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 and
managers develop the ability to
conduct business effectively and
socially responsibly in
different regions of the world.
The Global Marketplace
Cultural Intelligence
The ability to interpret and adapt
successfully to different national,
organizational, and professional
cultures
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 Croatian
engineer for a government agency. The Irish expert would
have to interpret and act according to Croatias national
culture, laws and governmental system, the agencys role and
scope, the engineering professions code of ethics, and the
engineers 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 customers
with 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

Community Issues in Global
Environment
Norms of community relations and dialogue
Expectations of community service and/or
philanthropy
Rights of indigenous people
Availability and quality of infrastructure
(roads, utilities, schools, etc.)

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