SOCIAL RESPONSIBILITY
1. Some strategists agree with Ralph Nader, who
proclaims that organizations
have tremendous social obligations. Others agree with Milton Friedman, who asserts that organizations have no obligation to do
any more for society than is legally required.
2. Strategists should examine social problems in terms of potential costs and benefits to the firm, and focus on social issues that could benefit the firm most.
Social Policy
1. Social policy concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities,
communities, shareholders, and other groups.
2. Corporate social policy should be designed and articulated during strategy formulation,
set and administered during strategy implementation,
and reaffirmed or changed
during strategy evaluation.
3. Firms should strive to engage in social activities that have economic
benefits. ENVIRONMENTAL SUSTAINABILITY
1. Table 10-2
lists the Top 20 Companies in the World on Environmental Sustainability
2. The strategies of both companies and countries are increasingly scrutinized and evaluated from a natural environment perspective. A growing number of business schools offer separate courses and even a concentration in environmental management.
3. According to the International Standards Organization (ISO), the word
environment is defined as "surroundings in
which an organization operates, including air, water, land, natural resources, flora, fauna, humans, and their
interrelation.
4. Employees, consumers, governments, and society are especially resentful of firms that harm rather
than
protect the natural environment. Governments are increasingly requiring businesses to behave responsibly and require that businesses publicly report the pollutants and wastes their facilities produce.
The article below illustrates an organization that has embedded social responsibility into the strategy and culture of the
organization. Yara International Unveils Its "Creating Impact" Business Strategy and Commitment to Action at Clinton Global Initiative
2013 Annual Meeting Article http://online.wsj.com/article/PR-CO-20130925-907632.html
è Learning
Activity 1
Please provide
your opinion of how the social responsibility strategy of this organization will impact the overall
success of the organization.
Provide examples of other organization that have embedded a
social responsibility into the organization's Mission and associated strategy.
On a 1 to 10
scale ranging from Nader's view to Friedman's view,
what is your attitude toward social responsibility? Provide
a rational for your response.
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Multinational Organizations
1. International firms or multinational corporations are organizations
that conduct business operations across
national borders.
2. The strategic-management process is conceptually the same for multinational firms as for purely domestic firms,
although the process is more complex for international firms due to more variables and relationships.
3. More time and
effort are required
to
identify and evaluate external trends and events in multinational organizations than in domestic corporations.
4. Multinational corporations face unique and diverse risks, such as expropriation of assets, currency losses through
exchange rate fluctuations, unfavorable
foreign court interpretations of contracts and agreements, social/political
disturbances, import/export restrictions,
tariffs, and trade barriers.
5. Before entering international markets, firms should scan relevant journals and patent reports, seek the advice of academic and research organizations,
participate in international trade fairs, form partnerships, and conduct extensive
research to broaden their contacts and diminish the risk of doing
business in new markets.
The Global Challenge
1. Few companies can afford to ignore the presence of international competition.
Firms that seem insulated and
comfortable today may be vulnerable
tomorrow.
a. How to gain and maintain exports to other nations
b. How to defend domestic markets against imported goods.
2. America's economy is becoming
much less American, as a world economy
and monetary system are emerging. More
and
more countries around the world are welcoming
foreign investment and capital. As a result,
labor markets
have steadily become more international.
3. Many countries became more protectionist during the recent global economic
recession. Protectionism refers to
countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and
people.
4. A primary reason why most domestic firms are engaging
in
global operations
is that growth in demand for goods and services outside the United States is considerably higher than inside.
5. Shareholders and investors expect sustained growth in revenues from firms, and satisfactory growth for many
firms can only
be achieved by
capitalizing on
demand outside the United States. Learning Activity Complete
Assurance of
→ Learning Exercise 11A -
Compare Business Cultures Across Countries
Complete Step 1
With the information that you have obtained in Step 1
compare and contrast the similarities and differences that must
be considered when
doing business in these two countries.
Explain how awareness of business culture across countries can
enhance strategy implementation.
Assurance of Learning
Exercise 11A
Compare Business Cultures Across Countries Purpose
Walt Disney does business in over 100
countries. Various websites give excellent detail that compare
and
contrast business culture across
countries. One excellent website is http://www.kwintessential. co.uk/resources/country-profiles.html,
where you can click on
more than 100 countries and obtain
a synopsis of a country’s business
culture. (Note: The culture part of this chapter is partly based on information at this website.) After
clicking on a country at that website, you may scroll down
to reach the section titled “Business Etiquette and Protocol.” This exercise
gives you experience gaining information about business culture in virtually any country.
Being knowledgeable of various countries’
business culture can make you a more effective manager or communicator with people or organizations
in that country. This information is especially critical to firms such as Walt Disney that do
business globally.
Step 1
- Go to the website named above. Click on
any
two countries located on
different continents. Scroll down
to the “Business Etiquette and Protocol” section of each country. Print this
material.
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