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127-470: Those entrepreneurs who are interested in the field of internationalization of business need to possess the ability to think globally and have an understanding of international cultures. By appreciating and understanding different beliefs, values, behaviors and business strategies of a variety of companies within other countries, entrepreneurs will be able to internationalize successfully. Entrepreneurs must also have an ongoing concern for innovation, maintaining

254-445: A {\displaystyle a} , b {\displaystyle b} , and c {\displaystyle c} can satisfy the equation a n + b n = c n {\displaystyle a^{n}+b^{n}=c^{n}} for any integer value of n {\displaystyle n} greater than two. This theorem was first conjectured by Pierre de Fermat in 1637 in

381-418: A profit motive when participating in corporate philanthropy and community volunteering. On the other hand, the remaining corporate social initiatives can be examples of cause marketing, in which there is both a societal interest and a profit motive. CSR may be based within the human resources , business development or public relations departments of an organisation, or may be a separate unit reporting to

508-434: A theorem , proven in 1995 by Andrew Wiles ), have shaped much of mathematical history as new areas of mathematics are developed in order to prove them. Formal mathematics is based on provable truth. In mathematics, any number of cases supporting a universally quantified conjecture, no matter how large, is insufficient for establishing the conjecture's veracity, since a single counterexample could immediately bring down

635-572: A theorem . Many important theorems were once conjectures, such as the Geometrization theorem (which resolved the Poincaré conjecture ), Fermat's Last Theorem , and others. Conjectures disproven through counterexample are sometimes referred to as false conjectures (cf. the Pólya conjecture and Euler's sum of powers conjecture ). In the case of the latter, the first counterexample found for

762-423: A CSR perspective, while critics argue that CSR distracts from businesses' economic role. A 2000 study compared existing econometric studies of the relationship between social and financial performance, concluding that the contradictory results of previous studies reporting positive, negative, and neutral financial impact were due to flawed empirical analysis and claimed when the study is properly specified, CSR has

889-467: A better impact on the surrounding community. In addition, national and international standards, laws, and business models have been developed to facilitate and incentivize this phenomenon. Various organizations have used their authority to push it beyond individual or industry-wide initiatives. In contrast, it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at

1016-416: A business enterprise that emerge from neighborhoods, environmental groups, local stakeholders, and other elements of the surrounding civil society". Social License to Operate can be determined as contractual grounds for the legitimacy of activities and projects a company is involved in. It refers to the level of support and approval of a company's activities by its stakeholders. Displaying commitment to CSR

1143-416: A commodity with less costs per unit produced than could its trading partner. By the same reasoning, it should import commodities in which it had an absolute disadvantage. While there are possible gains from trade with absolute advantage, comparative advantage extends the range of possible mutually beneficial exchanges. In other words, it is not necessary to have an absolute advantage to gain from trade, only

1270-427: A common refinement, a single triangulation that is a subdivision of both of them. It was originally formulated in 1908, by Steinitz and Tietze . This conjecture is now known to be false. The non-manifold version was disproved by John Milnor in 1961 using Reidemeister torsion . The manifold version is true in dimensions m ≤ 3 . The cases m = 2 and 3 were proved by Tibor Radó and Edwin E. Moise in

1397-427: A company's economic actions to particular interest groups within society and to society at large. Social accounting emphasizes the notion of corporate accountability . Crowther defines social accounting as "an approach to reporting a firm's activities which stresses the need for the identification of socially relevant behavior, the determination of those to whom the company is accountable for its social performance and

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1524-458: A comparative advantage. David Ricardo argued that a country does not need to have an absolute advantage in the production of any commodity for international trade between it and another country to be mutually beneficial. Absolute advantage meant greater efficiency in production, or the use of less labor factor in production. Two countries could both benefit from trade if each had a relative advantage in production. Relative advantage simply meant that

1651-414: A competitive advantage over the local competition. Stephen Hymer also suggested a second determinant for firms engaging in foreign operations, removal of conflicts. When a rival company is operating in a foreign market or is willing to enter one, a conflict situation arises. Through FDI, a multinational can share or take complete control of foreign production, effectively removing conflict. This will lead to

1778-442: A consequence of research activity and entrepreneurship, new goods are produced and the innovating country enjoys a monopoly until the other countries learn to produce these goods: in the meantime they have to import them. Thus, international trade is created for the time necessary to imitate the new goods ( imitation lag ). The Uppsala model is a theory that explains how firms gradually intensify their activities in foreign markets. It

1905-455: A correlation between social/environmental performance and financial performance. The business case for CSR within a company employs one or more of these arguments: Conjecture In mathematics , a conjecture is a conclusion or a proposition that is proffered on a tentative basis without proof . Some conjectures, such as the Riemann hypothesis or Fermat's conjecture (now

2032-471: A differentiation strategy. They concluded that managers could determine the appropriate level of investment in CSR by conducting a cost-benefit analysis in the same way they analyze other investments. Reinhardt (1998) found that a firm engaging in a CSR-based strategy could only sustain an abnormal return if it could prevent competitors from imitating it. The relationship between corporate social responsibility and

2159-428: A firm's corporate financial performance is a phenomenon that is being explored in a variety of research studies that are being conducted across the world. Based on these research studies, including those undertaken by Sang Jun Cho, Chune Young Chung, and Jason Young, a positive relationship exists between a firm's corporate social responsibility policies and corporate financial performance. To investigate this relationship,

2286-416: A firm, ... market transactions are eliminated and in place of the complicated market structure with exchange transactions is substituted the entrepreneur ... who directs production.” He asks why alternative methods of production (such as the price mechanism and economic planning ), could not either achieve all production, so that either firms use internal prices for all their production, or one big firm runs

