Managing and Organising in the International Environment
Unit One: Case Study 2500 Words
Module Tutor: Charlie Malone
Student Number: 0601121
Coursework Question: Critically evaluate the tensions inherent in providing a working regulatory and socially responsible framework at a time when operating globally presents complex operational and commercial challenges.
Major Issues and Tensions with Operating Globally 3
Corporate Governance and Business Ethics 7
Globalisation has opened the door for many organisations to expand their business and operate in locations ...view middle of the document...
Bhagwati (2004) supports globalisation by stating that it can lift nations out of poverty through the stimulation of economic growth. Wolf (2005) concurs, stating that global poverty and inequality has been reduced and that underdevelopment issues are not as a result of the global economy but are as a result of governmental and corruption issues. Moreover, competition is stimulated leading to increased efficiency, resulting in economic growth, poverty reduction and narrowing the income gap (Wolf, 2005). In addition, McLuhan and Powers (1992) describe the “Global Village” as a way of uniting the world and promoting humanity. However, Kiely (2005) contends that the research surrounding poverty decreases are ambiguous, inconsistent and are seeking out ways of drawing a favourable comparison between past and present levels of poverty. The development of the third world and the increasing opportunities of employment in these nations has been argued in favour of globalisation, with knowledge transfer and improved education meaning that individuals can now compete in the global market for better jobs. Moreover, the choice can be made between emigration or remaining in their home country as a result of outsourcing for workers in less developed countries (Bhagwati, 2004). Conversely, globalisation has lead to wage disparities and, in some cases, the abuse of human rights. Sweatshops have become a source of exploiting countries in which labour costs are low with accusations levelled at certain global corporations, such as Nike, that they verbally and physically abuse workers as well as making them work overtime for low wages (Global Exchange, 2011). The issue of forced labour is contentious as workers are free to leave their jobs, but the threat of starvation and becoming increasingly impoverished gives TNCs the power, resulting in lower wages, longer hours and poorer working conditions (Chossudovsky, 2005). However, child labour is an area which must be treated delicately, as in Morocco children as young as 12 or 13 work in factories to aid their family and if TNCs do not provide employment for them then they may be forced to live on the street, adding to poverty (Holt and Wigginton, 2002). Supporting globalisation, it is believed that economic development can stimulate democracy and political reform to allow individuals a greater degree of liberalism. Moreover, if the economy is more open then the media can expose any negative issues surrounding global operations, in turn leading to TNCs placing more emphasis on providing good working conditions and wages for their employees (Griswold, 2006). Globalisation can also catalyse a middle class that is better educated leading to a society in which there are leaders and influential individuals aside from governments whilst in contrast a closed economy can allow governments to control and oppress a nation (Griswold, 2006). The nature and ferocity of this debate highlights the issues and tension...