Look no further than the 2008 Beijing Olympics to see a grandiloquent display of CSR tactics on the sponsorship chessboard. Any Olympic sponsor who thinks it can use CSR as a mere watchword, however, misunderstands the power of international scrutiny. More than ever, sponsors are under pressure to make a tangible impact on the Chinese population.

In the evolving global marketplace I call World Inc., CSR is now coming into play as a crucial strategic factor. CSR has infiltrated the business policies of giants like Nike and Microsoft, government legislation (as with the focus on sustainability and quality community implications disclosure in the Companies Act 2006 in the U.K.) and business alliances across the U.S. and Europe. Southeast Asian countries like Thailand and the Philippines are also encouraging the development and dissemination of best CSR practices.

Further, CSR practices are rapidly crossing borders. In March 2006, the European Commission launched the European Alliance for CSR, an umbrella network for discussing new and existing CSR initiatives by large companies, SMEs, and their stakeholders. By raising awareness on CSR and developing open coalitions, it is hoped that European companies can stay competitive. In the U.K., ministers have been specially appointed to cover certain strategic aspects of CSR, and to extol its virtues in the international arena.

What started as an astute chessboard strategy by MNCs like General Electric and Walmart has become a critical variable in its own right. CSR’s proponents are no longer a few lingering street activists or a defunct NGO, but business and legislative expectations. In a global marketplace, this matters to firms who are struggling to find the critical variables in the equation for business success. CSR may be an asset, or a serious liability. Firms are fast losing the option to play the CSR card as a defensive fig leaf.

It will be an Olympian challenge for firms to fulfill these obligations. Moreover, the question remains whether international pressure or legislation (or even a mix) will be sufficient to persuade firms to play their cards right.

Grace Chong is a second year law student at University College London.