Three areas of activity some firms participate in regional national and

Three areas of activity some firms participate in

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Three areas of activity- some firms participate in regional, national and international policy; some firms build alliances with stakeholder groups; firms engage in voluntary activities. Number of proactive firms is a minority.
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Related Strategies: The resource-based view suggests that not all CSR activities satisfy the VRIO requirements Value: For example, firms can choose to appease environmental groups by purchasing energy only from “green” power sources. These activities can be categorized as social issue participation and may actually reduce shareholder value. Rarity: even a valuable resource is not likely to provide a significant advantage if competitors also possess it. Imitability: the social way of channeling organizational energy (at M&S for example) cannot be easily imitated Organization: numerous components within a firm (complementary assest) when combined with valuable, rare, and hard-to-imitate capabilities may enable a firm to fully utilize its CSR potential The impact of CSR on success of global firms: - Global sustainability : key goal of CSR; to meet the needs of the present without compromising the ability of future generations to meet their needs - The gap between the haves and have-nots has widened. The per capita income gap between developed economies and much the developing world has widened. - A rise in disasters and scandals has also called for the rise of CSR - MNEs that fail to engage are often criticized by NGOS - The legitimacy of business has fallen to levels not seen in recent history CHAPTER 5: International trade barriers: Tariff barrier - means of discouraging imports by placing a tax on imported goods, causes higher prices, imposed because it is expensive to politically organize geographically scattered individuals and firms in order to promote free trade. Nontariff barriers : relies on nontariff means to discourage imports o Subsidiaries - government payments to domestic firms Import quotas - restrictions on the quantity of imports Voluntary export restraints - because import quotas are protectionist pure and simple, countries have to shoulder political costs in today’s largely pro-free trade environment. VERs are international agreements
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that show that exporting countries voluntarily agree to restrict their exports Local content requirements - requirement stipulating that a certain proportion of the value of the goods made in one country must originate from that country Administrative policies -refer to bureaucratic rules that make it harder to import foreign goods. Antidumping dutie s-tariff levied on imports that have been “dumped” (selling below 1costs to “unfairly” drive domestic firms out of business). Two prominent economic arguments against free trade are 1. The need to protect domestic industries 2. The necessity to shield infant industries Political arguments against Free Trade 1. National security 2. Consumer protection 3. Foreign policy 4. Environmental and social responsibility
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