Assignment on Corporate Social Responsibility

1) Discuss the effects of globalisation:

Globalisation is the process of increasing the connectivity and interdependence of the world's markets and businesses. This process has speeded up dramatically in the last two decades as technological advances make it easier for people to travel, communicate, and do business internationally. Two major recent driving forces are advances in telecommunications infrastructure and the rise of the internet. In general, as economies become more connected to other economies, they have increased opportunity but also increased competition. Thus, as globalization becomes a more and more common feature of world economics, powerful pro-globalization and anti-globalization lobbies have arisen. The pro-globalization lobby argues that globalization brings about much increased opportunities for almost everyone, and increased competition is a good thing since it makes agents of production more efficient. The two most prominent pro-globalization organizations are the World Trade Organization and the World Economic Forum. The World Trade Organization is a pan-governmental entity (which currently has 144 members) that was set up to formulate a set of rules to govern global trade and capital flows through the process of member consensus, and to supervise their member countries to ensure that the rules are being followed. The World Economic Forum, a private foundation, does not have decisionmaking power but enjoys a great deal of importance since it has been effective as a powerful networking forum for many of the world's business, government and not-profit leaders. The anti-globalization group argues that certain groups of people who are deprived in terms of resources are not currently capable of functioning within the increased competitive pressure that will be brought about by allowing their economies to be more connected to the rest of the world. Important anti-globalization organizations include environmental groups like Friends of the Earth and Greenpeace; international aid organizations like Oxfam; third world government organizations like the G-77; business organizations and trade unions whose competitiveness is threatened by globalization like the U.S. textiles and European farm lobby, as well as the Australian and U.S. trade union movements. The globalization has its own advantages and disadvantages, they are

Advantages

Goods and people are transported with ease and speed. The possibility of war between the developed countries decreases. Free trade between countries increases. Global mass media connects all the people in the world. As the cultural barriers reduce, the global village dream becomes more realistic. There is a propagation of democratic ideals. The interdependence of the nation-states increases. As the liquidity of capital increases, developed countries can invest in developing ones. The flexibility of corporations to operate across borders increases. The communication between the individuals and corporations in the world increases. Environmental protection in developed countries increases.

Disadvantages
Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor. Increased likelihood of economic disruptions in one nation effecting all nations. Corporate influence of nation-states far exceeds that of civil society organizations and average individuals. Threat that control of world media by a handful of corporations will limit cultural expression. Greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage. Greater risk of diseases being transported unintentionally between nations. Spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity. International bodies like the World Trade Organization infringe on national and individual sovereignty. Increase in the chances of civil war within developing countries and open war between developing countries as they vie for resources.

2) Influence of international institutions on organizations Globalization is leading to significant changes in the organization of production. The growing economic interdependence of countries through the flow of goods and services,

capital, people, technology, ideas, and culture has a long history. What marks out the current phase is the integration of large developing countries such as China and India into the world economy, and the increasingly global distribution of activities into production networks. This paper examinesthis trend towards global value chains with a view to assessing the impact onthe composition of UK economy activity, and the implications for policy. It argues that some commonlyheld perceptions (such as about the pace of outsourcing and offshoring, and the impact on jobs and standards of living) are not well supported by the evidence, and that so far the impact on the UK economy has been benign. The value chain refers to the sequence of valueadding activities leading to final production and end use.A global value chain (GVC) is distributed across global locations to take advantage of global supply capabilities Government intervention may be justified when markets for labour, capital, knowledge, goods and services fail to function properly. This is because, without remedial action, market failures may produce outcomes which do not deliver the maximum possible benefits for businesses, consumers, the wider economy and society. The main types of market failure which may be found in manufacturing relate to skills, innovation, investment, supply chain collaboration and institutions. The actual nature and severity of these market failures may vary across the sector, reflecting the specific characteristics of the different manufacturing industries. UK manufacturers may also face barriers to internationalisation. Firms may not be fully aware of the potential benefits of exporting and lack the necessary knowledge and capability to successfully exploit overseas opportunities. Significant international differences in culture, language, and regulatory frameworks, particularly with respect to intellectual property protection can also discourage UK manufacturers to access overseas markets.One of the ways in which manufacturers in developed countries, including the UK, have responded to the rise in globalisation and increase in international competition has been to outsource and offshore to other countries particular functions in the companys value chain. Manufacturers have been motivated to offshore and outsource for three key reasons, first, it enables firms to reduce costs and enhance their productivity. Secondly, offshoring and outsourcing offers firms a means of entering and expanding in emerging geographical markets. Third, it provides an opportunity to gain access to strategic assets in other countries such as skilled workers, technological expertise or new ideas and knowledge. Faced with stronger competition from lower cost countries, manufacturers in developed countries have sought to differentiate themselves further by shifting away from traditional business strategies based around the sale of a particular product towards new models involving the sale of a product combined with associated services. This trend, referred to in the literature as the servitization of
manufacturing has led to the boundary between manufacturing and services becoming increasingly blurred in recent years. To continue competing effectively in the global economy, UK manufacturers must make further efforts to differentiate themselves from lower cost countries including China, India and Brazil which are steadily moving into higher value industries and activities. This means firstly that UK manufacturers must continue to innovate. They must develop and bring to market new, more sophisticated and better quality products and adapt their business models in ways that add further value to the manufactured products which they supply. By responding quickly to the new opportunities created by predicted changes in global demand and the emergence of new technologies, UK manufacturers can exploit first mover advantage, obtaining a larger share of new product and geographical markets. Innovation has a key role to play in promoting productivity growth through the

