Lesson 7-9 Flashcards
Explain the term corporate sustainability and responsibility
What is the definition of Corporate Social Responsibility
Firm´s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firms seeks
Explain the layers of the pyramid of corporate social responsibility
Give som details on CSR for multinations companies
What is the definition of a stakeholder?
A stakeholder is “any group or individual who can affect or is affected by the achievement of the organization’s objectives”
What is the difference between primary and secondary stakeholder groups?
- Primary stakeholder groups are those on whom the firm relies for survival and prosperity (e.g. shareholders, managers, employees, suppliers, customers, governments and communities)
- Secondary stakeholder groups are defined as “those who influence or affect, or are influenced or affected by, the corporation, but they are not engaged in transactions with the corporation and are not essential for its survival” (e.g. environmental groups such as Greenpeace, trade unions, non-government organizations (NGOs)
Explain why stakeholders matter? From an instrumental and normative view.
What actors can influence social change and how can they do that?
Mention some of the topics within CSR and some of the dilemmas related - how can this be solved?
Mention the generic CSR strategies
Reactive strategy: Many cost-conscious manufacturers ignore CSR
Defensive strategy: Argue against costs
Accommodative strategy: CSR as a worthwhile endeavor
Proactive strategy: Actively participate in policy discussions, build alliances with stakeholders and voluntarily go beyond what the regulations require
Explain the sustainability framework`?
What is the big dilemma in international trade? (Hint. companies in well developed countries exploit low wage and countries with less regulation) ICSR - iresponsible corporate social responsibility
Domestic versus overseas social responsibility:
Potentially increases corporate profits, provides employment to host countries and increases standards of living there
However, often domestic employees and communities pay the price for this expansion
Active versus inactive engagement overseas: To what extent should an MNC use threats or its power to impose its values in a country?
Race to the bottom (“pollution haven”) versus race to the top (“hyper-norms”?): Some companies may move to a country to escape environmental regulations
Mention the four generic strategy for organizational design. Competetive forces for local responsiveness and competetive forces for low cost.
Name the four generic structures?
Explain the INTERNATIONAL DIVISION STRUCTURE TO IMPLEMENT HOME REPLICATION STRATEGY
Use of an International Division:
- Home-replication strategy
- Firms’ initial expansion abroad, later often phased out
- Assures international focus receives top management attention
- Unified approach to international operations
Potential Problems:
- Foreign subsidiary managers in the international division are not given sufficient voice relative to the heads of domestic divisions
- The “silo” effect: International division activities are not coordinated with the rest of the firm, which focuses on domestic activities (e.g., products continue to be developed for the domestic marketplace, with international needs considered only after domestic needs have been addressed)
Explain the WORLDWIDE GEOGRAPHIC AREA STRUCTURE TO IMPLEMENT MULTI-DOMESTIC STRATEGY
Use of an Area Structure:
- Organizes the MNE according to different geographic areas (countries/ regions)
- Most appropriate for a multi-domestic strategy
- Its ability to facilitate local responsiveness is both a strength and a weakness
Potential Problems:
- While being locally responsive can be a virtue, it may also encourage the fragmentation of the MNE into highly autonomous, hard-to-control “fiefdoms”
Explain the WORLDWIDE PRODUCT DIVISION STRUCTURE TO IMPLEMENT THE GLOBAL STRATEGY
Use of a Global Product Division:
- Supports a global strategy (in treating each product division as a stand-alone entity with full worldwide responsibilities for its activities)
- Facilitates attention to pressures for cost efficiencies and reduction of inefficient duplication in multiple countries
- All support functions (R&D, marketing, etc.) are focused on the product
Potential Problems:
- It is the opposite of the geographic area structure
- Little local responsiveness
- Duplication of facilities, staff personnel, and corporate support functions within product divisions
- Division managers may pursue currently attractive geographical prospects and neglect others with long-term potential
- Suppliers and customers may be confused if several divisions call on them
Explain the GLOBAL MATRIX STRUCTURE AS ONE OPTION TO IMPLEMENT TRANSNATIONAL STRATEGIES
Use of a Global Matrix Structure
- Is often used to alleviate the disadvantages associated with both geographic area and global product division structures
- Is intended to support the goals of the transnational strategy
Potential Problems:
- In practice, it is often difficult to deliver
- May add layers of management
- May slow down decision speed
- May increase costs while not showing significant performance improvement
- Places employees in a position of being accountable to more than one manager
SUMMARizE THE FOUR GENERIC STRUCTURES
EXPLAIN THE FRAMEWORK OF INTERNATIONAL STRATEGY AND STRUCTURE GROWTH PATTERN
Explain the tool to determine what kind of multinational structure fits your company (highly relevant for our case).
Mention some common mechanisms of coordination, both formal and informal
Explain how different roles of a subsidary changes the coordination mechanisms.
Name some of a subsidiarys mandata based on Dunning typology
Knowledge governance:
Mention the 4 elements of knowledge governance
Strategic goals and subsidary types:
Mention the 4 different strategic goals and link these to subsidary Types
Mention some examples of organizational practice adaoption and some examples of the three headlines of Social Ceontext, Organizational Context and relational Context.
