Coorporate Social -Davani

8/14/2019 Coorporate Social -Davani

1/49

1

CORPORATE SOCIALRESPONSIBILITY IN

GLOBALIZATION

Dr.Gholamhossein Davani

Chairman of Dayarayan Auditing &Financial Services Firm))RSMi Iran

Member of High council of Iranian association of Certified)Public Accountants )IACPA

IMA,IIA,AAA,BAA,EAA,CAAA,AIA,CFE


2/49

2

Ladies & Gentlemen.

I am very glad to have the opportunity tospeak at this conference, as it gives me the

chance to stress the importance of the

corporate social responsibility inglobalization.


3/49

3

Population=6,525,000,000

GDP= $43,920,000,000,000

Oil Product= 79,650,000 )BBI/day

Oil proved reserve )BBI= 1,349,000,000,000

Purchasing Power Party )PPP= $ 59,590,000,000,000

Export= $ 10,320,000,000,000

Import= $ 10,270,000,000,000

Labor Force )Person= 3,001,000,000

Oil Consumption )BBI/Day= 80,100,000

Internet users= 1,018,057,389

Telephone- mobile cells= 1,752,183,600

Debt-external= $38,540,000,000,000

Natural Gas- Proved reserves )Cu-m= 174,600,000,000,000

Natural Gas-Export )Cu-m= 667,600,000,000

Daily transaction= S 1,300,000,000,000 )60 times of industrial goods

CHIP= Clearing House Inter-banks Payment System Every Minutes 2 B.US

Every day = $1,000,000,000,000Daily transaction= $ 1.300.000.000.000 )60 times of industrial goods

CHIP= Cleaning house inter banks payment system every minutes 2 B. US Dollars

Everyday= $ 1.000.000.000.000

World at a glance 2006


4/49

4

Telephone

1,206,315,500Internet users

1,018,057,389

Airplane

49,024

Roadway

32,345,165KM

Railway

11,115,205KMWorlds import

10,270

Billion USD

World export

Billion USD 10,320

Gas Proved Reserve

)Cu-m 174,600,000,000,000

Gas Import

828,000

)Cu-m

Gas Exports

667,600,000,000

)Cu-m

Gas- consumption

)Cu-m 2,820

Oil- proved reserve

)BBI 1,349,000,000,000

Oil production

)BBI/day 79,650,000

Oil Consumption

80,100,000

)BBI/day

Oil export

7,920,000

Bbi/day

Labour force

3,100,000,000

Mobile cell

1,752,183,600

World at a glance 2006


5/49

5

Outlook of world 2006

835,000,000,000

26,620,000,000,000

2,350,000,000,000

12,770,000,000

589,000,000,000

279,100,000,000,000

39,640,000,000

5,451,000,000,000

7,335,000,000

172,200,000,000,000

Gas reserve

5,600,000,0002,450,000758,0001,0953,6693,40077720India

135,500,001,510,0003,979,000685528,10055178Iran

16,100,000,0006,534,0003,631,0001,3138,1826,3007521,790China

144,300,0001,977,00077,690621,82230,0004432,067France

4,500,000,0001,827,0002,075,000601,86930,9003272,218UK

39,600,0002,650,000167,400822,45429,8001,0162,747Germany

29,290,0005,353,000120,6001273,91430,7005504,848Japan

22,450,00020,730,0007,610,00029812,41042,00092712,470USA

7,335,000,00014,700,0003,172,00048612,180454351,31813,310Euro

1,326,000,000,00082,590,00083,000,0006,52559,59047,76610,32043,920World

Oil reserveOil BBI/DayOil product

BBI/DayPopulation

GDP

Purchase

per

capital

GDP

Percent

Current price

Export

Billion

GDP

Official rate

Billion


6/49

6

World Military expenses 2006

4/3Iran

19India

35Germany

42UK

44Japan

45France

81China

518USA

Source: CIA Fact book 2006


7/49

7

6,30028,10042,000---$ GDP )Per capital PPP

1,79013,31012,47043,920)$ GDP)Billion

7521,31892710,320)$ Export)Billion

ChinaEUUSAWorldDescription

Big world economic 2006


8/49

8

What is Globalization

Globalization as a decoupling of space and

time, emphasizing that with instantaneouscommunications, knowledge and culture

can be shared around the world

simultaneously. Sociologist, Anthony Giddiness


9/49

9

)Global village )one world list

Global village is a term coined byWyndham lewis

in his bookAmerica and comic man )1948 butHerbert Marshall Mcluhan )1911-1980. Also

wrote about this term in his bookThe making of

typographic Man) )1962


10/49

10

Globalization is an umbrella term which refersto complex of economic, trade, social,technological, culture and political.

