...International business, corporate social responsibility and sustainable development This article discusses the issue of corporate social responsibility (CSR) and the sustainable development which associate with international business (IB) and the multinational enterprises (MNEs) role in these matters. The social and environmental problems caused by international business have emerged for a period, however, they only being seen as an important issue under the pressure of global problems such as climate change, poverty, human rights violation and HIV. In this situation, MNEs have to play an appropriate role using their global activities and influences as these issues exist as both a problem and an opportunity for MNEs. In the modern globalization era, the landscape of international business is no longer like a decade ago or past few decades. Therefore, MNEs will need to adjust their internationalization strategy to better suit with today’s globalization challenges. CSR is now considered something to be taken into account in MNEs in order to compete better in market. CSR activities are gradually become important as they influence the core business of the firm and determine firm’s ability to grow, earn profit and sustain in the tough environment. Some firms are actually work hard with CSR in order to get the competitive advantages in managing international operation or earning a ‘pass’ to operate business in countries with different cultures and values or different institutional...
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...2007 Sustainable World In the late twentieth century, rapid development of information technology and products such as the PC, satellite and Internet became a driving force of globalization. The impact of globalization is reflected on weakening world governments in terms of decision-making and influence, and on the increasing power of multinationals. Data from the World Economic Forum (WEF) shows that among the largest 100 global economies, 51 of them are transnational groups and the rest are national states. Although businesses represent the lifeblood of a nation's economy, they place excessive demand on the natural environment in pursuit of growth and stress the earth's ecosystems. As a result, earth-protection groups are calling on transnational groups to take up environmental, moral and social responsibilities. "Sustainable Development" is widely considered the challenge facing corporations in the 21st century. One of the prerequisites to achieving sustainable development is by sincerely carrying out corporate social responsibility (CSR). In the past, a company’s responsibility was about maximizing profits for shareholders and fulfilling CSR through the tax paying mechanism; that was all about social responsibility. Nowadays the definition of CSR has shifted from acting egoistic to altruistic. For example, the World Business Council for Sustainable Development (WBCSD) defines CSR as "a business' commitment to contributing to sustainable economic development, working...
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...market while protecting the capital base. The balance of power has shifted between corporations and it is important to balance economic prosperity along with environmental and social dimensions. Sustainable business strategy represents a marked shift in traditional business practices and companies who do not adapt to the changes in these practices in order to achieve sustainable profitability will be more likely to face the brand value decline or even extinction in the future. For instance, the change represents the need to understand how all three dimensions affect each other and companies ought to consciously create new consumer preferences. However, a lot of companies still are missing guidelines to implementing a marketing strategy of sustainability as an essential part, which is at the core of ensuring organizational, social, economic and environment growth while managing overconsumption issues (White, 2011). Current researches tend to focus on developing a more sustainable approach on product design, pricing, promotion and distribution when it comes to the sustainable business strategy and companies are widely integrating this approach. On the other hand, the theoretical practices of promoting sustainable consumption in customer-citizens are an emerging potential for further development of sustainability. As a...
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...primary “responsibility” of business has only been finding ways to increase money which in turn would increase shareholder value. To put it differently, Corporate Financial Responsibility has been the driving force of most business, if not all. However, in the recent decade the driving force was redefined as Corporate Social Responsibility, which covers all social, financial and environmental responsibilities. 1.1 Corporate Social Responsibility Sir Geoffrey Chandler defines corporate social responsibility (CSR) as conducting transparent business practices that are based on ethical values, compliance with legal requirement, and respect for people, communities, and the environment. According to the Social Responsibility of the Businessman, CSR is defined as “the obligations of business to pursue those policies, to make those decisions or to follow those lines of action which are desirable in terms of the objectives and values of our society” (Bowen, 1953). 2.0 The potential of CSR in creating sustainable development The previous driving force had a great potential of exploiting the sustainability of this world at large. This is solely because when a company’s only purpose is to maximize profit at any economic, environmental or social cost. According to the Brundtland report sustainable development is interpreted as the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. The definition given by Brundtland...
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...Sustainability Media Journal 111857253 Xuxu Miao The concept of sustainable development spread first into the mainstream in the 1980s. These years, driven by internal and external factors, many corporations are beginning to integrate sustainability into their business models to gain competitive advantage in today’s market. This essay will introduce what forces the corporation to become sustainable and what corporation can do to achieve sustainability while listing an example of an ideal corporation in this term. Both of the external and internal drivers accelerate transformation towards sustainability for corporation. The worsening environment in China is prominent power for moving to sustainability currently. The push to clean up the country's air, land and water has forced company to transform its developing model. Though China has become the world's second- largest economy, it is still in the lower part of the world's industry chain and has a lot of industries with excessive energy consumption and high pollution. Due to social and economic factors, Hebei provincial government in January this year has banned approvals of new steel, cement, glass and nonferrous metal plants-these industries are both environment killers and economic drivers in Hebin (Jin Haixing 2014). It can be seen that these industries have to change their way of operation, which can add the most value with the least use of resources and pollution. Meanwhile, increasing public awareness of sustainability...
