CHAPTER 3 Business and

Management in A
CLASS 10 Global Context
Dr. Howaida M. Barakat
Topic one:
Introduction to the global
business environment
3. Informal institutions: cultural,
social and ethical challenges

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CSR and Sustainability
Main Idea:
Companies support wider social and environmental goals beyond their own profit
goals.

What Is Sustainable Development?

“Development that meets the needs of the present without compromising the ability of future
generations to meet their own needs”

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What Kind of Changemaker Are you?

https://action.storyofstuff.org/survey/changemaker-quiz/

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 Willard (2012) Five-Stage Sustainability Journey:

A circular economy

‘Borrow-use-return’ business model

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 Borrow-Use-Return:

Trees produce more energy than they

consume and purify their own
wastewater

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 Dealing with Corruption
Businesses and individuals spend in excess of $400 billion a year worldwide on
bribes related to government procurement contracts alone.

Cuervo-Cazurra framework for corruption:

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 Importance of Corporate Governance

Poor governance leads to:

❑ Business losses
❑ Reputational damage
❑ Higher costs
❑ Deadlines not met
❑ Barriers to innovation

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 How Can Companies Fight Corruption?

❑ Tighter national and international rules and more certain punishments

❑ Non-state actors publishing guidelines and standards
❑ Clearer, detailed corporate directives and their policing
❑ Instilling stakeholder values militating against corruption.

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CASE STUDY
‘Marks and Spencer and corporate social responsibility’

To the
1.Why is the plan people,
A agenda soby the people,
important for theand
to Marks people
Spencer?
2.What do you see as the disadvantages and risks of giving ‘how we do
business’ such a central place in the company’s profile?
3.What could the company do even better?
4.Do you think the company’s approach is particularly profitable? How?

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Week 5 Question

Q U EST I ON

a. Outline two major theories of culture and assess their relevance and limitations when
applied to the conduct of international business.

b. Describe and assess the relevance of the main approaches to ethics in international
business

c. Describe what corporate social responsibility (CSR) is, the main approaches to CSR that
international businesses take, and the main challenges that CSR seeks to deal with.

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 Topic 1: Introduction to the global business environment
Next Class Chapter 1, Chapter 2 & Chapter 3: General Revision

05/10/2022 Dr. Howaida M. Barakat 13

Thank You
Dr. Howaida M. Barakat
Howaida.barakat@eue.edu.eg

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