foreign entry
Session 5
1. The institutional variations in ethical standards, CSR and sustainability issues.
Matten and Moon (2008)’s framework
Corporate governance refers to the system of structures, rights, duties, and obligations by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. It, also provides the means through which firms undertake ethical behaviors, CSR, and sustainability. ‘
A strong CSR helps recruit and keep good employees.
Can help differentiate the firm and enhance its brands.
Helps cut costs, as when the firm takes steps to minimize packaging, recycle, economize on energy usage, and reduce waste in operations.
Can helps the firm avoid increased taxation, regulation, or other legal actions by local government authorities.
Ethics are moral principles and values that govern the behavior of people, firms, and governments, regarding right and wrong.
Corporate social responsibility: Manner of operating a business that meets or exceeds the ethical, legal, commercial, and public expectations of customers, shareholders, employees, and communities.
Sustainability: Meeting humanity’s needs without harming future generations.
The sustainable firm pursues three types of interests: 1. Economic interests. 2. Social interests. 3. Environmental interests.
;
Matten and Moon (2008)
By implicit CSR we refer to the corporations’ role within the wider formal and informal institutions for society’s interests and concerns. Implicit CSR normally consists of values, norms and rules which result in (mandatory and customary) requirements for corporations to address stakeholder issues and which define proper
1. The institutional variations in ethical standards, CSR and sustainability issues.
Matten and Moon (2008)’s framework
Corporate governance refers to the system of structures, rights, duties, and obligations by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. It, also provides the means through which firms undertake ethical behaviors, CSR, and sustainability. ‘
A strong CSR helps recruit and keep good employees.
Can help differentiate the firm and enhance its brands.
Helps cut costs, as when the firm takes steps to minimize packaging, recycle, economize on energy usage, and reduce waste in operations.
Can helps the firm avoid increased taxation, regulation, or other legal actions by local government authorities.
Ethics are moral principles and values that govern the behavior of people, firms, and governments, regarding right and wrong.
Corporate social responsibility: Manner of operating a business that meets or exceeds the ethical, legal, commercial, and public expectations of customers, shareholders, employees, and communities.
Sustainability: Meeting humanity’s needs without harming future generations.
The sustainable firm pursues three types of interests: 1. Economic interests. 2. Social interests. 3. Environmental interests.
;
Matten and Moon (2008)
By implicit CSR we refer to the corporations’ role within the wider formal and informal institutions for society’s interests and concerns. Implicit CSR normally consists of values, norms and rules which result in (mandatory and customary) requirements for corporations to address stakeholder issues and which define proper