groups use different definitions and terms, CSR generally involves business efforts to address a broad range of issues, including the environment, labor, and human rights. Businesses perform many different actions to address CSR concerns. The extent and type of these actions are influenced by key players in CSR that include not only businesses, but also the civil society, investor groups, multilateral organizations and governments that seek to influence them. The term “global CSR” is sometimes used to refer to business efforts to address the social impacts of business in the global economy. Discussions of global CSR in the context of developing countries focuses on the need for business to address the gaps from inadequate or poorly enforced laws to protect the environment, labor, human rights, and other social resources. The term “CSR” is an umbrella concept with many different definitions. However, most definitions suggest that, in addition to addressing the interests of its shareholders, business should address the interests of its other stakeholders, including customers, employees, suppliers, and the local community. CSR definitions cover a broad range of potential social concerns, including business ethics, community development, labor, environment, and human rights. Table 1 presents sample CSR definitions. CSR definitions vary on whether CSR is considered exclusively voluntary or whether it includes mandatory requirements for business regarding social and environmental issues. Some definitions of CSR limit it to voluntary business decisions and actions, above and beyond what is required by law. Others organizations have reasoned that CSR should include mandatory efforts, especially because in developing countries it can be a tool to encourage compliance with laws and regulations. This voluntary compliance with laws and regulations assumes a greater role in developing countries, because even where developing countries have adequate laws and regulations concerning social and environmental concerns, they often have limited enforcement resources. Some groups prefer other terms to address all or some of the ethical, social, and environmental issues addressed by CSR. For example, one business group preferred the term “corporate citizenship” because business social and environmental efforts are indicative of business’s effort to be good citizens, while they believe the term “CSR” implies that those efforts are a responsibility rather than voluntary. Others prefer the terms “sustainable development” or “triple bottom line,” reasoning that business decisions and performance should be evaluated in terms of their economic, social, and environmental impacts. Other terms such as “business ethics” deal with one of the many concerns of CSR. Table 2 presents definitions of some terms related to CSR. U.S. businesses conduct many different types of actions that address CSR concerns that range from voluntary, such as philanthropic donations, to government mandated, such as disclosure of significant environmental conditions. These actions may or may not be part of a formal CSR effort. Although groups categorize business actions addressing CSR concerns differently, they can broadly be grouped as relating to (1) business ethics, (2) community development, (3) environment, (4) governance, (5) human rights, (6) marketplace, and (7) workplace. In our discussions with representatives of U.S. corporations, which are noted as leaders in CSR, we identified illustrative examples of U.S. companies’ actions that address these categories of CSR concerns. Business actions addressing the CSR concern of business ethics involve values such as fairness, honesty, trust and compliance, internal rules, and legal requirements. Among the actions taken to address business ethics are incorporating ethics into corporate value and mission statements, developing ethics codes, conducting ethics training, and monitoring ethical performance. In one example from the companies we interviewed, the company had recently trained its workforce—including all levels of management—on its standards of business conduct and now publishes these standards in 20 languages. Business actions addressing the CSR concern of community development involve business policies and practices intended to benefit the business and the community economically, particularly for low-income and underserved communities. Community development activities include employing and training disadvantaged workers, partnering with minority- and women- owned businesses, and locating facilities in underserved communities. One business we interviewed with a factory in South Africa works with its employees to develop the physical structures of schools for youth and adults in that community. Business actions addressing the CSR concern of the environment involve company policies and procedures to ensure the environmental soundness of its operations, products, and facilities. Examples include pollution prevention, energy efficiency, and supply-chain environmental management. One company we interviewed stated that it strives to exceed minimum U.S. government standards for toxic emissions, even in foreign countries. The company stated that it had sent a team of specialists to Mexico to bring a Mexican facility to the U.S. standard. Business actions addressing the CSR concern of corporate governance involve the broad range of policies and practices that boards of directors use to manage themselves and fulfill their responsibilities to investors and other stakeholders. Examples include developing processes for communication with stakeholders, adopting formal board guidelines, and implementing board and Chief Executive Officer (CEO) performance evaluations. Business actions addressing the CSR concern of human rights involve assuring basic standards of treatment to all people, regardless of nationality, gender, race, economic status, or religion. Among the concerns in developing human rights policies are to avoid child labor in manufacturing, government action depriving citizens of basic civil liberties, and forced or prison labor. For example, a company we interviewed said it had signed the United Nations Global Compact, which requires businesses to comply with human rights requirements as one of its 10 principles. Business actions addressing CSR marketplace concerns involve business relationships with its customers and such issues as product manufacturing and integrity; product disclosures and labeling; and marketing, advertising, and distribution practices. Marketplace-related actions include establishing ethical marketing and advertising policies, ensuring safety and efficacy of products, and employing ethical sales tactics. One company we interviewed that views water, health, and hygiene as their business stated it had developed low-cost water purifying systems and products to save water in hand washing and improve the lives of consumers in developing countries. Business actions addressing CSR workplace concerns generally involve human resource policies that directly impact employees, such as compensation and benefits, career development, and health and wellness issues. Examples of workplace CSR actions include adoption of global workplace standards, involvement of employees in business decisions, and establishment of employee grievance policies and procedures. Businesses play the central role in determining their efforts to address CSR concerns, but these efforts can also be influenced by the actions of civil society, investor groups, multilateral organizations, and government. Businesses play a central role in CSR by determining which social and environmental issues are addressed and how they are addressed. CSR literature notes that there is a growing recognition by businesses that CSR includes the way the company runs its core business, not just its philanthropic activities.