Globalization

There are two major drivers of economic globalization. One is reduced cost in transportation and improvements in the communications technology; other is the increase in the trade barriers which has led to increased investments across borders. Technological progress is one of the main causes of improvements made in the communications and transportations sector. Cost reduction in the transportation sector has also contributed significantly to the global economy. For example; from 1920 to 1990 the average freight and port charges of import and export has fell from $95 to $29.

This huge difference in the transportation cost has contributed to the reduction in trade barriers and hence an increase in the globalization effect . Due to the dip in the air freight and the technological advancement such as refrigeration; previously goods which were not tradable are now sold across borders. Fresh flowers, strawberries, live lobsters can now be sold from Asia, to Europe, America and Africa. The table below shows the decline in transportation costs during 1920-1990. This was the first era of globalization. Moreover, the table also shows how communication has improved with the advent of internet.

The figure on the next page shows this decline in the freight charges. Advancements in the communications sector have also contributed to the economic growth. For example; formerly a call from New York to London cost around $244. 65. However today it just takes almost $3. 32 . Internet and faxes have further reduced the communication costs. Many people say that the growth of globalization is now complete and that there can be no further changes made in the global economy. It is true, that the national borders are now diminishing due to globalization. Cultures are coming together and it is difficult to differentiate between many cultures.

For example; In Dubai women are seen in such fashionable westernized dresses that it is difficult to accept that it is a typical Islamic city. This change is also due to globalization. Economists say that, in economic terms there exist no international and geographical borders. It is virtually possible to conduct business all over the world. For example; the internet has eliminated the international borders and has made e-sales possible regardless of the target customers. It should however be considered that the government should not make any monetary or economic policies depending on only their past experience or only the present.

The monetary authorities are virtually powerless in the globalized world of today. The global economy can be studied at different levels. At the macro level the international organizations such as the World Bank and the policies of the International monetary fund can be studied. Many other organizations such as World Trade Organization, the International Labour Organization, The European Union and North American Free Trade Agreement also fall in this category. These organizations establish parameters and rules within which the global economy operates. Another level of global economic study can be the ‘meso’ level.

This constitutes the key building blocks of the global economy. These blocks are the countries and the organizations or firms. In most of the capitalism literature, countries are taken as the main element of the global economy. The global economy is the ground on which the countries and firms can compete. Many economists focus on the industrialized countries in order to measure the impact of globalization on economy, and others focus on the developing nations. The impact on both the set of countries is different. The developing nations are benefiting from globalization, as capital is coming in to their countries.

In contrast, the developed nations are the ones who are on a decline. For example; United States’ economy was one of the strongest a decade back. Today it contributes only 20% to the World’s economy. The reason for this is that America’s firms outsources majority of its unskilled and now even skilled labour to low waged countries. Another level for studying the global economy is at the micro level. At this level a lot of literature is available by the anti globalization activists. Many organizations are coming up with labour etc issues which have been developed due to globalization.

Executive Summary

It has been argued that companies who have experienced some level of failure when trying their hand at cross-border ventures have simply attempted the leap under misguided information. It is argued that such failures are in direct result of inadequately vetting their globalization strategies.

We offer an in depth discussion surrounding the globalization issue and the necessary strategies, followed by recommendations we believe could help reduce the prevalence of globalization failures. We open our discussion with a 2008 case study urging the company considering globalization to ask themselves a series of revealing questions. Providing real life examples, we go on to highlight several underlying pressures and challenges often associated with the process of globalization.

An analysis of the strengths, weaknesses, opportunities and threats, often associated with a firm who is not prepared for globalization, is performed. The often intimidating global climate and several mixed assumptions surrounding globalization are discussed across a multitude of service industries. We continue by presenting three of Sun Tzu’s principles, as cited in The Art of Business, as we argue ways in which they are instrumental to any successful globalization venture, providing examples of firms who have historically and successfully applied the three principles.

Several Christian values and how they are intertwined within the structural framework of a successfully globalized firm mentioned, noting the importance of a functional mission statement and several key characteristics to be explored before attempting the cross-border venture; ensuring global readiness. Finally, we offer several recommendations that we conclude are vital in addressing globalization preparedness, suggesting that with additional research, insight, and after fully vetting the related risks and rewards, the frequency of globalization failures would be significantly reduced.

Case Overview

Marcus Alexander and Harry Korine (2008), argue that many companies do not take the time to ensure that their globalization strategies were not “deeply misguided. ” Believing that many of these failures could be avoided, Alexander and Korine (2008) recommend the company pondering globalization ask themselves three questions:

1. Are there potential benefits for our company?
2. Do we have the necessary management skills?
3. Will the costs outweigh the benefits?

Among the arguments made by Alexander and Korine is that which encompasses the pressures surrounding the globalization process.

Alexander and Korine (2008), argue that companies going global in relation to various marketplace pressures are making serious mistakes, subsequently forced to undo their international investments, often involving the firing of senior management teams. Alexander and Korine (2002), offer up examples of failed strategies such as Dutch financial-services firm ABN Amro, Daimler-Chrysler, and AES – a U. S. based energy firm that despite operating in 29 countries on five continents, struggle to bring added value. The authors relate the struggles of deregulated industries to a “glocal” problem.

That is to say that many “customer expectations, operating environments, and management practices of a globally standard service can vary greatly depending on location,” in example, citing the standardization of electricity flowing over power grids (Alexander & Korine, 2008, p. 107-109). Every industry has its own challenges with globalization. Issues within the service industry, such as Starbucks, for example, have been that profit margins are equivalent to about half of that which can be expected domestically.

In the IT industry the protection of intellectual property rights has caused many companies to simply leave countries like India, while the failed integration of Daimler-Benz and Chrysler is a perfect example of a failed globalization strategy in the manufacturing industry (Alexander & Korine, 2008). In discussing some of the strategies that did work, such as GE, and Renault’s alliance with Nissan, Alexander and Korine caution against focusing on these success stories.

Stating that that while many companies are planning rapid expansion, they are underestimating the management challenges. Their final point is that the landscape of players is very different than that of the global landscape of 30 years ago. Today’s successful global behemoths, according to Alexander and Korine (2008), are more diversified “both in type and international footprint. ” Meaning, such companies possess a greater diversity in the types of subsidiaries they own and operating in more countries than ever before.

SWOT Analysis – When you Shouldn’t Go Global

Strengths Reduced financial, political, currency, and exchange risk- Foreign investment involves all of these risks. By refraining from foreign investment we avoid these risks.

• Simplicity of operations – Setting up and maintaining foreign investments complicate operations. Refraining from going global keeps operations more simple.
• Protection of intellectual property- It is very difficult to protect intellectual property in foreign countries. By keeping all activities domestic, one is adding a layer of protection to intellectual property rights. Weaknesses
• Loss of economies-of-scale and economies-of-scope- This according to Alexander and Korine is what is not being fully realized by going global, and therefore may not be that significant of an issue in many industries.
• Loss of first-mover advantages- Choosing not to go global may mean making the irrevocable choice to give up the first-mover advantage. This is usually a very small window and a one-time opportunity.
• Foregoing additional revenue sources- For a company that has no additional potential revenue sources domestically, going global may be the only opportunity to gather additional revenue.
• Foregoing market growth- For companies wishing to expand market reach, the choice to forego going global will limit their market penetration.

Opportunities

No financial investment- Refraining from foreign financial investment frees-up those funds for investment in domestic activities. No use of other resources- Refraining from going global frees-up all resources (human, etc. ) for use in domestic activities. Threats Loss of market share to competition- Should one’s competition be successful in going global, they may be able to offer similar products at much lower prices thus forcing you out of the market.

The competition may also offer superior products at higher prices, and capture the market, via the use of superior technology. Loss of talent to competition- In many fields, such as high tech and engineering, the worldwide competition for talent is fierce. Failure to go global often means failure to secure talent. Loss of learning opportunities- Since globalization can take the form of joint ventures. There is also the threat of the loss of learning from a joint venture partner that should be considered. Situation Analysis

Since the seventh century business have possessed the desire to operate internationally however, those considered truly global, did not start appearing until the past century. With growing stories of globalization successes, follow just as many testaments to failures. Despite the growing number of failed attempts the overwhelming pressure to conduct the ultimate border-less business has become increasingly enticing. Most large companies founded 20 years ago feel battered by numerous external forces pushing them towards globalization.

