Thorne B&S 4e Student Ch12

8/10/2019 Thorne B&S 4e Student Ch12

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CHAPTER 12

Social Responsibility in a

Global Environment



Chapter Objectives

• To define cultural intelligence and its importance

• To discuss the global nature of stakeholder

relationships

• To examine the importance of national

competitiveness

• To describe the role of business in global

development

• To explore global standards for social responsibility

reporting



The expanding global marketplace

requires that executives andmanagers develop the ability to

conduct business effectively and

socially responsibly indifferent regions of the world.

The Global Marketplace



Cultural Intelligence

• The ability to interpret and adapt

successfully to different national,

organizational, and professionalcultures

• Three components:

– Cognitive – Motivational

– Behavioral



Using Cultural Intelligence (CQ)

• A person with high CQ is skilled at recognizing how one

individual is influenced by national, professional, and

organizational cultures. For example, there are multiple layers

of cultural effects to manage when an Irish manufacturing

process expert from a consulting firm works with a Croatianengineer for a government agency. The Irish expert would

have to interpret and act according to Croatia’s national

culture, laws and governmental system, the agency’s role and

scope, the engineering profession’s code of ethics, and theengineer’s personality and values.



Employee Issues in Global

Environment

• Wages and benefits relative to home country standards

• Attitudes toward employees from different genders and

ethnicities, especially in executive positions

• Existence of collective bargaining efforts• Laws and regulations for employee rights, health, and safety

• Norms of employee volunteering

• Availability and comfort with open-door policies and other

management practices



Consumer Issues in Global

Environment

• Laws and regulations on product safety and

liability

• Presence and power of consumer rights groups

• Respect for the product needs of subcultures

and minority groups

• Attitudes and accommodations for customerswith disabilities



Shareholder Issues in Global

Environment

• Laws and regulations regarding ownership and

corporate governance

• Stability and governance of stock exchanges

• Willingness and ability to participate in

shareholder meetings



Supplier Issues in Global

Environment

• Ethical and social considerations in the supply

chain

• Prices offered to suppliers in developed

countries and developing countries in

comparison to other suppliers

• Availability and attitudes toward minority

suppliers





Environmental Issues in Global

Environment

• Environmental law and regulations

• Availability of “green” electricity, recycled

materials, and other environmentally friendly

inputs

• Environmental expectations relative to those in

home country

• Use of natural resources to achieve business

goals



Global Reporting Initiative (GRI)

• Emphasizes consensus and continuous

improvement in developing and maintaining

the GRI Sustainability Reporting Framework,

which seeks to provide transparency

• Includes three categories of core indicators:

economic, environmental, and social

performance

Documents

Thorne B&S 4e Student Ch12