4) in appendix H. As stated under the explanation of CSV, a company should be valued based on the environmental, societal and financial values. This is being contradicted by this strategic focus. This is also motivated by the management structure of Heineken. Sustainability should be horizontally and vertically integrated in this structure to be able to implement the environmental, societal values on the same magnitude as the economic values. The organizational position of responsibilities towards sustainable development are shown in Figure 11: Governance model sustainability (Heineken N.V., 2015) in appendix H. The Corporate Affairs Committee is located in the Executive Committee and is represented by the Chief Executive Officer, Chief Corporate Relations Officer, Chief Supply Chain Officer, President Western Europe, Chief Marketing Officer and President Americas (Heineken N.V.).
- is analyzed by different scholars by focusing on CSR and the financial performance as well as the relationship between a firm’s internal characteristics and its external social performance ( Bhambri and Sonnenfeld, 1988). Hence, Jackson focused on instrumental motives that may drive the adoption of CSR practices, in an effort to reduce reputational risk and improve financial performance. Moreover, on the basis of both neo-institutional theory and comparative institutional analysis, his study examines how institutional factors influence the CSR practices across different sectors and countries. For example - how firms operate in a country which has strong stockholder impact? Their analysis using correlation matrix indicates that, firms adopt more CSR with in a country with strong stockholder impact for example – Germany.
4.1. Introduction The aim of this chapter is to present the corporate social responsibility and how the organisation is governed in Meggitt PLC along with its competitors. This chapter presents a theoretical outline on the roles of the governance in the organisation and the corporate social responsibility. Following this, the research recognises various inferences and pertinence to Meggitt PLC and its competitors (Airbus and BAE Systems PLC). 4.2.
CORPORATE SOCIAL RESPONSIBILITIES: Corporate social responsibility (CSR) has been defined as the approach of the business enterprise which takes in economic activities, legal obligations and social responsibilities. “…the company as having not just an economic role and responsibilities but also social, legal and ethical responsibilities...” (Morrison, 2009). It’s the way companies are responsible towards the communities and the environment they are operating. In the UK where Diageo PLC has its headquarters, the pressure comes more from the European Union through the implementation of different directives in support of the UN Guiding Principles for business and Human Rights. The commission believes that CSR is important not only for sustainability but also for competition and innovation purposes.
When we discuss about the impact of globalization on sustainability, we have to understand why we have “globalization” in world business and where we should pay attention in sustainable development. Globalization is an act that began to become popularized during the 1820s, and the term was established in the 1970s. (Wikipedia) Globalization highly involves cultural exchange as well as international trade, and it is the trend of moving businesses between both domestic and national markets to other markets around the world. (Investopedia) Thus, globalization is a course of event driven by international trade, which involves governments, people, and companies from various nations. (maturski.org) The four main aspects of globalization include ‘trade and transactions’, ‘capital and investment movements’, ‘migration and movement of people’, as well as ‘the dissemination of knowledge’.
(A02) C. Analyses key research findings of the following to quantify and develop an integrated business plan: marketing, operations and financial plans. (AO3) D. Evaluates the viability of the business plan in order to support a case for funds, based on an assessment of: relevant financial ratios; pay-back periods;
The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance. (OECD, 1999) However corporate governance has wider implications and is critical to economic and social well being, firstly in providing the incentives and performance measures to achieve business success, and secondly in providing the accountability and transparency to ensure the equitable distribution of the resulting wealth. The significance of corporate governance for the stability and equity of society is captured in the broader definition of the concept: Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources.
Realization of Sustainable Development Approach in Business The role of business is becoming critical for sustainable development because it has become a major player in generating wealth and in integrating global markets. In the post-liberalization scenario, the role of government to a large extent has reduced to that of a facilitator than that of a regulator in enforcing socio-environmental objectives in the business sector. The business sector now has to undertake voluntary and non-regulatory initiatives to meet the goals of sustainable development. This has given rise to a concept of corporate social responsibility, which now assumes greater significance to realize the goals of sustainable and balanced growth. The late 1990s and early
The increasing trend towards liberalization and globalization demands increased integration and the convergence to global environment reporting and accounting standards. Therefore it is not only important for the companies to be transparent, accountable and socially responsible but also to ensure adequate returns to the shareholders and satisfy various stakeholders and society at large about their conduct. The economic activities of corporate entities in different countries are causing concerns for planners, managers and the environmentally conscious people. Since the corporate continue to be the biggest consumers of environmental resources and hence they should shoulder greater responsibilities towards the environmental management. There is a pressing need to ensure that environmental concerns are woven into corporate actions and the best corporate governance practices.
Figure 1: Concept of sustainable development (from Adams, Eric, Jerome Connor, John Ochsendorf, 2006) Figure 1 above shows the famous three ‘pillars’ concepts of what seems the interconnection between economic, social and environmental in order to achieve sustainable development. The achievement of sustainable development is not only dependent upon the sustainability of the environment and its natural resources, but also on the level of economic