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Perspectives on Globalisation
The theory of globalization is a very propulsive area of research, but composed of contributions from many
authors. Therefore, it is necessary to systematize sometimes quite heterogeneous understandings of
globalization. Quite spread out, but, for the purposes of further consideration, an entirely appropriate
classification of globalization theories differentiates three courses of analysis of this multidimensional
phenomenon:
1) Hyperglobalists: By hyperglobalists, globalization is viewed as a legitimate and irrepressible historical
process, which leads to a world order based on the market and supranational institutions. Globalization
presents a new era in the development of civilization, without precedent in the course of human history.
This process is referred to as progressive and socially desirable. It is also stressed that the intensity and
dynamics of current changes in the economy lead to changes in core framework of social action.
Hyperglobalists conceive globalization as a process, which has the internal logic and predictable outcome,
the global society based on a fully integrated market. In other words, all the variety of heterogeneous
cultures withdraws in front of the unique social pattern, based on markets and institutions derived from the
radically liberal cultural framework. In this sense, a well-known assumption about the ''end of history'' is
generated, which implies that the modern, global capitalism with liberal democracy as the political
framework, represents the last word of socio-economic evolution.
The aforementioned approach has evident deterministic character. Globalization is seen as a kind of final
stage in the spontaneous and self-enforcing process of creating a global society, as the most efficient model
of society, which stops the further process of selection of types of socio-economic order. It should also be
mentioned that this reflection of globalization includes liberal-oriented authors such as Theodore Levitt,
Thomas Friedman as well as protagonists of neoclassical economic theory Sachs, Friedman and others.
Moreover, all theories of socio-economic dynamics that conceptualize that process as a simple succession
of phases, with the ''optimal'' final form of society as a social outcome, which stops further dynamics, can
be considered as a part of the same intellectual tradition.
2) Transformationalists: Transformationalists are more moderate in terms of emphasis of ubiquity and
linearity of the globalization process, as well as assessing of progressivism of its effects. But they do not
accept skeptic thesis about globalization either. For them, the indisputable fundamental changes in theorganization of society that globalization brings are the growing overall integration and acceleration of
socioeconomic dynamics through "compression" of space and time. However, their approach is
multidimensional, taking into account mechanisms of globalization other than economic ones.
In this sense, a sociologist of modernism, Anthony Giddens, considers globalization as a phenomenon
shaped by forces of "modern" capitalism: politics, military power and industrialism (Giddens, 1990). These
forces are the sources of dimensions of globalization. Four basic dimensions of globalization are world
capitalist economy, system of national state, world military order and international division of labor. The
specified dimensions of modernity have enabled western countries to become the leading force in the
world. Spreading dimensions of modernity, according to Giddens, to all countries in the world is identified
as the process of globalization. (Vuleti, 2001, p. 95).
Transformationalists take up much more moderate position in terms of progressivity and outcomes of
globalization, when compared to hyperglobalists. Globalization is not linear-progressive in character, but
represents a stream of capitalistic development, subject to cycles and probabilism. The underlying influence
of globalization on socio-economic trends is not questioned, but its final effects are considered uncertain. In
this sense, such an understanding of globalization is not deterministic
3) Skeptics: The third group of theoreticians, who expressed skepticism with regard to ubiquity of the process
of globalization, is also characterized by the criticism towards globalization. In that sense they emphasize
that the level of integration and openness of today's economy is not unprecedented. International trade and
capital flows were more important relative to GDP in the pre-1914 period (the first wave of globalization)
than in the contemporary economy (Hirst, Thompson, 2003). Also, instead of a destructible character of
globalization in relation to the hierarchy and the nation-state, they emphasize the significant role of national
economies in pursuing economic liberalization and promotion of cross border activity. The creation of
regional blocks as the essential characteristic of the world economy offers argumentation that the world
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economy is less integrated than it was in the late nineteenth century (Held, McGraw, 2007, p. 5). Within
this direction of thought, assessments of the non-sustainability of the current unification of the world are
also present, because it raises radical resistance within individual cultures, which in the end can lead to a
conflict of civilizations.
In short, skepticism is expressed both in terms of impacts of globalization and its ubiquity, as well as in
terms of sustainability of unification influences which it produces.
