Advertisement

External Affairs and the International Corporation

  • Derek F. Channon
  • Michael Jalland

Abstract

In the 1970s major multinational companies are being forced to reassess their relationships both with stakeholders such as employees, shareholders and suppliers, and with society at large, represented by governments, pressure groups and international institutions. Education, affluence, mass communications and many other locally significant factors have combined to make the various publics with which a corporation interacts more aware of the ways in which it influences their lives. The. increasing significance of the operations of multinational enterprises for many national economies has made such firms a natural focus for those interested in the economic social and ecological future of their country. Advocates of a New International Economic Order see international firms as key mechanisms for the redistribution of global wealth. The domination of important industries such as electronics, chemicals, oil and motor vehicles by relatively few major international companies has resulted in internationally coordinated surveillance of company operations.

Keywords

Corporate Social Responsibility Social Responsibility Host Country Transfer Price Corporate Citizenship 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Organising for Effective Public Affairs National Industrial Conference Board (New York, 1969).Google Scholar
  2. 2.
    C. Aguilar, ‘External Affairs at the World Headquarters Level of the US Based Industrial Multinational Enterprise, unpublished PhD dissertation, New York University, 1973.Google Scholar
  3. 3.
    For a discussion of these concepts see ‘From Strategic Planning to Strategic Management’, H. I. Ansoff, R. P. Declerck and R. L. Hayes (Wiley, 1976).Google Scholar
  4. 4.
    Social Science Research Council, The Social Responsibilities of Business (1976).Google Scholar
  5. 5.
    M. Friedman, Capitalism and Freedom (University of Chicago Press, 1962).Google Scholar
  6. 6.
    The Responsibilities of the British Public Company (Confederation of British Industry, 1973).Google Scholar
  7. 7.
    Similar three-level models of social reponsibility are proposed by J. Hargreaves and J. Dauman in Business Survival and Social Change (Associated Business Programmes, 1975) and T. P. Rogers, The Social Responsibilities of Business-Policy-Yes, Audit-No, MBS-CBR Occasional Papers (Manchester Business School, 1974).Google Scholar
  8. 8.
    J. Humble, Social Responsibility Audit - a Management Tool for Survival (Foundation for Business Responsibilities, 1973).Google Scholar
  9. 9.
    This section draws on D. H. Blake, ‘Measuring the Socio-Economic Impact on a Host Country: Practical Approaches to Identifying Particular Company Issues and Impact, Public Relations Journal May 1976.Google Scholar
  10. 10.
    Published with a covering statement as a British Government White Paper, Cmnd 6525, 1976.Google Scholar
  11. 11.
    A full list of topics is given in Figure 11.6.Google Scholar
  12. 12.
    Other international bodies working on codes include: The International Chamber of Commerce (Paris 1972), the Non-Aligned countries (Group of 77), the Organisation of American States, and the ILO.Google Scholar
  13. 13.
    International Confederation of the Free Trade Unions, Eleventh World Congress, Mexico, 1975.Google Scholar
  14. 14.
    Gulf repairs image with no-nonsense code and staff internal controls’, Business International 14 May, 1976.Google Scholar
  15. 15.
    J. Smith, ‘The Management of Social Responsibility in Multinational Companies and its Effect on Corporate Planning’. Unpublished MBA dissertation, Manchester Business School, 1977.Google Scholar
  16. 16.
    W. McClelland, And A New Earth (Friends Home Service Committee, London, 1976).Google Scholar
  17. 17.
    J. Smith, op. cit.Google Scholar
  18. 18.
    E. M. Estes, ‘General Motors and South Africa’, in R. Jackson (ed.), The Multinational Corporation and Social Policy (Praeger, 1974).Google Scholar
  19. 19.
    ‘Making Social Responsibility Pay’, International Management July 1977, pp. 18–21.Google Scholar
  20. 20.
    J. Smith, op. cit.Google Scholar
  21. 21.
    The Handbook of Corporate Social Responsibility - Profiles of Involvement, Human Resources Network (Chilton Book Company, Pennsylvania, 1975).Google Scholar
  22. 22.
    ‘A “Balance Sheet” that shows host countries what you do for them’, Business International, 20 June 1975.Google Scholar
  23. 23.
    See for example The Corporate Report (Accounting Standards Steering Committee, Institute of Chartered Accountants in England and Wales, 1975).Google Scholar
  24. 24.
    J. Smith, op. cit.Google Scholar
  25. 25.
    Self-Regulating Corporate Behaviour: Caterpillar’s New Code of International Conduct’, Business International 18 Oct, 1974.Google Scholar
  26. 26.
    J. N. Behrman and H. Wallender, ‘Transfer of Manufacturing Technology within Multinational Enterprises’ (Ballinger, Cambridge, Mass., 1976).Google Scholar
  27. 27.
    J. Smith, op. cit.Google Scholar
  28. 28.
    F. Harman and J. Humble, Social Responsibility and British Companies (Management Centre Europe, Dec 1974).Google Scholar
  29. 29.
    External Affairs: Blueprint for Survival’, Business International 1976.Google Scholar
  30. 30.
    I. Wilson, op. cit.Google Scholar

Copyright information

© Derek F. Channon with Michael Jalland, Manchester Business School 1978

Authors and Affiliations

  • Derek F. Channon
    • 1
  • Michael Jalland
    • 1
  1. 1.Manchester Business SchoolUK

Personalised recommendations