Global Corporate Governance, Social Responsibility
Although equated to philanthropic activities, today's investment by corporations in pro-social programs seek to create a social impact beyond building customer loyalty. With the society experiencing a myriad of issues, among them environmental sustainability and health issues, assuming an active role in activities of social contribution help enrich the host society. The focus of investing in corporate social responsibility traces to the pursuit of generating corporate value through increased business opportunities while enhancing the quality of social life. Channeling increased corporate commitment and resources to environmental and social responsibility yields strategic advantages upon which the organization can expand their business scope (Lawrence & Weber, 2011).
For that reason, it is evident that emphasizing a larger market presence and higher profits while disregarding the social value of the consumers, compromises the reputation of the corporation and thus denying its global competitiveness. However, accumulating corporate power of multinational corporations emerges from ethical conduct of their businesses to enhance the well-being of their host societies.
[...] While embracing corporate commitment to environmental responsibility, it is vital to acknowledge the presence of driving forces towards global environmentalism and green consumerism. Sindhi & Kumar (2012) recognizes that though organizations may not respond to pressure forcing environmentalism institutional forces and organizational dynamics tightly link together. This manifests itself in the Toyota environmental action plans. Firstly, this involves establishing low-carbon societies attained through reduced CO2 emissions, eco-driving 4 GLOBAL CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY 5 initiatives, environmental technology, utilization of renewable energy and developing lowcarbon production solutions. [...]
[...] Parallel to the struggle to accomplish sustainable growth of its businesses, Toyota performs the role of good citizenship by assisting the immediate community realize a healthy society. Toyota industries contribute proactively through expertise, funds and volunteer activities. The corporation development of the local communities to ensure society members attain active lives is attained through social welfare programs. These include engaging with persons with disability and conducting joint fund-raising through its consolidated subsidiaries (Toyota, 2014). Okoro (2012) asserts that global corporations operating through foreign businesses and joint ventures need to conduct their businesses through ethical mechanisms and promote the well-being of host societies. [...]
[...] Review of Environmental Economics and Policy, 240-60. Okoro, E. (2012, August). Ethical And Social Responsibility In Global Marketing: An Evaluation of Corporate Commitment to Stakeholders. International Business & Economics Research Journal , 11(8). Shimizu, J. (2010, December). CSR Report 2010: Create New Value and Contribute to the Creation of a Sustainable Society Even in Times of Great Change. Retrieved February from www.toyota-tsusho.com Sindhi, S., & Kumar, N. (2012). [...]
[...] In tandem with that rationale, Toyota aspires to help the wider community by pursuing initiatives where their employees execute its CSR policy. Here, it incorporates customers' views and opinion provided by members of the local community in pursuing their business. This enables the corporation attain social contribution by actively promoting and collaborating with both organizations and individuals, strengthening communities (Toyota, 2014). The corporation retains a global vision based upon its entrepreneurial spirit, embraced since its inception, prioritizing its desire of attaining positive contributions to the host communities rather than a prime pursuit for its financial objectives. [...]
[...] (2012). Is there a Coherence between Organizational Culture and Changes in Corporate Social Responsibility in an Economic Downturn? Baltic Journal of Management, 202-216. Lawrence, A., & Weber, J. (2011). Business and Society: Stakeholders, Ethics, Public Policy (13 ed.). New York: McGraw-Hill Irwin. Lyon, T., & Maxwell, J. (2008). Corporate Social Responsibility and the Environment: a Theoretical Perspective. [...]
using our reader.