Chapter 4: global corporate citizenship

Total Flash Cards » 26

What are the stages of adjustment?


Honeymoon, culture schock, adjustment, mastery


What is cultural distance?


differences in religious beliefs, race, social norms (unspoken and spoken), language


What is administrative or political distance?


refers to historical and political associations (e.g., colony-colonizer links, common currency, trading agreements, political union (EU), etc.)


What is geographic distance?


differences in actual miles away from other country as well as within-country distances to borders, access to waterways, topography, country’s transportation and communication infrastructure


What is economic distance?


differences in wealth or income of consumers in foreign country


What does cultural distance impact?


consumer preferences


What does administrative or political distance impact?


the extent to which gov't will intervene in foreign affairs


What does geographic distance impact?


cost of transport


What does economic distance impact?


overall economic profiles and frequency of cross border trades


corporate citizenship


building stakeholder partnerships, discovering business opportunities in serving society, transforming a concern for financial performance into a vision of integrated financial and social performance


citizenship profile


companies whose citizenship profile best matches public expectations are most likely to benefit from strategic investments in corporate citizenship


global corporate citzenship


When a company does business in more than one country in this way, it is practicing global corporate citizenship. Corporate citizenship programs can be considered a strategic investment by the firm.


department of corporate citizenship


centralize under common leadership wide-ranging corporate citizenship functions


elementary stage


citizenship is undeveloped, obey the law & do not move beyond compliance, defensive: react when threatened, communication from company to stakeholder only


engaged stage


aware of public changing public expectations, begin to interact and listen to stockholders, top managers become invovled


innovative stage


structural innovation, departments begin to coordinate, new programs are launched, begin reporting efforts to stakeholders, external groups become more influential


integrated stage


need to build more coherent initiatives, may adopt triple bottom line measures, turn to external audits, ongoing partnerships with stakeholders


transforming stage


visionary leaders, higher sense of corporate purpose, partner with other organizations and individuals, address broad social problems and reach underserved markets


social performance audit


evaluation of organization's social, ethical, environmental performance; examines the impact of a business against its mission statement and behavior of other organizations and social norms; human resources, community, labor standards


What are the five stages of corporate citizenship?


elementary, engaged, innovative, integrated, transforming


social and environmental reports


comapnies in japan and UK have taken the lead in social reporting


balanced scorecard


four quadrants = people and knowledge, internal, customer, financial; need to track profress toward achieving organizational goals, alighn employee behvaior with organization's strategic objectives, communicate strateg to everyone in clear manner, measure performance at dif levels


triple bottom line


companies report (to stakeholders) financial results and environmental and social impacts




clear public reporting of an organization's performance to various stakeholders and full reporting of financial, social, environmental data


What are Kohlberg's levels of moral development?


preconventional, conventional, postconventional


What are Kohlberg's stages of moral development?


Stage 1: punishment and obedience

Stage 2: mutual benefit

Stage 3: interpersonal expectations

Stage 4: law and order

Stage 5: legal principles

Stage 6: universal moral principles