Proud to be a business professor, business woman

But business gives us a regular set of raw materials for concern

Q: Do any recent examples come to mind?
Volkswagon
Drug company raising prices exorbitantly
Insider trading on fantasy sports sites

My background in corporate & consulting - Strategy

Need for strategy is driven by competition (rock-paper-scissors)
Competition is driven by globalization

So my goal today is to provide some context for the opportunities and challenges of global businesses today

Though we are typically talking about for-profit, try to think broadly about these topics as they relate to NFP and governmental agencies

Critical thinking opportunity (in pairs):

Q1. Why did Milton believe this? What did he get right?

Q2. What are the risks or downsides to his statement?

What are some of the non-economic responsibilities of firms?

ENVIRONMENT
Beneficial Products and Services
Pollution Prevention
Recycling
Clean Energy
Management Systems
COMMUNITY
Charitable Giving
Innovative Giving
Community Engagement
HUMAN RIGHTS
Indigenous Peoples Relations Human Rights Policies & Initiatives
EMPLOYEE RELATIONS
Union Relations
Cash Profit Sharing
Employee Involvement
Health and Safety Strength
Supply Chain Policies, Programs & Initiatives
DIVERSITY
Representation
Board of Directors
Work/Life Benefits
Women & Minority Contracting
Gay & Lesbian Policies
Employment of Underrep'd
PRODUCT
Quality
Benefits to Economically Disadvantaged
Access to Capital
GOVERNANCE
Reporting Quality
Public Policy

Irresponsibility is not just low Responsibility

ENVIRONMENT
Regulatory Problems
Substantial Emissions
Climate Change
Negative Impact of Products & Services
Land Use & Biodiversity
Non-Carbon Emissions
COMMUNITY
Community Impact
HUMAN RIGHTS
Burma Concern
Sudan Concern
EMPLOYEE RELATIONS
Union Relations
Health and Safety Concern
Supply Chain Controversies
Labor-Management Relations Controversies
DIVERSITY
Workforce Diversity Controversies
Representation
Board of Directors
PRODUCT
Product Safety
Marketing/Contracting Concern
Antitrust
GOVERNANCE
Reporting Quality
Public Policy
Governance Structures Controversies

Q: Can you think of any reasons why these might be separate?

May be good in one dimension & bad in another

Might use CSR as "insurance" against CSiR

Those stakeholders are powerful influencers of firm behavior


Legitimacy
Isomorphism


W Richard Scott, Stanford
Regulatory
Cognitive
Normative

Douglass North, Washington U St. Louis
Formal
Informal

Old INDUSTRIAL ORG model
Input --> Process --> Output

New STAKEHOLDER model

Q: What are some examples of firm Stakeholders?

The key is that Shareholders are critical
Businesses cannot run without Capital
In other words, just Revenue - Costs is not enough to grow and survive


But STAKEHOLDER model helps to balance and enlighten shareholders to consider longer-term not-immediately-economic impacts!

Q: What is "corruption"?
Q: How does it impact business & society?


2014 Corruption Perception Index (Transparency International)

http://www.transparency.org/cpi2014/



Q: Any interesting countries you see here?


Use COMPARE tool to compare countries of interest

Another informal institutional difference is culture
As Globalization students, you certainly get this!


Q: Who has experienced a cross-cultural situation of note?


Bring Taiwan towel

4,088 students from
104 universities in
42 different countries

Whitworth student team examples:
-Taiwan, France, India, Cameroon, Ukraine, U.S.
- UAE, Russia, Hong Kong, Estonia, U.S. 

Students work with their assigned global virtual teammates over an 8 week period to develop a detailed international business expansion proposal for a real company with a real problem.

In summary:

1. Every one of us will be involved in some aspect of "business"

2. If we want to change the world for the better, "business" - esp. MULTINATIONAL ENTERPRISES, are your greatest ally.

The key is to influence/provide accountability of a caring & involved STAKEHOLDER

to help balance/direct the energy & focus & expectations of the SHAREHOLDERS.