Business as a Blend of People, Technology and Ethical Behaviour
Business is a combination of people, technology and ethical behaviour. Although the quest for profits is a
central focus of business, businesspeople also recognize social and ethical responsibilities. To succeed in the
long run, companies must deal responsibly with employees, customers, suppliers, competitors, government, and
the general public.
According to recent studies, technology is having a profound affect on ethics in the workplace. One study
found that nearly half of those polled said they had engaged in some sort of unethical action related to new
technology within the last year. Technology is also making the definition of ethical behavior even more unclear.
With new technological changes, managers are attempting to cope with the ethics of regulating the use oftechnology. They must understand the new ethical issues, as well as laws that affect how those issues are
handled. These are areas of growing concern in the workplace, especially with the arrival of the Internet.
Business and People
The effectiveness and success of an organization lies not only in the organization's products or service, but in its
resources. Organizations have many resources, both physical and financial as well as resources that are directly
related to organizational behavior, such as knowledge, ability, decision making and intelligence of the
employees. Because of the value of the people within and behind the organization, it is very important that the
organization takes special care to ensure the happiness and satisfaction of their employees with their jobs,
regardless of how major or minor the job may be. The people behind the scenes, operating and running the
organization, are by far, the most valuable resource the company has to utilize.
People are important for any business because of following reasons:
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3) A Link to the World: Business involves communication, transportation, and more fields, making it a
complex web of processes. The technologies pertaining to other fields only pushed business further.
Globalization has been realized because of the wonders of technology. Anyone can now do business
anywhere within being constricted to the four corners of his room.
Technology in business made it possible to have a wider reach in the global market. The basic example is
the Internet, which is now a common marketing tool to attract more consumers in availing products and
services offered by various businesses.
Indeed, technology in business ultimately made living worthwhile. It cannot be denied though that
technological threats to business are growing rampant, such as hacking and other malicious activities, so
one has to be responsible enough in utilizing the power of technology. The good that technology brings has
some excess baggage in the form of bad things that threaten to shake the business world. In the end, it is
still responsible use of these that would further allow us to enjoy the benefits that technology can bring.
4) Saves Time: Small business employees must wear a lot of hats. Theres no such thing as having one job.
Technology can allow spending far less time on routine tasks. Once you learn how to use a system, you
become faster and more efficient. In other words, the benefit keeps growing as your familiarity grows.
Imagine how much more time you would have to spend on simple tasks like going to the bank or buying
groceries if you had to do them without machines or the software that runs them? Now think about how
your business would change if you applied those same kinds of time-saving solutions to routine business
tasks.
5) Prevent Errors: Regardless of how thorough or careful you are, mistakes will be made. Technology never
gets tired, its never sick and it doesnt transpose numbers. You can count on technology to consistently do
what its supposed to do. Mistakes can be costly. They can cost you customers and money. Anything that
prevents rework and enhances customer satisfaction is worth considering. Technology can do both.
6) Level the Playing Field: Your big-company competitors keep track of all their customers, the last time
each was contacted, all their purchases and so on. These companies ability to provide fast, automated
responses is possible because of auto-reply systems. Inventory is tracked on-line. Robust software
applications are used to help prevent errors and eliminate manual work.
How can a small business owner be competitive without some of the same tools? I honestly dont think you
can. Great customer service, which is something many large companies struggle to do well, can close some
of the gap. And lets face it many of us are willing to pay a bit more to receive great service. But theres a
limit to how much were willing to pay.
By effectively using technology you can augment your companys ability to provide the individualized
service that comes from working with a small company. Most importantly, you can save money and deliver
your goods and services as quickly as the big guys.
Business and Ethical Behaviour
Ethics concern an individual's moral judgements about right and wrong. Decisions taken within an organisationmay be made by individuals or groups, but whoever makes them will be influenced by the culture of the
company. The decision to behave ethically is a moral one; employees must decide what they think is the right
course of action. This may involve rejecting the route that would lead to the biggest short-term profit.
Unethical behaviour or a lack of corporate social responsibility, by comparison, may damage a firm's reputation
and make it less appealing to stakeholders. Profits could fall as a result.
Primarily it is the individual, the consumer, the employee or the human social unit of the society who benefits
from ethics. In addition ethics is important because of the following:
1) Satisfying Basic Human Needs: Being fair, honest and ethical is one the basic human needs. Every
employee desires to be such himself and to work for an organization that is fair and ethical in its practices.
