Global Corporate Citizenship
Introduction
Corporate citizenship involves the social responsibility of
Businesses and the extent to which they meet legal, ethical
and economic responsibilities, as established by
shareholders.
The goal
• To Produce higher standards of living
• Improve quality of life for the communities we do
business
• Maintain profitability for stakeholders.
Corporate Social Responsibility is the continuing
commitment by businesses
to behave ethically & contribute to economic
development while improving the quality of life of
the workforce & their families ,local communities
and
the society at large.
(World Business Council) 14 August 2012 3
Main focus of CSR
• Customers
• Employees
• Environment
• profits
Benefits of CSR
1. Improves public image:
Consumers and customers feel good to shop and give
Business to companies that help improve the community. By
Publicizing their efforts and letting the general public know
About their philanthropy, companies increase their chances
of becoming favorable and accepted in the public eye.
2. Increases Media Coverage
Having a strong CSR program can increase the chances
That a company gets news coverage. The more a company
invest in negative activities the media captures such and the
image of the company will be tarnished as bad news travels
faster. Positive publicity improves customer base
3. Boosts Employees Engagement
Employees would rather invest their talent and time in a
Company with a positive image a company that’s developing
the likelihood of its community members.
4. Attracts and retains Investors
Investors want to see their money used to develop the
likelihoods of those around in the communities, customers
and employees as a demonstration that they don’t
just care about profits. This in turn attracts continual support
form current and potential investors.
Global Corporate Corporate social
Citizenship responsibility
Focus on the core Focus on customers
business and community
Provision of quality Building roads
services
Quality goods Donations to schools
Good working Monetary donations
environment
Competitive salaries Donation of books
Provision of welfare Building houses
facilities
Flexible working hours Donation Food
hampers
Abiding by state laws Taking part in price
giving ceremonies
CSR PROGRAM PURPOSE IMPACT COMMUNITY ORGANISATION
BENEFIT BENFIT
Donation of Introduction Educational Educational Marketing
computers to of ITC enhancement. advancement image
community services in Equal learning Development Reputation
school rural schools opportunities of skills Value creation
BRAIN TEASER
[Link] Kwa Nokeng Oils motive in
investing highly in community
projects[10]
Discus any three projects from the list and
its positive impact in the society[10]
Dynamic business Environments
The business world is dynamic due to public and global demands.
Markets, technology and ways of production are constantly
changing. Companies have to develop new strategies in order to meet
ever evolving business environments and develop an understanding of
all internal and external factors that affect the day to day running's
of a business.
Globalization
As the world becomes one global playing field, the
environmental changes in countries affect business decision
and the performance of firms. There are changes in the
economic, business, social an cultural environments which
have brought a change in business firms and other
organizations.
FACTORS INFLUENCING BUSINESS
Macro business
These are all external factors that the company has no control
over but does affect the way business is run daily such as:
Political: the government of the community in which a
business operate may for example decide to increase taxes or
interest rates to be paid by companies operating. The
increment may have negative impact on the life of an
organization.
Economical: there are economic changes that impact on
organisations. E.g. increase in inflation rates which can be
Socio-cultural: countries in which organizations operates
differ in terms of market size, buying preferences and cultural
beliefs all play a role in business and strategic managers have
to keep this in mind.
Technology: global links have been established through
computers and internet connectivity that have enabled easy
and reliable communication with customers even beyond
borders. Companies that embrace technology benefit more
than those without.
Micro Environments
These are all factors that the company has control over and
can be used to the companies advantage:
Employees: these should be highly motivated and trained to
deliver beyond the companies expectations.
Consumers/customers: these are the keys to every business
and they need to be cared for.
Quality of goods, services and pricing need to be reliable and
reasonable, to have new customers and build continual
relationship with them.(royalty)
Shareholders: need return of their invested money and
Competitors: to keep the position on the market, every
business ought to outsmart its Competitors. This can be done
through the use of various strategies such as product
diversification.
Suppliers: build a strong relationship with all suppliers for
continual business.
Government: unlawful behavior and tax avoidance may be
punished by law, each company ought to meet all government
regulations and law to continue business within the country
they operate in.