Driving forces such as the removal of political and regulatory barriers to global trading and investment and the ability to conduct business 24 hours a day from anywhere in the world, draw these business behemoths one step closer to customers in emerging economies (Alexander &Korine, p. 106). Deanna Julius (1997), lists in her article titled Globalization and Stakeholder Conflicts; a corporate perspective), three primary, macro-level forces, driving the need for change as; how companies are organized, how goods and services are produced and how they are bought by and delivered to customers.

Alexander & Korine (2008), mention that while many of the companies that have rushed to globalization have benefited, or at the very least have not suffered irreparable damage, some are witnessing major fallout from the move. The authors suggest that while companies often fail from misguided global strategies and an unanticipated level of execution, they could have avoided such failure by seriously addressing if potential benefits even exist in going global, if their management possess the necessary skills and the most logical one, will the costs of going global outweigh the benefits?

Alexander & Korine (2008), argue that most companies fail to ask themselves these questions due to previously held false assumptions regarding the virtues of globalization and seduction from the stock market. As previously mentioned, deregulated industries such as those who provide water, power, and mail service are among those experiencing global failure. Alexander & Korine (2008), suggest that deregulated industries are operating under the misguided assumptions as well.

The greatest assumption being that, going global will save them money, given they will be sharing resources across their international operations. When in reality, the costs to enter the foreign markets end up outweighing the assumed benefits (Alexander & Korine, 2008, p. 107). Managerial fads are suggested to undermine rational behavior from within a company, thus resulting in sloppy thinking that distracts management from more imperative tasks associated with global success.

Properly servicing global customers from a national perspective contributes too many failures given, much attention must be afforded to a mix or global and local factors simultaneously. Global manufacturing companies are said to fail due in part to the complexities related to the integration tactics necessary grow and compete better, resulting in costly delays and thus failures (Alexander & Korine, 2008, p. 110).

STAB Principles

• Win All without Fighting – Capturing Your Market without Destroying It
• The goal of business is to survive and prosper over a long period of time.

Sun Tzu, author of The Art of War, described the strategy in achieving this long term prosperity as an offensive one in which a company must take all under Heaven intact, “Thus your troops are not worn out and your gains will be complete (McNeilly, 1996, p. 11). McNeilly (1996), utilizing Sun Tzu’s principles in his book The Art of Business, adds that, by taking all under heaven intact you will capture your marketplace thus ensuring your company’s survival and prosperity. However, your desired markets must be defined as such and nothing less than commitment in achieving market dominance must be displayed (McNeilly, 1996, p. 1). Application of Sun Tzu’s principle, win all without fighting – capturing your market without destroying it, as cited in McNeilly (1996), has been useful to many of today’s leading companies, including global cement producer, CEMEX. Cemex’s CEO Lorenzo Zambrano has applied Sun Tzu’s technique when expanding his cement company in Mexico and abroad. By the year 2000, CEMEX had become the world’s third largest cement company. In Cemex’s quest for market dominance they switched to a strategy of growth through acquisitions.

In the late 1980’s large firms were considering expanding their operations into Cemex’s Mexican territory. Realizing the imminent threat CEMEX decided to unify its Mexican operations by acquiring two of Mexico’s large cement producers, affording CEMEX access to Mexico’s central market and bolstering its exporting capabilities, making CEMEX Mexico’s largest cement producer and a threat not to be competed against. While CEMEX won all without fighting, they gained market dominance in Mexico, later fueling their geographic expansion (Ghemawat, 200, p. 155).

Deception and Foreknowledge – Maximizing the Power of Market Information Foreknowledge, as described in Sun Tzu’s third strategic principle, is not projecting what will happen in the future, based on past occurrences or merely conducting a trend analysis. Foreknowledge and maximizing the power of market information is to; gain firsthand knowledge of your competitions strengths and weaknesses, know their capabilities, culture and mindset, and obtain a deeper understanding of who their decision makers are and what their future goals and plans are (McNeilly, 1996, p. 0). As Sun Tzu stated in The Art of War, as cited in McNeilly (1996), regarding foreknowledge “What is called foreknowledge cannot be elicited from spirits, nor from Gods, nor by analogy with past events, nor from calculations. It must be obtained from men who know the enemy situation. ” In order for a company to succeed on a global scale not only do the ins and outs of their competition need to be understood and plotted against, they must also know themselves; their own weaknesses, strengths, people and plans as well as the market in which they will be entering.

A corporation lacking this level of foreknowledge should reconsider entering global markets until they better know themselves and their competition. Before Wal-Mart swept our nation, Sam Walton gathered vast amounts of information on his competitors, large and small, before he ever brought competition to their territory. In fact, before Wal-Mart took on then behemoth value retailer Kmart, it was the smaller, local mom and pop retailers that were seized up.

Walton learned about the smaller retailers value chains and distribution methods, through foreknowledge, he attacked their weakest points, where they could not afford to compete, in costs and deceptfully defeated them where they did not expect it; in their own small, rural towns. Defeating the smaller retailers gained Wal-Mart the necessary market share to then surround urban Kmart. Wal-Mart, knowing that Kmart’s operating costs was on average 5% higher than theirs attacked Kmart at its cost structure, and won.

Kmart was just not able to get under Wal-Mart’s five point advantage in operating costs (McNeilly, 1996 p. 25). In 2009, after waiting for a new government with a more ‘hopeful’ political environment and a well paired partnership with local market-savvy grocery retailer, Bharti, Wal-Mart utilizes foreknowledge and deception to enter India’s market. Historically however, Wal-Mart has been unsuccessful in several global markets such as Japan due to their inability to adapt to local markets and tastes (Consumer Goods, 2009).

As McNeilly (1996), notes in summary, you must learn everything you can about your competition, not merely the facts, but you must also learn about its culture, market, mindset and capabilities. Possibly additional foreknowledge in these areas could be of great use to Wal-Mart. Character Based Leadership – Providing Effective Leadership in Turbulent Times Character based leadership is not only desirable but it is an attribute than often separates the globally successful firms from the rest.

When a company first tries its business hand and people skills at cross-border trading, most of the times are turbulent ones and without effective and transparent leadership, going global can quickly escalate from intimidating to downright terrifying. When we think of character based leaders, often people like Chrysler’s Lee Iacocca, Steve Jobs (Apple), The Snyder family (In-N-Out burger), Dan Cathy (Chick-Fil-A), Eric Schmidt (Google) and Jim Skinner of McDonalds come to mind, but McNeilly (1996) reminds us that not only are leaders of this caliber unique, they can also be hard to find.

It is of no coincidence than that we can more readily recall companies operating under less than character based leadership, faster than those with it. Companies like Nike, BP, Exxon (Valdez Oil spill) and even Carl’s Jr’s current CEO Andy Puzder, come to mind. Sun Tzu stated in The Art of War, as cited within McNeilly (1996), “The general who in advancing does not seek personal fame, and in withdrawing is not concerned with avoiding punishment, but whose only purpose is to protect the people and promote the best interests of his sovereign, is the precious jewel of the state…few such to be had. McNeilly (1996) suggests that leaders of this caliber are desirable given they put the needs of others before theirs, they have strong and well developed characters. Becoming such a leader is not easy and will require much sacrifice to: “Build your character, not just your image; lead with actions, not just words; Share employee’s trials, not just triumphs, motivate emotionally, not just materially, assign clearly defined missions to all, avoiding mission overlap and confusion and the make your strategy drive your organization; not the reverse” (McNeilly, 1996, p. 119).

Jim Skinner, CEO for McDonalds and winner of the 2009 CEO of the Year award is greatly admired and willingly followed by his employees around the world and thus a great example of a character based leader attributing to McDonald’s global successes. Skinner, who began his career with McDonald’s in 1971 as a grill cook was named CEO in 2004, at a tumultuous time for the company. Skinner acted quickly to turn the company around and in result between 2004 and 2008 McDonald’s revenues climbed 41. 1 percent in four years, and net income jumped by 81 . 3 percent (Top Executive, 2009).

