Globalization for Corporate Social Responsibilities -myassignmenthelp

Question: Discuss about theGlobalization for Corporate Social Responsibilities. Answer: Introduction Globalization has led to formation of a diverse workforce .Bureaucracy is the formal, hierarchical structure of the organization. Post-bureaucracy has led to formation of flatter organization structures with less managerial control where employees are self-driven and enjoy autonomy. Global leaders can either improve virtuous organizational performance by focusing on Corporate Social Responsibilities (CSR) activities and creating value for stakeholders or they can be a risky investment leading to a managerialised world. Globalization can also lead to use of coercive power. In the modern era of Globalization, business organizations not only operates in the home country but has expanded its operation worldwide. Globalization has interconnected people and business of world. Corporate globalization has resulted in the formation of transnational and multinational organizations. The reasons behind the choice of a business organizations to expand its operation in global countries are to achi eve economies of scale, to achieve cost advantage, to satiate the needs and demands of the customers of international market ,to utilize the cheap labor by outsourcing business operations to least developed or developing countries. Though globalization can be advantageous for business organizations, but it imposes some risks for business organizations which should be mitigated to achieve competitive advantage in the global market(Bal and Bozkurt 2013). Discussion Globalization has led to integration of workforce, economies, commerce and finance, politics and defense, global rights and networks of transportation and communication. Globalization has led to emergence of multi-national companies. Globalization also means re-localization. In a globalized world three groups of industrial and services activities can be noted which are highly competitive labor intensive industries, high-technology industries and services like financial and business services. Earlier bureaucratic practices were adopted by organization. The organization stricture was rigid with more hierarchical levels. Restrictions were imposed to staffs by higher authorities who would exert bureaucratic control. However, the modern era of globalization has led to the formation of flatter organization structures. The advancement of post-bureaucratic control means that employees of the organization enjoy more autonomy, are self-driven and there is open communication practiced in organi zation (Saxena 2014). Globalization has led to the management of a diverse workforce where people from different culture, race, ethnicity, gender, and sexuality work together. The diverse workforce includes people from different culture working together and needs effective management. Cultural inclusion and cultural tolerance should be adopted by organizations in a global environment. Stereotypes and cultural biases should be avoided. Employees should be discouraged to judge co-workers based on personal factors and to avoid discrimination towards the individual culture of other people. The policies and procedures adopted by business organizations to manage a diverse culture in this era of globalization and post-bureaucratic control should encourage open communication, open-mindedness and respect towards cultural diversity, for instance, Walt Disney has adopted a culture of diversity to gain competitive advantage in a globalized world (Jonsen et al. 2013). Globalization has also led to the emergence of global leaders who shape the destiny of the global firms with their visionary leadership. These global leaders are management gurus, managers and executives of multinational corporations like large IT firm, for instance, Sundar Pichai who is the CEO of global technology giant Google is a global leader. Global leaders can adopt the stakeholder perspective and create sustainable value for stakeholders by focusing on the Triple Bottom Line of Business (TPL) .These are Profit, People and Planet which create social, economic and ecological sustainability. Globalization has also led to the consolidation of international norms and rights and openness. Business leaders can create long term value for the stakeholders of a firm by creating virtuous or positive organizational performance and by undertaking corporate social responsibility (CSR) initiatives. The CSR initiatives also enhance the image of the business and improve Customer Perceived Val ue which enhances the long-term profitability of the firm (Podsiadlowski et al. 2013). Business organizations follow different modes of entry to enter the global market like they can form strategic alliance with organizations in the global market to gain competitive advantage or to outsource business processes .In a strategic alliance, independent firms co-operate and manage business operations by shared control. Mergers and acquisitions, franchising, licensing and exporting are other modes of entry for a global firm. The value chain of a global firm is composed of primary activities like inbound logistics, outbound logistics, marketing, operations and services. These primary activities are supported by activities of the firm like firm infrastructure, human resources, technology development and procurement. Each activity of the Michael Porters Value chain adds value to the products and services of a business organization. This value can be measured by the difference between the price customers are willing to pay and the cost entailed to accomplish profit. The value cha in activities of a business organization should be analyzed judiciously before an organization plans to enter the global market. The value chain activities enable an organization to achieve competitive advantage in the global market (Clegg, Kornberger and Pitsis 2015). The firms choice to enter the global market is due to many reasons. The