2) Creating Credibility: An organization that is believed to be driven by moral values is respected in the
society even by those who may have no information about the working and the businesses or an
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organization. For example, Infosys is perceived as an organization for good corporate governance and
social responsibility initiatives. This perception is held far and wide even by those who do not even know
what business the organization is into.
3) Uniting People and Leadership: An organization driven by values is revered by its employees also. They
are the common thread that brings the employees and the decision makers on a common platform. This
goes a long way in aligning behaviors within the organization towards achievement of one common goal or
mission.
4) Improving Decision Making: A mans destiny is the sum total of all the decisions that he/she takes in
course of his life. The same holds true for organizations. Decisions are driven by values. For example an
organization that does not value competition will be fierce in its operations aiming to wipe out its
competitors and establish a monopoly in the market.
5) Long Term Gains: Organizations guided by ethics and values are profitable in the long run, though in the
short run they may seem to lose money. For example, Tata group, one of the largest business
conglomerates in India was seen on the verge of decline at the beginning of 1990s, which soon turned out
to be otherwise. The same companys Tata NANO car was predicted as a failure, and failed to do well but
the same is picking up fast now.
6) Securing the Society: Often ethics succeeds law in safeguarding the society. The law machinery is often
found acting as a mute spectator, unable to save the society and the environment. Technology, for exampleis growing at such a fast pace that the by the time law comes up with a regulation we have a newer
technology with new threats replacing the older one. Lawyers and public interest litigations may not help a
great deal but ethics can.
Achieving Business Success through Social Responsibilities
Social responsibility has become a strong and irreversible part of corporate actions. When managed effectively,
CSR programs and projects can create significant benefits in terms of reputation and returns as well as the
motivation and loyalty of employees. CSR can also contribute toward strengthening valuable partnerships.
Husted and Allen state that CSR strategies can create competitive advantages if used properly, pointing out
that there is a positive association between strategic social responsibility actions and competitive advantage.
Social responsibility provides following competitive benefits to a business firm:1) Branding Benefits: Many businesses invest in their corporate social responsibility to improve their public
reputation. Building a strong business image in the minds of potential consumers -- often called a brand -- is
usually critical to a business's success. According to Business Link, the branding opportunities offered by
efforts in corporate social responsibility help a business recruit, retain and motivate highly productive
employees, attract the attention of consumers and mitigate the risk of negative press coverage.
2) Economic Competitiveness: While positive branding for a corporation is important, business managers are
often looking for ways to capitalize on their investments in responsible practices more immediately. While
corporate social responsibility offers potential competitive advantages, it is important to remember that a
business often must commit to it even in cases where it does not deliver an immediate return if it expects its
efforts to be effective, according to Triple Pundit. The competitive advantages a business can potentially
realize from CSR include the ability to recruit, retain and motivate highly productive employees.
Businesses may find themselves able to reduce long-term costs and develop new products or services fromCSR efforts.
3) Emerging Market Opportunities: Investments in corporate social responsibility often improve business
by positioning their operations for long-term market trends. Interest in corporate social responsibility is
growing, both among consumers and business owners. The extent of these efforts range according to the
business some donate to local charities and organizations, while others engage in more rigorous monitoring
of their labour standards. Studies and reports show that customers of businesses large and small care about
CSR. In addition, businesses might invest in CSR to avoid the costs of doing so later, because large
companies are requiring their vendors to meet certain greenhouse gas measurement requirements as the
price of doing business.
4) Environment Benefits: Growing support of environmental initiatives from the government and societal
groups has contributed to major emphasis from companies in the 21st century to use "green-friendly"
operations. This includes business processes focused on environmental preservation, along with renewal
and reuse of materials. Initially, companies that were on the cutting edge of environmental responsibility
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were able to leverage this in communications. However, as more companies have bought into the
importance and expectations of sustainability, CSR-compliant companies are more involved to avoid the
negative backlash that comes from polluting or damaging the environment.
5) Business Benefits: A business can be viewed as being a good corporate citizen and therefore implementing
corporate social responsibility. Customers may be more inclined to support it, thus increasing awareness of
the company's brand. Corporate social responsibility enhances the competitiveness of the organization and
creates potential for it to increase revenue. One example would be a business putting out a contract for
tender. Since it implements corporate social responsibility, another company that engages in the same
mandate would be an attractive partner.