Global village idea is Electronicinterdependence when electronic media

replace visual culture.


11/49

11

)Elements of Global village )one-wordlist

Convergence

UniformityHomogenization

Hyper-liberalism


12/49

12

The History of Globalization

Globalization is an historical process that began

with the first movement of people out of Africa intoother parts of the world. Traveling short, then longer

distances, migrants, merchants, and others have

always taken their ideas, customs, and products into

new lands. The melding, borrowing, and adaptationof outside influences can be found in many areas of

human life.


13/49


14/49

14

World Great Transformation

Fire Discover

Invention of Gun Invention of Printing Invention of Machine Invention of Computer Invention of InternetVirtual Organization


15/49

15

Arising New Globalization

Globalization is a process

that has been going on forthe past 5000 years, but it

has significantly

accelerated since thedemise of the Soviet Union

in 1991.


16/49

16

Timeline of GlobalizationAge of Imperialism-1900

Great Depression- 1929

World Economic Forum )WEF-1971

1986-Dwellers landGeneral Agreement on Tariffs and Trade )GATT-1986

Montreal Protocol-1987

Fall of Berlin Wall-1989

Collapse of Soviet Union-1990

Union European-1992

Un World Conference on Human Rights-1993

North American Free Trade Agreement )NAFTA-1994

World Trade Organization )WTO-1995

International criminal court-1998

Euro adapted 12 countries -2002


17/49

17

Effects of Globalization

E-governance

E-trade E-bank

E-learning

E-)Virtual Organization


18/49

18

Year 2000:

30 trillion 5 billion people 20% global GDP

Year 2050:

140 trillion 8 billion people 40% global GDP

)assuming 3.5% growth

)Global Gross Domestic Product )GDP


19/49

19

New world Discipline

The fall of the Berlin Wall and the

collapse of the Soviet Union ended the

cold war between the forces of capitalismand socialism with capitalism

triumphant. The development of the

internet made possible the organizationof business on a global scale with greater

facility than ever before.


20/49

20

Importance of Ethics

There is no such thing as business

ethics.Theres just ethics; and we all

have to practice them every day in

everything we do.

Peter Drucker


21/49

21

Social ResponsibilityThe currency and general relevance of socialresponsibility and sustainable development)SR/SD to society is seen in such areas asinvestor interest in ethical mutual funds,government lists of threatened or endangeredspecies, and pollution control mandatesestablished by public policy setters. Indeed,

business, government, and society are caughtup in a debate over how this planets scarceresources are to be preserved and used.


22/49

22

What are SR/SDThese are voluntary initiatives with a global

constituency that can also be defined as multi-sect

oral, in that they can be applied in a wide range ofindustries. They have all evolved through social

partnerships involving some elements of business,

governments, labor organizations and non-

government organizations. They all take a multi-stakeholder approach to corporate citizenship

issues.


23/49

23

Elements of Social responsibility Community

Diversity

Environment

Ethics

Financial Responsibility

Human Rights

Safety


24/49


25/49

25

Timeline of Corporate Governance The Cad bury Report )1992, UK Green bury Report )1995 , UK Hampel Report )1998, UK The Smith Report )2003, UK The Higgs Review )2003, UK The Company Law White Paper )2002 Sarbanes- Oxley Act 2002 USA

The Tyson report on the Recruitment Development of Non-Executive Directors )2003 The European Commissions Action Plan for

Company Law and Corporate Governance )2003


26/49

26

Corporate GovernanceThe good corporate governance needs to address

not only boards of directors, committees, and legal

and regulatory issues, but also business practicesand ethics, disclosures and transparency,

enterprise risk management, monitoring, and

communication. That it's a whole set of systems

and processes.It's not just narrowly focused on compliance with

Sarbanes-Oxley.


27/49

27

Accountability

The objective of accountability towardsstakeholders requires information about

general issues such as product safety, theenvironment, employee relations, etc. Anethical bookkeeping system collects datasystematically about the organization's ethicalbehavior, which is relevant for stakeholders.

This process is most likely to include "hard"information, including for instance complaintsof stakeholders, business accidents or fines forunethical behavior .


28/49

28

Different Roles in Accountability &

Corporate Governance

Role of chief of the board

Role of audit committee Role of non-Executive managers Role of internal audit Role of shareholders annual meeting Role of Human resources Role of transparency


29/49

29

Traditional view of business strategy

and Social Responsibility

Industry

Structure

Resources

Corporate values

and ideology

Stakeholders

Business Strategy

Social

Responsibility

Competitive

Advantage

Social

Performance

Financial

Performance


30/49

30

Integrated view of business and

social strategy

Industry

Structure

Resources

Corporate values

and ideology

Stakeholders

Business StrategyCompetitive

Advantage

Financial

Performance

Social

ResponsibilitySocial

Performance


31/49


32/49

Sustainability

Sustainable development is a

very simple idea. It is aboutensuring a better quality of lifefor everyone, now and forgenerations to come.