The top nominees for CEO of the year are judged by such criteria as; leadership, integrity, ability to outperform and for their commitment to employees. It was no surprise to those who knew and worked with Jim Skinner that he had excelled in every category. After receiving the award, Skinner acknowledged the support his leadership team, along with the entire McDonald’s system, stating “Together, our franchisees, employees and suppliers make up what we call our three-legged stool, we succeed only when all three legs of that stool are strong, aligned and performing at the highest levels” (Top executive, 2009).

In closing, Skinner noted that while the challenges of leadership have grown more complex in the multifaceted business climate, holding fast to fundamental principals will serve today’s global business leader well (Top Executive, 2009). The character based leader of today’s successful global firm provides effective leadership in turbulent times, Sun Tzu refers to this as ‘moral influence’ stating in The Art of War, as cited within McNeilly (1996), “By moral influence I mean that which causes people to be in harmony with their leaders, so that they will accompany them in life and unto death without fear of mortal peril. Skinner possesses moral influence among his employees, an important principle that will undoubtedly advance McDonalds in global markets around the world. Christian Values At the minimum, companies poised for global success, will adopt a mission statement. Ideally, these companies will have a statement of values. One organization that is not only global, but transnational – World Vision International has a statement of values that serves as moral compass in decision making and strategic planning.

It states that WVI’s values are to “Bring a Christian, community-based, child-focused HIV and AIDS response, reflecting God’s unconditional love for all people and the affirmation of each individual’s dignity and worth” (World Vision International, 2009, p. 2). It is these types of clear statements of vision that removes the guess work from the Christian Business Praxis model. Additionally, companies need to look at the characteristics of their organization and the values their leadership possesses to determine whether or not the decision to global is in the best interest of the organization.

Some examples are: Benevolence- For many organizations benevolence is the primary reason for going global. This was certainly the case of bicycle manufactures and APU alumni ACIRFA, who after going on mission to Africa saw a need for transportation and found a way to meet that need. Stewardship- Stakeholder theory, which seems to dominate most modern business decision making, indicates that it is unethical to go global without first considering the impact on all of your stakeholders.

Clearly, one’s shareholders are his or her primary stakeholders. However, one must be mindful of the fact the fact that the organization is also the steward of its employees. And, to that end the organization has a duty to plan responsibly and minimize risk to those employees. As such, it is important for organizations to ensure that they are balancing potential profitability with the potential of not serving some of those under their care. Collaboration- This is a particularly useful skill if an organization is considering joint ventures.

If, however, the organization has found that that the leadership of the organization or the organization as a whole is particularly weak in this area this is an indicator that a joint venture is not ideal. Integrity- The challenge associated with integrity (assuming that your organization possesses a great deal of integrity) is that one doesn’t know the off-shore partners and vendors one’s organization will be dealing with. New relationships will need to be established, and with that trust will need to be cultivated.

Management skill- For every ounce of management skill it takes to manage domestically it takes a pound to manage off-shore. This is because there is an entirely new set of challenges and risks. There are language barriers in many cases. There are currency fluctuations, political risks, supply chain issues, and a whole host of challenges that one may not have realized existed even with extensive due diligence. Passion- The type of passion we are addressing here is the type associated with buy-in.

If all members of the executive management team have not bought-in to the idea of going global it is going to be very difficult to have a great deal of success. Leadership must be passionate about going global. They must be excited, and they must be convinced that this is the future of the organization for global efforts to be successful. Preparation- Preparation is the key to success in going global. It may be fine to start out by simply exporting a few items. However, as demand increases, organizations will find that the need for strategic planning and preparation will also increase.

Should a company wish to enter into either a joint venture, licensing agreement or build facilities off-shore, extensive due diligence involving outside consultants will be necessary. Zest- As we have suggested, going global is not for the faint-at-heart. Leaders have to be willing to take risks, and moreover leadership should invigorate others. Going global is not an easy task, great planning and preparation are integral. There will be many challenges and many hurdles and in many cases there will be more reasons to quit than stay the course.

Therefore, zest is a prerequisite for going global. Recommendations Before making the decision to go global, heed Alexander and Korine’s advice, and ask three questions of your organization: 1. Are there potential benefits for our company? 2. Do we have the necessary management skills? and 3. Will the costs outweigh the benefits? The answers to those three questions will give the organization a starting point from which to determine if going global is in the best interest of the organization as a whole.

Next, ask the operational questions- Is going global necessary for the growth and/or survival of our organization? Is globalization worth the various risks involved? Can effectively and protect our intellectual property in a cost efficient manner? Will the complications surrounding operations be overwhelming? What do we stand to lose if we don’t go global and if we don’t who within our competition will? What possible ramifications exist at the expense of not going global? Are we losing out on a learning opportunity by not going global?

Is there unsecured talent out there that we may miss out on by not going global? Then ask the company, how much the above is worth in terms of opportunity cost? If we don’t utilize our time and resources in going global, how then will we allocate said resources to growth? Then ask your company the values questions- Is going global a responsible and ethical management decision? Can we trust that we will find people of integrity in the global economy to do business with and if so, do we possess the necessary passion and zest to be successful at such as risky cross-border venture?

In addition, have we well prepared, and will we continue to be, throughout every step of the process? After asking the above questions we recommend conducting a detailed SWAT analysis where all possible risks and rewards involved with going global are fully vetted, then establish that all Christian perspectives are clear and present and finally, if the decision to go global is made, go forward while applying Sun Tzu’s Art of Business principles.

In conclusion, Alexander and Korine (2008), suggest that we should not expect the influx of globalization failures to stop or improve any time soon. Making the valid point that, companies in a variety of industries will continue on in their reckless pursuit of global strategies, activists will continue to cause change and disruption and less than character based leaders will stand behind flawed globalization strategies, all the while, customers will always be demanding select attention.

While it is undeniable that globalization is a seductively daunting opportunity with promises of increased power and unlimited benefits looming about the mere thought and that while even the best and brightest leaders, heading up the most well prepared companies may eventually succumb to its pressures, make the cross-border transition and possibly fail at it, keep in mind- sometimes to fail is necessary to succeed.

References

1. Alexander, M ; Korine, H. (2008). When You Shouldn’t Go Global. In Bartlett, C. A. ; Beamish, P. W. Transnational Management- Text, cases, and readings in cross-border management. 6thed. p. 105-112). New York: McGraw-Hill
2. Consumer goods: Wal-Mart cashes in. (2009). Business India Intelligence, 16(12), 3-4. Retrieved from http://search. proquest. com
3. Fraser, R. (2006). Marketplace Christianity: Discovering the kingdom purposes of the marketplace. 2nd ed. Kansas City: MO: New Grid Publishing.
4. Ghemawat, P. (2000). The Globalization of CEMEX. In Bartlett, C. A. ; Beamish, P. W. Transnational Management-Texts, cases and readings in cross-border management, 6thed. (p. 146-166). New York: McGraw-Hill Irwin.
5. Julius, D. (1997). Globalization and Stakeholder Conflicts: A corporate perspective.
6. International Affairs (Royal Institute of International Affairs 1944-). Globalization and International Relations (Vol. 73, No. 3, p. 453-468). McNeilly, M. (1996). Sun Tzu and the art of business: Six strategic principles for managers. New York: Oxford University Press. World Vision International. (2009).
7. Global hope initiative annual report 2009. Retrieved from http://wvi. org/wvi/wviweb. nsf/0CF6565756AEA942882575590061CEAC/$file/ Hope_Annual_Report_Exec_Summary_2009. pdf 2009 chief executive of the year. (2009).
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An Examination of the Concepts and Theories

Associated with an Analysis of

Social Regulation in the Workplace

And the Groups and Representative Institutions

Associated With These Procedures

Introduction …………………………………..………………………………..……… 2

Conclusion …………………………………………………………………………… 8

Bibliography.………………………… … …………………………………….…… … . 9

Introduction

Globalization as a phenomenon that has and is utilized to depict the vicissitudes of our universe today, has been attributed as a cause, status, underpinning, end and procedure that has and is polishing how and what we are as persons, companies, organisations, states and parts. Some have described globalisation as making an addition in societal interactions and connexions over infinite ( Chase/Dunn et al, 2000, pp. 77-95 ) . The preceding does apparently hold cogency given the broad spread additions in international communications that has helped to further thoughts with images of films from foreign venues, low cost telecommunications for personal calls and Internet confab suites, instant messaging every bit good as web sites and electronic mail allowing enlargement of our positions. This new environment has besides caused some states to take a closer expression at their societal constructions with regard to past events and current tendencies. One such country is the issue of feminine equality. The Women’s Movement of the sixtiess has ne’er died, it has merely taken on a more broad spread veneer as adult females, cognizant of the varied societal inequalities, have rolled up their arms and taken the affair up on a by and big personal 1 on one footing.

