According to Chuang (2013), “leadership is a key component of all organizations but its function and capacity are getting more complicated with increased involvement in globalization and technology development” (p. 1). It means that in the globalized and culturally diversified environment, the management should necessarily take into account multiple issues, and especially those related to corporate social responsibility (CSR), and sustainability.
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Based on this, in the given paper, we will analyze how current global needs may drive organizational innovation and business strategies. The findings will support the launch of a new entrepreneurial project within an enterprise specialized in IT development. The venture will perform in collaboration with Facebook, one of the Fortune 500 enterprises, a highly successful company that actualizes an innovative and sustainable approach to its business processes. Therefore, the company’s profile will be reviewed to set out possible directions for the establishment of the new entrepreneurial division.
Strategic Direction and Effects
The major purpose of global management is the control over international business opportunities created by globalization, as well as the governance of all possible complications and challenges associated with it (Schermerhorn & Bachrach, 2013). The present-day business environment is characterized by intense competition. Therefore, companies should strive to be innovative to achieve leading positions in the market. However, in the context of closely interconnected economies, one cannot ignore the impact of the business on communities and people. Thus, along with innovation, the CSR principles and ethical conduct become of great importance.
The term “innovation” implies the creation of something new. However, despite the simplicity of this definition, innovation endeavors may be hard to bring to success because it is impossible to be innovative by merely developing new products without taking into consideration a great variety of other organizational areas: corporate culture, customer relationships, logistics, etc. Supporting this assumption, Ackermann and Kern (2013) state that the enforcement of the innovation principles requires such prerequisites as managerial flexibility and risk-taking behavior backed by an effective organizational structuring and a well-developed organizational culture.
Many of Facebook’s activities can be regarded as innovative and risk-taking. For instance, it launched several ambitious and pioneering projects, e.g., VR headset Oculus Rift, that could bring profits only in the long run. The company’s innovation processes are not limited to the sphere of product offerings through − Facebook continues to integrate the principles of sustainability and cultural diversity into its corporate culture.
As stated by Canen and Canen (2012), in monocultural organizations, leaders “let tensions increase; silence cultural diversity; reinforce hegemonic voices; abuse others who think differently, and tend to condone bullying and monocultural behaviors” (p. 201). Such an approach is associated with unfair recruiting practices and the overall unsound workplace environment as it may provoke interpersonal conflicts at the workplace and a one-sided outlook. Conversely, by promoting cultural diversity and developing multicultural competence in employees, organizations can foster an inclusive workplace characterized by a strong team cohesion and a multidimensional knowledge that may help succeed in the market.
Along with fair HR practices, environmental protection is an essential part of socially responsible global management. Only during a few decades, the emissions caused by the cross-national transportation have significantly increased, and it may be expected that the further expansion of international trade and industrial growth will provoke an even greater deterioration of the ecological state. However, the need for a safe environment is basic to all humans and animals. By recognizing this, not only can organizations improve their performance but also generate multiple benefits for consumers and society as a whole.
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As part of its sustainability program, Facebook strives to reduce the operation energy intensity, purchase electricity from renewable sources, and perform sustainable engineering. In this way, the integration of universal social values and principles of sustainability into the organizational culture, and aspiration to address an extended range of social interests help the company to develop a positive perception of the brand by the public (Wu & Wang, 2014). As a result, it positively influences organizational performance.
Taking into account the findings, the major goal of the new business venture will be the renewal of the company’s supply chain management (SCM) activities, and the integration of CSR principles in them. SCM supports both informational and physical flows within the firm. It includes sourcing, product development, delivery of finished products, etc. The major activities that will be redesigned during the project implementation will include ecological management of logistics, development of customer relationships through marketing (e.g., labeling and packaging), and promotion of sound work environment through cultural diversification.
As stated by Gechevski, Kochov, Popovska-Vasilevska, Polenakovik, and Donev (2016), distributional logistics is closely linked with marketing management. Thus, to organize the distribution channels rationally, the new division should carry out a multipurpose analysis of the market conditions considering the ecological preferences of customers (Gechevski et al., 2016). Based on the results of the assessment, the division will be able to organize reverse material streams and purchase ecologically acceptable packaging and production materials which can be reused and recycled multiple times. With the orientation towards the needs of final consumers, the marketing strategy will be developed to demonstrate corporate values to the public. In this way, the company and its consumers will collaborate without rejecting their own and each other’s interests.
Effects and Benefits
Along with the reasons mentioned above that encourage companies to integrate socially responsible, ethical, and environmental activities into organizational operations, customer value creation is among the main ones. By focusing on this, organizations may significantly improve the quality of performance and increase customer satisfaction (Wu & Wang, 2014). In this way, innovation, fair HR practices, and environmental orientation can ultimately lead companies to gain competitive advantages in the market.
Ackermann, M., & Kern, B. (2013). Why do corporate entrepreneurship efforts fail so often? Evaluating the decisive factors. Proceedings of the Multidisciplinary Academic Conference, 1-13.
Canen, A. G., & Canen, A. (2012). Challenging envy in organizations: Multicultural approaches and possibilities. Business Strategy Series, 13(5), 199-207.
Gechevski, D., Kochov, A., Popovska–Vasilevska, S., Polenakovik, R., & Donev, V. (2016). Reverse logistics and green logistics way to improving the environmental sustainability. Acta Technica Corvininesis – Bulletin of Engineering, 9(1), 63-70
Schermerhorn, J. R., & Bachrach, D. G. (2013). Exploring management. Hoboken, NJ: Wiley.
Wu, S., & Wang, W. (2014). Impact of CSR perception on brand image, brand attitude and buying willingness: A study of a Global Café. International Journal of Marketing Studies,6(6), 43-56.