Corporate Social Responsibility

(CSR)
Block No. 1
Chapter Title: Business trends in a globalized world
Course Teacher: Mallick Rakibul Hasan
Date: 13.09.18

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 Overview
1. Background globalization
2. Definition of globalization
3. Aspects and characteristics of globalization
4. Causes of globalization
5. The positive effects of globalization
6. The negative effects of globalization
7. Conclusion

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1. Background globalization (1)

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 1. Background globalization (2)
• There was a time when most regions were economically self-
sufficient. Locally produced foods, fuels and raw materials
were generally processed for local consumption. Trade
between different regions was quite limited.
• Today, the economies of most countries are so interconnected
that they form part of a single, interdependent global economy.

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 2. Definition of globalization (1)

Globalization is broadly defined as ‘increasing worldwide

integration and interdependence, based on the flow across
national borders of goods, services, capital, people, ideas,
cultures, and values’.

(Source: Business trends 2014, Deloitte university press)

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 2. Definition of globalization (2)

• “Processes by which goods, services, capital, people,

information, and ideas flow across national borders.”
(Grewal/Levy)

• “Trend toward greater economic, cultural , political, and

technological interdependence among national institutions and
economies.” (Wild/Wild/Han)

(Grewal, D., & Levy, M. (2009). Marketing. New York: McGraw-Hill Companies, Inc.
Wild, J., Wild, K., & Han, J. (2008). International Business: The Challenges of Globalization. Upper Saddle
River, NJ: Pearson Prentice Hall.)

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 3. Aspects and characteristics of
globalization (1)
Four basic aspects of globalization:

trade and transactions

capital and investment movements

migration and movement of people

dissemination of knowledge
(Source: IMF (2000))

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 3. Aspects and characteristics of
globalization (2)
Two Characteristics:

Denationalization- national
boundaries becoming less
relevant.

Internationalization- entities
cooperating across national
borders.

Wild, J., Wild, K., & Han, J. (2008). International Business: The Challenges of Globalization. Upper Saddle River, NJ: Pearson Prentice Hall.

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 Questions for class

Please think
of four
reasons for a
company to go
overseas?

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4. Causes of globalization (1)
Improved communications
• The development of communication
technologies such as internet, email and mobile
phones have been vital to the growth of
globalisation because they help multinational
companies (MNCs) to operate throughout the
world.
• The development of satellite TV channels such
as Sky and CNN have also provided worldwide
marketing avenues for the concept and products
of globalization.

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 4. Causes of globalization (2)
Improved transport
• The development of refrigerated and container transport, bulk
shipping and improved air transport has allowed the easy mass
movement of goods throughout the world. This assists
globalisation.

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 4. Causes of globalization (3)
Free trade
• MNCs and rich capitalist countries have always promoted
global free trade as a way of increasing their own wealth and
influence.
• International organisations such as the World Trade
Organisation and the IMF also promote free trade.

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 4. Causes of globalization (4)
Global banking
• Modern communication technologies allow vast amounts of
capital to flow freely and instantly throughout the world.
• The equivalent of up to $US1.3 trillion is traded each day
through international stock exchanges in cities such as New
York, London and Tokyo.

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 4. Causes of globalization (5)
The growth of MNCs
• The rapid growth of big MNCs such as Microsoft, McDonalds
and Nike is a cause as well as a consequence of globalization.

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5. The positive effects of
globalization

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5. The positive effects of globalization
(1) Changed food supply
• Food supply is no longer tied to the seasons. We can buy food
anywhere in the world at any time of the year.

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5. The positive effects of globalization
(2) More efficient markets
• Efficient markets should be what every economy strives for.
Essentially, the sign of an efficient market is where there is an
equilibrium between what buyers are willing to pay for a good
or service and what sellers are willing to sell for a good or
service.
• If you can improve the way you produce a good or service by
doing things such as outsourcing certain processes or buying
from an overseas supplier that offers discounts, you can then
afford to lower your selling price which results in increased
demand and affordability.

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5. The positive effects of globalization
(3) Division of labour
• Because MNCs search for the cheapest locations to
manufacture and assemble components, production processes
may be moved from developed to developing countries where
costs are lower.

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5. The positive effects of globalization
(4) Increased standard of living
• Hundreds of thousands of people around the world now have
jobs, have started their own businesses and can provide
comfort for their families because of globalization. For
example due to globalization many MNCs have increased their
investments in BD. This means thousands of people are getting
highly paid jobs and enjoy a higher standard of living than was
possible earlier.
• It also helps countless people in developing countries to
sustain their families’ livelihoods.

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5. The positive effects of globalization
(5) Benefits of the consumer
• Greater competition among producers resulting from
globalization may lead to increased consumers’ choice.
Consumers now enjoy improved quality and lower prices for
several products.
• Consumers can get new goods more quickly.

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5. The positive effects of globalization
(6) Spread of technical know-how
• While it is generally assumed that all the innovations
happen in the Western world, the know-how also comes
into developing countries due to globalization.

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5. The positive effects of globalization
(7) Spread of education
• One of the most powerful effects of globalization is the spread
of education. A good example of that is how the American
managers went to Japan to learn the best practices in the field
of mass production and incorporated that knowledge in their
own production units.

BUFT MoU with China Wuhan Textile University

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6. The negative effects of globalization

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6. The negative effects of globalization
(1) Less job security
• In the global economy jobs are becoming more temporary and
insecure.

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6. The negative effects of globalization
(2) Damage to the environment
• More trade means more transport which uses
more fossil fuels and causes pollution.
• Climate change is a serious threat to our
future.

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6. The negative effects of globalization
(3) Resource scarcity
• In some regions companies overuse natural resources like
water and soils

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6. The negative effects of globalization
(4) Cultural impacts
• Websites such as YouTube connect people across the planet.
As the world becomes more unified, diverse cultures are being
ignored.
• MNCs can create a monoculture as they remove local
competition and thereby force local firms to close.

Replacing

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 7. Conclusions (1)
1. Globalization is caused by:
 Improved and accessible communications
 Improved and faster logistics
 Free Trade Agreements
 Global financial system
 Expansion of MNCs

2. Results in more international business

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 7. Conclusions (2)
3. For the RMG sector in Bangladesh this gives advantages:

Innovations

Employment

Access to large
international markets

Increased labor
productivity and skills

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 7. Conclusions (3)
4. For the RMG sector in Bangladesh their however are risks too:

Overspecialization and
overstandardization

Increased power and

influence of MNCs

Environmental risks

Labor risks

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 7. Conclusions (4)
In this course we will discuss
how Corporate Social
Responsibility and the concepts
of SRHR and Innovative
Leadership potentially can
address these risks and other
challenges for the RMG Sector
in Bangladesh.

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