Feature of the Month : Corporate Resonsibility in a Globalized World

In recent years, corporate social responsibility has dramatically grown in importance as dedication to local communities, shareholders, and the environment has become expected of businesses worldwide. However, today corporate responsibility is even more important in a globalized world characterized by interconnectedness. It’s now possible more than ever for advanced businesses to simply outsource their “dirty” work to other parts of the world where there is less stringent environmental and social standards. Corporate responsibility has now progressed to a global level and more often than not, a global company’s success depends heavily on fulfilling their social responsibilities.

Adopting a sustainable and socially responsible approach to global business operations can reveal a world of business opportunities. Unilever, a global consumer product company, was able to reduce the risk of lost suppliers by improving working conditions, providing fair wages, and managing costly environmental issues. This sustainable supply chain is just one example of how social responsibility can offer businesses competitive advantages. In a world dominated by social media, a business can also receive a boost to brand reputation through corporate responsibility. When a company helps out a community or leads an environmental initiative, that goodwill can be spread globally with today’s communication technology. With that being said, irresponsible corporate actions can spread just as quickly. In today’s globalized world where business activities in one area can affect others half way across the globe, corporate responsibility remains a key tool for creating a sustainable world where international business can thrive and grow.

Featured Resources

World Business Council for Sustainable Development
World Business Council for Sustainable Development (WBCSD) is a global association of companies dealing exclusively with business and sustainable development. The organization focuses on four main areas with respect to social responsibility: energy and climate, development, the business role, and ecosystems. The site provides information on these four main areas as well as projects and initiatives of the WBCSD.
Category: Social Responsibility

Institute of Development Studies: Globalization Team
The Globalization Team of the Institute of Development Studies provides research geared toward encouraging for sustainable development growth in order to reduce poverty. Research revolves around the following topics: Asian Drivers, Trade, Value Chains and Macro Finance. The Institute of Development Studies has a goal to influence and to inform.
Category: Globalization

Featured Academy

Key Industry Drivers of Globalization
The Key Industry Drivers of Globalization module offers one a general understanding of issues including: the historical circumstances and the forces that currently drive globalization; the implication of globalization on business in the U.S.; the key drivers for a successful global strategy; and the four basic forces that drive globalization.
Category: Functions

Regionalization and Trading Blocs
The Regionalization and Trading Blocs module provides one with information on: what globalization means, its impact on business, and the forces that are driving it; the advantages and disadvantages of globalization, as well as who is in favor of globalization and who opposes the movement; what the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT) are, how they work, and what their history is; the history and purpose of some of the world's largest and most influential Regional Agreements: NAFTA, MERCOSUR, ASEAN, and the EU; and the basic premises of the Free Trade Area of the Americas (FTAA) that is currently under negotiation in North, South, and Latin America. A case study on Quebec’s language laws is also provided.
Category: Institutions and Trade

globalEDGE Business Review

"Focus on all stakeholders globally"
by Tomas Hult (Volume 1, Number 3, pp. 1-2, 2007)

Market orientation has been in vogue since the late 1980s but is it really the preferred way of operating internationally? Not really! Outside the U.S., firms need to focus on a number of stakeholders beyond customers and shareholders.