The Idea Of Business Citizenship in a Global Environment
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Posted On :
Apr-28-2011
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Article Word Count :
465
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Over the past two decades, the forces of economic globalization, political transformation and technological innovation have increased the global reach and influence of the private sector.
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Introduction
Over the past two decades, the forces of economic globalization, political transformation and technological innovation have increased the global reach and influence of the private sector. The number of transnational corporations has almost doubled from 37,000 in 1990 to over 60,000 today, with some 800,000 foreign affiliates and millions of suppliers and distributors operating along their global value chains. This process has conferred new rights and created new business opportunities for global corporations and large national companies, while also exposing weaknesses in national and global governance structures. It has also resulted in new competitive pressures and risks, and led to increased demands for greater corporate responsibility, transparency and accountability.
As a result, today’s business leaders face a complex and often contradictory set of stakeholder expectations. They are being called on to engage with activists as well as analysts, to manage social and environmental risks as well as market risks, to be accountable for their non-financial as well as their financial performance, and to cooperate as well as to compete, often with non-traditional partners, focused on unfamiliar issues. They are under pressure from governments, consumers, trade unions, non-governmental organizations and a small but growing number of their investors, to demonstrate outstanding performance not only in terms of competitiveness and market growth, but also in their corporate governance and corporate citizenship.
What is corporate citizenship?
The term ‘corporate citizenship’ runs the risk of being all things to all people. But it does have some easily identifiable elements too. The basic idea is to understand business as part of society, contributing directly to the welfare of society, rather than somehow separate from it. Whereas in the past the baseline of good behavior was ‘acting within the law’ across the company’s operations, newer aspirations range from the maxim ‘do no harm’ through to assessing ‘overall net impacts’. Companies need to go beyond simply obeying the law and making a competitive return for their shareholders if they are to respond to the challenge of citizenship.
Corporate citizenship invites companies to make strategic choices based on an understanding of the total impacts of their business in society. The practice of corporate citizenship involves focus on one or more of three main areas:
The societal impacts that flow from basic business policy and practice (as managed and measured through various codes of conduct, ‘values statements’ and company reports);
The impacts that a company has up and down the value chain (e.g. when child labour is employed by its suppliers; or when end consumers dispose of its products in ways likely to harm the environment); and
The impacts that come from the voluntary contributions those businesses make to communities affected by their operations (including charitable gifts, community investment and commercial initiatives in the community).
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Article Source :
http://www.articleseen.com/Article_The Idea Of Business Citizenship in a Global Environment_60755.aspx
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Author Resource :
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Keywords :
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Travel and Leisure
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Travel and Leisure
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