Global Challenges, Sustainable Development, And Their Implications For Organization Performance

GRF 2nd One Health Summit 2013: Presentation by VIRAKUL, Prof. Busaya, National Institute of Development Administration (NIDA)

1. Global challenges , sustainable development , and their implications for organization p erformance Busaya Virakul , Ph.D., Associate Professor School of Human Resource Development (HRD), National Institute of Development Administration (NIDA) 2nd Global Risk Forum ( GRF) One Health Summit 2013 One Health - One Planet - One Future: Risks and Opportunities 17 - 20 November 2013 in Davos, Switzerland

2. Objectives This paper presents an overview model of organization performance which embeds corporate social responsibility (CSR), corporate governance (CG), and sustainability concepts at the strategic level.

3. Key words: Global challenges … any major trend, shock, or development that has the potential for serious global impacts (OCHA-PDSB, 2010, p. 4) Source : Geldorf , K. (2010, January). Global challenges and their impact on international humanitarian action. Retrieved, 20 October 2013, from https://docs.unocha.org/sites/dms/Documents/Global_Challenges_Policy_Brief_Jan10.pdf [UN Office for the Coordination of Humanitarian Affairs (OCHA)- Policy Development and Studies Branch (PDSB)]

4. 15 Global Challenges The 15 Global Challenges provide a framework to assess the global and local prospects for humanity. Source : The Millennium Project. (2010 ). Retrieved , 2 December 2012, from http :// www.millennium-project.org/millennium/challenges.html

5. Key words: Sustainable development Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (UNWCED,1987; the Brundtland Commission’s report - Our Common Future) Source: United Nations World Commission on Environment and Development (UNWCED). (1987). Our common future. Oxford, UK: Oxford University Press.

6. Key words: Corporate social responsibility (CSR) The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large (WBCSD, 2013, p. 3) Source: World Business Council for Sustainable Development (WBCSD), The. (2013). Corporate Social Responsibility: Making good business sense. Retrieved , 15 April 2013, from http:// www.wbcsd.org/work-program/business-role/previous-work/corporate-social-responsibility.aspx

7. Business and stakeholder relationships Business Government Employees Community Owner Consumers Local State Federal Unions Women Minorities Older employees Civil liberties activists Product liability threats Consumer activists Corporate raiders Private citizens Institutional investors General publics Environmental groups Source: Carroll, A. B., & Buchholtz, A. K. (200 6 ). Business & society: Ethics and stakeholder management. Mason, OH: Thomson-South Western. (p. 9)

8. Key words: Corporate governance (CG) or Good governance (GG) The formal system of oversight, accountability, and control for organizational decisions and resources (Ferrell, Thorne, & Ferrell, 2011, p. 89); Corporate governance deals with the rights and responsibilities of a company’s management, its board, shareholders and various stakeholders(OECD, 2013). Source : (a) Ferrell , O. C., Thorne, D. M., & Ferrell, L. (2011). Social responsibility business. Singapore: Cengage Learning . (b) Organization for Economic Co-operation and Development, The (OECD). (2013). Corporate governance principles. http :// www.oecd.org/daf/ca/corporategovernanceprinciples/frequentlyaskedquestionsabouttheoecdprinciplesofcorporategovernance.htm (Retrieved , 15 April 2013 )

9. Key words: Sustainability of organization An approach to business that considers economic, environmental, and social issues in balanced, holistic, and long-term ways that benefit current and future generations of concerned stakeholders (De Lange, Busch, & Delgado- Ceballos , 2012, p. 151; Elkington , 1999; UNWCED, 1987) Profits, Planet, and People – The Triple Ps Source: De Lange, D. E., Busch, T., & Delgado- Ceballos , J..(2012, October). Sustaining sustainability in organizations. Journal of Business Ethics, 110(2), pp. 151-156. DOI 10.1007/s10551-012-1425-0

10. Research framework Capitalism and consumerism are the current socioeconomic forces. The world has finite resources. We have already used up 30%-50% of natural resources belonged to our younger generations’. If business companies emphasize capitalism and consumerism to the fullest, the world may face many global challenges ahead.

11. Research framework Business has enormous power in either promoting or reducing people’s well being. Including interests of every stakeholder in a balancing way is a key approach for future business. Business organizations which practice such approach could sustain their existence in the long run.

