Chapter 4: global corporate citizenship

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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