Evidence in support of this can be found in the addition in educational committedness. In 2005 ( UCAS, 2005 ) females represented 239,331 of all appliers for grades in establishments of higher acquisition in the United Kingdom, as compared with 214,502 for males. The entire figure of females accepted represented 170,003, males – 153,215, with the per centum rate for the predating representing 73.5 % and 71.4 % severally ( UCAS, 2005 ) . However, there is still a disproportionate relationship found in wage graduated tables, the gender wage spread for corporate director places is 27.8 % , whereby females earn 73.2 % of what their male opposite numbers do for the same degree of work ( Purcell, 2002, p. 6 ) . In an economic and matter-of-fact sense, globalisation has tended to increase the power of capital in its relationship to labour as directors cite retrenchment, increased productiveness and quality along with wage as a coefficient of merchandise and or service cost. Governmental response to threats associating to its corporations, intending companies housed within its boundary lines, is to cut down societal protections therefore increasing the flexibleness of the labour force ( Gummett, 1996 ) . Governmental policies on corporate societal duty are a big construct in that it encompasses the undermentioned statement ( Corporate Social Responsibility, 2004 ) “The Government sees CSR as the concern part to our sustainable development goals” . The statement goes on to add that it is seen by authorities as “… how concern takes history of its economic, societal … impacts in the manner it operates …” ( Corporate Social Responsibility, 2004 ) . It goes on to add that it sees “… CSR as the voluntary actions that concern can take, over and above conformity with minimal legal demands to turn to … its ain competitory involvements and … . involvements of wider society” ( Corporate Social Responsibility, 2004 ) . This scrutiny shall take a expression at the constructs every bit good as theories that are associated with societal ordinance in the workplace, along with the persons, groups and representative establishments that as associated with these procedures.

The criterions for gender balance in working environments is put away by the authorities are defined by the transition of ordinances get downing with the seventiess. The execution of legislative policy is an historical cheque on the societal procedures and demands for alteration that preceded their debut therefore supplying hints as to the underlying societal alterations that represented issues prior to enactment. The Equal Pay Act of 1970 ( International Labour Organization, 2005 ) provided that work forces and adult females have the same equal terms with respect to the conditions and footings of employment stand foring occupations comprised of the same degree or similar degrees of work. An amendment to this Act was implemented in 1983 ( HMS, 2005 ) to bespeak that all persons executing the same work must have the same rate of wage, bespeaking frontward advancement in societal duty that was further strengthened by the Sex Discrimination Act of 1975 ( Stationary Office, 2005 ) which specified that favoritism against adult females has occurred when they are treated less than favourably in comparing with work forces and that where conditions and or demands are implemented or imposed whereby it consequences in places skewed unevenly in favour of males, every bit good as demands and or conditions whereby adult females would non be in a place to follow with. It legislated that adult females and work forces are equal and included statute law to extinguish favoritism utilizing gestation and or childbearing.

The authorities through legislative amendments has strengthened assorted facets of the preceding over the old ages as represented by the followers:

A. Equal Wage Amendments ( HMS, 2005 )

1. Trade Union and Labour Relations Act 1992
2. Employment Rights Act 1996
3. Employment Rights Act 1998

B. Sex Discrimination Act 1975 Amendments ( HMS, 2005 )

1. The Sex Discrimination Regulations 1999

Legislation nevertheless can non do companies to speed up or increase their committednesss and or ethical patterns in the country of societal duty as wonts and the position quo tend to be engrained in corporate civilization and decelerate to alter. Rubery ( 2003 ) points out that as a consequence of the deficiency of mechanisms that are effectual in turn toing employer behaviour, the chance for extra additions in the country of societal duty will stay slow. His position has besides been adopted by Roivaset et Al ( 2004 ) . It has been argued that the concern issues with regard to adult females in the workplace is a accepted issue and that gender equality represents an of import societal duty, the consensus is that it is good policy to put to the promotion of adult females in the workplace ( Mattis et al, 2002 ) . It has besides been put forth that speed uping equal chances with respect to adult females in the workplace can be advanced through combinations of legal attacks in the country of conformity every bit good as the concern instances and through societal ordinance ( Dickens, 1999 ) .

Corporate Social duty entails three facets that are associated with the ground for the pattern and why it exists in the first topographic point:

1. Corporate Social Responsibility entails conformity with statute law. This has been pointed out by Carol ( 1999 ) in his “Corporate societal duty – development of a definitional construct” paper.
2. Corporate Social Responsibility has to boot emerged in footings of a concern instance that is connected to put on the line inauspicious investing, employee satisfaction, additions in corporate repute and increasing the corporation’s capacity for invention as theorized by Siegal et Al ( 2002 )
3. And in conclusion, Corporate Social Responsibility has become an facet of the societal cloth through soft statute law by assorted authoritiess, every bit good as through alliances stand foring authoritiess and evidenced by the OECD Guidelines for Multinational Companies, and non authorities organisations ( Moon, 2004 )

And while the feminine issue has taken a back place in the procedure, corporations utilize their engagement in Corporate Social duty to advance their standing in the concern and public spheres, with companies in assorted alliances every bit good as associations and organisations such as Business in the Community, the Global Reporting Initiative and the United Nations Global Compact. Corporate Social duty is an activity that is engaged in the societal facets in their context of concern success that are external societal and internal extensions of the company. It is involved in procedures implying the allotment, coverage and measuring of societal public presentation in concurrence with political facets such as the shaping of duties every bit good as rights in the context of stakeholder engagements. Monbiot ( 2000 ) every bit good as Hertz ( 2001 ) see Corporate Social Responsibility as important in footings of society in the wide context every bit good as in the context of the societal facet of single concerns and chiefly in transnational corporations whose public and international actions are scrutinized. It besides is understood in footings of the addition in which authorities is and has encouraged battle to do concern to see its importance as a turning context of the overall societal cloth.

Despite the comparatively slow advancement in female promotion connected through Corporate Social Responsibility agendas it is an active and bing focal point which adult females have at their disposal to help in farther progresss, despite the limited tools and resources in that respect. Its arrangement in the countries of human capital direction, corporate societal duty guidelines every bit good as socially responsible investing are employee and diverseness issues that represent support mechanisms to farther hereafter progresss. The Council of Europe ( 2006 ) states that societal coherence represents the “… capacity of a society to guarantee the public assistance of all its members, minimising disparities…” and has added that gender quality is an country that means equal visibleness every bit good as authorization and the engagement of the sexes ( both ) in all facets of public every bit good as private life. The Council of Europe ( 2006 ) has indicated that the betterment and development of policy procedures should be evaluated and reorganized to integrate the position of gender equality in all degrees and at all phases of public and concern activities. The Council indicates that gender equality needs to be positioned at the nucleus of societal rating and analysis from the beginning and the gender issues need to be farther identified and reviewed in the context of policies every bit good as the publicity of gender equality as a mainstream of societal duty.

Walby ( 2004 ) adds that it goes beyond the thought of merely adding adult females in footings of employment Numberss it is a inquiry of policies and the affects. Rees ( 2004 ) sees the procedure of corporate societal duty as necessitating to deviate its attending in footings of persons to the systems and constructions which gave rise to the state of affairs whereby it arose in the first topographic point. He continues that there are three distinguishable attacks to the issue, which are 1. legal, 2. best pattern, and 3. gender mainstreaming Rees ( 2004 ) . Advancing adult females in the context of corporate societal duty represents the use of the political every bit good as societal procedure and that garnering information from adult females as the foundation to measure ways in which to trip the procedure represents a cardinal measure in doing it work. The procedure of supplying and giving gender equality more dentitions is non feminism but world in seting the position of enabling society to deduce the most benefit from all of its participants and therefore progress itself beyond its present boundaries and restrictions with new and fresh inputs.

