Positive and Negative Impacts of Globalization and Corporate Social Responsibility in Modern Business Management

This paper analyzes the impact of globalization on modern business management, including positive and negative effects, and the importance of corporate social responsibility. It also discusses the impact of employees and business ethics.

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Management
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Author Note

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Introduction:
The modern society and the business culture is subjected to notable improvement. The
companies are seen to employ the scientific business management in order to make sure that
the business operations that they are conducting are in alignment with the demand or
requirement of the customers (Dhaliwal et al., 2014). In addition to that, the reputation of the
organizations is significant in influencing the purchasing of the customers. It is seen that the
customers of the modern business organizations are notably influenced with corporate image
that a particular organization has. As the global business industry is seen to be significantly
competitive, the organizations are seen to be in search of strategies that will make sure that
their business conduction and the survival in the industry become easier (Grullon &
Michaely, 2014). Under such situation, the effective strategies for the organization is
observed to be the improvement in the corporate social responsibility and the triple bottom
line business goals. The impact that the corporate social responsibility has in the modern
business context is immense and that is evident with the increment in the generation of the
interest among the modern business organizations in practicing this. The improvement of the
business and increment in the market share is pretty evident for the modern business
organizations.
The paper is focused in the specification of the positive and the negative impacts that
the process of globalization has in the modern business context and the on the society in
general. Along with that, the paper analyses the triple bottom line business goals and the
impact of the corporate social responsibility on the business organizations and the
community. Apart from that, the impact of the employees and the business ethics is also
discussed in the paper.
Positive and Negative Impacts of the process of Globalization:

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The impact of the globalization on the modern business industry is seen to be
significant. Globalization is considered to be a process that triggers the interaction and the
integration among the people of different society and the companies or governments. The
exchange of the information or the sharing of the opinion are seen to be one of the major
advantages of the globalization.
Positive Impacts of the process of Globalization:
The concept of the globalization has considerable number of positives. The list
includes the significant cross cultural management, the evolution of the business concepts
like the outsourcing and offshore manufacturing, reduction in the business monopoly and
increment of the market competition. Along with that, the improvement in the foreign trade
specifically the exports and imports seen to be notable.
Cross Cultural Management:
The concept of globalization is one of the key factor in the transfer of the expatriates.
As the modern society is improving in significant manner in terms of the literacy and the
skills and the competencies of the individuals, the increment in the number of the educated
and skilled employees available for business operations is seen to increases globally. As the
opportunities are not subjected to a similar rise, the number of skilled jobless employees is
seen to increase. The globalization provides them the absolute opportunity to serve the
multinational organizations of different countries and find the scope for utilising their skills
(Gurgul & Lach, 2014). The globalization plays a crucial role in the management of those
employees who belongs to some other culture or country in comparison to the host country of
the organization. It produces the scope to the organizations to find better quality professionals
and improve the business operations. It is observed that the modern business organizations
are notably influenced with the quality of the products and the services that they offer to the

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customers and in that case, the availability of the skilled and qualified employees is a major
need for the organizations. The concept of the globalization serves them with the accurate
solution for this with the policy of skilled employ transfer.
Outsourcing and the Offshore Manufacturing:
With the reference of the earlier discussion, the concept of the globalization is
significant for me in understanding the impact of the outsourcing and the offshore
manufacturing in the modern business context. As the competition in the business industry is
intense, the organizations are in search of effective strategies that can make sure that they be
able to extend their market and consider the scope of business expansions (De Nicolò &
Juvenal, 2014). Under such situations, the organizations belonging to upscale market will be
subjected to intense competition from the business organizations of the mid-scale market.
The low operating cost of the products of the organizations belonging to the mid-scale
compared to the upscale market is the main reason in producing the advantage to the
organizations of the mid-scale market. In my consideration, the important strategy for the
case is the offshore manufacturing where the organizations belonging to the upscale market
will be able to have the opportunity to manufacture their products from the midscale market
to reduce the competitive advantage of the organizations belonging to the mid-scale market.
In addition to this, one major concern of the organizations considering the scope of offshore
manufacturing is seen to be in the form of the infrastructure. In accordance to me, the concept
of the globalization produces the remedy to that as well with the introduction of the
outsourcing. I think the concern regarding the infrastructure of the organizations in the mid-
market will be well managed with the outsourcing of them.
Reduction in the Monopoly:

