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Ivan Tri Bramantyo / 2012 190652
Global corporate citizenship
The term corporate citizenship broadly refers to putting corporate social responsibility
into practice. It entails proactively building stakeholder partnerships, discovering business
opportunities in serving society, and transforming a concern for performance into a vsion of
integrated financial and social performance.
As companies expand their sphere of commercial activity around the world,
expectations grow that they will behave in ways that ingance the benefits and minimize the
risk to all stakeholders, whereever they are. Global corporate citizenship is the process of
identifying, analyzing, and responding to companys social, political, and economic
responsibilities as defined through law and public society, stakeholder expectation, and
voluntary acts flowing fromcorporate values and business strategies.
In order to become leading citizens of the world, companies must establish
management proccesses and structures to carry out their citizenship commitments. The goal
of CSR management system is to integrate corporate responsibility concern into a companys
values, culture, operations, and business decisions at all levels of the organizations.
Companies have broadened the job of the public affairs office to include a wider range of
tasks. Others have created a departement of corporate citizenahip to centralize under common
leadership wide-ranging corporate functions.
Companies dont become a good corporate citizen overnight. It takes what it called 5
stages. First is elementary stage, in this stage, managers are uninterested and uninvolved in
social issues. Second is engage stage, in this stage, companies typically become aware of
chaning public expectations and see the need to maintain their license to operate. Third is
innovative stage, organizations may become aware that they lack the capacity to carry out
new commitments, prompting a wave of structural innovation. Fourth is integrated stage, in
this point, companies see the need to build more coherent initiatives. The last stage (fifth) is
transforming stage, companies at this stage have visionary leaders and are motivated by a
higher sense of corporate purpose.
A social performance audit is a systemic evaluation of an organizations social,ethical,
and environtmental performance. Standards to judge corporate performance have been
developed by a number of organizations. These are include the ISO, the global reporting
initiative social accountability, and the institute of social and ethical accountabilitys, etc.
in addition to formal social responsibility reports, organizations have turned to other
social reporting methods to communicate with their stakeholders.
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The Challenges Of Globalizations
Globalizations refers to the increasing movement of goods, services, and capital across
national borders. Globalizations is a process, that is, an ongoing series of interrelated events.
Firms can enter and compete in the global marketplace in several ways. Many companies first
build a successful business in their home country, then export their product or services to
buyer in other countries.
Global commerce has taken place for hundreds of years, dating back to the exploration
and colonization of africa, asia,and the americans by europeans beginning in the 15th
century.
Global commerce is carried out in the context of a set of important international financial and
trade institutions.the world bank was set up in 1944 to provide economic development lian to
its member nations. Its main motivations at that time was to help rebuild the war-torn
economics to europe. World Trade Organization founded in 1995 as a successor to the
general agreement on tariffs and trade.
Globalizations is highly controversial. One need only look at television coverage of
angry protests at recent meetings of the WTO, World Bank, and internation monetary fund to
see that not all people and organizations believe that globalization holds tremendous potential
for pulling nations out of poverty, spreading technological innovations, and allowing pople
everywhere to enjoy the bounty generated by modern business.
The benefits of globalizations is that globalizations tends to increase economic
productivity. That means, simply, that more is produced with the same effort. Comparative
advantage can come from a number of possible sources, including natural resources, the
skills, educations, or experience of a critical mass ofpeople,or an existing production
infrastructure. Globalization also tends to reduce prices for consumers. For developing
world,globalization also brings benefits. It helps entrepreneues the wold over by giving all
countries access to foreign investment funds to support economic development.
One of the cost of globalization is job insecurity. As business move manufacturing
across national borders in search f cheaper labor, workers at home are laid off. Also, weakens
environmental and labor standards, prevents individual nations from adopting policies,
promoting environmental or social objectives, erodes regional and national cultures and
undermines culture, linguistic, and religious diversity.
The many nationsof the world differ greatly in their political, social, and economic
systems. One important dimension if this diversity is how power are exercised, that is,the
defree to which a nations people may freely exercise their democratic rights. Democracy
refers broadlu to the presence of political freedom.
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Business-Government Relations
It is difficult for Westerners, and perhaps for the Chinese themselves, to grasp the
changes in Chinas business sector in the brief time period of the last thirty to thirty-five
years. Since the death of Mao Zedong, the ascendancy to power of Deng Xiaoping, and the
opening up at an accelerating pace of the Chinese economy to global trade and investment
flows, not only has Chinas GDP grown at truly unprecedented rates for such a large
economy, but the structure of the economy has changed dramatically as well. It has long been
assumed that a free market system must go hand-in-hand with a political democracy. But
China is challenging that theory by allowing its economy to develop in what has many of the
appearances of a capitalistic economy, all the while maintaining a very authoritarian and
powerful Communist central government.
In the developed countries of North America and Western Europe advocacy groups
play a critical role in the interdependency of the business and civil society spheres. Across the
spectrum of corporate social responsibility issues consumer issues, environmental issues,
human rights, governance, etc. there are voluntarily-formed advocacy groups that serve as
unofficial watchdogs and, often, organizational whistle-blowers, ready to raise a red flag of
criticism if the corporation strays onto a path or into a policy deemed inappropriate by the
group. Whether large, powerful, and well-funded organizations like AARP or much smaller,
more tightly focused ones like the Rainforest Action Network, the thousands of advocacy
groups in the West are an established and important part of the dynamic between business
and the broader society.
As noted above, it is the opening up of the Chinese economy that has gained the
worlds attention in recent years. Direct foreign investment is not only allowed but
encouraged, albeit with plenty of bureaucratic conditions still attached. Now, it is not unusual
for businesses to be owned privately, ownership shares are publicly traded on functioning
exchanges, product, manufacturing, capital, and labor decisions are made without a mandate
from the government. Still, it is important to remember that Chinas brand of free-market
capitalism does not yet approximate capitalism in the West. Many businesses even now are
owned and controlled by the government, which may also hold significant ownership stakes
in many other businesses which are nominally privately owned. Such stakes may not be
obvious at first glance; they may be held by provincial or local governments or by
government controlled agencies.