Globalisation & Diversity: Corporate Social Responsibility - Essay Example

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The report shows that CSR as a means for profit maximization alone need not be beneficial and can have several adverse consequences affecting the wellbeing of the stakeholders. This focuses only on the shareholders and not the broader category of stakeholders…
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Globalisation & Diversity: Corporate Social Responsibility
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Download file to see previous pages On the other hand the CSR focusing on the interests of stakeholders can be beneficial to the society. With the emergence of globalization, the report shows that CSR has gained increased relevance due to the growing awareness of sustainable development, human rights etc. The study also shows CSR has additional challenges associated with it under increased globalization. These include the weakening power of the state and the rapid rise of MNEs and NGOs. In spite of all these, various ethical issues associated with the firms in the international settings show the need for business ethics in the decision making processes of current businesses. This can be very beneficial to the society if the CSR activities are implemented in a proper manner.
Globalization and Corporate Social Responsibility
According to Freedman(1999 ,p 156), globalization means “various quantitative and qualitative developments ranging from a dramatic increase in international transactions, to the international and spatial reorganization of production, the global harmonization of tastes and standards, liberalization, deregulation, privatization, the arrival of new information technologies etc”. There are many participants in the globalization process like IGOs, NGOs, MNEs and the state. The rise in liberalization and deregulation and the rapidly declining transportation and communication costs as well as the reduction in barriers to good and services have resulted in a high rise in the trade, FDI and transfer of technical knowledge (Frankel, 2000). As a result of globalization and the consequent rise in the trade and investment as well as technology, the quality of life is argued to have been improved on the one hand. On the other hand, the significant rise in ...Download file to see next pagesRead More
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