firms enter the global market to leverage a global customer base and to serve the needs and demands of the global customers of the international market. Business organizations also achieve economies of scale by entering global market. Worldwide communication and transportation network provide opportunities for economic scope. The reason for globalization can be also to outsource business activities to less developed countries. For instance, Wal-Mart and GAP outsources production facilities to the Economic Process Zones (EPZs) of the countries like Indonesia, Sri Lanka, Southern China, Philippines, Africa and South America where there is availability of young labors who are ready to accept minimum wages (Samimi and Jenatabadi 2014). Though globalization can be advantageous in many ways for the business organizations and society in general, however there are risks and threats imposed by globalization which should also be taken into consideration. For instance, global leaders can be a risky investment when they do not perform according to the set expectations and do not meet future needs of the firm. This leads to the formation of a managerialised world. Globalization can also lead to global tensions between objectives and needs of employees in different zones, national governments, human beings, citizens and managers of transnational corporations. Globalization can also be destructive. Bureaucratic control is observed in Economic Processing Zones where there is rise of sweat shop labor, long working hours and military like supervision. Young women are employed in these sweat shops and they receive below subsistence wages. These zones are separated from the gaze of consumers of the western world, consumers are unaware that their favorite Nike shoes or their Wal-Mart goods are manufactured in poor work conditions of the EPZs. For example, multinationals had to pay $10 to $18.50 per hour to workers of textile factories in Germany or the United States and thus in order to achieve cost advantage, manufacturing facilities of these textile firms were outsourced to China where $0.80 per hour is paid to labor in China. Globalization can also be destructive and can lead to necrocapitalism .Though globalization is considered to be a recent phenomenon with positive impacts to global economy and society, however in this article the author argues that roots of globalization can be traced back to 100 of years ago. The author states the example of East India Company which operated 200 years ago during British colonization in India. This demonstrates the dark side of globalization and the use of coercive power to establish colonies by Western countries (Banerjee et al. 2009). Thus diverse workforce and post-bureaucratic approach is only observed in the corporate houses of global multi-national companies. The MNCs manage the diverse workforce through cultural tolerance and cultural inclusion. Stereotypes and biases are avoided to manage diverse culture and globalization with the advance of post-bureaucratic approaches in the corporate offices of MNCs however bureaucratic control, inhuman work condition, low wages are still dominant and highly prevalent in the Economic Process Zones (EPZ) of countries like China and Africa and these poor work conditions are hidden from customers of the Western world (Hsueh 2016). Conclusion It can be concluded that business organizations enter the global market for multiple reasons like to gain cost advantage, to achieve economies of scale and to gain a global customer base. The value chain activities of a firm must be analyzed before entering global market. Global leaders can adopt stakeholders approach and contribute to Triple Bottom Line of business. The management of the diverse workforce can lead to managing globalization with the advancement of post-bureaucratic approaches. However post-bureaucratic approach is only observed in the corporate offices of global companies where there are flatter structure and autonomy is given to employees who are professionals and are well-driven. Thus the western world and MNCs enjoy benefits of globalization. However, bureaucratic control is still observed in Economic Process Zones of China, Philippines, Africa, Sri-Lanka and many more. Around 27 million people live in EPZ. Also, globalization has destructive effects which can be traced back to the example of the East Indian Company 200 years ago. Globalization led to colonization and still today can lead to a managerialised world where managers are unable to meet the expectations and future needs of the firm. These negative effects can be mitigated with the adoption of minimum wage laws and health and safety conditions in these Economic Process Zones. Reference Lists Bal, Y. and Bozkurt, S., 2013. Globalization and Human Resources Management: Managing the Diverse Workforce.Cultural and Technological Influences on Global Business, p.1. Banerjee, S.B., Chio, V.C. and Mir, R., 2009. The imperial formations of globalization.Organizations, markets and imperial formations: Towards an anthropology of globalization, pp.3-14. Clegg, S.R., Kornberger, M. and Pitsis, T., 2015.Managing and organizations: An introduction to theory and practice. Sage. Hsueh, R., 2016. State Capitalism, Chinese?Style: Strategic Value of Sectors, Sectoral Characteristics, and Globalization.Governance,29(1), pp.85-102. Jonsen, K., Tatli, A., zbilgin, M.F. and Bell, M.P., 2013. The tragedy of the uncommons: Reframing workforce diversity.Human Relations,66(2), pp.271-294. Podsiadlowski, A., Grschke, D., Kogler, M., Springer, C. and Van Der Zee, K., 2013. Managing a culturally diverse workforce: Diversity perspectives in organizations.International Journal of Intercultural Relations,37(2), pp.159-175. Samimi, P. and Jenatabadi, H.S., 2014. Globalization and economic growth: Empirical evidence on the role of complementarities.PloS one,9(4), p.e87824. Saxena, A., 2014. Workforce diversity: A key to improve productivity.Procedia Economics and Finance,11, pp.76-85.