development of more valuable products or services, the development of new technologies, processes and business models which increase firm-level efficiency, and through the generation and diffusion of new ideas and knowledge. Generic and specialist skills also play an important role in promoting productivity. A skilled workforce enables firms to respond innovatively and flexibly to increasing international competition, developing and applying new ideas and knowledge which result in new higher value products and more efficient processes, business models and organizational structures, Recent improvements in the realm of information and communications technologies especially supply chain and logistics automation, computer aided product and component design tools, and computer controlled production equipment appear to be allowing greater volumes of information to flow through global value chains with less governance. The Internet, in particular, may be lowering the barriers for firms to enter and participate fully in global value chains by creating a standardized, low-cost linkage mechanism. At the same time, many such systems appear to be in their infancy and their rapid development and uncertain trajectories may well create new risks and barriers for entering firms

3) Influence of various unions in UK with respect to the situations stressing on roles and responsibilities of unions on the workplace.

In UK unions have countervailing influences on firm performance. If they are successful in bargaining for above-market wages or in capturing quasi-rents (for example, through restrictive practices that reduce labour productivity) unions will reduce firm profitability, other things equal. On the other hand unions can enhance firm performance through voice effects which can raise labor productivity and improve managerial decision-making, or by acting as an agent for the employer in monitoring workers, or in assisting with organizational change Britain is an advanced industrialized West European economy of comparable scale. In the view of the trade unions, the need to develop this tool arose in direct connection with the neo liberal globalization process which led to the transnationalisation of nancial, product, and labor markets as well as corporate structures and strategies while endeavors to design and regulate the social and labor aspects of these processes at the international political level stagnated and lagged behind. The role of trade unions has changed significantly over the past 30 years. Global competition, a growing trend in outsourcing, legal constraints, and employer sponsored forms of employee participation have combined in precipitating a significant fall in union membership and the coverage of collective bargaining. The coming decade promises to be equally challenging for the trade union movement. How they respond to the challenges and opportunities over the next few years will be crucial in determining their level of influence at work and beyond in the future. The role of a union is the same as it ever was: to represent the

interests of their members, whether they are nurses, teachers, bus drivers, cleaners or careers. Typically, they will have a national structure and elected representatives who help to decide how the union operates and what it stands for. Issues that may involve a union generally include things such as ensuring that pay is fair and consistent, bargaining for better holidays, gaining compensation for those who sustain injury at work or become ill and developing the role of Health and Safety committees. In order for a trade union to be legally effective, it has to be recognized by the employer. A trade union can become recognized by making a voluntary agreement or following a statutory procedure involving the Central Arbitration Committee (CAC). Once this has come into effect, it can then legally bargain for time off for its members to take part in union activities, for information from the employer that can be then used in bargaining situations

and for representatives to be given time off for their duties in relation to the learning and training of employees and to have training to carry out those duties. Trade unions play a significant role in directly shaping peoples working lives in Britain today, although their influence in this respect has diminished in recent times. The proportion of workers who are members of unions fell in the first decade of the twenty-first century, although this decline was modest, and far less dramatic than the decline of the preceding two decades. The exposure of British firms and industries to greater market pressures, a growing trend in outsourcing and the growth in a typical employment, employer sponsored forms of participation and representation, and the imposition of legal constraints on the ability of unions to recruit, organize, collectively bargain and take industrial action, has all contributed to a sharp fall in membership. Despite the adoption of various internal strategies and the introduction of laws encouraging employers to recognize unions, the downward trend in membership nevertheless continued in recent years, albeit at a slower pace. Restrictions on industrial action and the break-up of national bargaining structures, and legislative changes introduced to end the closed shop (an arrangement whereby an employer and a recognized union could agree for union membership to be a prerequisite to employment), resulted in a decline in the proportion of workers covered by collective agreements, with individual contracts and enterprise-level bargaining consequently becoming the main way of regulating workers pay and conditions (Brown et al., 2009). Union activity is now focused more directly on the enterprise level as a result of these developments. Union recognition The Employment Relations Act 1999 represented a more favorable legal development for unions. By allowing unions to apply for statutory recognition, the Act notionally provided them with an opportunity to gain a foothold following the shift towards enterprise-level bargaining. A major fall in working days lost due to strikes over the past two decades has followed the diminishing capacity of unions to take industrial action, both legally and organizationallyRecent studies point to the positive role played by unions in helping to resolve workplace disputes. Research by Richard Sundry and colleagues found that autonomy from management and greater dispute resolution skills and expertise allowed union representatives to play a more constructive role than non-union representatives in disciplinary proceedings. A more fragmented labor market has been a consequence of weakened union power, the shift towards individual contracts and enterprise bargaining, and the trend among firms to outsource non-core activities to 7other firms . The creation of alliances between unions and community groups and civil society organizations (such as charities and advocacy groups) to reach atypical workers has also been seen in other areas. The living wage campaigns in various cities (notably London) are good examples of coordinated action between unions and community groups in this respect. These campaigns have called for better pay and working conditions for contract cleaners, and typically have a community as well as a workplace dimension. Labour market fragmentation, the international integration of product markets and production systems, and a single employer model of employment law have combined to make it more difficult for unions to maintain a strong presence in the British workplace of today than in previous eras. Unions have adapted nonetheless, and will need to rely more on international regulatory instruments, strategies based around supply chains and procurement, and alliances with civil society organizations as part of their future attempts to protect and improve wages and labor standards across the workforce.