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...for the last decade and businesses have adopted a certain level of commitment towards sustainability practices (Hassini et al, 2012), yet some business tycoons suffer in developing an effective supply chain model. This report primarily discusses the issues that Wal-Mart is facing in establishing and maintaining a sustainable supply chain. The report outlines the company's origin and its progress in the years, followed by describing the issue it is faces. The issue described is related to Wal-Mart's failure to develop a Green sustainable process and the effects it has on the environment. 2.0 Company Background - Wal-Mart The idea of retail business grew very popular in the United States in the early 1950's, and Sam Walton, founder of Wal-Mart was convinced that people wanted more than just retail showrooms. Hence he opened his own retail store providing large discounts (Reuters, 2013). Over the years he spread his business across the United States and set up his first Wal-Mart store in 1962. In the next five years he opened 24 more stores and in 1969 Wal-Mart established itself as an incorporated company under the official name, Wal-Mart Stores Inc. (Wal-Mart Corporate, 2013). Phenomenal transformation of national retail business into global retail chains were witnessed in the two decades of 1980's and 1990's. In 1983 Sam's Club was established and was ranked in the top retail chains by the Forbes, a magazine. In 1989, the first Super centre of Wal-Mart was inaugurated. Later...
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...values and community identity, while still participating in the global economy. In New Zealand the importance of sustainability issues has been recognised by central and local government policies, environmental and economic development agencies, and business leaders. Two of the active business groups focusing on these issues are the New Zealand Business Council for Sustainable Development (NZBCSD) and the Sustainable Business Network (SBN). Waikato Management School is working in partnership with both of these key business groups on sustainability projects and events. The aim of these initiatives is to develop and share insights on sustainable economic development and sustainable enterprise success. The Waikato Management School is distinctive in its commitment ‘to inspire the world with fresh understandings of sustainable success’. These fresh understandings will be achieved through our high quality research that can influence policy makers, excellent teaching, through the knowledge and values our graduates take into the workforce, through our continued consulting with business and the outstanding experiences offered to everyone who connects with the School. We see education and research as key factors in enabling New Zealand to be a sustainable nation and sustainability as central to the future of business. Waikato Management School’s Research Programme The School’s research generates world-leading theory and practice-relevant research. The overall aim of the School’s...
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..."Sustainability" has come to have many different meanings. It's the latest buzzword among business, government, and nonprofit entities. Business leaders must be wondering if it's just the latest management fad of a concept that will fundamentally change how businesses are managed and measured. This paper is based on the notion that sustainability is more than a fad, but rather is creating a permanent shift in the very nature of business. Since the advent of the paradigm of sustainable development in the 1980s, the private sector has been shifting from a narrow economic conception of responsibility toward a comprehensive approach that attempts to balance economic objectives with environmental pressures and changing societal expectations (Robinson, 2000). The Brundtland Commission (World Commission on Environment and Development, United Nations, 1987) is generally credited with introducing "sustainability" in their report, Our Common Future. The report states that "Humanity has the ability to make development sustainable--to ensure that it meets the needs of the present without compromising the ability of future...
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...Sustainable development (SD) is a pattern of economic growth in which resource use aims to meet human needs while preserving theenvironment so that these needs can be met not only in the present, but also for generations to come (sometimes taught as ELF-Environment, Local people, Future[citation needed]). The term 'sustainable development' was used by the Brundtland Commission which coined what has become the most often-quoted definition of sustainable development as development that "meets the needs of the present without compromising the ability of future generations to meet their own needs."[1][2] Alternatively, sustainability educator Michael Thomas Needham referred to 'Sustainable Development' "as the ability to meet the needs of the present while contributing to the future generations’ needs."[3] There is an additional focus on the present generations responsibility to improve the future generations life by restoring the previous ecosystem damage and resisting to contribute to further ecosystem damage. Sustainable development ties together concern for the carrying capacity of natural systems with the social challenges faced by humanity. As early as the 1970s, "sustainability" was employed to describe an economy "in equilibrium with basic ecological support systems."[4]Ecologists have pointed to The Limits to Growth,[5] and presented the alternative of a "steady state economy"[6] in order to address environmental concerns. The concept of sustainable development is often...
