the global context lecture 10 global corporate social responsibility

25
The Global Context Lecture 10 Global Corporate Social Responsibility

Upload: eric-campbell

Post on 29-Dec-2015

225 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: The Global Context Lecture 10 Global Corporate Social Responsibility

The Global Context

Lecture 10

Global Corporate Social Responsibility

Page 2: The Global Context Lecture 10 Global Corporate Social Responsibility

Lecture Objectives

• Define Corporate Social responsibility

• Identify corporate social responsibility issues in the global economy

• Propose ways in which business can respond to global inequalities

Page 3: The Global Context Lecture 10 Global Corporate Social Responsibility

Why this Topic?

• Globalization brings many pressures and problems

• Problems are partly, but not wholly linked to MNC conduct in international markets

• Globalization is a continuing process and so of continuing interest to ethics in business

Page 5: The Global Context Lecture 10 Global Corporate Social Responsibility

Corporate Social Responsibility

• The notion that corporations have an obligation to society to take into account not just their economic impact but also their social and environmental impact.

Page 6: The Global Context Lecture 10 Global Corporate Social Responsibility

Global CSR

• Whose standards?

– ETHNOCENTRISM

– CULTURAL RELATIVISM

Page 7: The Global Context Lecture 10 Global Corporate Social Responsibility

Codes of Conduct

ARE THERE UNIVERSAL PRINCIPLES?

– FREEDOM OF MOVEMENT

– OWNERSHIP OF PROPERTY

– FREEDOM FROM TORTURE

– FAIR TRIAL

Page 8: The Global Context Lecture 10 Global Corporate Social Responsibility

Codes of Conduct

– PHYSICAL SECURITY

– FREEDOM OF SPEECH AND ASSOCIATION

– MINIMAL EDUCATION

– POLITICAL PARTICIPATION

– SUBSISTENCE

Page 9: The Global Context Lecture 10 Global Corporate Social Responsibility

The UN Global Compact

FOUR AREAS

• HUMAN RIGHTS

• LABOUR STANDARDS

• ENVIRONMENT

• ANTI-CORRUPTION

Page 10: The Global Context Lecture 10 Global Corporate Social Responsibility

Corruption

• ‘Involves the behaviour on the part of officials in the public and private sectors, in which they improperly and unlawfully enrich themselves and/or those close to them, or induce others to do so, by misusing the position in which they are placed’

• (World Bank)

Page 11: The Global Context Lecture 10 Global Corporate Social Responsibility

What’s Wrong with Bribery & Corruption?

• REDUCES NATIONAL WEALTH BY DISTORTING THE MARKET

• DIVERTS RESOURCES FROM PUBLIC SERVICE PROJECTS

• UNETHICAL – ABUSE OF POWER

Page 12: The Global Context Lecture 10 Global Corporate Social Responsibility

What’s Wrong with Bribery & Corruption?

• UNDERMINES THE DEMOCRATIC PROCESS

• CAN DAMAGE THE ENVIRONMENT

Page 13: The Global Context Lecture 10 Global Corporate Social Responsibility

Business Risks

• LOSS OF REPUTATION

• RISK OF PROSECUTION

• NO COMPENSATION FOR LOST BUSINESS

• ONE BRIBE CAN LEAD TO ANOTHER

Page 14: The Global Context Lecture 10 Global Corporate Social Responsibility

Business Risks

• ADDS TO THE COST OF DOING BUSINESS

• MAKES DOING BUSINESS DIFFICULT

• LOSS OF TRUST

Page 15: The Global Context Lecture 10 Global Corporate Social Responsibility

Corruption

Page 16: The Global Context Lecture 10 Global Corporate Social Responsibility

Child Work

TYPES OF CHILD WORK

• ECONOMICALLY ACTIVE

• CHILD LABOUR

• HAZARDOUS WORK

Page 17: The Global Context Lecture 10 Global Corporate Social Responsibility

Child Labour

Page 18: The Global Context Lecture 10 Global Corporate Social Responsibility

Child Labour

WHY DO CHILDREN WORK?

• PUSH FACTORS

– POVERTY

– LACK OF EDUCATIONAL OPPORTUNTIES

– FAMILY BREAKDOWN

– CULTURAL PRACTICES

Page 19: The Global Context Lecture 10 Global Corporate Social Responsibility

Child Labour

WHY DO CHILDREN WORK?

• PULL FACTORS

– CHEAP LABOUR

– OBEDIENT LABOUR

– NIMBLE FINGERS

– INADEQUATE/UNPOLICED LAWS

– POOR INFRASTRUCTURE

Page 20: The Global Context Lecture 10 Global Corporate Social Responsibility

What’s Wrong With Child Labour?• DENIAL OF HUMAN RIGHTS

• STEALS CHILDHOOD

• PREVENTS EDUCATION

• EXPLOITED THROUGH LOW OR NO WAGES

• POOR CONDITIONS OFTEN LEAD TO HEALTH PROBLEMS

Page 21: The Global Context Lecture 10 Global Corporate Social Responsibility

What’s Wrong With Child Labour?

• PERPETUATES POVERTY

• SWELLS LABOUR SUPPLY AND REDUCES WAGES FOR ALL

• CAN REDUCE ADULT EMPLOYMENT OPPORTUNITES

• LONG TERM COST TO SOCIETY

Page 22: The Global Context Lecture 10 Global Corporate Social Responsibility

Why worry?• Ethical problems in global business can leave long-

lasting stains on corporate reputations– Nike– Gap– Coca-Cola– Nestlé

• Obvious damage to expensively-created brand value– Worldwide media, increasingly decentralised

• Possible competitive disadvantage– Bad news demotivates more than good news

motivates

Page 23: The Global Context Lecture 10 Global Corporate Social Responsibility
Page 24: The Global Context Lecture 10 Global Corporate Social Responsibility

De George’s Code of Conduct• Do no intentional direct harm

– Act so as to benefit the host country– no utilitarian trade-offs;

• The good of the host country may not be the same as the good of the current regime

• Respect the human rights of workers, consumers and others in the host country

• Promote the development of just background institutions, within the host country and internationally

• Respect the laws of the host country as well as its culture and values, provided these do not violate human rights or impose immoral laws

De George, R T (1998), Business Ethics, Prentice Hall

Page 25: The Global Context Lecture 10 Global Corporate Social Responsibility

Any Questions ?