global corporate citizenship

Global Corporate Citizenship

Saurabh Kumar Kumar Ravi

MeghanaSwati

Rajnikant George 04/11/23 XIDAS Jabalpur 1

Global Corporate Citizenship

“Global corporate citizenship means that companies must not only be engaged with stakeholders but be stakeholders themselves alongside governments and civil society.”

Klaus Schwab, Executive Chairman, World Economic Forum, 2008

04/11/23 XIDAS Jabalpur 2

Corporate Citizenship From a management perspective the defines corporate

citizenship as the way in which the company understands, considers, and accounts for economic, social and environmental impacts in the design of its products and services, the management of its operations and its contribution to communities. Corporate citizenship encompasses the values, policies, practices and performance targets that guide a company's business strategy so as to ensure minimum negative impact on society while maximizing positive value and returns to both shareholders and society.04/11/23 XIDAS Jabalpur 3

Global corporate citizenship

Corporate citizenship in the 21st century is driving a major transition from a model that allowed unconnected activities — such as compliance with governance and laws, endorsing global standards promoting strong philanthropic and volunteer activities — to serve as surrogates for citizenship. The current global challenges of transparency, stakeholder expectations, accountability, trust and reputation require a strategic approach endorsed at the highest levels of the company and integrated and aligned throughout the business operation.


Difference between CGC and CSR


Core Principles of GCC

• Minimize harm,

• Maximize benefit,

• Be accountable and responsive to key stakeholders

• Support strong financial results


Global Corporate citizenship approach


Challenges of GCC

Public expectation Public expectation

Present corporate

Performance

Desired performance


A global view : GCC

• India CSR measure should focus on benefiting “people and

communities other than those whom they are contractually obliged to”, namely those “who are socially and economically disadvantaged”

- Shrivastava & Venkateswaran 2000


UK

The objective was to ensure that UK business take into account their economic, social and environment impact and address the key sustainable development challenge based on their core competencies wherever they operate- locally, regionally and internationally.


GCC Vision and strategy

• Promote business activates that bring economic, social and environmental benefits,

• Work in partnership with the private sector, community bodies, and other stakeholders,

• Encourage continuing development and application of best practice and

• Ensure decent minimum levels of performance in area such as health& safety the environment and equal opportunities.


Latin America • A move from philanthropy to strategic social

investment by developing information and analysis for benchmarking system, and leadership and capacity progammes to improve management processes.

• Primary object network of civil society and institution,Evolving intermediary structure and institution

&Providing links and partnership with established

business network.


USA

• In the united states, CSR trend involved in large part though the efforts of a few visionary leaders like Carnegie, ford, Hewlett and Packard. However CSR owes its growth to regulation. Beginning in the late 1960s and early 1970s the US govt. established regulatory agencies that shaped much of internal CSR benchmarking.

Osha (occupational safety and health admistration) CPSC (consumer product safety commission)EPA (environmental protection agency) etc


Europe

An increasing number of European companies are promoting their corporate social

responsibility strategies as responses to a variety of social, environmental and economic pressures. They aim to send a signal to various stakeholder with whom they interact employees, shareholder, investors, consumers, public authorizes and NGO.


Japan

In December 2001 the council of better corporate citizenship (CBCC) established a study group on the CSR required of multinational corporation.

In October 2002 nippon Keidnren (japan business federation) introduced certain measures in its charter of corporate behavior (established in 1991, revised in 1996 and 2002)

I. revised the charter of corporate behavior and its implementation guideline;

II. Establishing a system for promoting ethical conduct within corporations;III. Announced support for companies in the prevention of corporate

misconduct;IV. clarified and strengthened the measure Nippon Keidanren takes against

companies involved in unethical behavior.


Stages of CC

IElementary

IVIntegrated

IIIInnovative

IIEngaged

VTransforming

Capacity

Commitment

Coherence

Credibility


Drivers of GCC

• The increasing number of multinational corporations ,

• Complexity and interrelatedness of social, environmental and economic challenges;

• Emerging regulations in some markets


References

• Baxi C.V, Corporate social responsibility, 2005, Excel Book, New Delhi.

• www.bostoncollege .com • www.internationalcsr.org


http://www.internationalcsr.org/

global corporate citizenship

Business