CSR: Issues and

Globalization
 OBJECTIVES

➢Define Globalization
➢Identify the issues covered by
➢Discuss the Pros & Cons of CSR
Globalization
➢Identify and discuss possible
➢Correlate Globalization to challenges to CSR
Business Environment and
Economy
➢Discuss the effect of

Globalization to CSR

2
 “
“With great power comes
great responsibility.”

3
 What is
Globalization?
 WHAT IS GLOBALIZATION?

IMPORT/EXPORT Multinational and

Global Businesses
5
Globalization can affect the economy, business life,
society and environment in different ways:
➢ Inc. competition
➢ Technological development
➢ Knowledge/information transfer
➢ Portfolio investment (fund transfer between developed countries &
emerging markets)
➢ Regulation/ deregulation, Int’l standards,
➢ Market integration
➢ Intellectual capital mobility
➢ Financial crisis-contagion effect – global crisis

6
GLOBALIZATION
PROS
➢Better living conditions
➢Inc. prosperity & income
➢More influx of info between
countrie
➢Cultural intermingling
7
CONS
➢Social & moral
consequences(richer
becomes richer, poorer
becomes poorer)
➢Inc. competition = more
difficult business ventures
➢Tax & labor exploitation
“

8
 WHAT IS CORPORATE SOCIAL RESPONSIBILITY (CSR)?

Corporate Citizenship
√Benefits from the community
√Obligations to the community
√Responsibility for the well-being Sustainability
of the community

Fulfillment of citizenship duties in

sustainable ways
9
CSR MEETS GLOBALIZATION
The Myth of Cultural
Relativism Hasbro’s Global Business Ethics
Principles
√Prohibition of forced labor and child
labor
√Fairness in wages and benefits
√Ensuring workplace health and safety
√Communication of principles an
policies

10
CSR MEETS GLOBALIZATION

CSR PROTECTS COMPANIES FROM LONG TERM

LOSSES.

WHEN CORPORTATIONS HAVE CSR, THEY

CALCULATE THEIR RISK AND THE COST OF
FAILURE BETTER.

11
IS GLOBALIZATION A THREAT TO
CSR?

Globalization is both an
opportunity & a threat. It has
an enormous effect on society
and business life which can be
manifested in many ways. So
business life needs for
regulation & proper & socially
responsible behavior than
before.
12
 ISSUES COVERED BY CSR:
➢ Human Rights
➢ Working Conditions
➢ The Environment
➢ Combating Corruption
➢ Disclosing Information
➢ Corporate Governance
➢ Consume Interests
➢ Gender Equality
➢ Occupation Integration
➢ Taxes
13
 CHALLENGES TO SOCIAL RESPONSIBILITY

Problems with responsibility and business ethics sometimes occur when a business has to
weigh these responsibilities against its responsibility to shareholders.

➢ Law & Social Responsibility

- Ethical business leaders therefore face the challenge of making a profit without forcing
society to foot the bill.
➢ Externalities
- Externalities are business costs that a society pays for. Ethical business leaders have a
social responsibility to avoid behaviour that results in a drain on society’s resources.

14
➢ Shareholder Pressure
- Demanding shareholders that create pressure on management to cut corners in ethics
➢ Shrinking Government Presence
- Some government have turned a blind eye to corporate malfeasance.
➢ Labor Markets
- The decision of the management may drive unemployment rate up and create a massive
drain on social asistance programs

15
 OBJECTIVES

➢Define Globalization
➢Identify the issues covered by
➢Discuss the Pros & Cons of CSR
Globalization
➢Identify and discuss possible
➢Correlate Globalization to challenges to CSR
Business Environment and
Economy
➢Discuss the effect of

Globalization to CSR

16
THANKS!

17