Globalization and Social Responsibility Notes

Introduction

Increased globalization has led to ethical and social responsibility challenges both domestically and internationally.
Companies often seek to establish operations in countries with cheaper labor and resources, potentially leading to minimal wages and poor working conditions.
Technological advancements in transportation, communication, information processing, and the Internet have significantly contributed to the development of countries over the past 55 years.
To manage globalization fairly, the creation of universal ethical norms, rules, and regulations is recommended.

Social responsibility is important to stockholders, who want to know that executives are running the company ethically.
Consumers increasingly want to support companies that prioritize their needs beyond just profit.
Social responsibility helps to prevent corruption in the business world.
Companies should actively promote social responsibility.

P&G: Through P&G Hope Schools, in partnership with the China Youth Development Foundation, P&G provides better access to education for children in poverty-stricken rural areas of China.
- Over 150,000 children have benefited in the last 15 years.
- Over 5,000 P&G China employees have actively supported the program.
Nokia: Addresses the environmental impact of electronic products such as cell phones, both during production and after their useful life.
- Nokia is listed in Greenpeace's Guide to Greener Electronics, which assesses manufacturers on sustainability, climate and energy policies, and the environmental friendliness of their products.
Nestle: Instituted "The Cocoa Plan" in 2009 to encourage sustainability, labor rights, and fair trade in the cocoa industry.
- The Cocoa Plan aims to address key issues facing cocoa farmers, their families, and communities to create a better future for cocoa farming.

The International Monetary Fund (IMF) asserts that living conditions have improved significantly in virtually all countries as globalization has progressed.
The strongest gains have been made by advanced countries and some developing countries.
The income gap between high-income and low-income countries has widened, which is a cause for concern.
The number of people living in abject poverty is deeply disturbing.
It is important not to assume that globalization is the sole cause of divergence or that the situation cannot be improved.

Increased investment in developing countries provides opportunities for economic success and a higher standard of living.
Global competition encourages creativity and innovation, helping to keep prices for commodities/services in check.
Developing countries can benefit from current technology without experiencing the growing pains associated with its development.
Governments are better able to work together toward common goals due to increased cooperation, improved interaction and coordination, and a global awareness of issues.
Greater access to foreign culture is available in the form of movies, music, food, clothing, and more, providing more choices.

Outsourcing can provide jobs in one country but take them away from another, leading to unemployment.
Interaction between cultures can lead to a blending of cultures, diminishing the individuality of each.
Globalization may increase the spread of diseases and invasive species.
There is limited international regulation, which can have dire consequences for people and the environment.
Large Western-driven organizations like the International Monetary Fund and the World Bank may apply a Western focus to non-Western situations, leading to failed progress when providing loans to developing countries.

Globalization is an unavoidable and ongoing process.
Businesses competing in the international environment should obey legal and ethical rules and regulations.
It is generally clear what constitutes a socially responsible or ethically correct response in situations involving breaking the law or harming the environment.
It is unethical to deny someone, take unfair advantage, or behave in a manner that would cause bodily harm or damage.