REVIEWER FOR LONG TEST

PHILANTROPHY AND SOCIAL INITIATIVES

TOPIC 8: CORPORATE SOCIAL CORPORATE PHILANTHROPY
RESPONSIBILITY -refers to the giving of the company’s profit directly
to charitable organizations or to individual in need
with the intention of helping and improving the
CORPORATE SOCIAL RESPONSIBILITY quality of life of the different corporate stakeholders
-is the long-term vow by business to perform within
the bounds of ethics and to contribute to economic BENEFITS OF CORPORATE
advancement at the same time improving the quality PHILANTHROPY (BUSINESS)
of life of the workforce and their families as well as - Enhances corporate reputation
of the local community at large - Improves relation with the government, the
community and the key stakeholders;
- Supports a company’s strategic business
PROS goals.
-businesses are the cause of social problems, they
should at least attempt to solve some of them BENEFITS OF CORPORATE
-Long-run self-interest – long term perspective that PHILANTHROPY (STAKEHOLDERS)
suggests corporations should conduct themselves in - Build employee morale
such a way in the present as to assure themselves of - Enlarges sense of community and social
a favorable operating environment in the future. obligations

-Business Resources BENEFITS OF CORPORATE

-Viability of Business PHILANTHROPY (COMMUNITY)
-Public Image - Improves quality of life of the community
-Profit from Social Problems members;
- Provides human and capital resources to
CONS non-profit organizations
-Profit maximization
Lack of Social skills
Lack of Social Accountability SOCIAL SCREENING OF INVESTORS
-Higher Product Cost - “Scare-Off From” Strategy
- “Balance with Benefit” Strategy
CSR PYRAMID (CARROLL’S CSR - “Whoever is the best” Strategy

SCARE OFF FROM STRATEGY (NEGATIVE

SCREENING)
-considered as the most rigid way of screening of
investments
-characterized by hard policies such as NO
INVESTMENT IN COMPANIES
- questionable environmental records
- engaged in child labor, discrimination
- uses animals in product testing
PYRAMID) - other anti-earth or anti-green policies

BALANCE WITH BENEFIT STRATEGY

(POSITIVE SCREENING)
-investments in companies that have strong records
in a particular area such as in the environment,
employee relations or diversity.
-screening individual companies in an industry on SINS OF WORSHIPPING FALSE LABELS
social and environmental grounds highlights the -implying that a product has third-party
records of individual firms relative to their peers endorsement or certification that doesn’t actually
exist often through the use of fake certification
WHOEVER IS THE BEST STRATEGY
-consid
-char
-NO INVESTMENT IN COMPANIES
- Questionable environmental records
- engaged in child labor, discrimination
- uses animals in product testing
- other anti-earth or anti-green policies

-Google, Microsoft, Walt Disney Company, BMW,

Lego

CORPORATE GREENWASHING
labels
GREENWASHING
-refers to the practice of companies characterized by
deceptively making it appear that their products,
services and policies are environmentally friendly.
TOPIC 9: ROLE OF THE GOVERNMENT
AND ITS IMPACT ON BUSINESS
ORGANIZATION
7 GREENWASHING SINS
SIN OF THE HIDDEN TRADE-OFF
ROLE OF GOVERNMENT IN BUSINESS
-labeling a product as environmentally friendly
- Consumer Protection
based on a small set of attributes when other
- Contract Enforcement
attributes not addressed
- Environmental Protection
- Investor Protection
SIN OF NO PROOF
- Employee Protection
-making an environmental claim without providing
easily accessible evidence on either the label or the
product website

SIN OF VAGUENESS
-use terms that are too broad or poorly defined to be
properly understood

SIN OF IRRELEVANCE
-stating something that is technically true but not a
distinguishing factor when looking for eco-friendly
products