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...definition is from the Brundtland Commission (1987), which states that sustainable development is “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Sustainability is, therefore, more of a journey than a destination wherein ideals, values and measurement metrics are in a constant state of evolution. The quest for sustainable development started with environmental concerns, and climate change has now become one of the biggest developmental challenges. As the Brundtland Commission had discovered...
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...certainly unique among large businesses in the UK. materiality and strategy In 2010, following consultation with different stakeholders, the Group Board agreed a new vision: ‘to build a better society by excelling at everything we do’. In pursuit of this, six aims are identified: to be a commercially successful business; to meet the needs of the customers and communities served; to respond to members and to share profits; to be an ethical leader; to be an exemplary employer; and to inspire others through co-operation. The key performance indicators underpinning strategy, together with progress, are presented within the Annual Report and Accounts 2 . The Sustainable Development Policy (page 10) and the Ethical Operating Plan (page 13) set out the need for business to develop in a more sustainable manner 3 . In managing and reporting on sustainability, activity is focused on the areas that are of greatest significance. The process for identifying those issues is complex and diverse, and, as set out in the diagram on page 12, subject to competing...
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...begins back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by th founder, Henri Nestlé. The company grew significantly during the First World War and again following the Second World War, expanding its offerings beyond its early condensed milk and infant formula products. In 2011, Nestlé was listed No.1 in the Fortune Global 500 as the world’s most profitable corporation. The Nestlé Corporate Business Principles are at the basis of the company’s culture, developed over 140 years, which reflects the ideas of fairness, honesty and long-term thinking. 2. Case analysis from following article : Nestle's commitment to sustainable business practices is part of the company's global business philosophy, Creating Shared Value. Core to the business model is working to ensure that the company is environmentally responsible and mindful of water and the other natural resources. (http://www.reliableplant.com/Read/24226/Nestle- commitment-sustainable-practices). “At Nestlé, we define sustainable development as the process of...
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...networks and infrastructure designed to be competitive, satisfy customer needs and have a lower environmental impact than traditional business models (p. 239) • Impacts on sustainability of a corporation • Drivers: Can provide access to new strategic markets opportunities, market trends and developments and potentially stay competitive as patterns of production and consumption are transformed. • Barriers: Fundamental cultural shifts are required. Markets and products may be hard to develop, consumers may resist. MGMT2001 - Corporate Sustainability 2 Context and Characteristics • Blurring of manufacturing and service: The role of services in providing value is ever more important. Added value is created by technological improvments, intellectual property, product image and brand names, aesthetic design and styling that differentiate and diversify products. Functional economy: Function is the key to customer‟s satisfaction – not products per se. Strategic design: a new approach for businesses in a turbulent market. • • MGMT2001 - Corporate Sustainability 3 Benefits for companies - Generally • • • • • See strategic new market opportunities, trends and developments. Stay competitive and patterns of production and consumption are transformed by environmental...
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...social, environmental (or ecological) and financial. The TBL dimensions are also commonly called the three Ps: people, planet and profit and are referred to as the "three pillars of sustainability". Interest in triple bottom line accounting has been growing in both for-profit, nonprofit and government sectors. Many organizations have adopted the TBL framework to evaluate their performance in a broader context (Elkington, 1994) Ethical Bottom Line theory condenses the Triple Bottom Line of Elkington (1994) framework and integrates the Stakeholder Theory. Brief Description of the Theory The theory condenses the Triple Bottom Line of Elkington (1994) framework and integrates the Stakeholder Theory. The theory supports the Sustainable Development Goals. Corporations are going to measure its financial performance on the basis of the integrated CSR approach – profit (economic), social, and environment. The theory assumes that a corporation is said to be profitable when it does not only profit...
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...Sustainable Companies Sustainable development is a concept that looks to meet “the needs of the present without compromising the ability of future generations to meet their own needs” (Lawrence & Weber, 2011, p. 223). Weyerhaeuser and The Stow Company are two companies that are known for their production of sustainable products and their commitment to social responsibility. Weyerhaeuser has been in the business of making wood products for over 100 years. During this time, their commitment to the sustainability of the environment has been unwavering. Weyerhaeuser has always been concerned with the sustainability of the forests that they log and as environmental concerns have arisen and technological advances have been made, they have adapted their sustainability goals to include such things as a 10 percent reduction of waste water discharge, a 40 percent reduction of emissions, a 20 percent energy efficiency improvements in their facilities, a 10 percent reduction in solid waste, and a supplier code of ethics (Progress towards sustainability, 2011). Weyerhaeuser’s efforts to improve their social responsibility commitments has helped them to increase their net sales, revenues, and net earnings despite the housing market slump over the past 5 years (Financial results, 2011). Weyerhaeuser’s vision and mission statement is “to release the potential in trees to solve important problems for people and the planet. We do this through strong leadership, unwavering values,...
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