The procedure besides includes outside groups and organisations that are engaged in the procedure whose influence at nowadays is minimum, yet active. The figure of groups and organisations stand foring societal duty in the context of females is modest. The undermentioned represents a partial list:

1. The Association of Sustainability Practitioners located at hypertext transfer protocol: //www.new-academy.ac.uk/ is engaged in trade and gender issues.
2. Business for Social duty provides a wealth of information every bit good as rank for persons interested in advancing all facets of this subject, including women’s issues at hypertext transfer protocol: //www.bsr.org/
3. CSR Europe is a non-profit organisation advancing corporate societal duty and states its mission is to assist companies attain profitableness, every bit good as to prolong growing and human advancement. Its web site is at hypertext transfer protocol: //www.csreurope.org/aboutus/
4. Centre for Corporate Accountability, which is located at hypertext transfer protocol: //www.corporateaccountability.org/about.htm is devoted to societal answerability and duty issues and offers legal aid every bit good as academic and militants.

The activities in the country of gender equality have developed, yet the motion is still slightly stuck in its ain inability to specify itself in more direct footings. Many companies have developed the concern instance attack and therefore the betterment of their patterns with regard to promotion of adult females in the workplace. The sphere of equal chance as put Forth in 1970 is taking a long clip to go more that an legislative Act, it is apparently taking the remotion of one coevals and portion of another to prosecute the procedure as a normal, instead than legislative fact. Organizations such as Opportunity Now in the United Kingdom, every bit good as Catalyst in the United States have demonstrated that to prosecute the effectual promotion of adult females in the workplace, organisations need leading that is effectual every bit good as committed. The concern every bit good as societal instance for gender equality represents a concern chance that needs more active battle in HR patterns every bit good as keeping, preparation, wage, work-life balance and publicity to supply it with life.

At present, there is some grounds that there are programmes whereby the sweetening of gender equality can be advanced through the arrangement of monitoring and measuring that is conducted on a regular footing with the aid of authorities to do the procedure to go actively occupied instead than the inactive phase that authorities takes soon. The committedness on the portion of authorities represents a committedness on behalf of the people, and that is the musculus this procedure needs to acquire it out of the clay and back on the route. The slow growing policy has been developing velocity since the 1970s and still has non truly moved to any appreciable grade. The statute law has been in topographic point, now it needs to be activated as a portion of societal duty to supply impulse.

Decision

With all the preceding, so the inquiry is what has happened to the focal point and context of Corporate Social duty? Focus, is the primary reply. World events such as terrorist act, the war in Iraq, concern fight issues, offense, pension financess, and wellness attention issues have taken phase with societal duty and eroded the societal focal point. It no longer commands the same tableland in face of economic, wellness, public assistance and safety issues and therefore corporate focal point and social focal point has been diverted. The predating illustrations and countries represent the get downing stage of a larger docket that has merely entered is embryologic phase, therefore farther growing is expected. But, as with all things it will necessitate a consistent diet of growing and attending, maintaining it watered and fed until it is strong plenty to hold legs of its ain.

The growing in the procedure will come from rules that are based in justness, equity and an apprehension of equity to broaden the context to societal inclusion. As stated by Rees ( 2004 ) the focal point is pull offing diverseness which needs to go one of enlightenment. The displacement is from the feminine position to acknowledging that the systems and constructions that have developed over decennaries has given rise to a system and processes whereby the state of affairs developed to the point that it became the normal behavior of life. Changing that facet will necessitate work as positions, and the comfort of things being the manner they are represent wonts that are engrained and hard to readapt. The full context entails traditional thoughts from a cultural and societal position which has conditioned behavior to the point where in many instances most males are non even cognizant it is an issue, and that is precisely the issue.

Bibliography

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Walby, S. ( 2004 )Gender mainstreaming: productive tensenesss in theory and pattern.University of Leeds

Over the class of human history the universe has proven to be a dynamic of all time germinating topographic point with changeless fluctuations in governmental signifier and political power. As humanity has shifted from the babyhood of civilisation to the most complex signifiers of authorities and political relations at that place has ever been a common complaint blighting their stableness, offense. With the origin of regulations there were instinctively people who sought to interrupt those regulations. The relationship between civilisation and offense is a complex and intricate issue. As civilisation raises the saloon in acceptable behaviour offense expands reciprocally to the new sum of limitations.

An first-class illustration of the dynamic growing of offense is best scene in the development of multinational offense. Born from merely smuggling common points in a high duty environment, multinational offense has expanded into an luxuriant system of illicit trade, smuggling and drug dealing. Condemnable justness bureaus have struggled to maintain gait with this exponential addition in multinational offense, but they are hindered by built-in administrative and direction issues, viz. the mutualist nature of multinational offense and condemnable justness bureaus and the bureaucratic nature of condemnable justness organisations.

The Situation

Transnational offense has existed since the birth of autonomous states. With the separation of states there arose a possible market for goods and necessarily there arose those who would prehend a possible net income market. In its babyhood multinational offense chiefly consisted of the transit of legal goods through illegal channels to avoid high duties. There were of class other fluctuations, but for the most portion multinational offense was defined by the smuggling of common things such as salt and other basic demands.

The first displacement to happen in footings of multinational offense came with the lessening in duties. To advance greater trade and more import and export, many authoritiess lowered trade limitations and duties. With the lowering of duties the market for common goods shrank vastly. There was still a demand for such things a salt, but now they could be provided lawfully for a really low monetary value, a monetary value low plenty to cut profoundly into the net income border of smuggling. With this cut into the bottom line runners were forced to spread out into new and other underrepresented fluctuations of illicit trade. One such fluctuation was the signifier most normally represented today by the multinational offense market, the smuggling of prohibited goods across international boundary lines.

In truth all international offense is, in some signifier or another, a discrepancy of smuggling. Be it arms, money, people, or information, conveying a forbidden point across international boundary lines is smuggling. This fact exploded with the origin of globalisation which represented the biggest blessing to transnational offense since the creative activity of boundary lines. The conveyance of illicit goods across boundary lines became a much more complex and profitable thing with the spread of globalisation.

As defined by Merriam Webster lexicon, globalisation is: the act or procedure of globalizing: the province of being globalized ; particularly: the development of an progressively incorporate planetary economic system marked particularly by free trade, free flow of capital, and the tapping of cheaper foreign labour markets.

Globalization has been marked by an exponential addition of engineering and loosened trade limitations that have drastically increased the mutuality between autonomous authoritiess. This mutuality has reciprocated and furthered the spread of globalisation as more states portion more cognition, wealth and chances.

The Problem

The important defect with the spread of globalisation is the elitism of the system. Whereas first universe states find the spread of globalisation a blessing to their economic system and position, 2nd and 3rd universe states have small to gain from the legal side of globalisation. As a consequence many less industrialised states turn to the illicit market to vie with their more industrialised rivals. The spread of globalisation serves many positive maps, but it is inherently tied to multinational offense.

The simplest manner to explicate the relationship between multinational offense and globalisation is that one facilitates the other, i.e. globalisation helps to ease the growing and enlargement of multinational offense. Taken from chapter four of Transnational Crime in the Americas, Peter Andreas sums up the construct magnificently. “ Governments face an progressively awkward but ineluctable quandary: policy steps that facilitate the flow of legal trade-improved transit systems, deregulating of transportation, denationalization of ports, and so on-also accidentally facilitate illegal trade. ” This is the sad truth about the nature of globalisation and the effects it has on multinational offense. While there does be another option, to decelerate the growing of globalisation thereby impeding the advancement of multinational offense, this option is a failed program about from the oncoming. Moises Naim makes a really clear point on why it would be impossible to hinder the growing of globalisation in chapter 11 of his book. “ History and common sense say that, in the long tally, market forces tend to predominate over those of authoritiess. ” What this means is that, with the market presently focused on growing and multinational mutuality, authorities interceding will be countered in malice of the fact that that this market focal point is bolstering multinational offense.

Globalization has served to increase both the legal and the illicit side of trade in many ways. One of the first is the exponential addition of engineering. As engineering increases the avenues upon which trade can happen addition. As an illustration consider transportation. A millenary ago smuggling was alive and prospering, yet ocean trips by see took months and the potency for lading to be damaged or destroyed in so much clip was high. As of today though, travel by ship is both faster and much more secure. To foster the analogy, the origin of aeroplanes revolutionized trade, illicit and legal. Even the steam engine revolutionized overland travel.