2413-785: A foundation for consumers to verify that their products are socially sustainable . Due to an increased awareness of the need for CSR, many industries have their verification resources. They include organizations such as the Forest Stewardship Council (paper and forest products), International Cocoa Initiative, and Kimberly Process (diamonds). The United Nations Global Compact provides frameworks not only for verification, but also for reporting human rights violations in corporate supply chains. The rise of ethics training inside corporations, some of which are required by government regulation, has helped CSR to spread. Such training aims to help employees make ethical decisions when

2540-613: A healthy, educated workforce, sustainable resources, and an adept government to compete effectively. For society to thrive, profitable and competitive businesses must be developed and supported to create income, wealth, tax revenues, and philanthropy. The Harvard Business Review article "Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility" provided examples of companies that have developed deep linkages between their business strategies and CSR. CSV acknowledges trade-offs between short-term profitability and social or environmental goals, but emphasizes

2667-410: A high level of quality, be committed to corporate social responsibility , and continue to strive to provide the best business strategies and either goods or services possible while adapting to different countries and cultures. Adam Smith claimed that a country should specialise in, and export, commodities in which it had an absolute advantage. An absolute advantage existed when the country could produce

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2794-704: A huge industrial base in certain industries will then allow those sectors to dominate the world market (via a network effect). In this model, labour mobility between industries is possible while capital is immobile between industries in the short-run. Thus, this model can be interpreted as a 'short run' version of the Heckscher-Ohlin model . The diamond model is an economical model developed by Michael Porter in his book The Competitive Advantage of Nations , where he published his theory of why particular industries become competitive in particular locations. The diamond model consists of six factors: The Porter thesis

2921-403: A neutral impact on financial outcomes. Critics have questioned the "lofty" and sometimes "unrealistic expectations" of CSR, or observed that CSR is merely window-dressing , or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations . In line with this critical perspective, political and sociological institutionalists became interested in CSR in

3048-595: A positive response. Somerville also found that consumers are loyal and willing to spend more on retailers that support charity. Consumers also believe that retailers selling local products will gain loyalty. Smith (2013) shares the belief that marketing local products will gain consumer trust. However, environmental efforts are receiving negative views, given the belief that this would affect customer service. Oppewal et al. (2006) found that not all CSR activities are attractive to consumers. They recommended that retailers focus on one activity. Becker-Olsen (2006) found that if

3175-417: A product is sold change over time and must be managed as it moves through this succession of stages. This is called product life cycle management . The theory of the firm consists of a number of economic theories which describe the nature of the firm, company, or corporation, including its existence, its behaviour, and its relationship with the market. Ronald Coase set out his transaction cost theory of

3302-440: A proof that the conjecture is true—because the conjecture might be false but with a very large minimal counterexample. Nevertheless, mathematicians often regard a conjecture as strongly supported by evidence even though not yet proved. That evidence may be of various kinds, such as verification of consequences of it or strong interconnections with known results. A conjecture is considered proven only when it has been shown that it

3429-493: A pyramid of responsibilities, namely, economic, legal, ethical, and philanthropic responsibilities. While Carroll was not defining CSR, but simply arguing for the classification of activities, Sheehy developed a definition differently following the philosophy of science—the branch of philosophy used for explaining phenomena. Carroll extended corporate social responsibility from the traditional economic and legal responsibility to ethical and philanthropic responsibility in response to

3556-495: A range of reporting guidelines and standards that serve as frameworks for social accounting, auditing, and reporting: Legal requirements for social accounting, auditing, and reporting exist in nations like France. However, international or national agreement on meaningful social and environmental performance measurements has not been achieved. Many companies produce externally audited annual reports that cover Sustainable Development and CSR issues ("Triple Bottom Line Reports"), but

3683-418: A rational market participant to deviate from holding the market portfolio. Second, imperfections cause a rational market participant to deviate from his preferred risk level. Market imperfections generate costs which interfere with trades that rational individuals make (or would make in the absence of the imperfection). The idea that multinational corporations (MNEs) owe their existence to market imperfections

3810-526: A risk of agency costs, a law academic may consider that discretion to be an appropriate expression of what the law demands from directors. In the 1930s, two law professors, A. A. Berle and Merrick Dodd, famously debated how directors should be made to uphold the public interest: Berle believed there had to be legally enforceable rules in favor of labor, customers and the public equal to or ahead of shareholders, while Dodd argued that powers of directors were simply held on trust. Corporate social responsibility

3937-523: A smaller counter-example). Appel and Haken used a special-purpose computer program to confirm that each of these maps had this property. Additionally, any map that could potentially be a counterexample must have a portion that looks like one of these 1,936 maps. Showing this with hundreds of pages of hand analysis, Appel and Haken concluded that no smallest counterexample exists because any must contain, yet do not contain, one of these 1,936 maps. This contradiction means there are no counterexamples at all and that

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4064-581: A socially responsible company makes safe, high-quality products; for Germans it provides secure employment; in South Africa it makes a positive contribution to social needs such as health care and education. Even within Europe, the discussion about CSR is very heterogeneous. A more common approach to CSR is corporate philanthropy . This includes monetary donations and aid given to nonprofit organizations and communities. Donations are made in areas such as

4191-427: A space has the additional property that each loop in the space can be continuously tightened to a point, then it is necessarily a three-dimensional sphere. An analogous result has been known in higher dimensions for some time. After nearly a century of effort by mathematicians, Grigori Perelman presented a proof of the conjecture in three papers made available in 2002 and 2003 on arXiv . The proof followed on from

