Lesson 7-9 Flashcards
Explain the term corporate sustainability and responsibility
What is the definition of Corporate Social Responsibility
Firm´s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firms seeks
Explain the layers of the pyramid of corporate social responsibility
Give som details on CSR for multinations companies
What is the definition of a stakeholder?
A stakeholder is “any group or individual who can affect or is affected by the achievement of the organization’s objectives”
What is the difference between primary and secondary stakeholder groups?
- Primary stakeholder groups are those on whom the firm relies for survival and prosperity (e.g. shareholders, managers, employees, suppliers, customers, governments and communities)
- Secondary stakeholder groups are defined as “those who influence or affect, or are influenced or affected by, the corporation, but they are not engaged in transactions with the corporation and are not essential for its survival” (e.g. environmental groups such as Greenpeace, trade unions, non-government organizations (NGOs)
Explain why stakeholders matter? From an instrumental and normative view.
What actors can influence social change and how can they do that?
Mention some of the topics within CSR and some of the dilemmas related - how can this be solved?
Mention the generic CSR strategies
Reactive strategy: Many cost-conscious manufacturers ignore CSR
Defensive strategy: Argue against costs
Accommodative strategy: CSR as a worthwhile endeavor
Proactive strategy: Actively participate in policy discussions, build alliances with stakeholders and voluntarily go beyond what the regulations require
Explain the sustainability framework`?
What is the big dilemma in international trade? (Hint. companies in well developed countries exploit low wage and countries with less regulation) ICSR - iresponsible corporate social responsibility
Domestic versus overseas social responsibility:
Potentially increases corporate profits, provides employment to host countries and increases standards of living there
However, often domestic employees and communities pay the price for this expansion
Active versus inactive engagement overseas: To what extent should an MNC use threats or its power to impose its values in a country?
Race to the bottom (“pollution haven”) versus race to the top (“hyper-norms”?): Some companies may move to a country to escape environmental regulations
Mention the four generic strategy for organizational design. Competetive forces for local responsiveness and competetive forces for low cost.
Name the four generic structures?
Explain the INTERNATIONAL DIVISION STRUCTURE TO IMPLEMENT HOME REPLICATION STRATEGY
Use of an International Division:
- Home-replication strategy
- Firms’ initial expansion abroad, later often phased out
- Assures international focus receives top management attention
- Unified approach to international operations
- Foreign subsidiary managers in the international division are not given sufficient voice relative to the heads of domestic divisions
- The “silo” effect: International division activities are not coordinated with the rest of the firm, which focuses on domestic activities (e.g., products continue to be developed for the domestic marketplace, with international needs considered only after domestic needs have been addressed)