Impact of Globalization on the Socio-Cultural Dynamics Across the Globe - Research Paper Example

1. Introduction The advancing technology hugely facilitated the development processes of nations and increased their wealth and assets through strategic business partnerships across nations. In the recent times, the emigration and immigration of people from one country to another in order to pursue their personal and professional goals has been one of the most important compulsions of the technological advancements. It has also brought in a new concept of globalization where the multicultural societies are increasingly becoming a norm. The process has hugely facilitated development of new societies which cut across culture, race, colour and nationality (Held & McGrew, 1999; Lechner & Boli, 2004; John Tomlinson, 2007). Indeed, globalization has become representative of the changes that significantly impact the socio-cultural dynamics across the globe. But ‘westernization of culture’ is also intrinsically linked to developmental process. It basically relies on imitation of western values, culture and technology by the developing and under developed economies. The paper would be critically evaluating globalization from various perspectives to claim that globalization of culture’ is emphatically different to the ‘westernization of culture’. 2. Historical and political imperatives Westernization has emerged from the fact that western culture and value system had significantly impacted the non western countries, by their financial and military dominance. The West was also associated with modern medicine, high technology and fashion which were adopted by non western society thus starting the process of Westernization. Von Laue (1987) asserts that inter-dependency of the states in the field of economic cooperation, trade practices and global competition is influenced by the West and is dominated by power politics, technology, weapons and attitude of the West. Thus, people from non western society are easily influenced by the western culture and want to imitate them by incorporating their values within their lifestyle. On the other hand, Sirgy et al. (2004: 253) have described globalization as ‘the diffusion of goods, services, capital, technology, and people (workers) across national borders’. Thus, globalization is characterized by the transportability of people and material across the globe. It is an accelerated process of emigration and immigration of people across nation for myriad reasons, not the least being the personal and professional development of individuals and organizations (Albrow, 2004). The world is thus moving towards a multicultural society that is an amalgamation of people from different countries, races and religion (Buell, 2003; Murden, 2005). The inter-dependency of resources has further strengthened the imperatives of globalization. The socio-economic policies and strategies of the countries need to be more flexible so as to suit the internal and external compulsions of the host nations. The various paradigms that establish the supremacy of global polity over ‘westernization’ are critical elements of emerging global culture and new values system. These factors raise important issues within the international businesses that are designed towards equity and equitable distribution of natural and man made resources for people that transcend race, colour, culture and nationality. 3. Key issue pertaining to evolution of global political system and concepts of global governance The process of evolution and changes is a complex process that involves collective decision and public participation. A constructive political and ideological transformation greatly contributes to the adoption of democratic values. Inglehart and Welzel (2009) assert that democratization process is intrinsically linked to empowerment of the people. This helps them to adopt the changes within and outside their business for improved performance and become proactive participants in the evolving socio-cultural dynamics. It promotes political participation and democratic values within the various socio-political institutions. Democratic values become the main facilitating agent for economic independence and development of nation by supporting more liberal and resource based economy that encourage mutual cooperation amongst nations. Thus, these factors become vital linkages for globalization. The various facets of development that significantly impact globalization process can be described as below: 3.1 Socio-cultural dynamics of globalization While westernization is concerned primarily with the influence of western culture and value system on the non western societies, globalization is two way process that complements and supplements the cross cultural understanding. It hugely influences the socio-cultural dynamics of the societies and brings together the diversity of national and cultural identities (Bisley, 2007; Alger, 1988). Indeed, it reflects the changing dynamics of societies that goes beyond regional interests, race, culture and ethnicity. Eagleton has defined culture as ‘an activity.. that at first denoted a thoroughly material process, which was then metaphorically transposed to affairs of the spirit.. (culture) can change.. it is also about following rules..’