4318-512: A variety of outside markets, an improved reputation, and stakeholder relationships. In all cases (emerging markets vs. developed economies), implementing CSR policies into the daily activities and framework of a company has been shown to allow for a competitive advantage versus other companies, including the creation of a positive image for the company, improved stakeholder relationships, increased employee morale, and attraction of new consumers who are committed to social responsibility. Despite all of

4445-406: Is absolute unavailability) or to the fact that the goods cannot be produced domestically, or could only be produced at prohibitive costs (for technological or other reasons): this is relative unavailability. On the other hand, each country exports the goods that are available at home. The technology gap theory describes an advantage enjoyed by the country that introduces new goods in a market. As

4572-552: Is a general equilibrium mathematical model of international trade , developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics . It builds on David Ricardo 's theory of comparative advantage by predicting patterns of commerce and production based on the factor endowments of a trading region. The model essentially says that countries will export products that utilize their abundant and cheap factor(s) of production and import products that utilize

4699-516: Is a major unsolved problem in computer science . Informally, it asks whether every problem whose solution can be quickly verified by a computer can also be quickly solved by a computer; it is widely conjectured that the answer is no. It was essentially first mentioned in a 1956 letter written by Kurt Gödel to John von Neumann . Gödel asked whether a certain NP-complete problem could be solved in quadratic or linear time. The precise statement of

4826-517: Is achieved within and given by communities, which is defined as "a social unit of any size that shares common values, or that is situated in a given geographical area". Lacey suggested that social license can take a long time for a corporation or industry to achieve, but social license can be lost very quickly for a variety of factors, including changes in stakeholder expectations, technology, or other disturbances. Gunningham et al. stated that meeting and exceeding regulations to build reputational capital

4953-454: Is an approach in international business which explains why firms can compete in foreign settings against indigenous competitors and is frequently associated with the seminal contribution of Stephen Hymer . Prior to Stephen Hymer’s doctoral thesis, The International Operations of National Firms: A Study of foreign direct Investment, theories did not adequately explain why firms engaged in foreign operations. Hymer started his research by analyzing

5080-485: Is correct. The Poincaré conjecture, before being proven, was one of the most important open questions in topology . In mathematics, the Riemann hypothesis , proposed by Bernhard Riemann  ( 1859 ), is a conjecture that the non-trivial zeros of the Riemann zeta function all have real part 1/2. The name is also used for some closely related analogues, such as the Riemann hypothesis for curves over finite fields . The Riemann hypothesis implies results about

5207-427: Is economically vital, saying: "in certain circumstances, [natural resource-based industries] cannot afford to do otherwise". In communities with a diverse economy, achieving social license is often much more complex than in local communities, which depend economically on the natural resource industry. In research undertaken by Ketola et al. , the writers believed that the forest products industry in rural Michigan in

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5334-412: Is generally understood as a strategic initiative that contributes to a brand's reputation. As such, social responsibility initiatives must coherently align with and be integrated into a business model to be successful. With some models, a firm's implementation of CSR goes beyond compliance with regulatory requirements and engages in "actions that appear to further some social good, beyond the interests of

5461-410: Is logically impossible for it to be false. There are various methods of doing so; see methods of mathematical proof for more details. One method of proof, applicable when there are only a finite number of cases that could lead to counterexamples, is known as " brute force ": in this approach, all possible cases are considered and shown not to give counterexamples. In some occasions, the number of cases

5588-407: Is not directly undertaken by the companies, they become accountable to the stakeholders. These surrounding issues have prompted supply chain management to consider the corporate social responsibility context. Wieland and Handfield (2013) suggested that companies must include social responsibility in their reviews of component quality. They highlighted the use of technology to improve visibility across

5715-568: Is one way to achieve a social license, by enhancing a company's reputation. As stated in Enduring value: the Australian minerals industry framework for sustainable development the concept of the 'social license to operate', then defined simply as obtaining and maintaining broad community support and acceptance. Unless a company earns and maintains that license, social license holders may intend to block project developments; employees may leave

5842-408: Is quite large, in which case a brute-force proof may require as a practical matter the use of a computer algorithm to check all the cases. For example, the validity of the 1976 and 1997 brute-force proofs of the four color theorem by computer was initially doubted, but was eventually confirmed in 2005 by theorem-proving software. When a conjecture has been proven , it is no longer a conjecture but

5969-558: Is similar to the POM model. The key features of both models are the following: firms first gain experience from the domestic market before they move to foreign markets; firms start their foreign operations from culturally and/or geographically close countries and move gradually to culturally and geographically more distant countries; firms start their foreign operations by using traditional exports and gradually move to using more intensive and demanding operation modes (sales subsidiaries etc.) both at

6096-569: Is that the more similar are the demand structures of countries the more they will trade with one another. Further, international trade will still occur between two countries having identical preferences and factor endowments (relying on specialization to create a comparative advantage in the production of differentiated goods between the two nations). Location theory is concerned with the geographic location of economic activity; it has become an integral part of economic geography , regional science , and spatial economics. Location theory addresses

6223-437: Is that these factors interact with each other to create conditions where innovation and improved competitiveness occurs. Diffusion of innovation is a theory of how, why, and at what rate new ideas and technology spread through cultures. Everett Rogers introduced it in his 1962 book, Diffusion of Innovations , writing that "Diffusion is the process by which an innovation is communicated through certain channels over time among