6) Strong Supplier Relationships: Supplier relationships are one of the core stakeholder relationships that
CSR companies focus on. In the 21st century, many large organizations have reduced the total number of
suppliers they work with so they can build stronger partnerships. This enables them to improve the value of
the delivery to the end customer. It also allows these distribution channel partners to cooperate in reduction
of transportation inefficiency and waste.
Global Competition
Global competition can be defined as, the existence of competing organizations that serve internationalcustomers. Access to global customers has increased through enhanced communications, improved shippingchannels, reduction of barriers, and centralized financeauthorities.
Factors Affecting Global Competition
1) Reduction in Differences Among Countries: A number of observers have pointed out that the economic
differences among developed and newly developed countries may be narrowing in areas like income, factor
costs, energy costs, marketing practices, and distribution channels)2 Part of this reduction may be due to the
aggressiveness of multinational companies in spreading techniques around the world. Whatever the causes,
it works toward reducing impediments to world competition.
2) More Aggressive Industrial Policy: Industrial policies of many countries are influx. From passive or
protective postures, governments like Japan, South Korea, Singapore, and West Germany are taking
aggressive postures to stimulate industry in carefully selected sectors. They are also facilitating the
abandonment of sectors deemed less desirable. This new industrial policy is giving firms in such countries
the support to make bold moves that will transform industries to global status, like the construction of
massive plants and large up-front investments in breaking into new markets. There is the possibility that
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international rivalry will escalate as a result of these factors and that barriers to exit will also increase,
which further increases rivalry.
3) National Recognition and Protection of Distinctive Assets: Governments seem to be increasingly
cognizant of which of their resources are distinctive from the point of view of economic competition, and
they are increasingly prone to capture the economic benefits from possession of these assets. Natural
resources (e.g., oil, copper, tin, rubber) are obvious examples of assets that have been controlled either
directly by government ownership or indirectly through joint ventures of governments and producers. The
presence of abundant low-waged semiskilled and unskilled labor (South Korea, Taiwan, Hong Kong) is
another asset explicitly recognized in some countries. The proactive exploitation of such distinctive assets
by governments is a reflection of changing philosophy toward industrial policy.This posture has potentially
fundamental implications for world competition in industries where such protected assets are important
strategically.
4) Freer Flow of Technology: A freer flow of technology appears to be giving a wide variety of firms,
including newly developed countries, the ability to invest in modern, world-scale facilities. Some firms,
notably the Japanese, have become quite aggressive in selling their technology abroad. Also some firms that
have purchased technology are willing to resell it to others at bargain prices- All this activity tends to
promote more global competition.
5) Gradual Emergence of New Large-Scale Markets: Whereas the United States has long been the strategicmarket for global competition because of its unique size, China, Russia, and India has ultimately emerged
as huge markets. This has a number of implications. First, if these countries control access to their markets,
their firms may become major global powers. Second, gaining access to one or both of these markets may
well become a crucial strategic variable in the future because of the scale ft will provide to the successful
firm.
6) Newly Developed Competitors (NDC) Competition: Traditionally newly developed countries (NDC)
competed on the basis of cheap labour and/or natural resources, which still occurs (textiles, light
manufacturing such as toys and plastic products). However, NDC competition has increasingly made a
major impact in such capital-intensive industries as shipbuilding and the manufacture of television sets,
steel, fibers, and soon possibly even automobiles.
MNC Conflicts with Nation StatesA nation state is a state whose primary loyalty is to a cultural self-identity, which we call a nation or
nationality. Because a state is the expression of a nation, there is in general only one state for each nation and
only one nation for each state. Since a common language is essential for effective communication, nations are
usually identified with one language, but there are many nations which speak the same language, such as
Britain and Ireland or Spain and Mexico, but are quite distinct. Where several languages are spoken in a nation
state, one is generally predominant. In addition to language, a nation is created by shared memory of historic
events and by cultural factors of all sorts, such as sports contests, literature, media, political parties, social
organisations, educational and political systems. Above all, the citizens of each nation have a general sense of
what it is to belong to it and what it requires of them.
Nation-states and multinational enterprises are two distinct regimes operating in one global economy. As such,
their relationship is oft times acrimonious. The nation-state regime is built on the principle that people in anational jurisdiction try to maximize their well-being within that jurisdiction. Multinationals, on the other hand,
maximize the well-being of its stakeholders without necessarily accepting any direct responsibility for the
consequences of its actions in individual national jurisdictions.
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