The openness and minimization of barriers of the world have made globalization of businesses inevitable. There are a conglomerate of factors that has led to an increase in globalization of businesses especially in the multinational companies around the world. The world has become a global market with the advancement of technology. The transfer of business around all the meridians has been embraced by most multinational companies. The global economic integration is an ongoing process and it is irreversible (Chandler and Werther, 2014, pg 5). Political, business and economic changes have led to global changes in how companies do business. The limited market in the countries and the need to expand business has made multinational companies focus on an alternative measure that includes entering the global market through expansion to different geographical boundaries. Globalization is based on the need to gain profitability with minimal cost of production. The shift in the political environment and fluctuation in the stock market has led to volatility in the economic stability of different countries. With this volatility, downgrading is not an option for various multinational companies. The companies require agility to stay afloat in the market and remain in productivity. During globalization, there needs to be a balance between expanding globally and the social responsibility of the multinational companies.

The current international policy on economics is characterized by financial flow and multinational product flow from one country to another. Political autonomy and control do not contradict the integration between globalization and welfare of the citizens of the intended countries. Vast economic means have been put in place by financial experts to exploit the global market the world has become. The globalization of economy and interdependence of world economies have led to the realization of the need for a global market and globalization of economies. For instance, the economies of the United States of America can be affected by that of China. Multinational companies listed in their stock markets dictate how the economies perform. Globalization can be noted to have social, economic and universal implications in nature. The competitiveness of companies can be realized in the company’ decision to extend its operations worldwide and reach different customers.

International businesses entail sales, logistic, transport and any other commercial transaction that takes place between two or more nations, regions, and countries away from their political borders. The cross border transactions in terms of capital, labor, skills and goods refer to international business. Economic globalization idea has been triggered by new notions capable to explain accurately great transformation that has occurred in the world. Globalization, therefore, means multiplication and interconnection of those companies and states. Experts say that globalization has two major forms; the profound one and special one.

Multinational enterprises are companies which are active in doing international business. They perform many business activities in their branches located globally and they own substantial resources.

There are many reasons a company may decide to go global. First, is the need to increase production or operational needs- getting of equipment, releasing surplus production and getting raw material for the productions of their products. Secondly, a company may have the strategic needs that need to be addressed to ensure growth in the future. Globalization process occurs naturally but can be accelerated.

Most multinational firms take moral and ethical behaviors to the interest of the customers and the shareholders. They, therefore, invest in corporate social responsibility activities .the corporate social responsibility entails measures in which multinational companies balance between productions, the satisfaction of the customers and producing a positive impact in the society in which they are located. It is important for companies to incorporate environmental and social concerns as they do business.

The concept of globalization has brought to light the need to focus on restricting companies to align with the international requirement on social responsibility, environmental protection as well as cultures of those countries the companies are moving to. The human aspect of the modern business is very vital for sustenance of the business operation as well as the environment. Globalization involved the development and transformation of technologies found in the host country or continent. During the process of globalization, multinational corporates have encountered critical social, religious and environmental issues.

For most multinational enterprises, globalization has not only brought more business opportunities but also benefits emanating for them. However, the multinationals need to make changes to adapt to many challenges and the change of environment. The multinational corporates, therefore, needs to reconsider the ethical, moral, social and environmental issues they should incorporate in their new environment.  Globalization hence, to a great extent encourages the evolution of corporate responsibility in the whole world.

According to the theoretical perspective, globalization has two major aspects of corporate social responsibility (Chandler and Werther,2014,pg 24). To start with, it enables and enhances economic growth and hence the society and the nation benefits extensively. Secondly, it helps to know that economic development has got consequences which are a combination of moral, social and economic implications. Globalization, however, to some extent has intensified inequality in society. During the process of globalization, enterprises do maximize the performance and efficiency of their business worldwide. Furthermore, stakeholders and shareholders tend to focus on the strategies that have been put into place on social communities and the environment. They will only invest in a company that is responsible and sustainable.

The rationale for corporate social responsibility can be articulated in various ways. The main drivers of corporate social responsibility are; ethical consumerism, trust and transparency, employee motivation, laws and regulations, public expectations as well as stakeholders priorities. Multinational companies find it challenging to implement corporate social responsibilities due to the different environmental and geographical location where they are. Therefore, most multinational corporates task executive managers of individual branches to develop the suitable corporate social responsibility program that ogre well with their location. Example of multinational corporates is Coca-Cola and General Electric.

In conclusion, the process of globalization opens new markets and fronts for various multinational corporates. The world being a global market due to the advancement in technology and quest by these companies to continue in profit they exploit different world market. Globalization, however, makes it difficult for these companies with ad hoc branches in different countries to do their corporate social responsibility as required. The social and economic impact of the operation of these companies is always considered in their new environment. Communities and their environment are the most important aspect of the existence of the company. Due to the difference in a location geographically, the multination corporates need to invest in corporate responsibilities that concur with the nations they are located. Globalization can bring inequality in the society, therefore, the corporate social responsibilities put into should be able to curb all these challenges. With the threat of global warming and its effects, laws governing emissions should be followed to be able to protect the environment even as the multinationals explore the global market.

References

Chandler, D. and Werther, W.B., 2014. Strategic corporate social responsibility: Stakeholders, globalization, and sustainable value creation. Thousand Oaks, California: Sage.

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