International Business Flashcards
INTERNATIONAL BUSINESS
global, international, multicultural, foreign, or anything but domestic
–>Many are also the social, environmental, and ethical issues, arising from international business & management activities
- ->Corruption, offshoring, poverty, human rights abuses, and questionable environmental standards –> are all considered as global problems faced
- However, global business activity = has the potential to do good
–> Business = can become a global problem solver & considerably contribute to the sustainable development process of host countries
GLOCALLY RESPONSIBLE BUSINESS (GRB)
-is a business that is at the same time GLOBALLY & LOCALLY responsible–> which is able to create value for stakeholders around the world & in every location
–>Which actively addresses both global & local sustainability issues –> and which manages global moral issues & intercultural ethics successfully
—–>It is the aspired end goal of RESPONSIBLE international business & management –> which is as much globally valid as it is locally valuable and relevant
GLOCALIZATION
is a mixture of the words GLOBAL & LOCAL and describes global activities w/ a strong adaption to local circumstances
–>llustrates the need for responsible businesses to add value in both areas: the global, and the local one
GLOCAL
is used to describe the globally responsible activities that are strongly adapted to local environments
–>Often global challenges require local solutions (e.g., global air pollution problems, exhausted water resources, depleted forests, and diminished supplies of precious mineral resources for their manufacturing operations)
–>Glocally responsible business = must be able to both have a strong global responsible business strategy & successfully adapt it to local conditions
after read pg. 407 for the drivers
INTERNATIONAL BUSINESS
refers to all commercial transactions that take place between two or more countries
–> (much like governments and other organizations) operates in a system where the distribution of information and communication about responsible business performance = increasingly instant, transparent, and symmetric
what strategy should corporations have in social activities at a cross-national level?
Would locals feel that internal corporations = intruding in their territory?
We, therefore, adopt the following model & guidelines for making these kinds of responsible intercultural decisions
assessing a BUSINESS GLOBAL POSITION
means an organization = develops a comprehensive international strategy to create value with its products or services by assessing where it stands in international markets
–>Responsible management in such an assessment = creates value in the triple bottom line economically, socially, and environmentally –> during the process of developing its strategy
we can assess a company w/ reading the following descriptions and choosing one that fits most closely
read pg. 416
MODEL-BASED ASESSMENT
by Caroll, who adapted his responsibility pyramid framework to assess a business’s responsibilities w/ global stakeholders
–> The pyramid = focuses in the 4 categories of social responsibility & performance and places them in order w/ respect to global business stakeholders
based on the building block of economic responsibility
–> while businesses have an economic responsibility to shareholders –> they simultaneously have legal responsibilities, both domestically and w/ foreign subsidiaries
–>Besides economic & legal responsibilities –> the pyramid shows that ethical responsibility builds on economic and legal components –> w/ respect for & protection of stakeholders’ moral rights
–> ethical responsibility, if not codified into law –> identifies universal standards such as the UN Global Compact or the Global Reporting Initiative
PHILANTROPIC RESPONSIBILITIES
include discretionary social responsibilities of the business in the foreign country
–>Activities categorized as philanthropic responsibilities –> are not related to any of the other three responsibilities types
–>Managers = conduct them out of their own initiative
to build responsible business performance in practical terms –> the responsible manager = should strive to follow these (4) guidelines:
–>Make a profit consistent w/ expectations for international businesses
–>Obey the law of host countries as well as international law
–>Be ETHICAL in company practices –> taking host-country & global standards into consideration
Be a good corporate CITIZEN –> especially as defined by host country’s expectations
