1. Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CHAPTER 6: Social Responsibility and NGOs

2. Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Key Terms  corporate social responsibility (CSR)  business ethics  ethical imperialism  cultural relativism  pollution  resource depletion  sweatshops  corporate corruption  dumping  predatory dumping  microcredit  non-governmental organizations (NGOs)

3. Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Chapter Objectives By the time you finish this chapter, you should be able to:  Assess positive and negative effects of MNCs on the countries in which they operate, including the impact on the norms and practices of local and indigenous cultures  Evaluate the ethical issues that arise for companies competing internationally in relation to the following groups: consumers, stakeholders, employees, the host country, and society as a whole  Analyze the way in which international development agencies and NGOs promote economic progress in developing countries continued on next page

4. Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Chapter Objectives, continued  Compare Canada with other countries with respect to cultural theories and viewpoints, as they relate to ethics in international business  Describe working conditions in various international markets  Explain how globalization creates the need for standardization of products, services, and processes (e.g., through the International Organization for Standardization)

5. Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. What is Corporate Social Responsibility? Corporate social responsibility ________________ _____________________________________ __________ The duty of a company’s ________________ _____________________________________ __________(human, material, and environmental), to advance the welfare of society, and to act as a good global citizen through its policies. Used under license from Shutterstock, Inc.

6. CSR  A business shows ____________________ (CSR) through their values, ethics, and the contributions it makes to communities.  CSR is driven by a desire to protect customers and to treat employees and shareholders fairly.

7. Corporate Social Responsibility  Corporate _____________depends on following socially responsible practices and principles that help them ______________ ________________________  Human rights  Environment  Human resources  Community relations

8. Examples ► ► ► MARKETPLACE Advantage  Human rights  Exploiting cheap labour (Sweatshops, Child Labour)  Gender equality, discrimination (Racial, Age, etc.)  Working conditions (Disability, Safety Practices)  Environment  Pollution restrictions  Waste management (Reduce, Recycle, Reuse)  Human resources  Upgrading skills, literacy rates (Google http://www.snopes.com/photos/architecture/google.asp ) http://www.snopes.com/photos/architecture/google.asp  Community relations  Marketing strategies  Charities, volunteering (Supporting Charities)

9. CSR – What Does It Mean? CSR is about business ______________________. CSR is about how companies manage the business processes to produce an overall _______________ ____________________ CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government

10.  The people (or groups) who are affected by the performance of an organization are called: __________________  Includes  Employees  _____________  Suppliers  Investors  _____________  Community, media, political parties, educational institutions, religious groups, special interest groups

11. Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.Stakeholders There are two types of stakeholders that a business must take into consideration: 1.__________________ 1.__________________directly affect the company and its profitability 2.______________________ 2.______________________have an impact on the company, but do not directly influence its success or contribute to profitability

12. You decide… CustomersSuppliers CompetitorsCreditors/Banks EmployeesLabour Unions ManagementShareholders Community Media Special Interest Groups Political Parties Courts

13. Corporate Social Responsibility – The Facts? There are not many solid ‘facts’ about corporate social responsibility because:  it is _________________  it is interpreted differently by different companies  it has no common standards with which to measure performance  it is selectively reported on

14. Industry Reporting… The number of companies reporting on their CSR activities has shot up in recent years, which at least demonstrates its growth in popularity as a PR tool. 94% of company executives believe the development of a CSR strategy can deliver real business benefits. Source: New Internationalist www.newint.org December 2007 - Issue 407www.newint.org

15. Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. What does CSR look like? Corporate social responsibility can be:  Making charitable _____________  Treating ____________ethically  Being _______________conscious  Ensuring ___________working environments  ____________local sports teams  Creating and promoting _________workplaces

16. Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. What is Corporate Social Responsibility? Benefits of CSR  Can be used as a _____________ tool  Discourage governments from implementing regulations that could interfere with business  _____________________ _____________________ _____________________ Criticisms of CSR  Costs __________, reduces profits  Uses employees’ time and energy  _____________________ _____________________ ___________________  A company may act ethically in one country, but not in another

17. Homework – choose 3 companies from p. 156 CORPORATIONCSR COMMITMENT Type of Project Stakeholder(s) Affected XYZ CorporationMedical research; Contributing to Terry Fox charitable sponsorship annually, employee volunteer fundraising…... Employees; special interest groups; shareholders; management; media; NGO’s; educational institutions; community ABC Corporation MNC Corporation