Exam 17: Leadership, Organization, and Corporate Social Responsibility

Correct Answer:

Verified

Under the traditional assumptions related to mass production, there are five major differences:(1)maximize machine utilization; (2)fixed setup times; (3)build to inventory to reduce unit cost; (4)inspect at end of process and (5)maximize backwards integration.On the other hand, in the Toyota Production System these five assumptions are:(1)labor is more costly than machines; (2)can reduce setup time; (3)minimize inventory to cut costs and waste; (4)inspect to prevent defective production and (5)outsource from supplier specialists.These differences are remarkable.To achieve these gains at Toyota, production experts Taiichi Ohno and Shigeo Shingo challenged above-listed traditional assumptions associated with automobile manufacturing.They made changes to operations within the auto company itself such as reducing setup times for machinery.Their innovations have been widely embraced in the industry as a result, individual producers' value chains have been modified, and interfaces between producers and suppliers have been optimized to create more effective and efficient value systems.

Correct Answer:

Verified

Today's executives must be proactive stewards of the reputation and social standing of a company he or she is leading.This requires an understanding of the concerns as well as timely responding to the concerns and interests of a variety of stakeholders.Resistance to globalization is one of the prominent restraints on the growth of global business and global marketing.The antiglobalization movement takes a variety of forms and finds expression in various ways.In developed countries, the movement's concerns and agenda include cultural imperialism.For example, the French backlash against McDonald's; the loss of jobs due to offshoring and outsourcing, such as in the furniture industry in the United States; and a distrust of global institutions as seen by anti-WTO protests in various countries.On the other hand, in developing countries, globalization's opponents accuse companies of undermining local cultures, placing intellectual property rights ahead of human rights, promoting unhealthy diets and unsafe food technologies, and pursuing unsustainable consumption.Environmental degradation and labor exploitation are also key issues.A company's reputation can very quickly get tarnished if activists target its policies and practices.Thus, the leaders of global companies must practice corporate social responsibility (CSR).CSR is a company's obligation to pursue goals and policies that are in society's best interests.In a socially responsible firm, employees conduct business in an ethical manner.They are guided by moral principles that enable them to distinguish between right and wrong.At many companies, a formal statement or code of ethics summarizes core ideologies, corporate values, and expectations.GE, Boeing, and United Technologies Corporation are some of the American companies offering training programs that specifically address ethics issues.At some companies, their ethics statement is known as their credo.For the global company with operations in multiple markets, the issue of CSR becomes complicated, and executives have to take into account factors prevalent in each market into consideration.