6350-455: Is the economic critique of international free trade from the perspective of increasing returns to scale and the network effect . Some economists have asked whether it might be effective for a nation to shelter infant industries until they had grown to a sufficient size large enough to compete internationally. New Trade theorists challenge the assumption of diminishing returns to scale, and some argue that using protectionist measures to build up

6477-484: Is the process by which several organizations, including suppliers, customers, and logistics providers, work together to provide a value package of products and services to the end-user, who is the customer. Corporate social irresponsibility in the supply chain has greatly affected the reputation of companies, leading to many costs to solve the problems. For instance, incidents like the 2013 Savar building collapse , which killed over 1000 people, pushed companies to consider

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6604-505: Is therefore possible to adopt this statement, or its negation, as a new axiom in a consistent manner (much as Euclid 's parallel postulate can be taken either as true or false in an axiomatic system for geometry). In this case, if a proof uses this statement, researchers will often look for a new proof that does not require the hypothesis (in the same way that it is desirable that statements in Euclidean geometry be proved using only

6731-462: The CEO or the board of directors . An engagement plan can assist in reaching the desired audience. A corporate social responsibility individual or team plans the goals and objectives of the organization. As with any corporate activity, a defined budget demonstrates commitment and scales the program's relative importance. Social accounting is the communication of social and environmental effects of

6858-415: The Heckscher-Ohlin theory empirically. In 1954, Leontief found that the U.S. (the most capital-abundant country in the world by any criteria) exported labor -intensive commodities and imported capital-intensive commodities, in contradiction with Heckscher-Ohlin theory. The Linder hypothesis (demand-structure hypothesis) is a conjecture in economics about international trade patterns. The hypothesis

6985-465: The Riemann hypothesis is a conjecture from number theory that — amongst other things — makes predictions about the distribution of prime numbers . Few number theorists doubt that the Riemann hypothesis is true. In fact, in anticipation of its eventual proof, some have even proceeded to develop further proofs which are contingent on the truth of this conjecture. These are called conditional proofs :

7112-470: The United States may have received a social license through the channels that mining corporations initially established and the long history of logging and copper mining in the area continued to shape the attitudes and identities of industry participants to present day. They found that local stakeholders and local industry operators have shared history and experience as having limited power to control

7239-556: The free market is not efficient . Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that can be improved upon from the societal point of view. The first known use of the term by economists was in 1958, but the concept has been traced back to the Victorian philosopher Henry Sidgwick . Market imperfection can be defined as anything that interferes with trade. This includes two dimensions of imperfections. First, imperfections cause

7366-421: The public benefit , or to conduct ethically oriented business and investment practices. While once it was possible to describe CSR as an internal organizational policy or a corporate ethic strategy similar to what is now known today as Environmental, Social, Governance (ESG); that time has passed as various companies have pledged to go beyond that or have been mandated or incentivized by governments to have

7493-477: The supply chain . Corporate social responsibility includes six types of corporate social initiatives: All six of the corporate initiatives are forms of corporate citizenship. However, only some of these CSR activities rise to the level of cause marketing , defined as "a type of corporate social responsibility (CSR) in which a company's promotional campaign has the dual purpose of increasing profitability while bettering society." Companies generally do not have

7620-588: The 1920s and 1950s, respectively. In mathematics , the Weil conjectures were some highly influential proposals by André Weil  ( 1949 ) on the generating functions (known as local zeta-functions ) derived from counting the number of points on algebraic varieties over finite fields . A variety V over a finite field with q elements has a finite number of rational points , as well as points over every finite field with q elements containing that field. The generating function has coefficients derived from

7747-496: The 20th century. It is among the most notable theorems in the history of mathematics , and prior to its proof it was in the Guinness Book of World Records for "most difficult mathematical problems". In mathematics , the four color theorem , or the four color map theorem, states that given any separation of a plane into contiguous regions, producing a figure called a map , no more than four colors are required to color

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7874-512: The 3-sphere. An equivalent form of the conjecture involves a coarser form of equivalence than homeomorphism called homotopy equivalence : if a 3-manifold is homotopy equivalent to the 3-sphere, then it is necessarily homeomorphic to it. Originally conjectured by Henri Poincaré in 1904, the theorem concerns a space that locally looks like ordinary three-dimensional space but is connected, finite in size, and lacks any boundary (a closed 3-manifold ). The Poincaré conjecture claims that if such

8001-604: The Growth of the Firm in 1959. Corporate social responsibility Corporate social responsibility ( CSR ) or corporate social impact is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic , activist, or charitable nature by engaging in, with, or supporting professional service volunteering through pro bono programs, community development , administering monetary grants to non-profit organizations for

8128-583: The Hungarian Association for Environmentally Aware Management (KÖVET) refers to "Deep CSR" and the role of a "Truly Responsible Enterprise". Gergely's definition of "Deep CSR" is the behaviour displayed by a "Truly Responsible Enterprise" (TRE), which: The five principles of the TRE are: In competitive markets, the cost-benefit analysis of CSR initiatives can be examined using a resource-based view (RBV). According to Barney (1990), "formulation of

8255-530: The P=NP problem was introduced in 1971 by Stephen Cook in his seminal paper "The complexity of theorem proving procedures" and is considered by many to be the most important open problem in the field. It is one of the seven Millennium Prize Problems selected by the Clay Mathematics Institute to carry a US$ 1,000,000 prize for the first correct solution. Karl Popper pioneered the use of