(2000: 33). The varying definitions of culture and the intricacies of human nature are most prominent features of the culture. This rationalizes the adapting capabilities of people in the changing environment of cross cultural values. The new culture embraces new values based on business interests and financial gains. But Appadurai’s (1996) contextual analysis of culture is highly relevant in the contemporary environment of rapid globalization. He says that culture is broadly represented through five different spheres: ethnoscapes; mediascapes; technoscapes; financescapes; and ideascapes. Ethnoscapes is ‘landscape of persons who constitute the shifting world in which we live: tourists … and other moving groups and individuals constitute an essential feature of the world and appear to affect the politics of nations to a hitherto unprecedented degree’ (1996: 27). Mediascapes portrays the evolving culture through different formats of media like television, internet, newspaper etc. Technoscape uses technology to impact cultural dynamics of the region. Financescape has emphasized the need for new market mechanism to interconnect the nations across the globe which has become more inter-dependent in the age of globalization. Lastly, the ideascapes promotes the ideologies of the state to gain competitive advantage in the global business through political ideologies that support multi-cultural environment. Another important factor that contributes to the emerging new multicultural society is the need to propagate socio-political ideologies of the state as a major business strategy to gain competitive advantage. The need to redefine political culture as part of expanding business strategy is perhaps one of the most relevant and sought after philosophies of the corporate leadership initiatives (Robertson & White, 2003). Hall (1990), an eminent social scientist asserts that cross cultural paradigms of the globalization are increasingly becoming more vital to the overall strategies. He says that some cultures rely less on the verbal part of the message as more information is contained in the context. He has categorized culture into two basic formats; low culture and high culture. In high culture societies like India, China, Italy etc., symbols and beliefs play important role in communication and words and language has relevance only on wider context. The low culture, on the other hand is defined by its easy to understand explicit wordings. There is normally no ambiguity and the understanding relies primarily from the verbal or textual content. The American culture and most of the Western societies are scintillating examples of low culture societies where words are used to communicate and convey the messages. Communication is easy as the information needs to be explicit and detailed with regard to the product and services that are advertised or promoted. Thus, it becomes difficult for people coming from low culture like America, to easily adapt themselves within the societies of high culture. According to Mooij (1998), these cultures adequate information relating of the product or service in order to satisfy their need for content. Thus in the age of globalization, concept of high and low context culture provides the business with knowledge and awareness. Cultural paradigms are used not only to project organizational image to the public but also to inculcate universal brotherhood that goes beyond the national boundaries. 3.2 Changing perspective to issues in globalization Westernization was conspicuous on its concept of adoption of western values. The globalization, on the other hand highlights the mutually ‘give and take’ criteria, which has brought in a new approach to international political economy. It has brought up emerging economies like India, China and Brazil on the map of fast growing economic units (Powell, 1990). The new age communication has further facilitated trade and opened opportunities for capital accumulation through more secular distribution of power structure. Indeed, the environmental factors have significantly influenced the formation of a new political equation which is intrinsically connected through the new technologies and interdependent market forces. The emerging economies are increasingly utilizing the same to become major stakeholders in the global trade and commerce. 4. Global business entities and environmental factors The process of globalization has changed the dynamics of international business. The emerging new economies of the developing world have made the global market more challenging and interesting. The environmental factors significantly influence the formation of a new political equation and intrinsically connect through the new age communication and interdependent market forces. Hamel and Prahalad assert that ‘corporate challenges come from analyzing competitors as well as from the foreseeable pattern of industry evolution (1989: 581). Hence, the organizations adopt flexible approach and incorporate the changing equations of the global business environment. Multinational corporations and global businesses are characterized by indigenizing their products and services to suit the conditions of the nations where they had started their business operations. They expand by operating business interests in different countries. The various marketing and non-marketing factors often make it imperative for the companies to be more flexible in their strategies and approach. They provide them with the fundamental strength to understand the delicate nuances of the people’s preferences which gives them a wide scope to exploit the potential that exist within that society. The non market factors have direct and indirect impact on the overall performance and operation of the firm. Baron has itemized 4 issues that impact global businesses. ‘These are characterised by 4Is: issues, institutions, interests and information’ (p 2). The socio-political environment, role of government regulations and the legalities involved, play a very important part in establishing a firm specially if it is foreign company. The socio-religious culture of the community has strong impact on the attitude and consumer behaviour of the public, which has direct affect on economic transactions of the company. It is also important to take cognizance of the social values and customs while evolving one’s business strategy to succeed in foreign soil. Thus, as against westernization, the foreign companies try to adapt to the socio-cultural values of the host country to succeed in global business environment. 