strategy
Promoting global corporate citizenship
Description:
The rights of global companies to operate "globally" must be accompanied by greater responsibilities - through the concept and practice of global corporate citizenship. Context:
Global companies occupy a critical phase in present development. Their decisions heavily influence the economic prospects of people, nations and, to a great extent, the future of the ecosystems of the planet. Increasingly questions are being raised on their role and responsibilities.Some of the world's most successful companies, including Shell, Nike, Union Carbide and Exxon, operating entirely within the law have experienced devastating public relations disasters due to negative public perceptions of their social responsibility. These perceptions have hurt the reputation and credibility of these companies,and correspondingly shareholder value.
The debate over global corporate citizenship revolves around a number of inter-linked issues, including: a) Corporate 'purpose' and objectives - e.g., is shareholder value the goal of a company or simply the means to achieve a higher purpose? b) Corporate governance and accountability - e.g., what are the responsibilities and obligations of companies to societies? c) Incentives - e.g., how can corporate objectives as well as environmental and societal objectives be more closely aligned? d) National and global governance - e.g., how can national governments and global institutions unleash the power of companies to achieve societal and environmental goals?
Claim:
A variety of corporate responsibility mechanisms have developed as companies realize that they ignore consumer demands at their peril. Codes of conduct, social auditing, cause related marketing, charitable donations and third party certification are several of the means available to managers wanting to differentiate themselves from their competition, attract consumers and open niche markets where consumer ethics are a significant factor. Counter Claim:
Is democracy necessary within firms and organizations, given that it can only be based on active citizenship and the involvement of everyone at all times? Broader:
Engaging global-local citizenshipPerforming corporate citizen tasksEnsuring corporate social responsibility Facilitates:
Enhancing business contribution Facilitated by:
Developing mythology of global leadershipEnhancing corporate environmental responsibility Subjects:
Type Classification:
E: Emanations of other strategies