国际商务管理期末5 CSR与国际商务

国际商务经济学2016-2017-1

innocence,imagination,andpuritySWEATSHOPSINHAITIlowwages:US$0.28/hour,$15-20/monthDisneyCEO：US$102,000/hournotoleranceforworker'srightsPoorworkingconditionsworkforceiscomprisedalmostentirelyofwomenandchildrenCompanyfines:US$0.60-35.00…BUTtheUSGovernmentcannottakesignificantactionbecausetheseoperationsarenotontheirsoil

MNCsEthicsandCSRinInternationalBusinessEthicsandSocialResponsibilityAroundtheWorldEthicsStudyofmoralityandstandardsofconductVitalroleofethicsinconductofbusinessSarbanes-OxleyAct(2002)CEOandCFOarerequiredtoapproveanddeclareallfinancialstatementsaccuratelyEnsuretransparencyofalldisclosuresMakecontentappropriatelyaccessibleforauditandverificationMNCsfacedifficultiesbecauseofdifferingstandardsbetweencountrieswheretheyoperateCorporateSocialResponsibilityCorporatesocialresponsibility(CSR)ActionsofafirmtobenefitsocietybeyondtherequirementsofthelawandthedirectinterestsofthefirmE.g.WorkingconditionsinfactoriesandservicecentersEnvironmentalimpactsofcorporateactivitiesProductssourcing,marketing…Careaboutthecommunities/terms/c/corp-social-responsibility.asp7CSR–changeofviewsMiltonFriedmanhadarguedforthe‘invisiblehand’ofthemarketThebusinessofbusinessistodobusinessInhiswordsin1970,‘thesocialresponsibilityofbusiness’isto‘increaseitsprofits’Todosomethingelseistobesidetracked,andnobodywinsA‘deadweightloss’OtherperspectivesThe‘handofregulation’and‘self-regulation’perspectiveTheintrinsicinterestindoinggood8CSR–changeofviews(cont.)AccordingtoPorterandKramer(2002)‘Thereisnoinherentcontradictionbetweenimprovingcompetitivecontextandmakingasincerecommitmenttobetteringsociety’,p.68.Theyfurtherargue‘Philanthropycanoftenbethemostcost-effectivewayforacompanytoimproveitscompetitivecontext,enablingcompaniestoleveragetheeffortsandinfrastructureofnonprofitsandotherinstitutions,’p.61Thus,CSR‘pays’,rewardingthecompanyeg,Applecomputersdonatingcomputerstoschoolseg,AMEXtrainingsecondaryschoolstudentsintravelandtourismthroughits‘TravelandTourismAcademies’9ECONOMICBenefitsofcsr?Societal:goodimage,reputationEconomic:Low-costmarketingLoyaltyofcustomersTaxreasons…Cost-benefitsanalysis10WhysocialquestionsFormoralreasonsie,becauseitisgood,rightandjustForreasonsoftheupkeepofmarketsItisnecessaryinordertomaintainthehealthofmarketsBecauseitisthepublicresponsibilityoffirmstosocietyandthedisadvantagedBecauseitcouldbedangeroustoignoreit!Vernon’s‘IntheHurricane'sEye:TheTroubledProspectsofMultinationalEnterprises’Vernonarguesthatthepresentostensiblycordialrelationshipsbetweengovernmentsandmultinationalsdisguisesserioustensionswhichneedaddressingbypolicymakers.Becauseitisintrinsicallyinteresting11Corporatesocialresponsibility(CSR)andcompetitiveadvantagePorterandKramerargue‘Corporategiving’(philanthropy)hasfallenby50%YET,1990-2002–corporatecause-relatedmarketingintheUSjumpedfrom$129mto$828mCorporationsarecaughtCorporateshareholderswantmoreprofitsCommunitywantsmoreCSRThisdilemmahasledcompaniestobemore‘strategic’intheirphilanthropyMainlyusingphilanthropyasapublicrelationsandmarketingtoolResponsetoSocialObligationsCorporateresponsesAdaptedfromTable3-1:PrinciplesoftheGlobalCompactIntermsofCSR,firm-levelcorporategovernancecanandshouldincludepolicyandactionsinregardto:ethicalbehaviourincludingremunerationbothregulatedandvoluntarybehaviourenvironment,socialandgovernanceriskshareholderandstakeholdercommunicationandparticipationCommunityandstakeholderresponsibilitiesSuzanneYoung(2013)ResponsetoSocialObligationsCorporateresponsesAdaptedfromTable3-1:PrinciplesoftheGlobalCompactCost–benefitanalysisSource:/wiki/Corporate_social_responsibilityResponsetoSocialObligationsHumanRightsPrinciple1:Supportandrespecttheprotectionofinternationalhumanrightswithintheirsphereofinfluence.Principle2:Makesuretheirowncorporationsarenotcomplicitinhumanrightsabuses.PrinciplesoftheGlobalCompact(UN)AdaptedfromTable3-1:PrinciplesoftheGlobalCompactResponsetoSocialObligationsLaborPrinciple3:Freedomofassociationandtheeffectiverecognitionoftherighttocollectivebargaining.Principle4:Theeliminationofallformsofforcedandcompulsorylabor.Principle5:Theeffectiveabolitionofchildlabor.Principle6:Theeliminationofdiscriminationwithrespecttoemploymentandoccupation.PrinciplesoftheGlobalCompact(UN)AdaptedfromTable3-1:PrinciplesoftheGlobalCompactResponsetoSocialObligationsEnvironmentPrinciple7:Supportaprecautionaryapproachtoenvironmentalchallenges.Principle8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility.Principle9:Encouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.Anti-CorruptionPrinciple10:Businessshouldworkagainstallformsofcorruption,includingextortionandbribery.PrinciplesoftheGlobalCompact(UN)AdaptedfromTable3-1:PrinciplesoftheGlobalCompactCorruptionIndexCorruptionIndexAdaptedfromFigure3–2:CorruptionIndex:RankingofLeastCorrupttoMost(Notarecentone.LookattheTransparencyInternationalwebsiteforthelatestone)020406080100120140FinlandSingaporeHongKongUnitedStatesChileJapanTaiwanItalySouthAfricaSouthKoreaBrazilMexicoChinaThailandRussiaIndiaPhilippinesIndonesiaNigeriaCorruptionindex(2014)PrinciplesoftheGlobalCompact(UN)AdaptedfromTable3-1:PrinciplesoftheGlobalCompactSource:/cpi2014/results#myAnchor1Corruptionand