5. Important business paradigms in global business Global business environment have redefined traditional business practices that necessitate incorporation of business and cultural compulsions of the business partners in the host countries. The socio-cultural and political background of the host nation becomes vital ingredients of international business practices. Various social scientists have stressed that national cultures are known to determine the negotiator’s assumptions and thoughts which help to form business strategy and behavioral pattern (Cohen, 1993; Rubin & Sander, 1991). It is therefore, important that overseas business representatives must make efforts to understand the wider implications of the emerging multicultural society, particularly that of their host country and improvise techniques and skills to encompass traits and behavioural pattern that facilitates better perception and understanding of people. Thus, in globalization, global companies act as local companies that cater to local demands (Mackay, 2004). At the same time, Perloff (1992) laments that rapid globalization has accelerated the pace of international trade activities which has, unfortunately, also resulted in an increase of commercial disputes between the business enterprises. The various international agencies like WTO, GATT, arbitration tribunals etc greatly contribute towards development of neutral platform for international trade dispute resolution. International Commercial Arbitration is one of the most effective mechanisms for resolution of trade related disputes of international businesses. It makes efforts to understand the wide ranging issues and takes into account the broader considerations of international relations between the states and the global communities so that each party is given the same deliberation as per the business compulsions to come to a mutually acceptable settlement. The process of globalization has brought in pluralistic society and changed the dynamics of international business which have become more challenging and interesting. It has also increasingly made nations across the globe, inter dependent on each other for their socio-economic development. Barnett (2009: 409-410) asserts ‘The growing diversity of capitalism is becoming one of its global strengths’. The new technology has greatly facilitated trade and hence the capital accumulation through more secular distribution of power structure. Indeed, the multi-lateral issues and diversity of approaches are natural consequences of advancing technology and development. The compulsions of the contemporary environment encourage more amicable mechanisms of dispute resolution. The need for innovative measures and development of cultural affinity become vital ingredients of satisfied outcome for trans-national business partnerships and economic alliances. 6. Corporate social responsibility and Environmental compulsion Today, globalization has transformed the world into a global community. It not only requires value based social order but needs to redefine the socio cultural compulsions that promote universal values and equality that bypassing individual interests. ‘Corporate Social Responsibility (CSR), defined in terms of the responsiveness of businesses to stakeholders’ legal, ethical, social and environmental expectations, is one outcome of these developments’ (UNIDO, 2002: 1). The climate change also brings forth hordes of issues which are considerably influenced by the socio-economic dynamics of the society. The vulnerability of the poor and disadvantaged countries or the segment within the society is greatly enhanced as compared to his counterpart who may be economically well placed (Leary et al., 2006). The global imperatives therefore, become equally important elements for promoting sustainable development and introducing a culture of global concern for environment. Another important fact is that developing countries are known for vast market potential, which attracts lots of foreign investments and multinationals with their numerous products. They are exploited by multinational organizations with scarce attention paid to the welfare of the communities. The international businesses therefore, must take up more responsibility towards sustainable business activities whose benefits must percolate down to the grass-root level. 7. Importance of corporate governance in changing business dynamics Corporate governance can be broadly defined as the creation of business environment within and outside the organization that would effectively meet the challenges of the time and improve and improvise the productivity of the performance outcome. In the fast changing environment of globalization, business compulsions have become more stringent in their nature. The factors like accountability, responsibility and reliability have become important pre-requisites for business to create a credible environment for their trade and investment. The lack of effective controls vis-à-vis malpractices in accounts and auditing, security of confidential information, corrupt practices in the higher hierarchy of management, disparity in rules and regulation etc. have become crucial risks factors. The transparency in the Corporate Governance would create effective control measurements that would safeguard the interest of all its stakeholders, investors and business partners. 8. Conclusion Various drivers of globalization greatly influence myriad aspect of national and regional cultures. In the emerging new climate of global business competition, the globalization needs to be redefined in terms of inter-dependency of resources. It promotes an environment that calls for development of mutually satisfying framework of policy that endorses global culture and values. Thus, one can claim that globalization of culture’ is emphatically different to the ‘westernization of culture’ and goes the confined precincts of westernization that is devoid of innovative approach and models its development on the western ideologies and values. (words: 2429) Reference Albrow, Martin. (2004). Travelling Beyond Local Cultures, In Lechner & Boli, ‘The Globalization Reader’, 2004. Alger, Chadwick. (1988). Perceiving, Analysing and Coping with the Local-Global Nexus. International Social Science Journal, 117. Appadurai, Arjun. (1996). Modernity at large: Cultural dimension of Globalization. Public Worlds, Vol 1, Minneapolis: University of Minneapolis Press, 1996, pp.27-47 Barnett, Thomas P M.(2009). Great Powers: America and the World After Bush. New York: Putnam. Baron, David E. (1995). 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