Ivan Tri Bramantyo / 2012 190652 Global corporate citizenship The term corporate citizenship broadly refers to putting

corporate social responsibility into practice. It entails proactively building stakeholder partnerships, discovering business opportunities in serving society, and transforming a concern for performance into a vsion of integrated financial and social performance. As companies expand their sphere of commercial activity around the world, expectations grow that they will behave in ways that ingance the benefits and minimize the risk to all stakeholders, whereever they are. Global corporate citizenship is the process of identifying, analyzing, and responding to companys social, political, and economic responsibilities as defined through law and public society, stakeholder expectation, and voluntary acts flowing fromcorporate values and business strategies. In order to become leading citizens of the world, companies must establish management proccesses and structures to carry out their citizenship commitments. The goal of CSR management system is to integrate corporate responsibility concern into a companys values, culture, operations, and business decisions at all levels of the organizations. Companies have broadened the job of the public affairs office to include a wider range of tasks. Others have created a departement of corporate citizenahip to centralize under common leadership wide-ranging corporate functions. Companies dont become a good corporate citizen overnight. It takes what it called 5 stages. First is elementary stage, in this stage, managers are uninterested and uninvolved in social issues. Second is engage stage, in this stage, companies typically become aware of chaning public expectations and see the need to maintain their license to operate. Third is innovative stage, organizations may become aware that they lack the capacity to carry out new commitments, prompting a wave of structural innovation. Fourth is integrated stage, in this point, companies see the need to build more coherent initiatives. The last stage (fifth) is transforming stage, companies at this stage have visionary leaders and are motivated by a higher sense of corporate purpose. A social performance audit is a systemic evaluation of an organizations social,ethical, and environtmental performance. Standards to judge corporate performance have been developed by a number of organizations. These are include the ISO, the global reporting initiative social accountability, and the institute of social and ethical accountabilitys, etc. in addition to formal social responsibility reports, organizations have turned to other social reporting methods to communicate with their stakeholders.

The Challenges Of Globalizations Globalizations refers to the increasing movement of goods, services, and capital across national borders. Globalizations is a process, that is, an ongoing series of interrelated events. Firms can enter and compete in the global marketplace in several ways. Many companies first build a successful business in their home country, then export their product or services to buyer in other countries. Global commerce has taken place for hundreds of years, dating back to the exploration and colonization of africa, asia,and the americans by europeans beginning in the 15 th century. Global commerce is carried out in the context of a set of important international financial and trade institutions.the world bank was set up in 1944 to provide economic development lian to its member nations. Its main motivations at that time was to help rebuild the war-torn economics to europe. World Trade Organization founded in 1995 as a successor to the general agreement on tariffs and trade. Globalizations is highly controversial. One need only look at television coverage of angry protests at recent meetings of the WTO, World Bank, and internation monetary fund to see that not all people and organizations believe that globalization holds tremendous potential for pulling nations out of poverty, spreading technological innovations, and allowing pople everywhere to enjoy the bounty generated by modern business. The benefits of globalizations is that globalizations tends to increase economic productivity. That means, simply, that more is produced with the same effort. Comparative advantage can come from a number of possible sources, including natural resources, the skills, educations, or experience of a critical mass ofpeople,or an existing production infrastructure. Globalization also tends to reduce prices for consumers. For developing world,globalization also brings benefits. It helps entrepreneues the wold over by giving all countries access to foreign investment funds to support economic development. One of the cost of globalization is job insecurity. As business move manufacturing across national borders in search f cheaper labor, workers at home are laid off. Also, weakens environmental and labor standards, prevents individual nations from adopting policies, promoting environmental or social objectives, erodes regional and national cultures and undermines culture, linguistic, and religious diversity. The many nationsof the world differ greatly in their political, social, and economic systems. One important dimension if this diversity is how power are exercised, that is,the defree to which a nations people may freely exercise their democratic rights. Democracy refers broadlu to the presence of political freedom.

Business-Government Relations

It is difficult for Westerners, and perhaps for the Chinese themselves, to grasp the changes in Chinas business sector in the brief time period of the last thirty to thirty-five years. Since the death of Mao Zedong, the ascendancy to power of Deng Xiaoping, and the opening up at an accelerating pace of the Chinese economy to global trade and investment flows, not only has Chinas GDP grown at truly unprecedented rates for such a large economy, but the structure of the economy has changed dramatically as well. It has long been assumed that a free market system must go hand-in-hand with a political democracy. But China is challenging that theory by allowing its economy to develop in what has many of the appearances of a capitalistic economy, all the while maintaining a very authoritarian and powerful Communist central government. In the developed countries of North America and Western Europe advocacy groups play a critical role in the interdependency of the business and civil society spheres. Across the spectrum of corporate social responsibility issues consumer issues, environmental issues, human rights, governance, etc. there are voluntarily-formed advocacy groups that serve as unofficial watchdogs and, often, organizational whistle-blowers, ready to raise a red flag of criticism if the corporation strays onto a path or into a policy deemed inappropriate by the group. Whether large, powerful, and well-funded organizations like AARP or much smaller, more tightly focused ones like the Rainforest Action Network, the thousands of advocacy groups in the West are an established and important part of the dynamic between business and the broader society. As noted above, it is the opening up of the Chinese economy that has gained the worlds attention in recent years. Direct foreign investment is not only allowed but encouraged, albeit with plenty of bureaucratic conditions still attached. Now, it is not unusual for businesses to be owned privately, ownership shares are publicly traded on functioning exchanges, product, manufacturing, capital, and labor decisions are made without a mandate from the government. Still, it is important to remember that Chinas brand of free-market capitalism does not yet approximate capitalism in the West. Many businesses even now are owned and controlled by the government, which may also hold significant ownership stakes in many other businesses which are nominally privately owned. Such stakes may not be obvious at first glance; they may be held by provincial or local governments or by government controlled agencies.