Globalization and CRS Homework Help

Globalization and CRS
Globalization refers to the assimilation of economies in the world in the form of trading activities, financial flows, transfer of technology and information as well as people mobility. The extent at which globalization impact the society is clearly reflected in the increasing and rising importance of world business transactions and capital flows in the world economy (Narayanan, 2001). In addition, the trend towards more integrated global markets has opened up vast potentials for greater growth presenting unparalleled opportunities for developing countries to improve the living standards of their citizens. In recent years, globalization has led to phenomenal growth especially in cross-border financial flows as compared to the past. There has been significant revolution, particularly in transport and communication technologies thus increasing the information availability which has on the other hand allowed individuals and companies to base their economic choices on economic environments in different countries. It is now believed that globalization has led to expansion, diversification, creating deep trade and financial links between countries as it is evident from the past twenty years.
Despite the above discussed benefits of globalization, it also poses different challenges to governments, civil societies, and other policy actors in the mix. Ensuring that benefits of globalization extent to all countries is a real challenge; for instance civil society organizations focus on aid and resource transfer are faced with a huge agenda of dealing with more complex issues of international financial flows, trade and investment, environment, and migration. Secondly, dealing with the fear of globalization results into instability especially in developing countries; in this case governments need to device new ways of dealing with its organizations. For instance, they have to come up with new and precise ways of working with civil society groups. Thirdly, addressing participation and transparency issues in multilateral institutions is difficult (DuBrin, 2008).
Drivers of change
Globalization has been realized due to the effective use and improvement of the following divers of change across the globe:
Technology
The current world is dynamic and we are experiencing a unique pace of technological change. With improved technology new products are being developed faster, information is able to be transmitted over longer distances instantly, transportation has also been made easier as compared to the past years. It is believed that the modern wealth nations are being determined by intellectual potential and human capital which significantly rely on technology (Lechner, 2009).For instance, technology driven processes are globally available, an end to end technology solution process has been designed, and people can design their products directly online. These diverse capabilities of technology have made the process of globalization much easier and faster. The more information and greater connectivity potentials of technology have given people more knowledge, control, and purchasing capabilities the world over. Working and shopping everywhere has been made possible through technology.
Economic/financial
This is sometimes regarded as the backbone of any business that wants to go global. Economy of any country determines the type of foreign investment that can be invested. Companies with big financial base can easily diversify their markets by moving from the domestic domain to other countries where the economy is stable; where they can cheaply produce and sell their products. It is evident that companies with contemporary strengths merge together to increase their financial base, market share, reach, and size. The economic status of a country and the financial base of a company that wants to go universal completely drive the process of globalization (Eriksen, 2007).
Socio-cultural
The levels of poverty in different societies across the globe have been alleviated through globalization. The rapid social growth and poverty reduction in countries like China and India for over 20 years has been through globalization. Globalization open up new employment opportunities, provide essential goods and services that were initially unavailable, information is also made available, and transport systems are integrated. The urge of global corporations to penetrate into new unexploited markets thus seeking to significantly improve the socio-cultural setting of the global society has considerably catapulted globalization process (Eriksen, 2007). For instance, the desire to provide food security, economic security, health security, environmental security, personal security, personal security, community security, and political security has increased the rate of globalization.
Legal &Political
Good governance and political stability is another key factor that has driven globalization process to a great extent. Good international laws favoring business diversification have plaid a significant role in ensuring that companies expand their reach to a wider market. Countries with political stability have attracted foreign investors thus allowing new foreign companies to operate within their boundaries (Narayanan, 2001). With regard to these, national authorities need not to spare efforts of tackling ills like corruption and inefficiency, enhance accountability in order to create a good atmosphere for foreign investment.
Importance of communication
Governments, organizations and companies currently are operating more and more on a global platform. For this matter, communication, especially intercultural communication should be embraced to enhance the daily operations in these bodies. Efficient communication helps all stakeholders in the business environment to communicate, manage businesses, work together, negotiate, and build relationships; these are primary recipes of globalization. For instance, businesses with a mix of cultures and want to trade successfully abroad, they should nurture intercultural communication. Efficient communication means having a competitive edge, as in people need to get it right and get it right the first time for them to sell or buy on a global market.
Ability to open up new markets and products
Globalization has presented individuals and companies vast opportunities to open up new markets. The improved technological capabilities have allowed potential investors to undertake extensive research and development and hence they are able to establish what customers need. In addition, it has facilitated corporations to access the world markets thus allowing them to exploit their competitive advantage intensively (Eriksen, 2007). Through globalization companies establish new markets for their products, discover new consumer needs and hence they develop new products to meet these needs.
How different companies can use globalization to their advantage