8382-806: The RBV, sustainable competitive advantage requires that resources be valuable (V), rare (R), inimitable (I) and non-substitutable (S)". A firm introducing a CSR-based strategy might only sustain high returns on their investment if their CSR-based strategy could not be copied (I). However, should competitors imitate such a strategy that might increase overall social benefits? Firms that choose CSR for strategic financial gain are also acting responsibly. RBV presumes that firms are bundles of heterogeneous resources and capabilities that are imperfectly mobile across firms. This imperfect mobility can produce competitive advantages for firms that acquire immobile resources. McWilliams and Siegel (2001) examined CSR activities and attributes as

8509-534: The activities of the MNEs and their impact on the economy, gave an explanation for the large flow of foreign investments by US corporations at a time where they were incomplete, and envisioned the ethical conflicts that could arise from the increase in power of MNEs. The non-availability explains international trade by the fact that each country imports the goods that are not available at home. This unavailability may be due to lack of natural resources (oil, gold, etc.: this

8636-862: The answers are unclear. The most direct benefit is reducing the likelihood of "dirty hands", fines, and damaged reputations for breaching laws or moral norms. Organizations see increased employee loyalty and pride in the organization. Common CSR actions include: The term "social license" was introduced in 1997 and has since been applied in multiple resource extraction industries to describe changes in company-community interactions. This use of social license has included an understanding of how acceptance levels impact resource development operations within these industries. Gunningham et al. state corporations comply with their social license by operating within societal expectations and avoiding activities (or influential elements within them) considered unacceptable, and define social license it as "the demands on and expectations for

8763-436: The arts, education, housing, health, social welfare, and the environment, among others, but excluding political contributions and commercial event sponsorship. Another approach to CSR is to incorporate the CSR strategy directly into operations, such as procurement of Fair Trade tea and coffee. Creating shared value , or CSV, is based on the idea that corporate success and social welfare are interdependent. A business needs

8890-422: The axioms of neutral geometry, i.e. without the parallel postulate). The one major exception to this in practice is the axiom of choice , as the majority of researchers usually do not worry whether a result requires it—unless they are studying this axiom in particular. Sometimes, a conjecture is called a hypothesis when it is used frequently and repeatedly as an assumption in proofs of other results. For example,

9017-533: The benefits, it is important to note that several drawbacks exist, including possible accusations of hypocrisy, the difficulty of measuring the social impact of CSR policies, and oftentimes placing companies at a disadvantage against competitors when prioritizing CSR ahead of advancing a company's R&D. A large body of literature urges businesses to adopt non-financial measures of success (e.g., Deming 's Fourteen Points, balanced scorecards ). While CSR benefits are hard to quantify, Orlitzky, Schmidt and Rynes found

9144-547: The catching-up firms establish learning portals in knowledge hubs to acquire knowledge and assets, which they exploit to compete in global markets. Contingency theory refers to any of a number of management theories. Several contingency approaches were developed concurrently in the late 1960s. They suggested that previous theories such as Weber 's bureaucracy and Frederick Winslow Taylor 's scientific management had failed because they neglected that management style and organizational structure were influenced by various aspects of

9271-718: The companies is to obtain and maintain the Social License to Operate. Based on the Requisite Organization , to achieve this goal, a company needs to: A positive relationship has been shown to exist between CSR and a firm's corporate financial performance. However, results from these analyses may need to be examined under different lenses for emerging and developed economies, especially since firms based in emerging economies oftentimes have weak firm-level governance. For companies operating in emerging markets, engaging in CSR practices enables widespread reach into

9398-521: The company and target country level. The Updated Uppsala model is a further progression of the original Uppsala model. Like the Uppsala model, the Updated Uppsala model is a theory that explains firm internationalization as a process of gradual commitment. However, instead of an increased commitment to other markets, the theory posits that firms commit to business networks. Firms thereby utilize

9525-407: The company as the social contract the company has with the social license holders (employees, trade unions, communities, government) for them to manifest positive intention to support the business short- and long-term objectives by "providing managerial leadership that nurtures the social good and also gives the foundation for sustainable growth in organizational results." The primary objective for

9652-459: The company for a company that is a better corporate citizen: and companies may be under ongoing legal challenge. Issues related to the government's measurement of corporations' social license include its role in licensure processes, the penalties for non-compliance, or the community's ability to halt a project if a corporation is not responsive to their concerns, are still subject to global concern. Regardless of government involvement, social license

9779-545: The company to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others. From an ethical perspective, some businesses will adopt CSR policies and practices because of the ethical beliefs of senior management: for example, the CEO of outdoor-apparel company Patagonia, Inc. argues that harming the environment is ethically objectionable. Proponents argue that corporations increase long-term profits by operating with

9906-425: The conflicts and exploit the firm specific advantages making them capable of succeeding in a foreign market. Stephen Hymer can be considered the father of international business because he effectively studied multinationals from a different perspective than the existing literature, by approaching multinationals as national companies with international operations, regarded as expansions from home operations. He analyzed

10033-497: The conjecture. Mathematical journals sometimes publish the minor results of research teams having extended the search for a counterexample farther than previously done. For instance, the Collatz conjecture , which concerns whether or not certain sequences of integers terminate, has been tested for all integers up to 1.2 × 10 (1.2 trillion). However, the failure to find a counterexample after extensive search does not constitute

10160-429: The conjectures assumed appear in the hypotheses of the theorem, for the time being. These "proofs", however, would fall apart if it turned out that the hypothesis was false, so there is considerable interest in verifying the truth or falsity of conjectures of this type. In number theory , Fermat's Last Theorem (sometimes called Fermat's conjecture , especially in older texts) states that no three positive integers

