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Global Business and Corporate Governance THANOPOULOS THE BUSINESS Global Business and Corporate International Business Collection EXPERT PRESS S. Tamer Cavusgil • Michael R. Czinkota • Gary Knight DIGITAL LIBRARIES Governance Environment, Structure, and Editors EBOOKS FOR BUSINESS STUDENTS Challenges Curriculum-oriented, born- John Thanopoulos digital books for advanced This book presents a new era where the main force for business students, written social change, research, education, economic better- by academic thought ment, and even employee happiness is the global en- leaders who translate real- Global terprise. So many businesses today are “global,” though world business experience often with conflicting priorities and potential civiliza- into course readings and tion clashes. Companies may operate in a practically reference materials for borderless world, seeking ideas and talents globally, but GLOBAL BUSINESS AND CORPORATE GOVERNANCE AND CORPORATE BUSINESS GLOBAL Business and students expecting to tackle without proper knowledge and preparation, it is one management and leadership endless struggle. challenges during their Inside, you’ll learn many global business-related is- sues ranging from historical matters to the realities of Corporate professional careers. the 21st century—from local cultures to global organi- POLICIES BUILT zations and from political, legal, and economic topics BY LIBRARIANS to accounting, finance, marketing, and management perspectives. This book directs your attention to critical Governance • Unlimited simultaneous usage business challenges in addition to the need of corpo- rate governance at all levels. These issues include how • Unrestricted downloading it all relates to the environment and the structure of the and printing corporation. Environment, • Perpetual access for a Whether you’re already out in the CEO world, or a one-time fee student in upper-level undergraduate or graduate study, • No platform or or executive education, this book gives you numerous Structure, and maintenance fees combinations of how-to-do projects with philosophical • Free MARC records perspectives of a new and challenging era. • No license to execute Challenges The Digital Libraries are a John Thanopoulos received his doctoral degree in Mar- keting from the University of Arkansas. He started his comprehensive, cost-effective career as a business practitioner but then joined the way to deliver practical academe in 1983 as the Director of the International treatments of important Business Programs at the University of Akron in Ohio. John Thanopoulos business issues to every During his academic life he received various awards student and faculty member. and recognitions, such as Best Professor in Interna- tional Business (2012) from the World Education Con- gress, and has over 100 academic written contributions published in journals, editorial volumes, and teaching For further information, a manuals. Presently, he is the Vice Chair of the Depart- ment of Business Administration at the University of free trial, or to order, contact: Piraeus in Greece. [email protected] www.businessexpertpress.com/librarians International Business Collection S. Tamer Cavusgil • Michael R. Czinkota • Gary Knight Editors ISBN: 978-1-60649-864-4 www.businessexpertpress.com www.businessexpertpress.com Global Business and Corporate Governance Global Business and Corporate Governance Environment, Structure, and Challenges John Thanopoulos Global Business and Corporate Governance: Environment, Structure, and Challenges Copyright © Business Expert Press, LLC, 2014. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopy, recording, or any other except for brief quotations, not to exceed 400 words, without the prior permission of the publisher. First published in 2014 by Business Expert Press, LLC 222 East 46th Street, New York, NY 10017 www.businessexpertpress.com ISBN-13: 978-1-60649-864-4 (paperback) ISBN-13: 978-1-60649-865-1 (e-book) Business Expert Press International Business Collection Collection ISSN: 1948-2752 (print) Collection ISSN: 1948-2760 (electronic) Cover and interior design by Exeter Premedia Services Private Ltd., Chennai, India First edition: 2014 10 9 8 7 6 5 4 3 2 1 Printed in the United States of America. To George and Sofia and to all my teachers and students who made my life’s trip so magnificent! Abstract This textbook presents, dear reader, a new era where the main force for social change, research, education, economic betterment, and even employee happiness is the global enterprise. From the outset it is assumed that today all business is global though often with conflicting priorities and potential civilization clashes. Also, it showcases that we operate in a practically borderless world seeking ideas and talents globally. Therefore, this book aims to brief you on business-related issues ranging from historical matters to the realities of the 21st century, from local cultures to global organizations and from political, legal, and economic topics to accounting, finance, marketing, and management perspectives. It also aims to direct your attention to critical business chal- lenges as well as to the need of corporate governance at all levels. These issues relate to the environment and the structure of the corporation. However, these very issues may result in restating the organizational objectives since the corporate era parallels the roles and the responsibili- ties that countries had in the past. For that matter wise, prudent, knowl- edgeable, ethical, philosophically-oriented, and enlightened corporate leaders are needed. From a practical side the material presented is better suited for upper- level undergraduate, graduate study, and executive education, and it provides a combination of how-to-do matters and philosophical perspec- tives of a new and challenging era. Keywords business challenges, business ethics, corporate governance, ethics, global business, global organizations, international accounting, international finance, international management, international marketing, philosophy, self-actualization Contents Preface ��������������������������������������������������������������������������������������������������xi Abbreviations ��������������������������������������������������������������������������������������� xv Chapter 1 The Human Enterprise and Its Governance .......................1 Chapter 2 From Geography to Culture ............................................13 Chapter 3 Philosophical Tenants and the 21st Century ....................33 Chapter 4 Political, Legal, and Economic Issues ...............................49 Chapter 5 Global Organizations and Unions of Nations ..................73 Chapter 6 Accounting and Finance Perspectives ...............................95 Chapter 7 Marketing Perspectives...................................................113 Chapter 8 Management Perspectives ..............................................137 Chapter 9 Capstone: Global Business Challenges ...........................163 Epilogue ���������������������������������������������������������������������������������������������183 About the Author ��������������������������������������������������������������������������������185 Notes��������������������������������������������������������������������������������������������������187 References �������������������������������������������������������������������������������������������209 Index �������������������������������������������������������������������������������������������������221 Preface During my years of business and academic experience, I have collected hundreds of books on international business,1 philosophy, history, sociology, and so on. It fascinates me that most of the international busi- ness concepts we perceive as brand new were discussed and challenged since the mid-1950s, or even earlier. Therefore, in writing this book I aim not only to present the environ- ment and structure of today’s global business but also to address challenges that the globalization of business has brought. In the process, this book became a mix of the technocratic needs of the global enterprise, an eco- nomic theory, and a philosophical perspective of our era. These concepts are interconnected. In fact, I believe that the era of global business—an era that will propel the human enterprise to become the major societal player in the near future—is already taking shape in terms of research, significance, size, employee happiness, philosophy, and ethics. At the outset, I would like to clarify a few essential definitions. This book deals with “business.” I use all related nouns such as business, company, corporation, enterprise, firm, organization, or transnational interchangeably. In a parallel sense and although most businesses have a profit motive, to a great extent the material presented also applies to the not-for-profit entities, including governmental and nongovernmental ones. Business is now perceived as a societal player that takes on new roles and is responsible for economic growth and social betterment,2 and oper- ates within a practically borderless global environment. National identities, symbols, and icons are milestones of the passage of civilizations: the Roman Empire, the British Empire, the Pyramids, the Great Wall of China, Alexander the Great, and Napoleon the Great are all indicative of past eras motivated by economic ambitions and personal glory.
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