There are several ways through which companies can benefit from globalization: efficiency; they have increased economies of scale especially from a wider access to customers and markets, exploit another country’s resources, expand product life-cycle, and operational flexibility. Strategic; this is the first mover advantage and only provider of a product to a market, cross subsidization between countries, and can also transfer prices. Learning is also another way that companies can benefit through the broadened learning opportunities due to the vast operating environments.
Value systems
Globalization value systems include democracy, human rights for all, and tolerance; are directional and sometimes are considered to be absolute. In addition these values are not reflected in all societies across the world.
2. Discuss this view of corporate social responsibility with reference to relevant literature.
Different view points of CSR
There are myriad view points with regard to Corporate Social Responsibility. For this matter CSR is viewed in moral, rational and economic perspectives. The moral view is that CSR represents the link between the company and the principles expected by the society within which it operates. For instance, this aspect assumes that company’s profits do not exist in a vacuum but comes from actions that are harmonious with societal values as from internal to the company. With regard to this the company and the society must exist on mutual grounds. Secondly, CSR is a rational argument for any corporation or business seeking to maximize its performance by minimizing restriction on operations (Bacher, 2007).With globalization, individuals, and activist organizations are empowered and feel that they can enact change, thus CSR provides a platform for anticipation and reflection of societal apprehension through which companies minimize operational and financial constraints in business. Lastly, CSR is an economic argument for a business. CSR adds value to the company as it allows companies to focus on needs and concerns of their various stakeholders. By doing so, the company acquires and retains the societal legitimacy thus maximizing its financial viability for a very long period of time. For instance, CSR is a way of harmonizing corporate operations with community values and expectations (Werther and Chandler, 2010).
Examples of stakeholders that companies impact on
• Primary stakeholders: the most vital to the company, without them the company cannot survive e.g. customers and suppliers.
• Secondary stakeholders: these are people who even without their participation, the company can still exist e,g. community.
• Active stakeholders: these are people who are actively involved in the company’s operations e.g. management, staff and pressure groups.
• Passive stakeholders: they do not seek to participate in company’s active policy making e.g. government and local community.
Pressures that shareholders place on strategic decision making
Shareholders have the ability to influence the objectives and course of a company particularly in the event that they are the directors of that particular organization; a common scenario in privately owned firms (Werther and Chandler, 2010). Public companies are large and individual shareholders have minimal influence which is only exercised through voting at the annual shareholder’s meeting. However, they can exert their influence by threatening to by selling shares and making company vulnerable to take over. With regard to this, managers and directors must keep shareholders satisfied.
The potential conflict of meeting shareholder expectation and satisfying the wider community
This is a tricky situation, whereby shareholders perceive Corporate Social Responsibility as a loss rather than a platform for profitability in the long run. For instance, managers might seek growth, community values, and environmental awareness over profits, while shareholders seek high dividends. Shareholders at times may have naïve perception towards implementing the CSR strategy by threatening to sell their shares. In the event of privately owned organizations, the shareholder(s) may want more profit at the expense of the community (Kotler and Lee, 2010).
The view that the companies have an obligation to their communities
It is true that companies have an obligation to their communities through corporate social responsibility. For instance CSR provides companies with diverse benefits like increased sales, and good will. CSR can also result into efficiency operations like efficient use energy and natural resource. Reducing costs through waste reduction, pollution prevention, energy efficiency, and resource productivity. Through serving the community, companies will become more profitable (Kotler and Lee, 2010).
Advantages of CSR
CSR has vast advantage both to the company, shareholders, and the community at large. It increases the competitive advantage of the firm, creates shareholder’s value, increases the revenue base, it gives the company a strategic branding, operations efficiency, better access to capital, human and intellectual capital, and lowers business risks (Werther and Chandler, 2010).
Strategic CSR for the company
The strategic CSR for the company should be one that is aimed at developing human capital, enhancing compliance with the national and international regulatory frameworks, promotes business innovation and learning, able to improve company relationships with local authorities and government, allows the company to increase branding differentiation, boosts sales and customer loyalty, and reducing exposure to non-financial risk (Werther and Chandler, 2010).

Conclusion
Corporate Social Responsibility is viewed to be the most moral, rational and economic activity that any company should undertake to make sure that maintains its competitive edge. In addition, through CSR firms creates shareholder’s value, increases their revenue base, it gives the company a strategic branding, operations efficiency, better access to capital, human and intellectual capital, and lowers business risks. Despite these benefits, shareholders especially in privately owned companies tend to contradict these values by refusing to undertake CSR. It is a primary mandate for companies to serve the community they operate in through corporate social responsibility.

References
Bacher, C. 2007.Corporate Social Responsibility. Munich: GRIN Verlag.
DuBrin, A. 2008.Essentials of Management. Stamford: Cengage Learning.
Eriksen, T. 2007. Globalization: the key concepts. Oxford: Berg Publishers.
Kotler, P. and Lee, N. 2010. Corporate social responsibility: doing the most good for your company and your cause. New York: John Wiley and Sons.
Lechner, F.2009.Globalization: The Making of World Society. New Jersey: Wiley-Blackwell
Narayanan, V. 2001.Managing technology and innovation for competitive advantage. New Jersey: Prentice Hall.
Werther, W. and Chandler, D. 2010.Strategic Corporate Social Responsibility: Stakeholders in a Global Environment. California: SAGE.