Definition
• The extent to which businesses meet the legal, ethical,
economic, and voluntary responsibilities placed on them by
their stakeholders.
How it works
• Corporate citizenship involves action and measurement of the
extent to which a firm embraces the corporate citizenship
philosophy and then follows through by implementing
citizenship and social responsibility initiatives.
A Selection of the World’s Most Ethical
Companies
L’OREAL eBay
Starbucks Coffee Company Hospital Corporation of America (HCA)
Marks and Spencer Xerox Corporation
General Electric Company Eaton According to
T-Mobile USA Inc. Cummins
The
Ethisphere
PepsiCo Ford Motor Company Institute
ManpowerGroup Google Inc.
Colgate-Palmolive Company Gap, Inc.
International Paper Texas Instruments Incorporated
Adobe Systems Incorporated Waste Management
UPS Kellogg Company
Accenture Aflac Incorporated
Salesforce.com Safeway Inc.
Source: “2014 World’s Most Ethical Companies—Honorees,” Ethisphere, http://ethisphere.com/worlds-most-ethical/wme-honorees/ (accessed April 7, 2014).
Social Responsibility Issues
Employee Relations
Consumer Relations
Pollution
Sustainability Issues Alternative Response
Energy
Community Relations
Unemployment
Solve The Dilemma
Chapter 3
Business in a Borderless World
THE ROLE OF INTERNATIONAL BUSINESS
National
Boundaries
Services
Trading of
Buying
Goods
Selling
WHY NATIONS TRADE?
Absolute Advantage Outsourcing
Comparative
Advantage
Export
Trade
between Balance of
Countries Trade
Import
International Trade Barriers
Ethical, Legal,
Economic
and Political
Social and
• Economic • Laws and Culture
Development Regulations
• Exchange • Tariffs and
Rates Trade Technology
Restrictions
• Political
Trade Agreement, Alliances, and
Organization
GATT 1947
WTO 1995
Rule
Alliances
• NAFTA Organization
Funding • World Bank
• EU
• IMF
• APEC
• ASEAN
Getting Involved in International
Business
Exporting, Importing, Countertrade
Trading Companies (PT. Hao Sheng Trading)
Lisencing, Franchising (perusahaan menggunakan nama, produk, bhn baku,
proses, timbal balik fee atau royalty)
Contract Manufacturing (menggunakan perusahaan lain untuk produksi)
Outsourcing (memindahkan factor produksi, agar lebih efisien)
Offshoring (relokasi proses bisnis)
Joint venture (local partner untuk share cost n operasi bisnis)
Strategic Alliance (kerjasama perusahaan untuk competitive advantage)
Direct Investment (membuka cabang di luar dengan factor produksinya)
Contrast 2 Basic Strategies Used in International Business
Contrast 2 basic strategies used in international business
Products
Promotion
Distribution
Costumizing Brand ?
Sources:
•Bartlett, C.A. & Ghoshal, S. (1989). Managing Across Borders. The Transnational Solution. Boston: Harvard Business School Press.
•Harzing, A.W. (2000). An Empirical Analysis and Extension of the Bartlett and Ghoshal Typology of Multinational Companies. Journal of
International Business Studies.
Assess the opportunities and problems facing a small business
that is considering expanding into international markets
Solve The Dilemma (p.100) : Audiotech Electronics, founded in 1959 by a father and
son, currently operates a 35,000 square foot factory with 75 employees. The
company produces control consoles for television and radio stations and recording
studios. It is involved in every facet of production-designing the systems, installing
the circuits in its computer boards, and even manufacturing and painting the metal
cases housing the consoles. The company’s products are used by all the major
broadcast and cable networks. The firm’s newest products allow television
correspondents to simultaneously hear and communicate with their counterparts in
difference geographic locations. Audiotech has been very successful meeting its
customer’s needs efficiently. Audiotech sales have historically been strong in the
United States, but recently, growth is stagnating. Even though Audiotech is a small,
family owned firm, it believes it should evaluate and consider global expansion.
What are the key issues that need to be
considered in determining global expansion?