Documente Academic
Documente Profesional
Documente Cultură
The focus in this subject is on corporate social responsibility, which involves responsibilities outside of making a profit and the key questions for corporations include: Does business have a social responsibility? If so, what is the extent and type of the responsibility?
Definitions of CSR The impact of a companys actions on society Requires a manager to consider his acts in terms of a whole social system, and holds him responsible for the effects of his acts anywhere in that system
A companys sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship: 1. through their waste and pollution reduction process. 2.by contributing educational and social programs 3.by earning adequate returns on the employed resources.
Corporate citizenship The legal status of a corporation in the jurisdiction in which it was incorporated.
Corporate Citizenship Concepts Corporate social responsibility emphasizes obligation and accountability to society Corporate social responsiveness emphasizes action, activity Corporate social performance emphasizes outcomes, results
CCC
The concept of corporate citizenship, also known as corporate social responsibility, proposes that businesses have a responsibility to the community in which they operate and to society in general. Typically, corporate citizenship includes several areas of responsibility, such as economic, legal, ethical, philanthropic, and environmental areas.
Corporate citizenship means: To incorporate the interests of all stakeholders in business operations including, employees, customers, the community and the environment.
A business that operates in an ethical manner and supports the interests and concerns of the community in which it operates.
Part II
Multinational Corporation
-
Multinational Corporations is among other things : a private government; often richer in assets; more populous in stockholders and employees Than some of the nation-states in which it carries on business.
Simultaneously a citizen of several nation states: owe obedience to their laws has its own objectives responsive to a top management that maybe located in another nation.
Critics see in the Multinational corporation: An instrument of irresponsible private economic power; An agent of economic imperialism by its home country.
An international carrier of advanced management science and technology; An agent for the global transmission cultural values
Owns and manages business in two or more countries. It is an agency of direct as opposed to portfolio, investment in foreign countries Holding and managing the underlying physical assets rather than securities based upon those assets.
A domestic corporation may become multinational by: 1. Establishing foreign branches; 2. Operating wholly or partially owned subsidiaries in other countries; or 3. Entering into joint ventures with enterprises in other countries
However, whatever the form, it becomes a working corporate citizen within many nations.
Characteristically, an expanding corporation travesrses the following stages: Exports its products to foreign countries; Establishes sales organization abroad. Licenses use of its patents and know-how to foreign firms that make and sell its products. Establishes foreign manufacturing facilities Multinationalizes management from top to bottom. Multinationalizes ownership of corporate stock.
1. 2. 3.
4. 5. 6.
What forces and motives have thrust the corporate institution into world arena?
What forces and motives have thrust the corporate institution into world arena? Reasons for foreign direct investment: 1. Entrepreneurs confront foreign barriers to their exports. - Nationalistic sentiment leads most nations to try to build their own industrial capabilities. -Raising barrier against import of manufactured products, they induce foreign as well as local firms to establish domestic industries.
What forces and motives have thrust the corporate institution into world arena? Reasons for foreign direct investment:
2. Their presence as a producer in a foreign nation enables them to adapt their products to local demands more effectively.
3. The creation of larger free-trading regions.
What effects does it produce on investing in host nations and on international relationships and institutions.
The economic, political, technological and cultural effects are most striking in the less developed countries. - Based on 12 case studies made over 15 year period American corporations played an innovating and catalyctic role: * founding new industries * transmitting technological
What effects does it produce on investing in host nations and on international relationships and institutions.
* transmitting managerial skills *Transmitting capital *creating entire social infrastructure (schools, housing,health facilities, and transportation)
What effects does it produce on investing in host nations and on international relationships and institutions.
Firms have: failed to transfer technology or train local personnel. Corrupted local officials Intervened in national politics But these forms of conduct are rare today.
Factors in the Societal Environment Criticism of Business Increased concern for the Social Environment A Changed Social Contract
Business Assumption of Corporate Social Responsibility Social Responsiveness, Social Performance, Corporate Citizenship
Europes characteristics: Politically mature societies Technologically advanced countries Socially integrated peoples Proud of their nations long histories of achievement.
The major economic result of the physical presence of more than 3,000 American corporations with 40,000 American employees was the stimulation of the: - Growth of production - Growth of income - Growth of living standards of Europeans.
Improved the balance of International payments. More subtle and profound economic effects flowed from the new competition , (mass-marketing technique, price competition, hard-sell advertising, packaging) Mass production of a host of new consumer products (fresh-frozen foods, electric home appliances and plastic containers)
But!!! The newcomers were criticized : -Disruption of orderly marketing - Extravagant wages and salaries - Reckless financial practices - Display insensitivity to local customs in their drive to lower cost and greater efficiency. (G.E. was condemned for dismissing French engineers;
discounts to dealers)
Goodyear & Goodrich provoked protest from French tire-makers when they doubled the traditional
However, available evidence indicates that affiliates have generally earned higher rates of return on investment .
There is now general recognition that the key gap between European and American business is managerial rather than technological
In choosing Industrial leadership : - Establishing graduate school of management - Replacing nepotism with meritocracy (wherein
appointments are made and responsibilities are assigned to individuals based upon their "merits", namely intelligence, credentials, and education,[1] determined through evaluations or examinations.)
With 2002 sales of $246 billion, WalMart is larger than 150 countries, including
Norway
$189 Billion
Poland
$187 Billion
Data Table
Source : European Commission, DG-ECFIN Greece - Gross domestic product at current market prices - Mrd EURO-GRD - AMECO data class: Data at current prices (AMECO) Period value
2012
2011 2010 2009 2008
226.1357
222.7925 230.1781 235.0218 236.9221
2007
2006 2005 2004 2003 2002
227.0791
211.3047 194.8238 185.2706 172.4311 156.6152
-On the environment - On our Culture - In the exchange of Ideas - On government - On Society - On the Marketplace
ON OUR CULTURE
Corporations promote consumption and materialism to the detriment of civic values.
Source: Challenging Corporate Rule, United for a Fair Economy, January 2000
Approximately 60% of all world trade is between firms within the same parent corporation.
Sources: Institute for Policy Studies, 1999, 2000, 2001 and 2002 Reports, Global,Inc..
Endeavors to influence all phases of politics: -It makes contributions indirectly to political candidates. -gives to charities whose sponsors goodwill it seeks
Corporations Have Used Their Wealth & Power to Sway Elections and Lawmaking
cycle, finance, insurance, and real estate corporations led all sectors, giving $331 million to federal candidates.
Source: Center for Responsive Politics; Capital Eye, Vol. 6 No.4, www.crp.org.
Corporations Have Used Their Wealth & Power to Sway Elections and Lawmaking
Verizon corporation and General Electric corporation spent over $100 million in lobbying expenditures.
Source: www.publicdomainprogress.com