Another avenue through which trade has prospered is the promotion of communications. While simply another facet of the engineering roar, communications have exhaustively revolutionized international trade and multinational offense to the extent that is has created wholly new signifiers of trade and offense. With the birth of the cyberspace and e-mail the inundation Gatess have been opened for trade. With eBay it is now possible to order a Peruvian rain stick from a place in Vancouver and have it delivered to the receiver in London as a birthday gift. Inversely, it is besides now possible to put a petition for a amount of illicit goods to be delivered by manner of an anon. electronic mail history without the two felons behind the enterprise of all time holding the demand to run into.

The Possibilities

There exist two chief political orientations of idea refering the proliferation of modern-day multinational offense. The two trains of idea are the “ asymmetrical battle theory ” and the “ mutuality theory ” put Forth by Moises Naim and Peter Andreas, severally. The two theories differ greatly in position refering the rise of multinational offense, but both writers present relevant and convincing statements for each instance.

Moises Naim presents the thought that authoritiess are neglecting in the battle against multinational illicit trade due to the asymmetrical nature of the organisations in competition. Moises rapidly lists the rivals as governmental entities versus organized offense webs and bases the Southern Cross of his statement in the very nature of a bureaucratism versus that of a web.

Harmonizing to Naim, all bureaucratisms tend to exhibit the same four key traits that limit their ability to vie against a net work. The first cardinal characteristic is that bureaucratisms tend to be really structured doing communicating between units non portion of the same perpendicular line of bid really hard. In comparing, webs are a loose group of single cells and that allows for rapid decision-making and alteration.

The 2nd point that Naim makes is that authorities bureaus have to work within the restraints of a budget. Not merely that, but they have to get the budget which redirects manpower and concentrate from the arguably more major issue of contending the felons. Against this, webs draw their resources from their patronage, intending that financess are virtually illimitable depending on what is supplied and to whom.

Continuing on, Naim draws attending to the political and legal bounds that authorities bureaus must work within, while illicit bargainers can work within the restraints of the jurisprudence when the demand suits them, but they besides have the option to work outside of the jurisprudence, which provides more manoeuvrability. Ironically, there is a really disposed quotation mark to sum up this thought taken from Transnational Crime in the America. “ aˆ¦if you play by the regulations and I can rip off a small, I get the benefit of both the regulations and my cheating. ”

Naim ‘s concluding point is the trouble authoritiess have working outside their ain boundary lines due to the limited authorization, linguistic communication issues and all the other jobs that accompany being in a foreign state. Against this, webs tend to be as comfy abroad as they are at place and even place is get downing to hold a looser definition to webs.

The opposing theory to this is the dependence theory put away by Peter Andreas. Andreas describes the self-contradictory nature of the state/smuggler relationship get downing his point on the most obvious issue, runners depend on province Torahs for their being. This thought seems simple, but is genuinely instead profound. Andreas quotes Adam Smith about this. “ A runner is a individual who, although no uncertainty blamable for go againsting the Torahs of the state, is often incapable of go againsting those of natural justness, and would hold been, in every regard, an first-class citizen had non the Torahs of his state made that a offense which ne’er meant to be so. ” The fact here is that the Torahs put forth by authoritiess form the footing of the full entrepreneurship of smuggling.

Andreas goes on to mention the corruptness and payoffs that ease the force per unit area runners face, and how these under the tabular array payments map as a type of illicit income revenue enhancement. This thought is besides expanded upon in that there are some countries of the universe where illicit trade forms the anchor upon which full economic systems are based. Much of Latin America can be referred to as narco-states ; in that, the greatest export they produce is narcotics. Furthermore, the same can be said for some parts of Southeast Asia. Mexico ‘s 3rd highest gross is remittal from Mexicans smuggled into the U.S. In the face of this, what ground do many topographic points have to check down on illicit trade? Furthermore, is it ethically sound to destruct the fiscal base of some states for any ground?

Beyond corruptness, there is besides the fact that the money controlled by runners frequently enters the control of the province through legal channels. One such method is plus forfeitures Torahs. In add-on, much of the illicit goods that enter the state are for the really citizens whose revenue enhancements support a system that is opposed to the really goods they desire.

There is besides the fact that much of the information the province has on runners is, in fact, recovered from other runners.

Finally, what is arguably the most affecting ground behind the mutuality theory ; it is the really continuity of smuggling ( and the perceptual experience of it as a turning menace ) that is the most important for prolonging and spread outing jurisprudence enforcement. Examined more elaborately, this is could perchance be the footing upon which the remainder of the mutuality theory remainders.

The Inference

In the face of these two opposing point of views it seems that the mutuality theory holds greater weight. While there is an obvious asymmetrical nature to the battle between authoritiess and organized condemnable webs, the grounds does non back up the difference being that belittling. The current construction of bureaucratisms has managed some really important victory over organized offense. The job that is frequently cited is that even if one cell of the web is shut down another is ready to take over. While this statement seems to back up the asymmetrical theory, the inquiry remains, how are these displacements of power so easy? The mutuality between the province and the illicit trade webs allows for the easy displacement in power. It is easy to state that there is ever person waiting in the wings, but where do they get down to reform the lost connexions of the old mediator? Some corrupt functionaries must willing seek out, or readily accept, new participants to go on the concern of corruptness. If there were a crackdown on corruptness, illicit bargainers would bear much of the political force per unit area they are presently protected from.

In add-on, if the construction of bureaucratisms is such a booby trap in the battle against illicit trade, why is at that place merely non a reorganisation of bureaucratisms? This deficiency of alteration could besides be attributed to the mutuality between the province and illicit trade. The current system works to stem some of the flow of illicit trade, but does non, can non halt it wholly. The necessary bond between the province and illicit trade is what keeps this blemished system in charge as a type of via media between what should be done about illicit trade and what is being done.

Interdependency stands as the Southern Cross of the issues with the conflict between authoritiess and multinational offense. Equally long as there is such a strong bond between the two forces at that place will ne’er be any important advancement made on the forepart of multinational offense. And yes, while the asymmetrical nature of the battle between bureaucratisms and webs is an issue, it is non the major issue and may even stand for another facet of the job with mutuality.

The Decision

Ultimately, this weakness in the war on multinational offense is a direct representation to the weakness in the disposal of condemnable justness Fieldss. Whether there is more acceptance to the mutuality theory or the asymmetrical battle theory, both theories posit that there is an built-in weakness in the direction of the regulating organic structures of condemnable justness. Without some kind of elaborate scrutiny and re-haul off the system there can non be any existent alteration in the struggle between condemnable justness bureaus and multinational offense.

Globalization is a existent and dynamic thing that is presently reshaping the class of universe history. However, with all of the good that this entails, there is besides much negative. As globalisation forces lowered trade limitations, increased transit locales, and deregulating of transporting to foster the ends of multinational mutuality, these same actions have served to ease the growing and worth of the multinational offense market. To antagonize this there must be a alteration in the direction of the condemnable justness bureaus dedicated to forestalling this. Without such a alteration there can ne’er be a decisive triumph on the multinational offense forepart.

I am going to analyses the problem of economic growth in this article. As we are all aware, in the world we live in, there is this huge question everyone is trying to answer: “Is economic growth desirable – and most importantly- sustainable? ” There are roughly two sides on this subject. Green-leftists, who are not supporters of the economic growth; and liberals who argue that prosperity will occur when economic growth exists. I want to go way back, in order to understand when economic growth started.

Figure 1 According to the graph above, it started in the mid sass with the Industrial Revolution. It was a result of “mass production”, basically. Producing in mass amounts caused economic growth, this led to globalization, decrease of tariffs, international trade. As some people might argue, globalization is key for countries to have a strong economy. Globalization means that we can now solve our problems together and be heard by someone all across the world. Globalization has helped several illnesses, as Alex Tabor -a Professor of Economics- puts it, “globalization saves lives”.

Figure 2 Figure 3 Figure 4 As we can see from Figure 2, life expectancy in 1800 was 40 in the UK where GAP per capita was around 3500 dollars, and about 27 in Cape Verve where GAP per capita was below 400 dollars. We can see from here that GAP per capita has a positive correlation with life expectancy, as years past, in 2012 as it is shown in Figure 3, same correlation applies. As Figure 4 clearly shows, child mortality has a negative correlation with GAP per capita. With economic growth, came better health care, wealth, technology, novelty, but that is Just one side of the story.

