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Economic globalization effects on society
Economic globalization effects on society
Economic globalization effects on society
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Topic sentence: Ambitious, profit-minded, global company should behave in a socially-responsible way. Discuss
Globalization is influential to the world of 21th century. Economy, businesss life,society, and environment have changed significantly due to the rapid development of technology ,the transfer of information, and increasing competition. Multinational companies can effect the world in many aspects enormously, hence how they behave is crucial to the society and all individuals.(Rodrik,1998)
Multinational corporations operate their business in different countries of the world or the process of the production is separated in different countries.
For example, the high-technology company, Apple, which sells the personal computers ,mobile
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The multinational corporations operate their business in many countries, hence they could effect the world in a wide range. Many antiglobal activitists claimed that multinational corporations acquire huge profit from global business and have many negative effects on the world such as changing the environment and overusing natural resource. In the other hand, many managers, investors and shareholders think that the relationship between financial performance and corporate social responsibility is inverse relationship. They believe that the spending on corporate social responsibility is more than the penalty on compensating the damage caused by their business behavior and the loss of the negative effects.(Y. Luo,2001 …show more content…
Global companies are part of the society and they gained great profit from the global economy and impact upon the environment and many aspects of the world; therefore , corporate social responsibility is the obligation of these global companies. In the process of operating business, the corporations would use the resource from society. For instance, U.S government build up the silicon valley to encourage the development of high-technology corporation ,such as Apple Inc. and Intel, and attract the related professionals to participate in this field. (Rogers and Judith K.,1984) There is the other reason that makes us believe that corporate social responsibility is an obligation for companies that every one and every group in society are responsible to contribute to society and protect our environment. If all of us only want to get the benefit from society and the natural resource, the outcome of our world would be nothing left and our globe would not be suitable for human to live
Following the globalization, many companies in developed countries move factories to developing nations. As a multinational company, there is at least one facility in one country other than its home country. Those companies have offices and factories in different countries and usually have a centralized head office in their home country. Advocates of multinationals say they create jobs and wealth. And multinationals can improve technology in developing countries, which are in need of this. On the other hand, critics say multinational companies often barely pay employees enough to live on in developing countries, and it is unethical to pay cheap wages.
The world we live in today is going through enormous changes in economics, technology, culture, politics, etc. The effects of the changes are not so clear, since it is hard to predict how each sector would affect the other and how society will be affected. However, analyzing past and present occurrences provides some information for experts to interpret society’s reaction in the future to different transformations. Globalization can be seen as a process in which societies around the world come together and expand through the combination of different forces. This paper will explore the effects of globalization on US companies, US society and economy, and the implications for other countries in the post-industrial world.
Globalization refers to the expansion of global relations and the integration of different cultures that are interacting in new ways. Through globalization people are able to communicate and exchange information. To corporations it is purely an economic process: “the result of the market system unleashed on a worldwide scale” (“Perspective: The Exigencies of Globalization”). Globalization has made profit the core objective of large corporations, though the consequences of these large scale productions both environmentally and ethically are often overlooked. This essay will investigate the consequences of globalization by examining the power dilemmas between the nation state and intercontinental nations, as well as the corporate drive for profit which has detrimental effects on cultures and the environment.
Every business has a social responsibility toward society. That means to maximize positive affects and minimize negative affects on the society. Social responsibilities includes economic-to produce goods and services, that society needs at the price, that satisfy both-business and consumers, legal responsibility-laws that business must obey, ethical responsibilities-behaviors and activities that are expected of business by society, but are not codified in the law, philanthropic responsibilities-represent the company’s desire to give back to society (charietys, volunteering, sponsoring).
Nowadays, corporate social responsibility (CSR) becomes an integral part of each company. CSR can be understood as a management concept and a process that links social and environmental issues in business operations to a company’s interactions with it’s stakeholders. CSR not only gives the company a chance to help society but also enhances company’s reputation and investors’ attractiveness. In this paper, we will show a brief description about CSR and effects of CSR on international business, including pros and cons when a company applies the CSR program. Besides that, I give my ideas on conflicts of interest beween shareholders and the company’s managers. And then, advantages and difficulties for companies implementing CSR in Vietnam will be defined. Although CSR was first introduced widely in Vietnam many years, it is still a new concept. Therefore, pioneers in this area are facing lots of challenges in running CSR programs in Vietnam.
Multinational enterprises date back to the era of merchant-adventurers, when the Dutch East India Company and the Massachusetts Bay Company traversed the world to extract resources and agricultural products from colonies (Gilpin 278-79). While contemporary multinational corporations (MNCs) do not command the armies and territories their colonial counterparts did, they are nevertheless highly influential actors in today’s increasingly globalized world.