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The concept of the globalization is significant in focusing on the exchange of the
ideas and the information among the modern business organizations. Considering this, I
believe the opportunities of the market are also well communicated and shared among the
organizations belonging to different countries and continents. The exchange of the market
opportunity is instrumental in inviting the foreign business organizations to enter the local
and national business markets. This is significant in reducing the monopoly of the industry
that might have been created with the limited number of organizations participating in it and I
consider it to be of great significance in increasing the market competition in the industry.
The increment of the market competition is significant in increasing the number of the
beneficial strategies that the organizations, facing the intense competition will offer to the
customers of it, as a try to reduce the impact of the competition in the survival and growth of
the organizations (Gurgul & Lach, 2014). Hence the globalization is able to reduce the
monopoly of the market and increase the competition and at the same time, it also increases
the customer welfare.
Negative Impacts of the process of Globalization:
Job Insecurity:
Globalization is observed to have limited number of negative impacts. However, I do
consider that the globalization plays a crucial role in the increment of the job insecurity. The
concept of the globalization invites the employees and the expatriates to conduct their
operations for the organizations that are not from their country. The improved skills and the
competencies are seen to be one of the key factor in the invitation. However I do consider
that, this becomes significant in increasing the competition among the employees of the
organizations and that increases the frustration and the stress of the existing employees.
Majority of the gaps in the skills of the employees can be met by the implementation of the

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appropriate training activities. However many of the multinational organizations are seen to
overlook it as they have the scope to find the employees with the desired skills as a result of
the globalization. This is significant in the generation of the job insecurity of the existing
employees (Payonk, Lyashenko & Kvilinskyi, 2015).
Reduction of the Market Share:
From the organizations’ perspectives, I do consider that the concept of the
globalization has limited amount of negative impacts associate with it. The increment in the
competition as a result of the new entries into the business industry is seen to be significant in
reducing the market share of the existing companies (Monnet, 2016). I think while many of
the companies are building on the scope provided by the globalization, many are also there
who are facing the shut downs due to the increased competition in the market.
Corporate Social Responsibility (CSR):
The impact of the corporate social reasonability in the modern business context is
immense. The increasing competition in the business industry is observed to be one of the
major reason responsible for the increment of the organizations’ interest in practicing the
socially responsible activities. As it is pretty evident that the modern customers are notably
influenced with the reputation and the image of the organizations in selecting a particular
organization to buy from, the preference of the organizations in achieving an appealing
corporate image is pretty significant (Schwartz, 2017). The increment in the undertaking of
the socially responsible activities from the part of the organization portrays the importance of
the mentioned concept.
I think that the customers are more inclined towards the organizations which
acknowledges their requirements and takes stand for them. If a company is speaking
regarding the concern of the customers, I consider that the company is more likely to achieve

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the preferences for purchasing of the customers. In addition to this, the CSR activities are
observed to be significant in generation of the benefits that the companies are able to achieve
in the form of the relaxation from the strict implementation of the government, the lands lease
and the financial loans.
I consider majority of the customers are likely to buy the products from the
organizations which engages and participates in the activities to improve the society. As the
market competition is notably increasing, many of the organizations are observed to conduct
unethical operations in order to gain competitive market advantage over the competitors. I
consider that the modern customers do not accept these sort of unethical business practices by
the organizations and tries to avoid the organizations which act irresponsibly. The business
organizations are accountable to the customers that they are serving, as the spread of the
information of unethical misconduct is pretty easy and spontaneous with the significant
amount of development of the social media over the years. Hence the business conduction of
the organizations are in need to be aligned with the concerns of the customers to have a sharp
rise. In addition to this, the practices of the CSR activities is significant for the organizations
in improving their relations with the customers and forming the much needed loyalty among
the customers (Cheng, Ioannou & Serafeim, 2014). The customer loyalty plays a crucial role
in the word of mouth marketing for the organizations and I consider that to be comparatively
more effective than the traditional marketing as the word of mouth marketing by the existing
customers are more likely to influence the probable customers that might be the friends or
relatives of the existing customers. The CSR activities are significant in reducing the cost of
the marketing activities.
Along with this, I consider that the practices of the CSR activities are instrumental in
differentiating a particular organization from the competitors of it. The activities are of great
significance in the improvement of the reputation of the organizations and in the creation of a

