RPE Fact Flashcards
what is globalization
The geographic dispersion of industrial and service activities leads to the interconnection of business throughout the world.
Three advantages of globalization
- Encourages producers and consumers to reap benefits from deeper division of labour and economies of scale
- Enhanced growth has led to higher per capita incomes – and helped many of the poorest countries to achieve higher growth and reduce extreme poverty
- Consumers have a greater and cheaper choice
Three disadvantages of globalisation
1 Threats to the Global Commons e.g. threats of irreversible damage to ecosystems, land degradation, deforestation, loss of bio-diversity and the fears of a permanent shortage of water.
2. Poor behaviour of some global multinationals – exploitative conditions for low wage workers, tax avoidance, failure to address environmental issues. (lead to inequality)
3. Higher Structural Unemployment in countries where production has shifted to lower cost centres and affect loacal buisness.
Proper implementation of CSR could lead to?
Sales enhanced 20% and productivity increased 13% IO consultancy firm.
Costco wholesale
34.7 billion dollar
BP oil Spill
54% of the stock (2010)
Reinhardt
could only sustain supernormal profit, if and only if it could prevent competitors from imitating its strategy.
Amazon profit
514 billion
US buyer that prefer amazon
89%
Messick and Bazerman
Good ethical program will encourage a climate where employees can make better decision.
Ford Pinto
Fuel tank fault leading to fires if rear-ended
Grush/Saunby Report
Enron
“Mark to market” future anticipation of profit
Enron Whistle-Blowing
2001 Sherron Watkins Vice-President of Corporate developments at Enron (Empty Shell Company)
Alert CEO Internal Inquiry
2002 Testified
Four Element of CSR
Legal within law
Economic- responsible use of finance
Ethical- Act in accordance to ethical standard in other countries, even if it is legal
Philanthropic- Charitable Contribution
Fair trade product rose by
19% consistently throughout different year
What is tone at the top
General ethical climate created by the top executive
Triple Bottom Line
Social ,economics and Environmental