course material

1. Globalization and CRS
Globalization and CRSGlobalization 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 changeGlobalization has been
realized due to the effective use and improvement of the following divers of change across
the globe:TechnologyThe 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

2. 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/financialThis 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-culturalThe 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 &PoliticalGood 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
communicationGovernments, 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 productsGlobalization 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

3. 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 advantageThere 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 systemsGlobalization 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 CSRThere 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 makingShareholders 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

4. over. With regard to this, managers and directors must keep shareholders satisfied.The
potential conflict of meeting shareholder expectation and satisfying the wider
communityThis 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 communitiesIt 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 CSRCSR 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 companyThe 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).ConclusionCorporate 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.ReferencesBacher, 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-BlackwellNarayanan,
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.