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strong corporate image (Tai & Chuang, 2014). The activities vary from donating a part of the
profit of the organizations to the societal development to providing the scope to the people of
the community for the employment. In addition to this, the production of the scope to the
people of the community regarding the improvement of the on job skills and competencies
from the part of the organizations is also considered as one of the prime CSR activities.
Employees and business ethics:
I think that the employees are one of the major aspect of the modern day business
conduction. The success of the business activities initiated by the organizations are notably
dependent on the employees of the organizations. The ethical and efficient operations of the
employees are seen to be significant in the improvement of the reputation of the organization.
The modern organizations are seen to be associated with significant amount of
unethical business conductions as a try to overcome the intense market competition.
However, I understood that the customers are not impressed with these tactics by the
organizations and that forces the modern organizations to conduct their business operations in
ethical manner.
The business ethics is observed to be significant in the modern organizations because
of the wide range of improvements, that it is able to incorporate in the operations of the
organizations. The practices of business ethics ensure that the organizations follow an ethical
business conduction. I think that the employees of the organizations are likely to be more
motivated with the proper recognition of their work. The procedure needs to be conducted in
ethical and impartial manner. This will make sure that the generation of the unrest among the
employees of the organizations do not take place inside the organization. Along with that, I
do consider that the proper evaluation of the performances of the employees and the
appropriate rewarding as the recognition of their good work has the potential to improve the

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performances and the quality of the performances of the employees. In addition to this, the
proper performance management will also be significant in the retention of the employees.
This is significant in making sure that the organization keep their credibility intact (Crane &
Matten, 2016). Apart from that, the conventional issues like the changes in the wage
characteristics, work time characteristics and the irregular payments for the overtime will also
be managed by the practice of the business ethics inside the organization.
The practice of the business ethics has the potential to improve the operations of the
organizations. One of the major component of the organization is the employees and the
ethical business conduction of the employees of the organizations will reflect from the ethical
business operations of the organization. The ethical business conduction of the organizations
will be of great significance as it will be able to improve the perception of customers for the
organizations and the business it conducts (Trevino & Nelson, 2016). The improvement of
the reputation of the organization will be notably helpful for the organizations in the
generation of the customers’ loyalty and in the achievement of the strong preferences of the
customers.
As mentioned earlier, the intense market competition is significant in triggering the
organizations to undertake unethical approaches for gaining the competitive advantage over
the other competitors, the practice of the ethical business conduction has great significance in
removing the flaws in the operations of the organizations. In addition to this, I think that the
practice of the business ethics in the organizational context, improves the decision making
system inside the organization with a precise focus on the economic and the social aspects.
As mentioned earlier, the practices of the business ethics is significant in influencing
the customers’ preferences of the purchasing, the ethical business conduction from the
various parts of the organizations increases the generation of the revenue for the organization

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(Weiss, 2014). With the increment in the generation of the revenue, the organizations will be
able to increase their profit as well by the practice of the business ethics.
Triple Bottom Line:
The triple bottom line is considered to be a concept which increases the focus of the
business on financial bottom line to incorporate the social and the environmental
considerations. The application of the triple bottom line is seen to be in the form of the
measurement of the company’s degree of social responsibility, economic value creation and
the improvement of the environmental impact of it. A breakdown of the triple bottom line is
seen to consist of the discussion regarding the improvement of the people, planet and the
profit of the organization.
People:
The business goals of the organizations in case of the triple bottom line for mentioned
aspect is the welfare of the employees of it. With the assessment of the people in the triple
bottom line, the organizations are liable to consider the impact of their policies on the people
involved with the organization. The assessment covers the well-being of the individuals
associated with the organization’s operations. The goals of the organizations in this case are
the improvement of the health of the employees, the formation of the suitable working hours,
a healthy and safe workplace environment, the production of the continuous training and
developmental opportunities (Sarkis & Dhavale, 2015).
Apart from this, the organizations are observed to incorporate goals such as the
generation of the employment of the people of the community and are seen to invest in the

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many of the hospitals or the health care providing organizations where the needy people of
the community will get free health check-ups and treatments (Anderson et al., 2015).
Planet:
The organizations are liable to protect the environmental sustainability. In this case,
the organizations assess their strategies to search whether any of them is producing
detrimental impact to the environment or not. The modern day organizations are significantly
focused in recognizing the importance of going green and implementing that into the
operations. I think that the organizations are dedicated in reducing the ecological footprint
(Alhaddi, 2015). The reduction of the usage of the non-renewable sources is considered to be
one of the prime business goal of the organizations in this case. Apart from that, the
management of the toxic waste in a safe and secure manner with a precise focus on the
recycling is considered to be important as well for the organizations.
Profit:
I think that the assessment of the profit in the triple bottom line is bit different from
the conventional one. The generation of the profit is significant for the organization in
making sure that they be able to use that in empowering or sustaining the community as a
whole. From the point of view of the triple bottom line, the generation of the profit has
tremendous value in enabling the organization to us in the social and environmental
development.
Conclusion:
On a concluding note, the modern business organizations are seen to be tremendously
focused in the CSR activities, the improvement of the triple bottom line and the incorporation
of the business ethics into the organization’s operations. These strategies are observed to be

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significantly important in the reduction of the impact that the companies faces as a result of
the intense market competition.

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