Do global businesses consider their stakeholders? Presented by Jamie Norman, Simon Thompson, Mark Fernandes, Mohummed Tala, Sarah Simpson & Lisa Warne

Contents What do we mean by globalisation? Who are stakeholders? 5 Companies …. 3 Countries Summary of the companies approaches Are they taking account of stakeholders? References

What do we mean by globalisation? … the growing integration of economies and societies around the world (World Bank 2008) Globalisation is essentially … - the breakthrough that capitalism had to eventually come to in order to enable continued accumulation and growth in production sales, consumption, trade and investment … - an outcome of the build up of enormous pressure on the part of the [capitalist] agencies to get rid of … barriers so that they can gain better access to the many fields of activity previously blocked to them. (Trainer 2002)

Who are stakeholders? … any identifiable group or individual who can affect the achievement of an organization’s objectives or who is affected by the achievement of an organization’s objectives (Freeman and Reed 1983)

"My business is making people - especially children - happy“ (Giroux 2001) Disney in the UK Disney Stores Films American themes adapted for British audiences

Disney in India Disney in the USA Glitz & glamour of Bollywood and the magic of Disney Dhoom Machao Dhoom - converging American / Indian lifestyle (Bajoria 2004; Vaswani 2007) Founded and fostered Theme parks Religious conflict (Clement 2005; Downes et al. 2007)

What is their purpose? How do they succeed? What is their strategy? Stakeholder Values (Tesco 2008) Tesco in the UK Legendary loyalty card scheme Shareholders clash with ‘Freedom Food’ (Independent 2008; Turner and Wilson 2006)

Tesco in India Tesco in the USA A new name (entered market 2007, 53 Shops, 669 employees) Re-branding – a healthy image (Tesco 2008) Source £170m of product per annum Opening cash & carry warehouse IT & BP for the global business (3k employees) Introducing Western standards (e.g. crèche) (BBC 2008a; Gupta 2007; Tesco 2008)

Toyota in the UK World’s Largest Automotive Manufacturer. “Moving Forwards” IW th largest manufacturer in the World today. (Industry Week, 2008) “Using the absolute minimum of staff (the Lean Production System), relying on intense horizontal communication of information (the Kanban System),and employing precisely-timed delivery and assembly (the Just-in-Time System), all combine to position the assembly worker as, perhaps, the key power holder among the many stakeholders in the enterprise.” (Winfield 1994) 1992 Toyota UK Started production, Derby. Environmentally responsible HRM policies link to Japanese production system

Toyota in India Toyota in the USA In joint venture (JCN Newswire, 2008) Training School in Bangalore. (Murphy, 2008) Test Case for Future of Toyota Corporate Social Responsibility, Competitive Edge 1988, Toyota Expand to Kentucky, USA. Japanese Management Techniques in the USA? (Besser, 1996, Fang & Kleiner, 2003) May sexual-harassment case. New president, moral issue, bad press.

McDonald’s "McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.“ (McDonald’s 2008a) McDonald’s in the UK Genetic Engineering ‘Legacy of BSE’ Healthy Menu Prêt et Manger (BBC 2004; Guardian 2001; Sustainability Investment News 2000)

McDonald’s in India McDonald’s in the USA McDonald’s Beef tallow lawsuit Home delivery Menu $76.44 million plan (McDonald's 2008b; Money Morning 2007; The Hindu 2007; Times 2006; Times of India 2001) Genetic Engineering Trans-Fat Obesity Plan to increase annual dividends (BBC 2002; Food Navigator USA 2008; Reuters 2007)

Playboy in the UK Less known in the UK for their contribution to the sex industry Controversy has been caused by the introduction of the retail section Anger as products are becoming increasingly more popular with children Confusion for children as playboy products placed next to products with other well known characters Not showing a clear indication of the industry behind the bunny image (BBC 2008b)

Playboy in India Playboy in the USA Very much in contrast with the USA Playboy has been very careful in introducing their magazines Many changes have been made, including the name, to ensure it is accepted into the Indian culture Less sexual content Founding country of playboy Much more open about their activities Exploitation of workers from different industries Found to making videos such as the girls of Wal-Mart US Air force sergeant fired after posing for playboy (BBC 2007)

In summary …. Several very different industries examined All are involved in the UK, US and India to some extent Stakeholder interest is obvious in that the media (local and international) highlights it All company web sites promote a ‘caring’ approach Some academic interest apparent