Economic growth also brought environmental problems. Carbon emissions, pollution, global warming… These are all world wide issues we have to deal with if we keep this track. First of all economics is the science of scarcity, as we can roughly describe it. So we have scarce resources, how do we keep growing? Most importantly, can we sustain this growth? Figure 5 (23. 12. 2013) As Figure 5 shows, we have limited resources, which we are running out of very quickly. This indicates that economic growth is not sustainable.

Alex Tabor disagrees, he claims that incentives are key to ideas, and scarcity will be an incentive or everyone to invest in new energy systems. He believes that humanity has overcome many disasters and with the help of technology we can lower carbon emissions -even invent a machine that can absorber carbon from the atmosphere- and keep growing economically. Figure 6 Figure 6 indicates that there is a positive correlation between carbon emissions and GAP per capita. Here, I would like to refer to Tim Jackson who is a professor at University of Surrey. L want you to imagine a world, in 2050, of around nine billion people all aspiring to Western incomes, Western lifestyles. And I want to ask the question: How far and how fast would we have to move?… The carbon intensity of economic growth at the moment is around 770 grams. In the world I describe you we have to be at six grams of carbon. It’s a 130-fold improvement and that is 10 times further and faster than anything we’ve achieved in industrial history. ” I went further on my research and found some data on something called an “ecological footprint”. It shows that we would need 7. Worlds if everyone lived like the average Americana . This means, people who insist that economic growth will bring wealth and everyone will have western lifestyles, are mistaken. If everyone on Earth had Western lifestyles, non of us would survive. We have the “developing” countries to thank for that. Even if we had this “blind faith in our cleverness” as Tim Jackson puts it, economic growth did not only bring environmental issues. It has also brought inequality in human society. Augusta Comet had similar concerns about this issue. He was afraid that inequality would cause dissolution in society.

Druthers called it an “anomie” and he claimed that this anomie led to aimlessness and despair. (He concluded that aimlessness and despair caused an increase in suicides, in the modern society. The rich became richer and the poor became poorer as economies kept growing. The gap between the poor and the rich got wider, inequality caused exploitation, and this caused “class struggles” which we can describe as the keystone in human history according to Karl Marx. I want to show you some data on the wealth distribution in America, one of the wealthiest countries in the world.

Figure 7 Figure 7 shows that the bottom 80% has the 5% of the financial wealth. This indicates a great inequality, it means our economies keep growing but the only people who are getting richer are already rich. Liberals, as I mentioned before, support economic growth which leads to a rise in the GAP per capita. They argue that GAP is the keystone to check, in a prosper society. This statement is true at some cases, but not always as it is shown in Figure 7. In a world where 1% of the population owns 40% of the planet’s wealth, it is crucial to talk about equality.

Economics is considered as “the science of scarcity’ as I already mentioned. We argue that we use this science to fulfill the infinite needs of human beings. Here is where I disagree; I don’t think a human beings needs are infinite. Tim Jackson defines this as “conspicuous institution”. He says: “This is a story about us, people, being persuaded to spend money we don’t have, on things we don’t need, to create impressions that won’t last, on people we don’t care about. ” I believe with the resources of our planet; we can create a more egalitarian and prosper society.

Our aim must be to stop the exploitation/domination of the strong one over the weak ones. I want to go back to the environmental issues now. They can never be ignored because environment is what we need to survive, if we damage it somehow, there is no turning back. So I believe environment should be our first priority. In a growing world, all states/ governments have to narrow down their economies, and start investing in alternative energy systems. I believe human beings are adaptable and they can always figure out a way to survive.

So I’m not suggesting to shut down all economies and stop global trade etc. I am suggesting to slow down the growth, because if we keep up this track, the destruction of our planet will be inevitable. Then there are Moos: Huge companies without nationalities. The only thing they care about is to make profit according to economics. A rational company/individual maximizes its profits and minimizes its costs. This statement is, sadly, true in most cases. If we are these “self maximizing individuals” as Adam Smith defines us, I believe governments have to step up here and create an international committee.

This committee should regulate these companies’ investments, expenditures etc. It should enforce laws in order to make sure that these companies show an effort to protect the environment and invest in alternative energy systems and not use nonrenewable energy sources. I have stated a few keystones that I believe are relevant to the subject. These keystones were; environmental issues, equality in terms of wealth distribution, reverting exploitation, investing in alternative resources and small regulations in the economy.

“Building a diverse, talented, and committed workforce is key to our success” (Web 1) says Rosalind Cox, manager of diversity and worklife planning at Ford. Ford is not the only company which concentrates more and more their efforts on establishing a culturally diverse workforce. It can be observed that companies throughout the world are increasingly emphasising the need for and the advantages of workplace diversity.

In the past, however, employers were seeking to build a homogeneous workforce, that means similarities between employees were of prior importance. Therefore it is legitimate to ask for which reasons this change in attitude has taken place and whether potential advantages of a culturally diverse workplace are linked to this reasons. This essay searches for answers to these questions and examines potential advantages of a culturally diverse workplace in a global business world.

The essay starts with an explanation why cultural diversity affects already nearly every society followed by a short discussion about what constitutes cultural diversity and thus a culturally diverse workplace. Next, potential advantages and disadvantages will be examined before concluding that advantages in a culturally diverse workplace can only arise when recognising and utilising cultural diversity adequately.

The trend towards globalisation has accelerated during the last decades. The establishment of the European Union and the NAFTA are indicators for the diminishing barriers to trade; foreign investment facilitated by trade liberalisation and the general trend towards global deregulation has led to a tremendous increase in cross – border economic, technological, social and cultural exchange. (Web 2)

Companies have become “global players” establishing subsidiaries in various countries and / or forming cross – border alliances such as joint ventures or mergers. Global deregulation facilitated free movement of labour. The ongoing development of systems of transport, as cars, air travel, trains and so on enhanced the mobility of people. Companies acting on a global scale are sending their employees on overseas assignments working side by side with people of different national origins. Besides, we have culturally diverse populations as a result of the flow of immigrants and refugees towards industrialised countries seeking for a “better life”. Consequently the composition of the society within countries has become increasingly diverse and is segmented in distinctive groups forming subcultures. Today, the multicultural society is rather the norm than the exception.

However, the term “culture” is not necessarily restricted to national origin and thus national culture. Culture defined as a “shared system of attitudes, beliefs, values and behaviour” (Davies, 2004) implies that within national borders subcultures appear also in form of gender, lifestyles, religion, age or sexual orientation to name just a few ones. Women, for instance, share different attitudes, beliefs, values and behaviour in comparison to men and have therefore an own culture.

However, some as Fitzgerald (1997, p. 1), argue that these groups represent rather identities “which do not constitute separate cultures”. Thus, according to this point of view the definition of a culturally diverse workplace would have to exclude these characteristics forming distinguishable groups in societies. On the other hand, it is for sure that these specific groups contribute to diversity within society when defining cultural diversity as different existing systems of attitudes, beliefs, values and behaviour. Recognising this fact is important as the whole society represents the potential workforce and not just particular groups of national origins.

Since most managers refer to culture as “the collective programming of the mind which distinguishes the members of one human group from another….the interactive aggregate of common characteristics that influence a human group’s response to its environment” (Hofstede, 1980; di Stefano, 1972, cited by Adler, 2002, pp. 16, 17) and consequently the way of feeling, thinking and acting (Hofstede, 1997, p. 4) this paper is also going to adapt this view.