Corporate social responsibility (CSR) is similar to an individual’s social responsibility. An individual who is socially responsible is aware of how their decisions affect the environment. Corporate social responsibility can be define as “how well a company meets its economic, legal, ethical, and discretionary responsibilities” (Peter & Sarah, p. 51). Corporate social responsibility holds businesses accountable to stakeholders such as consumers, in areas of concern such as environmental factors, community and society in general. As a result successful CSR initiatives creates a sustainable company in all ways: financially, ethically, environmentally, and socially. The moral problem with CSR is based on the belief that “CSR would be a cost that would be higher than the perceived benefits. By financially supporting “charity” based initiatives, firms are not performing their fiduciary duty to their stockholders” (Peter & Sarah, p. 49).
Now that many people start to realise that companies do not operate isolated from the rest of the world, but are a very important and central part of society, they are of the opinion that companies should no longer focus on making profits only, but also consider and take into account the negative impacts of their business-related decisions and activities on the environment. According to a global research conducted by Ipsos MORI in April 2013, 84 percent of the interviewees are of the opinion that companies should do more to contribute to society.
It is important to understand the importance of corporate social responsibilities. If Corporate Social Responsibility is properly maintained and emphasized by companies, it can benefit the society, economy and corporate sustainability. It can also be cost efficient to companies. also the environment . But above all effect (CSR) varies companies to companies. Where some corporates seem to make all sorts of benefits from their coporate social responsibilities but few of them are also having loss by trying to maintain CSR without properly evaluating their resources. (Porter and Kramer 2006) has said The inferences where corporates need to evaluate their CSR actions to figure out if they add
So, if these multinational corporations have such strong influence, it is their responsibility to activate change in terms of sustainability. Sustainability is the number one problem our society faces today. Sustainability refers to social, environmental, and economic behavior that aims to maintain our resources so that the world and everyone on it can continue to exist in a prosperous manner. Social sustainability is “identifying and managing business impact, both positive and negative, on people.”
Globalization is associated with bringing together world economies and cultures. Globalization is a controvertible conception. This allows powerful corporation change local enterprises and in the future make the gaps big between, rich people and poor people. The benefits of an international market to integrated where labour, ideas, capital and goods can be free and to promote the economic development all of the levels in the society. Globalization is a process to interact and integrate among companies, people and the governments of other nations. Globalization is process which international organization, corporations, individuals and communities has become more interconnected with politics, cultures and the earths environment. “It is characterized
The progression and evolution of international business has played an integral role in the overall development and progress of the world economy, culture, and politics. The multinational corporation was an essential part of this process and has roots as far back as the 15th and 16th centuries in Western Europe, specifically in the nations of England and Holland, during a period known as mercantilism. This was a time of unprecedented global exploration, colonization, and other imperialist ventures. Organizations such as the British East India Trading Company, promoted both global trade and the acquisition of natural resources, primarily for their home countries in areas including Africa, East Asia, and the Americas. Global trade was the primary factor in the growth of the world economy during this time. However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provided a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine it what ways, and to what degree it has changed over time.
Firstly, multinational corporations are not something new in this 21st century. There are more and more international corporation as people try to boost the process of globalization. The development of these multinational corporations depends on the management of the owners. Transnational strategy is needed in order to operate such a big system of companies. Every nation in this system has to be managed thoroughly in order to help running the corporation, as well as to keep the system as one consistent body of business. Managers also find it important to look for opportunitie...
The interrelation and the integration of people, companies, governments and nations can be described as globalization. Globalization was produced due to international trade and investments with the help of technology. In today’s world, globalization is very essential. The advancements and technology help the process needed it for globalization. Many countries and organizations similarly are affected by this phenomenon, on the other hand, smaller countries have benefit from larger contributors in the world’s market.
Globalization is one of the main aspects in the 21st century. Globalization has brought the world closer; all the things that are happening nowadays are recognized globally even if they happened locally (Buckley). According to Nayef Al-Rodhan GCSP (Geneva Centre for Security Policy) globalization is not a single word or concept. It contains many other concepts within itself. Globalization is composed of different concepts like incorporation regarding the economics, transmitting information or understandings, stability within beliefs, and other concepts (Al-Rodhan p.3). This paper deals with the definition of Globalization, the advantages and disadvantages of globalization, and based on these information the views that to which extend the globalization is beneficial for majority of the world's population. The concept of globalization has changed the whole shape of the world. It has both its positive and negative impacts on people's life. However, by taking both the advantages and disadvantages into consideration we can find that to a large extend globalization is beneficial for majority of the world's population. With the help of globalization the works that were difficult in past is getting easier in today's environment. People are getting closer to each other, which is a product of globalization. Moreover, the knowledge and informations are being circulated in very good way which is a very good sign for having a good and prosperous life.