Chapter 17:	Leadership, Organization and Corporate Social Responsibility				Poorna Pal, MS MBA Ph.D. Glendale Community College Phone: (818)240-1000 x 5517 ppal@glendale.edu Office: SG-152 Office Hours: MWTTh: 3.15 - 5.15 PM (SG-152) or by appointment with your questions
		Overview Lecture Outline	Discussion Questions Test Your Knowledge
	Summary To respond to the opportunities and threats in the global marketing environment, organizational leaders must develop a global vision and strategy. Leaders must also be able to communicate that vision throughout the organization and build core competencies on a worldwide basis.  Global companies are increasingly realizing that the “right” person for top jobs is not necessarily a home-country national. In organizing for the global marketing effort, the goal is to create a structure that enables the company to respond to significant differences in international market environments and to extend valuable corporate knowledge. Alternatives include an international division structure, regional management centers, geographical structure, regional or worldwide product division structure, and the matrix organization. Whichever form of organization is chosen, balance between autonomy and integration must be established. Many companies are adopting the organizational principle of lean production that was pioneered by Japanese automakers.				Chapter Overviews, Outlines, Sample Questions Introduction to Global Marketing The Global Economic Environment Regional Market Characteristics and Preferential Trade Agreements Social and Cultural Environments The Political, Legal, and Regulatory Environments Global Information Systems and Market Research Segmentation, Targeting, and Positioning Importing, Exporting, and Sourcing Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances Brand and Product Decisions In Global Marketing Pricing Decisions Global Marketing Channels and Physical Distribution Global Marketing Communications Decisions I: Advertising and Public Relations Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, Special Forms of Marketing Communication Digital Revolution Strategic Elements of Competitive Advantage Leadership, Organization, and Corporate Social Responsibility
	Many global companies are paying attention to the issue of corporate social responsibility(CSR). A company’s stakeholders may include nongovernmental organizations; stakeholder analysis can help identify others.  Consumers throughout the world expect that the brands and products they buy and use are marketing by companies that conduct business in an ethical, socially responsible way.  Socially conscious companies should include human rights, labor, and environmental issues in their agendas.  These value may be spelled out in a code of ethics.  Ideological, societal, and organizations perspectives can all be brought to bear on CSR.

Overview

• Unilever, the global food and consumer packaged goods powerhouse, markets a brand portfolio that includes such well-known names as Axe, Ben & Jerry’s, Dove, Hellmann’s, and Lipton. The company has approximately 200,000 employees and annual sales of  $57 billion; Unilever can trace its roots, in part, to the northern English town of Port Sunlight on the River Mersey. There, in 1888, Lever Brothers founder William Hesketh Lever created a garden village for the benefit of his employees. Before retiring at the end of 2008, Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its heritage of sustainability and concern for the environment (see Exhibit 17-1). These and other values reflect Unilever’s philosophy of “doing well by doing good”.  Cescau’s vision of “doing well by doing good” manifested itself in other ways, too.  For example, he guided the company’s detergent business toward using fewer  chemicals and less water, plastic, and packaging.
   

• This chapter focuses on the integration of each element of the marketing mix into a total plan that addresses opportunities and threats in the global marketing environment. Business leaders today must be capable of articulating a coherent global vision and strategy that integrates global efficiency, local responsiveness, and leverage. The leader is the architect of an organization design that is appropriate for the company's strategy. The leader must ensure that the organization takes a proactive approach to corporate social responsibility.

Lecture Outline

Discussion Questions

1. Are top executives of global companies likely to be home-country nationals?

In a truly global company, the person chosen to the top executive job should be the best person for that job, irrespective of nationality, however, this question states “likely” and since top executives are often chosen by Boards of Directors, the “likely” answer is that most top executives would tend to be home-country nationals with some outside or overseas experience.

2. In a company involved in global marketing, which activities should be centralized headquarters and which should be delegated to national or regional subsidiaries?

As noted, global marketing activities expose the company to greater environmental diversity than domestic marketing activities. A geocentric orientation requires that control of some subsidiary operations be shifted to headquarters. Large companies may have global marketing product managers with staff authority. A primary task for a person in this position is to ensure that competence developed in individual country markets is leveraged worldwide.

3. Identify some of the factors that lead to the establishment of an international division as an organization increases its global business activities.

Top management commitment to global operations is a requirement for an international division. When international operations reach a certain critical mass, the business is complex enough to require a separate unit headed by a senior manager who oversees the activities of international specialists. The need to formalize a global scanning system also contributes to creation of the international division.

4. "A matrix structure integrates four competencies on a worldwide scale." Explain.

The matrix design is characterized by dual lines of reporting. Country subsidiaries provide country knowledge; functional staff in the areas of marketing, production, and finance provide functional competence, and corporate staff provide customer and industry knowledge. The key to the success of the matrix design is coordination and integration of knowledge and competency on a worldwide basis.

5. In the automobile industry, how does “lean production” differ from the traditional   assembly line approach?

Lean production tightly integrates the various elements of the value chain, including product design, supply, distribution, manufacturing, accounting, marketing, and management. Lean production enables all parties within the extended manufacturing enterprise to share information and resources in a team-oriented, multifunctional environment. As exemplified by Toyota Production System, lean production can result in dramatic improvements in efficiencies compared to traditional mass production. Lean production also results in fewer defects per vehicle while utilizing less factory space and smaller inventories of parts and components.

6. Identify some of the ways the global companies discussed in this text demonstrate their commitment to CSR.

At many companies, a formal statement or code of ethics summarizes core ideologies, corporate values, and expectations. GE, Boeing, and United Technologies are some of the American companies offering training programs that specifically address ethics issues.

At Johnson & Johnson, the ethics statement has been translated into dozens of languages for J&J employees around the world.

Starbucks founder and CEO Howard Schultz’s enlightened human resources policies have played a key part in the company’s success. Partners, as the company’s employees are known, who work 20 hours or more per week are offered health benefits; partners can also take advantage of an employee stock option plan.

7. Identify and explain the three dimensions that provide different perspectives on CSR.

The ideological dimension pertains to the things a firm’s management believes it should be doing. The societal dimension consists of the expectations held by the firm’s external stakeholders. The operational dimension includes the actions and activities actually taken by the firm.

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