33/49

33

Sustainable Company

The systems and processes of corporate governance alsoshould consider a diverse group of stakeholders, notsolely shareholders. "Most corporate governancefocuses just on shareholders. But a shareholder'sinterest is different than an employee's interest, whichis different than the interest of a community, creditor,or supplier. And too often, the focus of shareholders,management, and everyone else in the company is on

.increasing shareholder valueFurthermore, this responsibility is often on the backs ofthe community or the employees or the suppliers, and.that is not in their interest


34/49

34

History of Global Reporting

The Global Reporting Initiative )GRI was conceivedin 1997 by the Boston-based Coalition on

Environmentally Responsible Economies )CERES incollaboration with the Tells Institute. Over the pastfive years, the GRI has evolved into a set of reportingcriteria on all aspects of a companys performance.The initial draft standard was field-tested in 1999

by over 20 companies and released in June 2000. Arevision was published in 2002.


35/49

35

It is possible for standards to have

:several of these characteristics

Principles )Global Compact and Global Sullivan Principles

Standards )GRI, OECD Guidelines, SA8000, AA1000S, and ILO Conventions

Foundation )ILO Conventions, AA1000S

Process )SA8000, AA1000S, ISO 14000S

Performance )SA8000, OECD Guidelines, and ILO Conventions

Certification )SA8000 and ISO 14000 Series


36/49


37/49

37

SA/CSRAfter Enron Clops some terminologies sameSocial audit )SA, corporate socialresponsibility )CSR have been relief. These

days, corporate social responsibility )CSR iscommon currency but a currency that israther devalued. The phrase is so over- andpoorly used that it begins to lose any meaning.Any proper definition of CSR would require a

categorical standard of values. This is lacking.In fact CSR now means many different thingsto many people.


38/49

38

Social ResponsibilityIn the globalization area auditors'

responsibilities have changed to corporate social

responsibility that main basic is related toEthics. Although many auditors are burning the

midnight oil to familiarize themselves with the

new regulations and to prepare for their role in

the compliance process, the scope andcomplexity of change has made the learning

process a significant challenge.


39/49

39

)Global Reporting Initiative )GRI

P= M E )i

P= Share price/market capM= Multiple

E= earning per share

i= Social / Environment


40/49


41/49

41

Elements of social responsibilities &

sustainable development

International Labor Organization )ILO

UN Declaration on the right of the childSex Discrimination in employmentHuman RightEnvironment Protocol

Social Security

Commerce Code & Fair competitor


42/49

42

New responsibilities of Managements

Social Responsibility

Sustainable developmentCorporate GovernanceBusiness Ethics

Sustainable developmentTransparencyAccountability


43/49

43

Labour law

Social Security Law

Tax act

Commerce Law

Environment LawStock Exchange regulation

General account office )GAO

Iranian managements legal responsibility


44/49

44

:Iran Corporate Governance Include

Partner Rotation-Transition Questions

Non-audit Services Audit Committee Pre-approval Audit Committee Communications

Full Disclosures "Cooling Off" Period


45/49

45

Yearly World Stock Value Exchange Transaction

41,000

31,000

26,000

7,900

2005

2003

2000

1990

$ Amount: Billion


46/49

46

Stock Exchange 2006$ Amount: Billion

38Tehran Stock Exchange

1,701TSX

1,715Hong Kong

3,708Euro next

1,212Swiss

1,323Spain

1,638Germany

3,715London

4,614Tokyo

15,451New York


47/49

47

Tehran Stock Exchange at a glance

2451921611331161159697/3Gross Domestic Product )GDP

Billion USD

435432426383334318307129Companies Listed

37,61535,47235,47033,62512,7878,4466,784267Market value

Million USD

078 ,109,46012,11311,3805,0623,7582,978472Index Shares prices

20062005200420032002200120001991Description


48/49

48

Sources1- Auditors responsibility on globalization PPT Gh. Davani.2006

2- Stockholder Engagement standard, Institute of Social & Ethical

accountability.

3- GRI and the transparency imperative, why GRI, global reporting

initiative.

4- Living corporate citizenship by persons education Ltd.

http://www.business-minds.com

5- Corporate social responsibility & the global Sullivan principle.

6- Ethics after Enron: PPT. Where are we, and where are we going,

University of San Diego 2003.7- The world fact book www.cia.gov

8- IMF- www.imf.org


49/49

Date post:	30-May-2018
Category:	Documents
Upload:	ghdava
View:	218 times
Download:	0 times

Coorporate Social -Davani

Documents