10287-550: The context of theories of globalization , neoliberalism , and late capitalism . Since the 1960s, corporate social responsibility has attracted attention from a range of businesses, academics and stakeholders and been referred to by a number of other terms, including "corporate sustainability", "sustainable business", "corporate conscience", "corporate citizenship", "purpose", "social impact", "conscious capitalism ", and "responsible business". A wide variety of definitions have been developed, but with little consensus. Part of

10414-498: The cost advantages that a business obtains due to expansion. They are factors that cause a producer’s average cost per unit to fall as output rises. Diseconomies of scale are the opposite. Economies of scale may be utilized by any size firm expanding its scale of operation. As first articulated by Raymond Vernon in 1966, a product goes through a life cycle consisting of four stages: "new product", "growth product", "maturity product" and "obsolescence product". The conditions in which

10541-449: The countries' scarce factor(s). The results of this work have been the formulation of certain named conclusions arising from the assumptions inherent in the model. These are known as: Leontief's paradox in economics is that the country with the world's highest capital -per worker has a lower capital:labour ratio in exports than in imports. This econometric find was the result of Professor Wassily W. Leontief 's attempt to test

10668-449: The definition problem has arisen because of the different interests represented. A business person may define CSR as a business strategy, an NGO activist may see it as ' greenwash ' while a government official may see it as voluntary regulation. "In addition, disagreement about the definition will arise from the disciplinary approach." For example, while an economist might consider the director's discretion necessary for CSR to be implemented

10795-428: The development of appropriate measures and reporting techniques." Modern CSR has a wide range of different standards, frameworks and metrics for reporting and disclosing the social, environmental and economic issues. However, there is no single, fixed standard and the complex, dynamic and contextual nature of CSR means different companies and stakeholders adopt different approaches depending on their needs. There are

10922-658: The distribution of prime numbers . Along with suitable generalizations, some mathematicians consider it the most important unresolved problem in pure mathematics . The Riemann hypothesis, along with the Goldbach conjecture , is part of Hilbert's eighth problem in David Hilbert 's list of 23 unsolved problems ; it is also one of the Clay Mathematics Institute Millennium Prize Problems . The P versus NP problem

11049-574: The economy of the investor. The FDI relationship consists of a parent enterprise and a foreign affiliate which together form a multinational corporation (MNC). In order to qualify as FDI the investment must afford the parent enterprise control over its foreign affiliate. The International Monetary Fund (IMF) defines control in this case as owning 10% or more of the ordinary shares or voting power of an incorporated firm or its equivalent for an unincorporated firm; lower ownership shares are known as portfolio investment . The monopolistic advantage theory

11176-455: The employed resources." Businesses have changed when the public came to expect and require different behavior [...] I predict that in the future, just as in the past, changes in public attitudes will be essential for changes in businesses' environmental practices. Most consumers agree that while achieving business targets, companies should engage in CSR efforts at the same time. Most consumers believe companies doing charity work will receive

11303-440: The entire economy. While at Johns Hopkins, Penrose participated in a research project on the growth of firms. She came to the conclusion that the existing theory of the firm was inadequate to explain how firms grow. Her insight was to realise that the 'Firm' in theory is not the same thing as 'flesh and blood' organizations that businessmen call firms. This insight eventually led to the publication of her second book, The Theory of

11430-563: The environment, and how others perceive competitor CSR strategy. Meehan, Meehan and Richard developed a model known as the 3C-SR model, published in a frequently cited article in 2006, which aimed to offer "a new strategic approach to corporate responsibility". Their model sought to fill the gap between corporate social responsibility definitions and strategy, which the authors perceived to be an issue, and to provide guidance to managers on connecting businesses with ethically-aware consumers. An approach described by Tóth Gergely and published by

11557-455: The environment: the contingency factors. There could not be "one best way" for leadership or organization. In economics, contract theory studies how economic actors can and do construct contractual arrangements, generally in the presence of asymmetric information . Contract theory is closely connected to the field of law and economics . One prominent field of application is managerial compensation. Economies of scale , in microeconomics , are

11684-584: The established relationships with other firms to internationalize within their network, e.g. by localizing production at a foreign production site of the client. The Learning Portal Model is a new theory that was originally developed to explain the emergence and catch-up of multinational firms from the emerging markets. The theory explains that latecomer firms (from both, advanced and emerging markets) can use springboarding strategies to leapfrog certain technological development stages and accelerate their catch‐up with incumbent leading firms in their industry. To do so,

11811-404: The fact that local firms are not able to compete effectively against foreign firms, even though they have to face foreign barriers (cultural, political, lingual etc.) to market entry. He suggested that firms invest in foreign countries in order to maximize their specific firm advantages in imperfect markets, that is, markets where the flow of information is uneven and allows companies to benefit from

11938-503: The firm and that which is required by law". Furthermore, businesses may engage in CSR for strategic or ethical purposes. From a strategic perspective, CSR can contribute to firm profits, particularly if brands voluntarily self-report both the positive and negative outcomes of their endeavors. In part, these benefits accrue by increasing positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions. CSR strategies encourage

12065-489: The firm in 1937, making it one of the first ( neo-classical ) attempts to define the firm theoretically in relation to the market. Coase sets out to define a firm in a manner which is both realistic and compatible with the idea of substitution at the margin, so instruments of conventional economic analysis apply. He notes that a firm’s interactions with the market may not be under its control (for instance because of sales taxes), but its internal allocation of resources are: “Within

12192-440: The first statement of the four color theorem in 1852. The four color theorem was ultimately proven in 1976 by Kenneth Appel and Wolfgang Haken . It was the first major theorem to be proved using a computer . Appel and Haken's approach started by showing that there is a particular set of 1,936 maps, each of which cannot be part of a smallest-sized counterexample to the four color theorem (i.e., if they did appear, one could make

