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GLOBALISATION - FURTHER RESEARCH

"Globalisation refers to a trend or process whereby economies and societies become more connected across national and geographic boundaries. With globalisation questions of production, trade, finance, ecology, health, communications, regulation and conflict all increasingly play themselves out on a planetary scale. Much of contemporary CSR relates to companies that operate globally. Indeed, concerns to develop socially and environmentally sustainable forms of globalisation have arguably been one of the main drivers behind the recent rise of CSR.

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This is not to say that all human lives today are equally globalised. Certain countries and regions have more global connections than others. Cities tend to be more globally oriented than rural areas. Wealthier circles generally have more global links than poorer circles. In cultural terms indigenous peoples are on the whole less globalised than populations steeped in modernity. In spite of such variations, however, all people everywhere in the world today are to some degree influenced by global circumstances.

With particular regard to CSR, it is important to note that recent globalisation has seen massive growth in firms that operate on a transnational basis. For example, thousands of companies now engage in global production, meaning that they conduct different phases of their production processes in widely separated locations across the world. Even greater numbers of corporations operate in global markets, meaning that they sell their outputs to clients spread across multiple continents, often through globally coordinated strategies. In addition, global finance today provides much of the credit lines on which business depends, and global accounting (through operations such as offshore centres and transfer pricing) enables companies greatly to enhance their bottom lines.

Many observers have raised concerns about the economic, social, environmental and political implications of this globalisation of firms. The more globalised corporations are often very large, with capacities to make far-reaching impacts on society, negative as well as positive. Moreover, globalisation has given companies much enhanced mobility, enabling them to move more easily to the most attractive regulatory environments. In principle this flexibility could allow companies to locate at sites which generate large financial profits at the cost of considerable social and environmental damage. National governments might be wary of requiring higher legal standards for fear that the companies might migrate to countries with less demanding legislation."

(Source: http://search.credoreference.com.arts.idm.oclc.org/content/entry/wileyazcsr/globalisation/0?searchId=b68756a5-ccf3-11e5-9de9-0a80f32943a1&result=2)

 Bibliography reference: Scholte, JA (2010) Globalisation. [Online]. In W Visser, D Matten, M Pohl & N Tolhurst. The A to Z of corporate social responsibility. Hoboken, NJ: Wiley. Available from: http://arts.idm.oclc.org/login?qurl=http%3A%2F%2Fsearch.credoreference.com%2Fcontent%2Fentry%2Fwileyazcsr%2Fglobalisation%2F0 [Accessed 6 February 2016].

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