LESSER OF 2 EVILS
-claiming to be greener than other products in its EMPLOYEE RIGHTS
category when the category as a whole may be
environmentally unfriendly
PRESSURE GROUPS
SINS OF FIBBING
-advertising something that just isn’t true
-an organized group that seeks to influence not only -Globalization is not simply a trend or a fad but,
government policy but also private enterprises rather, an international system
operating policy
ECONOMIC PRESSURE GROUPS ENTERING AND COMPETING IN THE
-Giant Private Corporations (Lucio Tan and the Sin GLOBAL MARKETPLACE
Tax Law) DEVELOP GLOBAL MARKET CHANNLES
-Professional Organizations – IBP, AGFO, PMA, -first build a successful business in their home
PDA, PICPA, UAP country, then export products or services to buyers
-Trade Associations in other countries
-Trade Unions
ESTABLISH GLOBAL OPERATIONS
PUBLIC PRESSURE GROUPS -locate manufacturing plants or service operations
-these are groups that represent a cluster of the in other countries as a way to cut costs
public on certain issues
- Green Peace International DEVELOP GLOBAL SUPPLY CHAINS
- PAWS -purchase raw materials, components, or other
- PETA supplies from sellers in other countries; work may
also be subcontracted
SECTORIAL PRESSURE GROUPS
-refers to groups which work to protect and advance
the interest of specific social groups in a certain MAJOR TRANSNATIONAL CORPORATIONS
society (TNCs)
-FEJODAP -defined by the United Nations as forms that control
-Gabriela assets abroad
-Migrante
-104,000 TNCs operate in the modern global
RELIGIOUS PRESSURE economy
-CBCP – (RH LAW) -they, in turn, have nine times that number of
affiliates (suppliers, subcontractors, and other
entities with which they have some business
MAJOR CAUSES OF ECONOMIC relationship)
INEQUALITY
- Culture and Religion -most global commerce is carried out by a small
- Technology number of powerful firms
- Education
- Globalization
- Wealth Considerations THE ACCELERATION OF GLOBALIZATION
-the world economy is becoming increasingly
integrated
-higher share of output is being exported
TOPIC 10: THE CHALLENGES OF across national borders
GLOBALIZATION -one fifth of all goods and services produced
worldwide is sold to other nations, rather than
THE PROCESS OF GLOBALIZATION domestically
-refers to the increasing movement of goods, - this is almost double the percentage of
services, and capital across national borders 1960
-is considered a process – an ongoing series of
interrelated events - In early years, most exports were of goods.
An important recent trend is the
-international trade and financial flows integrate the globalization of services, such as travel,
world economy, leading to the spread of technology, insurance, financial, and information
culture, and politics services.
DRIVEN BY SEVERAL FACTORS
INTERNATIONAL MONETARY FUND
-sister organization to World Bank, created at same
time
 TECHNOLOGICAL INNOVATION -purpose is to make currency exchange easier for
-easier to communicate with employees, member countries so that they can participate in
partners, and suppliers all over the globe in global trade
real time -lends foreign exchange to member countries
 TRANSPORTATION SYSTEMS -imposes conditions on governments that receive its
-improvements enable the fast and cheap loans
movement of goods and services from one -has begun to offer debit relief to some
place to another nations
 THE RISE OF MAJOR
TRANSNATIONAL CORPORATION
-bigger, well-capitalized, forms are better WORLD TRADE ORGANIZATION
equipped to conduct business across -founded in 1995, successor to General Agreement
national boundaries than small firms on tariffs and trade (GATT)
 SOCIAL AND POLITICAL REFORMS -international body that establishes the ground rules
-rise of Pacific Rim growth economies, for trade among nations
collapse of communism in central and -its major objective is to promote free trade;
eastern Europe have opened new regions to attempts to eliminate barriers to trade (quotas,
world trade duties, tariffs)
-conducts rounds of negotiation on various topics
-most favored nation rule means member countries
INTERNATIONAL FINANCIAL AND TRADE cannot discriminate against foreign products for any
INSTITUTIONS reason
-three institutions that set rules by which
international commerce is transacted:
 World Bank (WB)
 International Monetary Fund (IMF)
 World Trade Organization (WTO)
-no business can operate across national boundaries
without complying with rules set by the WTO
-many businesses in developing countries are
dependent on WB and IMF loans to survive

THE WORLD BANK

-established in 1944
-provides economic development loans to its
member nations
-funds used mainly for roads, dams, power plants, THE BENEFITS OF COSTS OF
pipelines, and other infrastructure projects GLOBALIZATION
-funding provided by member countries and -globalization is highly controversial
international capital markets -clearly, some benefit from globalization, while
-negotiates “structural adjustments plans” with other do not
countries it loans it
COMPARATIVE POLITICAL AND
-applies conditions on these countries ECONOMIC SYSTEMS
-conditions are considered by critics to lead to -nations differ greatly in their political, social, and
unfair burden on developing countries economic systems
-first important dimension to consider is how power -members of society satisfy most of their economic
is exercised and degree of democratic rights needs through voluntary market transactions
-past century has been marked by spread of
democratic rights to many nations for the first time CENTRAL STATE CONTROL
ECONOMIC POWER
-is concentrated in the hands of government
officials and political authorities
COMPARATIVE POLITICAL SYSTEMS -the central government owns the property that is
DEMOCRACY used to produce goods and services
– the presence of political freedom
CHALLEGES OF GLOBAL DIVERSITY
FOUR DEFINING FEATURES OF DEMOCRACY -diversity and complexity of systems that
(ACCORDING TO THE U.N.) transnational corporations face creates challenges
 Fair elections - If accompany business in a nation that does
 An independent media not grant women equal rights, should that
 Separation of powers among executive, company hire and promote women at work,
legislative, and judicial branches of even if it violates local laws and customs?
government - Should a company enter into a business
 An open society where citizens have the venture with a government-owned enterprise
right to form their own independent if that government has a reputation for
organizations to pursue social, religious, and violating its citizens’ human rights?
cultural goals
MEETING THE CHALLENGES OF GLOBAL
MILITARY DICTATORSHIPS DIVERSITY
-repressive regimes ruled by dictators who exercise NOTION OF CONSTRUCTIVE
total power through control of the armed forces ENGAGEMENT
-EX: Zimbabwe and Uzbekistan -By operating with strong moral principles,
-rights of citizens to organize for cultural or transnational corporations can be a force for
religious freedoms is restricted in others positive change in nations where they operate
-EX: Iran, Saudi Arabia
-according to United Nations estimates, 206 -In some circumstances this is not possible due to
countries still limit important civil and political extreme conditions, provoking dilemma
freedoms ▪ At what point do violations of political, human,
and economic rights become so extreme that a
COMPARATIVE POLITICAL SYSTEMS company cannot morally justify doing business in
-degree to which human rights are protected differs that country?
greatly among nations
-several international codes of human rights exist COLLABORATIVE PARTNERSHIP FOR
-most important one is United Nations GLOBAL PROBLEM SOLVING
Universal Declaration of Human Rights of 1948 -Emerging trend for development of collaborative,
-over half’s world nations have adopted multi sector partnerships focused on particular
these human rights covenants social issues or problems in the global economy
-still, many violations of human rights still occur: -these partnerships have been termed global action
recent genocides in Rwanda, Sudan networks, or GANS
-systems where minority groups and indigenous
peoples lack basic human rights, example Nepal INVOLVES 3 SECTORS
-business
COMPARATIVE ECONOMIC SYSTEMS -government
FREE ENTERPRISE SYSTEMS
-based on the principle of voluntary association and
exchange
-civil society