12319-585: The form of: with: The model has also been used in international relations to evaluate the impact of treaties and alliances on trade, and it has been used to test the effectiveness of trade agreements and organizations such as the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). The Heckscher–Ohlin model (H–O model), also known as the factors proportions development ,

12446-416: The functional equation by Grothendieck (1965) , and the analogue of the Riemann hypothesis was proved by Deligne (1974) . In mathematics , the Poincaré conjecture is a theorem about the characterization of the 3-sphere , which is the hypersphere that bounds the unit ball in four-dimensional space. The conjecture states that: Every simply connected , closed 3- manifold is homeomorphic to

12573-415: The identifiable behaviour of individual businesses risks not including what he calls " unincorporated market behaviour" within the scope of CSR - actions attributable to market processes, and also calls for other factors including "brand citizenship" and "illegitimate, informal or illegal activity" to be considered as part of a more complete picture. The term "brand citizenship" has been put forward because

12700-495: The impacts of their operations on society and the environment. On the other hand, the horsemeat scandal of 2013 in Europe affected many food retailers, including Tesco, the largest retailer in the United Kingdom, leading to the dismissal of the supplier. Corporate social irresponsibility from suppliers and retailers has greatly affected the stakeholders who lost trust in the affected business entities. Although sometimes it

12827-524: The increase of market power for the specific firm, increasing imperfections in the market as a whole (Ietto-Guilles, 2012) A final determinant for multinationals making direct investments is the distribution of risk through diversification. By choosing different markets and production locations, the risk inherent to foreign operations are spread and reduced. All of these motivations for FDI are built on market imperfections and conflict. A firm engaging in direct investment could then reduce competition, eliminate

12954-523: The insight of transaction costs theories of the MNEs, simultaneously and independently developed in the 1970s by McManus (1972), Buckley and Casson (1976), Brown (1976) and Hennart (1977, 1982), is that market imperfections are inherent attributes of markets, and MNEs are institutions to bypass these imperfections. Markets experience natural imperfections, i.e. imperfections that are because the implicit neoclassical assumptions of perfect knowledge and perfect enforcement are not realized. New Trade Theory (NTT)

13081-526: The internal costs. This process is called internalization . For Dunning, not only the structure of organization is important. He added three additional factors to the theory: Foreign direct investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner. Its definition can be extended to include investments made to acquire lasting interest in enterprises operating outside of

13208-438: The larger economic forces acting upon them. Local actors are more likely to have values similar to those of stakeholders, have established some history in the area, and have had the time to develop meaningful relationships within the community. This shared experience shaped the process of acquiring a social license. Nonlocal actors are likely to experience a much lesser degree of social license than local actors. Furthermore, many of

13335-426: The level of individual organizations to mandatory schemes at regional, national, and international levels. Moreover, scholars and firms are using the term " creating shared value ", an extension of corporate social responsibility, to explain ways of doing business in a socially responsible way while making profits (see the detailed review article of Menghwar and Daood, 2021). Considered at the organisational level, CSR

13462-408: The margin of a copy of Arithmetica , where he claimed that he had a proof that was too large to fit in the margin. The first successful proof was released in 1994 by Andrew Wiles , and formally published in 1995, after 358 years of effort by mathematicians. The unsolved problem stimulated the development of algebraic number theory in the 19th century, and the proof of the modularity theorem in

13589-485: The members of a social system." The eclectic paradigm is a theory in economics and is also known as the OLI-Model. It is a further development of the theory of internalization and published by John H. Dunning in 1993. The theory of internalization itself is based on the transaction cost theory . This theory says that transactions are made within an institution if the transaction costs on the free market are higher than

13716-453: The motivations behind foreign investment of US corporations in other countries. Neoclassical theories, dominant at the time, explained foreign direct investments as capital movements across borders based on perceived benefits from interest rates in other markets, there was no need to separate them from any other kind of investment (Ietto-Guilles, 2012). He effectively differentiated Foreign Direct Investment and portfolio investments by including

13843-426: The n=4 case involved numbers in the millions, although it has been subsequently found that the minimal counterexample is actually smaller. Not every conjecture ends up being proven true or false. The continuum hypothesis , which tries to ascertain the relative cardinality of certain infinite sets , was eventually shown to be independent from the generally accepted set of Zermelo–Fraenkel axioms of set theory. It

13970-404: The notion of control of foreign firms to FDI Theory, which implies control of the operation; whilst portfolio foreign investment confers a share of ownership but not control. Stephen Hymer focused on and considered FDI and MNE as part of the theory of the firm. (Hymer, 1976: 21) He also dismissed the assumption that FDIs are motivated by the search of low costs in foreign countries, by emphasizing

14097-418: The numbers N k of points over the (essentially unique) field with q elements. Weil conjectured that such zeta-functions should be rational functions , should satisfy a form of functional equation , and should have their zeroes in restricted places. The last two parts were quite consciously modeled on the Riemann zeta function and Riemann hypothesis . The rationality was proved by Dwork (1960) ,

14224-434: The opportunities for competitive advantage from building a social value proposition into corporate strategy. CSV gives the impression that only two stakeholders are essential – shareholders and consumers. Many companies employ benchmarking to assess their CSR policy, implementation, and effectiveness. Benchmarking involves reviewing competitor initiatives, measuring and evaluating the impact those policies have on society and

