Corporate Social Responsibility (CSR)
Many multinational corporations operate in countries characterized by extreme poverty and inequality, inadequate or dysfunctional institutions, and undemocratic political systems. To what extent should multinational corporations contribute to improving social conditions in the economies in which they operate?
* Reputation Institute conducted a study that found 42% of how people feel about a company is based on their perceptions of the firm’s corporate social responsibility (CSR) and then ranked the firms with the best CSR.
* No. 1 Microsoft
* No. 2 Google
* No. 3 The Walt Disney Company
* No. 4 BMW
* No. 5 Apple
* No. 6 Daimler Mercedes-Benz
* No. 7 Volkswagen (May change due to recent scandal)
* No. 8 Sony
* No. 9 Colgate-Palmolive
* No. 10 LEGO Group
Task #1 - Choose a multinational company and describe how they are socially responsible
According to the Reputation ...view middle of the document...
What was originally disclosed to be a “defeat device” installed in half a million diesel-powered cars could affect as many as 11 million vehicles.
* The "defeat device" was a piece of software that allowed cars to exceed air pollution standards by as much as 40X.
* Chief Executive Martin Winterkorn resigned due to the emissions scandals.
Not Socially Responsible – In Brazil from 1962 to 1985 a subsidiary of Volkswagen was been accused of providing material support for torture conducted by the military dictatorship. It is estimated that around 6000 people were tortured at the VW Security Center in Sao Bernardo do Campo, near Sao Paulo. Another 434 had disappeared or were killed.
* In 1972 the Truth Commission was formed to investigate these allegations. The final report concluded that VW provided intelligence about their employees, handed over individuals to the Department of Political and Social Order and even financed pro-government paramilitary forces.
Not Socially Responsible - VW reported it has found "irregularities" in carbon dioxide emissions levels, which could affect around 800,000 cars in Europe these 800,000 European cars may have false CO2 levels.
* CO2 is a greenhouse gas, as opposed to the NOx involved in earlier allegations, which is a pollutant that causes lung disease.
* The irregularities that have now been found relate to the way in which CO2 emissions and fuel consumption were measured during the technical approval process for some models.
Task #3 - Describe several strategies that the company has when they enter another country
New Market Strategies
* VW modifies its business models in order to fit the social environment they are getting in to.
* VW will find skilled market research firms to inform them reliably about customer preferences so they can tailor products to specific needs and increase people’s willingness to pay.
* VW determines if there are enough raw materials and finished product to support the new venture.
* VW will screen large numbers of work candidates themselves because there aren’t many search firms that can do the job for them.
12 to 20 slides
5 to 20 minutes long