12. The organization of the paper Global challenges as external factors impacting organizations Sustainable development: An approach to rectify major global problems Some selected cases pertaining to global challenges CSR, CG, and sustainability: The elements of an organization’s strategic plan A model of an organization’s performance embedding CSR, CG, and sustainability at the strategic level

13. Some selected cases Map Ta Phut Port/Industrial Zone Dawei Project Xaiyaburi Dam in Loas The Melamine Scandal in China in 2008 Extraction of natural resources in developing countries – Thailand, India, Myanmar, Indonesia, etc. T he global financial crisis of 2008 and the Barclays scandal in 2012

14. Source: http :// www.aljazeera.com/programmes/101east/2010/04/20104219545638882.html ALJAZEERA “Toxic Thailand ” Industrial pollution in Thailand can be deadly, but a new court ruling which has suspended 76 polluting projects is costing jobs and billions in lost revenue. On this episode of 101 East, we ask if Thailand can strike a balance between big business and the environment. Last Modified: 24 Apr 2010 11:55 GMT Accessed: 6 July 2013

15. Source: Thai Universities for Healthy Public Policies (TUHPP). (2011b). Map Ta Phut Episode 1: Map Ta Phut : A Blessing for All? Retrieved, 30 December 2012, from http://www.tuhpp.net/files/E1.pdf Map Ta Phut : A Blessing for All?

16. Protests against building Xaiyaburi dam and other dams along the Mekong River

17. “China 'sorry' after milk crisis ” BBC News, Last Updated : S aturday October 18 2008 17:59 GMT ; http:// news.bbc.co.uk/cbbcnews/hi/newsid_7670000/newsid_7677900/7677990.stm http :// news . bbc . co . uk / cbbcnews / hi / newsid_7630000 / newsid_7632000/7632039 . stm China's government has apologized after more than 50,000 children got sick from drinking milk that had chemicals in it . The Melamine Crisis, 2008 Melamine in the milk formula can damage kidneys Tesco have taken a brand of Chinese sweets off their shelves because of fears they could have a poisonous chemical in them .

18. Factors affecting the morality of managers Individual Peers Policy Superior Organization’s moral climate Industry’s moral climate Business’ moral climate Society’s moral climate International moral climate Source: Adapted from Carroll, A. B., & Buchholtz, A.K. ( 200 9 ). Business and society . Cincinnati, OH: South-Western College Publishing. (p. 311 )

19. Source: Mondy , R. W., & Noe , R. M. (2005). Human resource management . Upper Saddle River, NJ: Pearson Education International. (p. 8) Human resource management External environment Internal environment Legal considerations Labour force The Economy Technology Customers Competition Shareholders Unions Society Employee and labour relations Staffing Safety and Health Compensation and Benefits Human resource development Marketing Operations Finance Other functional areas The Environment of Human Resource Management

20. Strategic business plan for CSR Surrounding factors Globalization Technological changes Local/International laws and regulations Business competition Natural r esource conditions Stakeholders‘ expectations Organizational factors Moral motivation by CEO/ top management Financial/Performance motivation Stakeholders’ expectations CSR framework Employees Customers Stockholders Environment Business colleagues (Suppliers, partners) Communities Society Outcomes Stakeholders’ trusts Organization’s reputation/Rewards Financial benefits Competitive advantages Business leadership Community growth CSR activities Operation work - Employee welfares - Customer welfares Philanthropic work - Education - Arts & Culture - Sports - Environment - Public welfares Source: Virakul , B., Koonmee , K. & McLean, G. N. (2008). CSR activities in the award-winning Thai companies. (a) Paper presented at 7th International Conference on Corporate Social Responsibility , 3-5 September 2008, Durham Business School, England. (b) Social Responsibility Journal , 5 (2), pp.178-199.

21. Strategic business plan contains 4 elements: Business , CSR , CG , & Sustainability ---> to formulate Vision, Mission, Direction, and Business goals External factors Globalization/Global challenges Technological changes Local/International laws and regulations Business competition Natural r esources Stakeholders’ expectations Internal factors Leadership of CEO/ T op management Financial/Performance motivation Stakeholders’ expectations Organization’s resources Business activities embedding CSR, CG, & sustainability concepts Production, Sales, Finance, Marketing, Quality control Organizational management and development Monitoring & Evaluating performance Research and development Others. Outcomes Sustainable organization Stakeholders ’ trusts Organization’s reputation Financial benefits Competitive advantages Business leadership Community growth Evaluation and Reporting Business domain CSR domain CG domain Sustainability domain A model of business performance embedding CSR, CG, and sustainability at the stretegic level

22. Future research Appropriate indicators of organization’s performance having CSR, CG, and sustainability elements embedded at a strategic level. Approaches to enhancing employees’ understanding of embedding business, CSR, GG, and sustainability of organization at a strategic level. The relationships between organization’s performance and such practices. Critical issues in embedding business, CSR, GG, and sustainability of organization at a strategic level . Case studies of organizations practicing such approaches.