1. Social Responsibility in a Global Environment
CHAPTER 12
Social Responsibility in a Global Environment

2. 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

3. The Global Marketplace
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.

4. Cultural Intelligence
The ability to interpret and adapt successfully to different national, organizational, and professional cultures
Three components:
Cognitive
Motivational
Behavioral

5. 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 Croatia’s national culture, laws and governmental system, the agency’s role and scope, the engineering profession’s code of ethics, and the engineer’s personality and values.

6. 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

7. 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

8. 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

9. 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

10. 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.)

11. 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

12. 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