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


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

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

  1. 1. Global challenges, sustainable development, and their implications for organization performance 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. 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. 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 [UN Office for the Coordination of Humanitarian Affairs (OCHA)- Policy Development and Studies Branch (PDSB)]
  4. 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
  5. 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. 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
  7. 7. Business and stakeholder relationships Environmental groups Local State General publics Federal Community Government Unions Corporate raiders Business Owner Private citizens Women Employees Minorities Older employees Institutional investors Consumers Consumer activists Civil liberties activists Product liability threats Source: Carroll, A. B., & Buchholtz, A. K. ( 6 Business & society: Ethics and stakeholder management. Mason, OH: Thomson-South Western. (p.
  8. 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. outtheoecdprinciplesofcorporategovernance.htm (Retrieved, 15 April 2013)
  9. 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. 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. 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. 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. 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. • The global financial crisis of 2008 and the Barclays scandal in 2012
  14. 14. 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 Source: 0104219545638882.html
  15. 15. Map Ta Phut: A Blessing for All? 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
  16. 16. Protests against building Xaiyaburi dam and other dams along the Mekong River
  17. 17. “China 'sorry' after milk crisis” BBC News, Last Updated Saturday October : GMT; id_7670000/newsid_7677900/ m http news bbc co uk cbbcnews hi newsi d_7630000 newsid_7632000/7632039 st m China's government has apologized after more than 50,000 children got sick from drinking milk that had chemicals in it Tesco have taken a brand of Chinese sweets off their shelves because of fears they could have a poisonous The Melamine Crisis, 2008 chemical in them Melamine in the milk formula can damage kidneys
  18. 18. Factors affecting the morality of managers Peers Individual 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. ( 9 Business and society. Cincinnati, OH: South-Western College Publishing. (p. 311
  19. 19. Marketing Internal environment Employee and labour relations Labour force Operations Human resource management Technology The Economy Legal considerations Society The Environment of Human Resource Management External environment Other functional areas Finance Customers Competition Shareholders Unions Source: Mondy, R. W., & Noe, R. M. (2005). Human resource management. Upper Saddle River, NJ: Pearson Education International. (p. 8)
  20. 20. Organizational factors • Moral motivation by CEO/ top management • Financial/Performance motivation • Stakeholders’ expectations Surrounding factors • Globalization • Technological changes • Local/International laws and regulations • Business competition • Natural resource conditions • Stakeholders‘ expectations Strategic business plan for CSR CSR framework • Employees • Customers • Stockholders • Environment • Business colleagues (Suppliers, partners) • Communities • Society Source: Virakul, B., Koonmee, K. & McLean, G. N. (2008). CSR activities in the awardwinning Thai companies. (a) Paper presented at th International Conference on Corporate Social Responsibility - September , Durham Business School, England. (b) Social Responsibility Journal ( ), pp. - 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
  21. 21. A model of business performance embedding CSR, CG, and sustainability at the stretegic level Internal factors • Leadership of CEO/Top management • Financial/Performance motivation • Stakeholders’ expectations • Organization’s resources • • • • • • External factors Globalization/Global challenges Technological changes Local/International laws and regulations Business competition Natural resources Stakeholders’ expectations Strategic business plan contains 4 elements: Business, CSR, CG, & Sustainability ---> to formulate Vision, Mission, Direction, and Business goals • • • • • 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
  22. 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.