M1 GlobalizationEffects (1)

Financial Decision Making Overview

  • Module Title: Financial Decision Making

  • Institute: Curtin University, Faculty of Business and Law

  • Duration: August 1, 2007 - October 1, 2007

Module Objectives

  1. Understand businesses in a global market.

  2. Identify consequences and outcomes of globalization.

  3. Understand business sustainability principles.

  4. Comprehend legitimacy theory and corporate social responsibility.

  5. Apply business ethics effectively.

Important Information

  • Start early; attend all online lectures and workshops.

  • Be active on Blackboard for notes and announcements.

  • Seek help from tutors and lecturers in consultation hours.

Globalisation of Business

  • Historical context: Local businesses operated in close-knit communities.

  • Modern context: Globalization allows sourcing and selling on a global scale.

  • Definitions:

    • Gaspar et al. (2017): Elimination of barriers across countries.

    • Morrison (2017): Quick movement of products, people and information worldwide.

    • Geringer et al. (2016): Integration of global economy.

Impact of Globalisation

  • Advantages:

    • Specialisation leads to efficient production.

    • Economies of scale reduce costs.

    • Access to seasonal crops year-round.

  • Consequences:

    • Job losses in developed countries.

    • Exploitation of tax havens by multinational corporations.

    • Political influence of multinational corporations grows.

Case Studies of Global Events

  1. Great Depression (1929-1935):

    • Economic collapse led to massive unemployment and political upheaval.

  2. Brumadinho Dam Collapse (2019):

    • Environmental disaster with significant human and economic impact.

  3. COVID-19 Pandemic (2020):

    • Global health crisis resulting in widespread economic shutdowns.

Business Sustainability Framework

  • Key Drivers of Sustainability:

    • Growing global population.

    • Climate change challenges.

  • Principles Include:

    1. Ethical governance.

    2. Transparency and community involvement.

    3. Environmental protection.

Corporate Social Responsibility (CSR)

  • Definition: Responsibility to stakeholders and broader social impacts.

  • Motivations:

    • Profitability and market stability.

    • Mitigating government intervention.

Theoretical Perspectives in Business Sustainability

  1. Shareholder Value: Focus on returns to shareholders.

  2. Legitimacy Theory: Aligning business practices with societal expectations.

Business Ethics Guidelines

  • Essential for governance and sustainability.

  • Four Key Responsibilities:

    1. Economic.

    2. Legal.

    3. Ethical.

    4. Discretionary.

  • Common ethical issues in international business include:

    • Employment practices and human rights.

    • Environmental pollution and sustainability.

    • Bribery and corruption.

Professional Codes of Ethics

  • APES110 Code:

    • Integrity, objectivity, professional competence & care, confidentiality, and professional behaviour are guiding principles.