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CHAPTER 12

Social Responsibility and Business. 4 TH EDITION. FERRELL • THORNE • FERRELL. CHAPTER 12. Social Responsibility in a Global Environment. The Global Marketplace.

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CHAPTER 12

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  1. Social Responsibility and Business 4TH EDITION FERRELL • THORNE • FERRELL CHAPTER 12 Social Responsibility in a Global Environment

  2. The Global Marketplace The expanding global marketplace requires that executives and managers develop the ability to conduct business effectively and socially responsibly in different regions of the world.

  3. Cultural Intelligence • The ability to interpret and adapt successfully to different national, organizational, and professional cultures • Three components: • Cognitive—Knowledge of economic, legal, ethical, and social systems prevalent in different cultures and subcultures • Motivational—Intrinsic desire to learn about different cultures and subcultures and the confidence to function effectively in situations where differences are present • Behavioral—Ability to use appropriate verbal and nonverbal actions when interacting with people from different cultures and subcultures

  4. Self-Assessment of Cultural Intelligence (CQ)

  5. Self-Assessment of Cultural Intelligence (CQ)

  6. Using Cultural Intelligence (CQ) • A person with high CQ is skilled at recognizing how one individual is influenced by national, professional, and organizational cultures. For example, there are multiple layers of cultural effects to manage when an Irish manufacturing process expert from a consulting firm works with a Croatian engineer for a government agency. The Irish expert would have to interpret and act according to Croatia’s national culture, laws and governmental system, the agency’s role and scope, the engineering profession’s code of ethics, and the engineer’s personality and values.

  7. Employee Issues in Global Environment • Wages and benefits relative to home country standards • Attitudes toward employees from different genders and ethnicities, especially in executive positions • Existence of collective bargaining efforts • Laws and regulations for employee rights, health, and safety • Norms of employee volunteering • Availability and comfort with open-door policies and other management practices

  8. Employee Engagement

  9. Heuristic Model of Ethical Decision Making

  10. Consumer Issues in Global Environment • Laws and regulations on product safety and liability • Presence and power of consumer rights groups • Respect for the product needs of subcultures and minority groups • Attitudes and accommodations for customers with disabilities

  11. Fair Trade Principles

  12. Fair Trade Principles (cont.)

  13. Shareholder Issues in Global Environment • Laws and regulations regarding ownership and corporate governance • Stability and governance of stock exchanges • Willingness and ability to participate in shareholder meetings

  14. Caux Round Table’s Reform Plan

  15. Supplier Issues in Global Environment • Ethical and social considerations in the supply chain • Prices offered to suppliers in developed countries and developing countries in comparison to other suppliers • Availability and attitudes toward minority suppliers

  16. Community Issues in Global Environment • Norms of community relations and dialogue • Expectations of community service and/or philanthropy • Rights of indigenous people • Availability and quality of infrastructure (roads, utilities, schools, etc.)

  17. Environmental Issues in Global Environment • Environmental law and regulations • Availability of “green” electricity, recycled materials, and other environmentally friendly inputs • Environmental expectations relative to those in home country • Use of natural resources to achieve business goals

  18. National Competitiveness • Responsible competitiveness involves the positive effects of socially responsible business practices on a nation’s economic success. • A measure of responsible competitiveness, the RCI is guided by the notion that “Securing responsible and successful business practices can only be achieved through the combined effects of engaged businesses, smart public policy and a vibrant civil society.”

  19. Drivers of Responsible Competitiveness

  20. Global Development • Development refers to improvement in the economic, environmental, educational, and health conditions of a country. • Common issues in development include poverty, health-care quality, access to education, voting rights, water quality, governance and rule of law, domestic finance systems, and climate change. • A major goal of the United Nations (U.N.) is to realize improvements in the development of countries around the world.

  21. U.N.’s Development Goals • Goal 1: Eradicate Extreme Hunger and Poverty • Goal 2: Achieve Universal Primary Education • Goal 3: Promote Gender Equality and Empower Women • Goal 4: Reduce Child Mortality • Goal 5: Improve Maternal Health • Goal 6: Combat HIV/AIDS, Malaria, and Other Diseases • Goal 7: Ensure Environmental Sustainability • Goal 8: Develop a Global Partnership for Development

  22. Corporate Commitment to U.N.’s Global Compact

  23. Partnerships for Development

  24. Global Reporting Initiative (GRI)

  25. Global Reporting Initiative (GRI)

  26. Global Reporting Initiative (GRI)

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