International Strategy and Corporate Social Responsibility (CSR)

What is International Strategy?

A plan of action by which a business expands its operations into new global markets to achieve growth and competitiveness.

What are the main reasons for International Expansion?

Market Development, Economies of Scale, Diversification of Risk, Access to Resources, Competitive Advantage.

What are the main methods of International Expansion?

Exporting, Licensing, Franchising, Joint Ventures, Direct Investment.

What is Globalisation?

The increasing integration and interdependence of national economies through trade, investment, capital flow, labor migration, and technology.

What are the advantages of Globalisation?

Larger Market Access, Economies of Scale, Access to Technology, Diverse Labor Markets.

What are the disadvantages of Globalisation?

Increased Competition, Currency Fluctuations, Cultural Barriers, Political Risk.

What are Trade Barriers?

Restrictions imposed by governments on international trade to protect local businesses.

• Types:

  • Tariffs: Taxes on imported goods.

  • Quotas: Limits on the amount of imported goods.

  • Subsidies: Government support to local businesses to reduce costs.

What is Corporate Social Responsibility (CSR)?

A business's commitment to contribute positively to society, including social, economic, and environmental concerns.

What are the main elements of CSR?

Environmental Responsibility, Social Responsibility, Economic Responsibility.

What are the benefits of CSR for a business?

Enhanced Brand Image, Employee Motivation, Risk Management, Competitive Advantage.

What are the disadvantages of CSR for a business?

• Higher Costs: Ethical practices and sustainable sourcing may increase costs.

• Short-term Profit Sacrifice: Immediate costs may outweigh long-term benefits.

• Potential for Greenwashing: If not implemented genuinely, it can damage reputation.

How does CSR link to Competitive Advantage?

Companies that engage in CSR can differentiate themselves from competitors.

What is the Triple Bottom Line?

A framework for measuring business success through Profit, People, and Planet.

What is Ethical Trading?

Ensuring fair wages, safe working conditions, and ethical treatment of workers in supply chains.

What is Sustainable Development?

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

What is Social Audit?

An evaluation of a company's procedures, codes of conduct, and policies concerning social responsibility.

What are the main ethical considerations for international strategy?

1. Labor Standards: Ensuring fair wages and working conditions.

2. Environmental Impact: Reducing pollution and managing natural resources responsibly.

3. Cultural Sensitivity: Adapting to local customs and avoiding cultural insensitivity.

4. Anti-corruption Measures: Preventing bribery and unethical business practices.

How is CSR evaluated in a business strategy?

Through Social Audits, CSR Reporting, Stakeholder Feedback.