国际商务管理期末5 CSR与国际商务

1、国际商务经济学2016-2017-1 innocence, imagination, and puritySWEATSHOPS IN HAITI low wages:US$0.28/hour, $15-20/month Disney CEO：US$102,000/hour no tolerance for workers rights Poor working conditions workforce is comprised almost entirely of women and children Company fines: US$0.60 -35.00 BUT the US Gover

2、nment can not take significant action because these operations are not on their soil MNCsEthics and CSR in International BusinessEthics and Social Responsibility Around the World Ethics Study of morality and standards of conduct Vital role of ethics in conduct of business Sarbanes-Oxley Act (2002) C

3、EO and CFO are required to approve and declare all financial statements accurately Ensure transparency of all disclosures Make content appropriately accessible for audit and verification MNCs face difficulties because of differing standards between countries where they operateCorporate Social Respon

4、sibility Corporate social responsibility (CSR) Actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm E.g. Working conditions in factories and service centers Environmental impacts of corporate activities Products sourcing, marketing Care about t

5、he communitieshttp:/ change of views Milton Friedman had argued for the invisible hand of the market The business of business is to do business In his words in 1970, the social responsibility of business is to increase its profits To do something else is to be sidetracked, and nobody wins A deadweig

6、ht loss Other perspectives The hand of regulation and self-regulation perspective The intrinsic interest in doing good8CSR change of views (cont.) According to Porter and Kramer (2002) There is no inherent contradiction between improving competitive context and making a sincere commitment to betteri

7、ng society, p. 68. They further argue Philanthropy can often be the most cost-effective way for a company to improve its competitive context, enabling companies to leverage the efforts and infrastructure of nonprofits and other institutions, p. 61 Thus, CSR pays, rewarding the company eg, Apple comp

8、uters donating computers to schools eg, AMEX training secondary school students in travel and tourism through its Travel and Tourism Academies9ECONOMIC Benefits of csr?Societal: good image, reputationEconomic: Low-cost marketing Loyalty of customers Tax reasons Cost-benefits analysis10Why social que

9、stionsFor moral reasons ie, because it is good, right and justFor reasons of the upkeep of markets It is necessary in order to maintain the health of marketsBecause it is the public responsibility of firms to society and the disadvantagedBecause it could be dangerous to ignore it! Vernons In the Hur

10、ricanes Eye: The Troubled Prospects of Multinational Enterprises Vernon argues that the present ostensibly cordial relationships between governments and multinationals disguises serious tensions which need addressing by policy makers. Because it is intrinsically interesting11Corporate social respons

11、ibility (CSR) and competitive advantage Porter and Kramer argue Corporate giving (philanthropy) has fallen by 50% YET, 1990-2002 corporate cause-related marketing in the US jumped from $129m to $828m Corporations are caught Corporate shareholders want more profits Community wants more CSR This dilem

12、ma has led companies to be more strategic in their philanthropy Mainly using philanthropy as a public relations and marketing toolResponse to Social ObligationsCorporate responsesAdapted from Table 3-1: Principles of the Global CompactIn terms of CSR, firm-level corporate governance can and should i

13、nclude policy and actions in regard to:ethical behaviour including remunerationboth regulated and voluntary behaviourenvironment, social and governance riskshareholder and stakeholder communication and participationCommunity and stakeholder responsibilitiesSuzanne Young (2013) Response to Social Obl

14、igationsCorporate responsesAdapted from Table 3-1: Principles of the Global CompactCost benefit analysisSource:/wiki/Corporate_social_responsibilityResponse to Social ObligationsHuman RightsPrinciple 1: Support and respect the protection of international human rights within th

15、eir sphere of influence.Principle 2: Make sure their own corporations are not complicit in human rights abuses.Principles of the Global Compact (UN)Adapted from Table 3-1: Principles of the Global CompactResponse to Social ObligationsLaborPrinciple 3: Freedom of association and the effective recogni

16、tion of the right to collective bargaining.Principle 4: The elimination of all forms of forced and compulsory labor.Principle 5: The effective abolition of child labor.Principle 6: The elimination of discrimination with respect to employment and occupation.Principles of the Global Compact (UN)Adapte

17、d from Table 3-1: Principles of the Global CompactResponse to Social ObligationsEnvironmentPrinciple 7: Support a precautionary approach to environmental challenges.Principle 8: Undertake initiatives to promote greater environmental responsibility.Principle 9: Encourage the development and diffusion

18、 of environmentally friendly technologies.Anti-CorruptionPrinciple 10: Business should work against all forms of corruption, including extortion and bribery.Principles of the Global Compact (UN)Adapted from Table 3-1: Principles of the Global CompactCorruption IndexCorruption IndexAdapted from Figur

19、e 32: Corruption Index: Ranking of Least Corrupt to Most (Not a recent one. Look at the Transparency International website for the latest one)020406080100120140FinlandSingaporeHong KongUnited StatesChileJapanTaiwanItalySouth AfricaSouth KoreaBrazilMexicoChinaThailandRussiaIndiaPhilippinesIndonesiaNi

20、geriaCorruption index (2014)Principles of the Global Compact (UN)Adapted from Table 3-1: Principles of the Global CompactSource: /cpi2014/results#myAnchor1Corruption and Foreign Corrupt Practices ActForeign Corrupt Practices Act (FCPA)Illegal for U.S. firms and their manage

21、rs to attempt to influence foreign officials through personal payments of political contributions, including such tactics as“Entertainment” expenses“Consulting” feesSome evidence that discontinuing bribes does not reduce sales of the firms products or services in that countrySome evidence that firms

22、 from other countries continue to win business through corrupt practices such as briberyRecent formal agreement by many industrialized nations to outlaw the practice of bribing foreign government officialsCorruption and Foreign Corrupt Practices Act Recent formal agreement by many industrialised nat

23、ions to outlaw the practice of bribing foreign government officials Organization for Economic Cooperation and Development 29 members plus several other countries have signed on Fails to outlaw most payments to political party leaders. Does indicate growing support for anti-bribery initiativesShell c

24、ompanies and puppet mastersMany legitimate businesses including MNCs use third parties (often dubbed as consultants) to pay bribes to avoid direct contacts with the politicians or bureaucrats. These third parties or government officials taking bribes in exchange for undue favour including legislatio

25、n of policies favourable to business activities by certain kind of firms or products, winning government tenders and tax avoidance. These go betweens, according to a recent document by Transparency International, have been termed as “shell companies” while the so-called legitimate organisations usin

26、g these “shells” are termed as “puppet masters” (Sharman, 2012). Anti-corruption caseUS$500 million fine;Suspended prison sentence to 5 employeesHigh management deportedFurther investigation23How we get there in this topic1. The status and nature, in general, of social questions/society in IB2. The

27、nature of globalisation fair or unfair3. The role of MNCs and their strategyAnd what role for corporate social responsibility (CSR) in the pursuit of sustainable competitive advantage4. National interests and sustainable development 5. Your own thinking and analysis in order to apply social analysis

28、 to other problems24Allied questionsWe have examined various issues, and various cases, in the past Now we need a little theory to help us understand themWhat is equity? Fairness Justice Distribution of resources But on what basis? Vertical equity narrowing the gap between rich and poor Horizontal equity ensuring that those putting in the same effort are treated and rewarded (in money/resources) equally Regional equity ensuring people who live in different locations are treated equally (in money/