14351-537: The problem in his lectures as early as 1840. The conjecture was first proposed on October 23, 1852 when Francis Guthrie , while trying to color the map of counties of England, noticed that only four different colors were needed. The five color theorem , which has a short elementary proof, states that five colors suffice to color a map and was proven in the late 19th century; however, proving that four colors suffice turned out to be significantly harder. A number of false proofs and false counterexamples have appeared since

14478-511: The program of Richard S. Hamilton to use the Ricci flow to attempt to solve the problem. Hamilton later introduced a modification of the standard Ricci flow, called Ricci flow with surgery to systematically excise singular regions as they develop, in a controlled way, but was unable to prove this method "converged" in three dimensions. Perelman completed this portion of the proof. Several teams of mathematicians have verified that Perelman's proof

14605-480: The public perception of an organisation may be associated with its branding rather than its corporate identity: McIntosh uses Virgin as an example. Similarly, Anne Bahr Thompson uses the same term and observes that companies adopting socially responsible behaviours are primarily investing in their reputations . In the 21st century, corporate social responsibility in the supply chain has attracted attention from businesses and stakeholders. A corporation's supply chain

14732-446: The questions of what economic activities are located where and why. Location theory rests — like microeconomic theory generally — on the assumption that agents act in their own self-interest. Thus firms choose locations that maximize their profits and individuals choose locations, that maximize their utility. In economics, a market failure is a situation wherein the allocation of production or use of goods and services by

14859-540: The ratio of the labor embodied in the two commodities differed between two countries, such that each country would have at least one commodity where the relative amount of labor embodied would be less than that of the other country. The gravity model of trade in international economics , similar to other gravity models in social science , predicts bilateral trade flows based on the economic sizes of (often using GDP measurements) and distance between two units. The basic theoretical model for trade between two countries takes

14986-502: The regions of the map—so that no two adjacent regions have the same color. Two regions are called adjacent if they share a common boundary that is not a corner, where corners are the points shared by three or more regions. For example, in the map of the United States of America, Utah and Arizona are adjacent, but Utah and New Mexico, which only share a point that also belongs to Arizona and Colorado, are not. Möbius mentioned

15113-694: The reports vary widely in format, style, and evaluation methodology (even within the same industry). Critics dismiss these reports as lip service, citing examples such as Enron 's yearly "Corporate Responsibility Annual Report" and tobacco companies' social reports. In South Africa, as of June 2010, all companies listed on the Johannesburg Stock Exchange (JSE) were required to produce an integrated report in place of an annual financial report and sustainability report. An integrated report reviews environmental, social, and economic performance alongside financial performance. This requirement

15240-516: The researchers conducted a regression analysis and preceded the analysis with the provision of several measures that they utilized to serve as proxies for key financial performance indicators (i.e. return on assets serves as a proxy for profitability). Initially, CSR emphasized the official behaviour of individual firms. Later, it expanded to include supplier behaviour, the uses to which products were put, and how articles were disposed of after they lost value. Malcolm McIntosh notes also that focussing on

15367-899: The resources affected by forest management are held in the public trust, so it is essential for both industry actors and community stakeholders to feel engaged and involved in decisions regarding local natural resource management. Baines and Edwards shared similar findings in New Zealand's aquaculture sector regarding the importance of relationships and communication between industry and local stakeholders. They find that social license depends on relationships and building trust. Smaller, local companies tend towards relationships that are relational as opposed to transactional, possibly due to their ongoing community presences and communication abilities, which are better for fostering these relationships and trust building. In research of Requisite Organization , Elliott Jaques defines Social License to Operate for

15494-639: The rising concerns on ethical issues in businesses. A review of 14,523 articles found that stakeholder perspective is the most prevalent dimension of corporate social responsibility. This view is reflected in the Business Dictionary that defines CSR as "a company's sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on

15621-615: The social initiative done by the company is not aligned with other company goals it will have a negative impact. Mohr et al. (2001) and Groza et al. (2011) also emphasise the importance of reaching the consumer. Some commentators have identified a difference between the Canadian (Montreal school of CSR), the Continental European , and the Anglo-Saxon approaches to CSR. It has been described that for Chinese consumers

15748-424: The theorem is therefore true. Initially, their proof was not accepted by mathematicians at all because the computer-assisted proof was infeasible for a human to check by hand. However, the proof has since then gained wider acceptance, although doubts still remain. The Hauptvermutung (German for main conjecture) of geometric topology is the conjecture that any two triangulations of a triangulable space have

15875-459: Was defined by Sheehy as "international private business self-regulation". Sheehy examined a range of different disciplinary approaches to defining CSR. The definitions reviewed included the economic definition of "sacrificing profits", a management definition of "beyond compliance", institutionalist views of CSR as a "socio-political movement," and the law's focus on directors' duties. Further, Sheehy considered Archie B. Carroll's description of CSR as

16002-583: Was first put forward by Stephen Hymer , Charles P. Kindleberger and Caves. The market imperfections they had in mind were, however, structural imperfections in markets for final products. According to Hymer, market imperfections are structural, arising from structural deviations from perfect competition in the final product market due to exclusive and permanent control of proprietary technology, privileged access to inputs, scale economies, control of distribution systems, and product differentiation, but in their absence markets are perfectly efficient. By contrast,

16129-557: Was implemented in the absence of formal or legal standards. An Integrated Reporting Committee (IRC) was established to issue guidelines for good practice. One of the reputable institutions that capital markets turn to for credible sustainability reports is the Carbon Disclosure Project , or CDP. Consumers of goods and services should verify corporate social responsibility and the results of reports and efforts. The accounting, auditing, and reporting resources provide

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