Well…have they? Clear evidence that global businesses take account of stakeholders Particularly noticeable in India (McDonald’s, Tesco, Playboy) But the key stakeholder – the shareholder – is the biggest winner (McDonald’s, Tescos)

References Continued Bajoria, J. (2004). "Disney launches India TV channels." [online] Retrieved 7th November 2008, from BBC. (2002). "McDonald’s targeted in obesity lawsuit." [online] Retrieved 6th November 2008, from BBC. (2004). "McDonald’s profits from new menu." [online] Retrieved 2nd November 2008, from BBC. (2007). "Air force demotes Playboy poser." [online] Retrieved 4th November 2008, from BBC. (2008a). "Tesco planning venture in India." [online] Retrieved 2nd November 2008, from BBC. (2008b). "Playboy reviews UK sales displays." [online] Retrieved 4th November 2008, from Besser, T. (1996). Team Toyota: transplanting the Toyota culture to the Camry plant in Kentucky, State University of New York. Clement, R. W. (2005). "The lessons from stakeholder theory for U.S. business leaders". Business Horizons 48(3), Downes, M., Russ, G. S. and Ryan, P. A. (2007). "Michael Eisner and his reign at Disney". Journal of the International Academy for Case Studies 13(3). Fang, S. and Kleiner, B. H. (2003). "Excellence at Toyota motor manufacturing in the United States". Management Research News 26(2/4), Food_Navigator_USA. (2008). "McDonald's trans fat removal shows scale of movement." [online] Retrieved 6th November 2008, from Freeman, E. and Reed, D. (1983). "Stockholders and stakeholders: A new perspective on corporate governance". California Management Review 25(3), Giroux, H. A. (2001). The Mouse That Roared: Disney and the End of Innocence. Lanham, MA: Rowman & Littlefield. Guardian. (2001). "BSE worries prompt McDonald’s warning." [online] Retrieved 6th November 2008, from Gupta, A. D. (2007). "Social responsibility in India: towards global compact approach". International Journal of Social Economics 34(9),

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References (continued) Independent. (2008). "Tesco shareholders reject TV chef's chicken welfare call." [online] Retrieved 6th November 2008, from Industry Week. (2008). "2008 IW 100 List by rank." [online] Retrieved 4th November 2008, from JCN Newswire (2008). "Toyota to Build Second Plant in India; New Toyota Motor Kirloskar Facility to boost Annual Local Capacity to 160,000". Japan Corporate News Network. 11th April Kurylko, D. T. (2006). "Sex scandal puts staid Toyota in the tabloids; Suit: Top U.S. official groped aide - and company did little". Automotive News. 1st May McDonald's. (2008a). "Values." [online] Retrieved 3rd November 2008, from McDonald's. (2008b). "Indian Menu." [online] Retrieved 5th November 2008, from Money Morning. (2007). "McDonald’s finds unique way to beef up presence in India." [online] Retrieved 5th November 2008, from Murphy, J. (2008). "Toyota Eyes India Market, Builds School To Get Edge". Wall Street Journal. 3rd November 2008, B1. Reuters. (2007). "McDonald’s raises annual dividends by 50%." [online] Retrieved 5th November 2008, from Sustainability Investment News. (2000). "Shareholders urge McDonalds to go GE-Free." [online] Retrieved 3rd November 2008, from Tesco. (2008). "About us." [online] Retrieved 6th November 2008, from The Hindu. (2007). "McDonald’s to strengthen home delivery services." [online] Retrieved 5th November 2008, from Times. (2006). "McDonald’s celebrates profit from new Menu." [online] Retrieved 5th November 2008, from Times of India. (2001). "US Hindus take on McDonald’s over French fries." [online] Retrieved 5th November 2008, from Trainer, T. (2002). "Two Common Mistakes About Globalisation". Humanomics 18(1/2), 1-6. Turner, J. J. and Wilson, K. (2006). "Grocery loyalty: Tesco Clubcard and its impact on loyalty". British Food Journal 108(11), Vaswani, K. (2007). "Disney forges deal with Bollywood." [online] Retrieved 7th November 2008, from Winfield, I. (1994). "Toyota UK Ltd: Model HRM Practices?" Employee Relations 16(1), World Bank (2008). "Globalization definition." [online] Retrieved 30th October 2008, from