Social%20Responsibility%20in%20a%20Global%20Environment

1
CHAPTER 12

• Social Responsibility in a Global Environment

2
Chapter Objectives

• To define cultural intelligence and its
  importance
• To discuss the global nature of stakeholder
  relationships
• To examine the importance of national
  competitiveness
• To describe the role of business in global
  development
• To explore global standards for social
  responsibility reporting

3
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.
4
Cultural Intelligence

• The ability to interpret and adapt successfully
  to different national, organizational, and
  professional cultures
• Three components
• Cognitive
• Motivational
• Behavioral

5
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 Croatias national culture, laws and
  governmental system, the agencys role and scope,
  the engineering professions code of ethics, and
  the engineers personality and values.

6
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

7
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

8
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

9
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

10
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.)

11
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

12
Global Reporting Initiative (GRI)

• Emphasizes consensus and continuous improvement
  in developing and maintaining the GRI
  Sustainability Reporting Framework, which seeks
  to provide transparency
• Includes three categories of core indicators
  economic, environmental, and social performance