Acknowledging that even this definition does not exclude gender, age, lifestyles etc. as representing forms of specific cultures within a country, this paper is going to concentrate on national cultures. One reason for this approach is that regardless whether referring to these specific groups as subcultures or as identities they are living or have been grown up within a particular country with a particular national culture which is likely to have shaped their ways of feeling, thinking and acting as the most dominant culture. (Hofstede, 1997, p. 4)

Furthermore, when we are talking about a culturally diverse workplace in a global business world the first thing which comes to our mind are different nations and national cultures which are involved with each other. The above discussion already indicates that depending on what we regard constitutes culture one might use a narrower or broader definition of diversity in this context. This might be the reason why there is not a commonly accepted one. (Bhawuk et al.,1996) Cultural diversity as a broad concept can be described as the “[…] variety of human experience and achievement […]” (Web 3) and in this broad context culturally diverse people are referred to as “individuals who bring unique perspectives or outlooks to the organization”. (Web 4)

However, we will use a more neutral definition of a culturally diverse workplace. In accordance to the above mentioned definition of culture we will refer to it as one where people with different “mental programs” (Hofstede, 1997) resulting from different national origins are interacting and involved with each other. According to a worldwide IBM research covering over 2000 companies carried out by Sparrow, Schuler and Jackson (Joynt and Morton, 1999, p. 207) most managers and businesses believe that achieving a sustainable competitive advantage is determined by an organisation’s people. In addition, the capturising of specific knowledge and skills in order to carry out research and develop new products for customers is seen as key success factor. (Dakhli et al., 2002, p. 2)

Globalisation implies that marketplaces both domestically and globally become more and more competitive and the ability to provide innovations can therefore determine fall or success. The increasing importance for global businesses to establish a culturally diverse workplace and thus an international team has to be understood in this context (Joynt and Morton, 1999, p. 208): a large number of experts agree that building heterogeneous working groups, that is to say teams with members who have different “mental programs”, are likely to be more innovative and creative (Dakhli et al., 2002, p. 1) and that the more different “mental programs” in the group exist the more distinctive their knowledge, points of views and ways of thinking are supposing that this leads to improved performance.

Similarly, Wanous and Youtz (1986, cited by Ely and Thomas, 2001, p. 3) found heterogeneous groups more capable to establish diverse approaches to tasks and solutions to problems which in turn is believed to result in a higher quality in decisions. But why do mental programs differ from one another and if so do they really ultimately lead to innovations, enhanced creativity or better decisions?

Introduction

Sam Walton is the founder of Wal-Mart Company. The company started its operations in 1962 when the first retail store was opened in Rogers, Arkansas. Over four thousand stores have been opened in the United States. More than 2,800 stores have been opened outside the U.S. According to (Pahl & Richter, 2009, pg. 19) “the facilities of Wal-Mart Stores, Inc. include Wal-Mart Supercenters, discount stores, Neighborhood Markets and SAM’S Club warehouses.”

According to Fortune magazine, Wal-Mart is the largest retail company in the global market. It has been ranked one of the Global 500 companies. It employs a large number of people since more than 1.9 million people world wide work for the company. In the United States, the company has employed over 1.3 million people. It is for this reason that the company is ranked as the largest employer in the world labor market (Pahl & Richter, 2009).

Business Strategy Adopted by Wal-Mart INC

The company has experienced stiff competition in the global markets due to entrance of many companies in the industry leading to price wars. Wal-Mart has adopted the strategy of reducing its prices to increase profits due to the increasing competition in the global markets. The corporate strategy of Wal-Mart is to “dominate the retail industry by being a company that is offering the lowest price possible to the customers.

To expand in the US and internationally which currently have reached 4058 in US and 2898 in other 14 countries” (Johnsen, 2008, Pg. 4). In addition, the company carries out the strategy of refining its image by conducting sustainable activities, improving corporate social responsibility and creating freedom to employees to establish labor unions (Johnsen, 2008).

The company has used the philosophy of “Save money, Live better” and to achieve this, the company has offered low prices for most of its products. A higher number of customers have been recorded by the company after adopting this strategy. In 2007, the company recorded sales worth US$ 345 billion. The company has adopted the strategy of providing low wages to its employees as a low cist measure to increase profits. There is low healthcare coverage to employees and a few workers are covered by healthcare programmes of the company.

The company intends to open more stores in many countries. However, this strategy has been affected by cultural differences of various people in the global markets. For example, the company was forced to close its stores in Germany due to increase in competition and cultural misunderstanding between the management of the company and its employees in the foreign country (Dyck & Neubert, 2008).

SWOT Analysis for Wal-Mart Inc.

Strengths

The company has opened many stores and it enjoys economies of scale since expenses are distributed. This provides the company a competitive advantage over its competitors. It is the largest retail company in the world and has been able to control markets in many countries. It has many suppliers who provide goods and this enables the company to regulate the prices offered by the suppliers. The company has diversified in its products and offers a wide variety of products. This has increased demand for the products since customers can purchase in one roof. The company has value for money to its customers. The corporate philosophy of the company states that “save money, live better”. The low cost strategy adopted by the company has enabled provision of low prices in most markets (Pahl & Richter, 2009).

Weaknesses

The brand reputation of the company has declined “due to some public affairs like the Spygate scandal and Public disasters like the conviction of T.M. Coughlin No. 2 executive” (Pahl & Richter, 2009, pg. 21). The company has been criticized for over dominance in the markets. More than 2000 Supercenters have been opened in the United States. The stores have been too close to each other leading to competition between stores of the same company. The company is not flexible in its marketing strategies. It has followed the strategy of attracting low income people for a long period without adjusting to other strategies. Wal-Mart has been criticized for its practices to prevent employees from forming labor union. The management has been forced to allow employees unionize after a long struggle (Pahl & Richter, 2009).

Opportunities

The company has not yet exploited the global markets since it operates in only 13 countries. There are more opportunities in other countries. The company can establish strategic alliances with global retailers to improve the market of the company in the global scene. As technology improves, the company can use modern marketing strategies such as online retail operations to improve its market share. The labor market is expanding after globalization of the labor market. Many people are seeking employment and the company can promote its strategies by capturing low-cost labor from other countries (Johnsen, 2008).

Threats

Many companies are penetrating the industry and stiff competition is expected in the near future. Price competition is a possible threat to the company since the strategy adopted of reducing prices will cause other companies to follow suit. Competitors in the industry may penetrate some global markets leading to high competition in the international market. Global economies have experienced a decline especially after the global recession.

This may have a long term effect on the company since many industries may respond slowly to recovery measures. Labor strikes experienced by the company may affect the image of the company in the global markets leading to low demand of the company. The company is known to mistreat its employees and this image will reduce customer loyalty and negatively affect profits (Johnsen, 2008).

Strategies to Meet Objectives of the Company

The company has adopted differentiation strategies by liaising with different suppliers in the market for the provision of different products. The company has adopted the strategy of market to a niche of customers which relates to low income earning individuals. This strategy has improved the sales of the company since most of the people are low and middle income earners. The capital base of the company is large enough to carry out globalization strategy. The company should expand its operations in many countries since it has the capacity to do so (Conklin, 2006).

Possible Risks in the Objectives of the Company

The low cost strategy is not good since the management has reduced the wages provided to employees. This will affect the morale of the employees leading to reduced performance. Customers are satisfied when employees are motivated to deliver services to them. The management has also failed in adopting better cultural strategies in the foreign markets. The culture of the organization has caused conflicts in several foreign countries leading to failure of multicultural operations. The management should study the cultural practices of the people it works with and try to integrate the culture with the activities of the company (Conklin, 2006).

The strategy to offer low prices is not good since this will force competitors in the market to adopt price-war strategies to overcome competition. The company should improve employee wages and healthcare services. Employees are dissatisfied by the poor working conditions and remuneration provided by the company. To improve customer satisfaction, employees should be motivated to deliver their services to customers without force. The company should allow employees establish their own labor unions. Elections in the labor unions should not be interfered with by the management of the company.

Conclusion

Wal-Mart is a multinational company which has been very successful in operating retail stores. The management of the company has adopted the strategy of opening more stores in many countries to increase its market share. Globalization strategies have been created to promote the image of the company in the market. Cultural conflicts have been experienced by the company since the employees and customers have not been satisfied by the strategies adopted by the company in the multicultural scene.

The company has encountered a lot of challenges in the management of resources and global strategies. It is important that the management learn the culture of its employees as well as the customers in order to have good relationship with all stakeholders. The employees should be paid better wages to improve their morale. The strategies adopted by the company should consider the welfare of all stakeholders.

 References

1. Conklin, David W. (2006). Cases in the environment of business: international perspectives. ISBN 1412914361, SAGE.
2. Dyck, B. & Neubert, M. (2008). Management: Current Practices and New Directions. ISBN 0618832041, Cengage Learning.
3. Johnsen (2008). Wal-Mart Case Study – China Operation. ISBN 3640204204, GRIN Verlag.
4. Pahl, N. & Richter, A. (2009). SWOT Analysis – Idea, Methodology And A Practical Approach. ISBN 3640303032, GRIN Verlag.