ForeignCorruptPracticesActForeignCorruptPracticesAct(FCPA)IllegalforU.S.firmsandtheirmanagerstoattempttoinfluenceforeignofficialsthroughpersonalpaymentsofpoliticalcontributions,includingsuchtacticsas“Entertainment”expenses“Consulting”feesSomeevidencethatdiscontinuingbribesdoesnotreducesalesofthefirm’sproductsorservicesinthatcountrySomeevidencethatfirmsfromothercountriescontinuetowinbusinessthroughcorruptpracticessuchasbriberyRecentformalagreementbymanyindustrializednationstooutlawthepracticeofbribingforeigngovernmentofficialsCorruptionand

ForeignCorruptPracticesActRecentformalagreementbymanyindustrialisednationstooutlawthepracticeofbribingforeigngovernmentofficialsOrganizationforEconomicCooperationandDevelopment29membersplusseveralothercountrieshavesignedonFailstooutlawmostpaymentstopoliticalpartyleaders.Doesindicategrowingsupportforanti-briberyinitiativesShellcompaniesandpuppetmastersManylegitimatebusinessesincludingMNCsusethirdparties(oftendubbedas‘consultants’)topaybribestoavoiddirectcontactswiththepoliticiansorbureaucrats.Thesethirdpartiesorgovernmentofficialstakingbribesinexchangeforunduefavourincludinglegislationofpoliciesfavourabletobusinessactivitiesbycertainkindoffirmsorproducts,winninggovernmenttendersandtaxavoidance.These‘gobetweens’,accordingtoarecentdocumentbyTransparencyInternational,havebeentermedas“shellcompanies”whiletheso-calledlegitimateorganisationsusingthese“shells”aretermedas“puppetmasters”(Sharman,2012).Anti-corruptioncaseUS$500millionfine;Suspendedprisonsentenceto5employeesHighmanagementdeportedFurtherinvestigation23Howwegetthereinthistopic1.Thestatusandnature,ingeneral,ofsocialquestions/’society’inIB2.Thenatureofglobalisation–fairorunfair3.TheroleofMNCsandtheirstrategyAndwhatroleforcorporatesocialresponsibility(CSR)inthepursuitofsustainablecompetitiveadvantage4.Nationalinterestsandsustainabledevelopment5.Yourownthinkingandanalysisinordertoapplysocialanalysistootherproblems24AlliedquestionsWehaveexaminedvariousissues,andvariouscases,inthepastNowweneedalittletheorytohelpusunderstandthemWhatisequity?FairnessJusticeDistributionofresourcesButonwhatbasis?Verticalequity–narrowingthegapbetweenrichandpoorHorizontalequity–ensuringthatthoseputtinginthesameeffortaretreatedandrewarded(inmoney/resources)equallyRegionalequity–ensuringpeoplewholiveindifferentlocationsaretreatedequally(i