Responsibility and risk in an age of globalization

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

General view of public:

This book is relatively good book. In this book author take all the points related to the companies which are beneficial for the companies. This contains all the perceptive of the new environment. Writer use good examples to explain his views or experiences. But some people think that writer has prolonged that book without any specific reason.

This book is inspired by the companies who have done bad things and in this book writer has tried to prove with the examples of these companies that how should actually companies work in a proper way without doing bad things.

This book is related to the company's tradition and veracity. In this book they show that without integrity company cannot be successful in the long term. Integrity is the combination of honesty, upright, ethical and uncompromising about values and principles. Companies have to follow the rules of honesty and ethical but due to globalization companies goes beyond this. Globalization totally changed the world and also their principles. Now business has to face many challenges. Business has to go globalized with public and give them awareness of business obligation to community and requires more accountability that most companies cannot meet. Good companies must meet these responsibilities of globalization. The new trend came in the market is privatization which leads misunderstanding between the business and the government. Privatization and globalization have forced theatrical changes in the public and private sectors and have raised many issues.

After many years passes lot of changes has occurred in the business but the most important thing is same and the important thing is reputation. The major asset of the good company is reputation of the company. Good reputation takes many years to build but take overnight to destroy. This book gave flashback of those companies, against which the people show their angry e.g. Royal Dutch/Shell, Nike, Nestle etc.

In this book authors discussed those companies which are new in environment. The concept of the business ideas should be clearly defined because their commercial strategies must take social responsibilities. In the following cases, they are going to explore the some experiences:

  • Shell Company was indulged in the reputation intimidating forces that the company accused in the action that they poured their damage in the ocean environment.
  • Unocal was an oil company, which was also involved in the case of antisocial behavior.
  • Nestle company was boycott by global boycott. The nestle company issue was about the product breast milk substitute that was totally malnutrition.
  • Texaco was an oil company already dealing with race discrimination.
  • Nike was a shoe company and they differentiate their products not by the cost or quality but by images or designs.

Most companies have very strong insinuation about their business and they have to see all aspects of the business. The authors of this book examine the famous companies' cases like Shell, Nike, Texaco, and Nestle showing that huge financial decision take the company to the bad choices. In this cases when good companies do bad things explore the strategy of knowhow and integrity, representing how companies do not grip their own terms and jeopardize their future.

Risk management in company is always thinking about which thing is insured against. The most difficult part for company is how to measure the risk against the specific product or service. Companies have very difficult question what would happen in the future that would put out of the business. Companies would benefit asking itself by they have financial resources, insurance policies and production process which leads to least risks. Scenario thinking is used in the situation which is less dramatic but leads to serious threats for the company. Market research is very important in the scenario thinking and its helps company in their decisions.

Now a day's companies faces very challenging situations. Launch of new products give them new life. But they have to see which innovation gives them good reputation or which decision is not good for company. Company has social responsibility of good argue because every sector has different problems. Companies have some social responsibilities such as encourage continuous development, endorse human rights and to be a good citizen. Companies has following strategies about their marketing: they have aware about everything which are related to product, they have common sense, perceive everything from consumers eye, not allowed to use graphic violence or sex scenes, never mislead the customers, give them each and every information and responsible for everything. These types of codes and principles are part of the companies. These types of operations lead company to most productive or prolonged program. 

They are conceiving the social responsibilities of the company and describe their process how to control the risk in the future. The main idea in the context is how to increase the productivity and wipe out its issues. In this chapter they discuss the several companies which are indulge in social issues. Their social issues is seen as their marketing mix, customer demographic etc. They choose very narrow demographics. They give permission to the companies to compete their goal in any situation. One more assumption companies have to accept responsibilities of economic development process. An additional assumption made by businesses is that business has one goal of earning profit and resolving social difficulty is the government job. Last assumption is business is criticized by a political group. They criticized according to their idea and views and they don't take care of the world how they work now. In this book they give some points in the conceiving process:

  • Think about the issues
  • Reexamine the business idea
  • Identify the major concerns
  • Identify the stakeholders
  • Do more homework
  • Stretch networks
  • Think in scenarios
  • Build new competencies
  • Integrate the new competencies
  • Support the new initiatives

One main issue is environmentalism: Companies are accepted the responsibilities of the environmental effects of their functions e.g. BMW is working towards fully recycled automobiles. Other main issue is racial and gender issues: companies usually indulged in the problems of racial and gender issues. These issues create big problems for the companies and it is also harmful for the company reputation. In this context, a company has a right to decide whether the company favorable for citizens or favorable to the citizens.

In this book they are discussing the role of NGOs. NGO is an activist firm which makes issue as a problem. They take opinion from the public. In this governmental or intergovernmental body are involved. They helped the people to resolve their issues. They are very strong organization. They have contact with international level. The services of NGO's are depending on the realism, creditability and transparency.

In this book they are discussing the future issues. They are expecting new innovations in the area of social responsibilities. First issue is new reproductive technologies and the conflict between parental and fetal rights. They are discussing about the creativity and in this world everyone wants creativity and new ideas.

Global business network began working on new global scenarios to portray four possible futures that could develop over the next 20 years. The scenarios built these four future around seven kinds of driving forces: globalization, technology, climate changes, organizational structure, and geopolitics and world population trends.

In this book they are discussing term getting personal. Before starting any work in the company or organization we have to think what we want or what it should be? It is the totally personal decision or thinking. It's completely depending on your own personal life, thoughts, abilities or concerns. Our beliefs about wrong or right come from a childhood, family, desires faith, beliefs, religions or its mixture of all these- this is the first step of the chapter. First, work is rational or impersonal activity as opposed to family or social life is difficult to take in reality. If we are honest with ourselves then we see how we are fed up from our work life. Work life is very professional. Second, if we are examining ourselves this is another way to remind what we truly value and how to keep it alive in our minds. Next step requires some research to recognize the chances we have. What types of Challenges Company have? What types of Criticism Company have? And what type of Worries Company has? Third step try to identify the colleagues which have common interests and concern in your thoughts. One major issue about social responsibility is about the bad publicity that companies like Shell, Nike, Nestle and other have. If u have contacts you can talked to other mangers and CEO's also. Experiences can take from the experiments which can be sometimes very hard or they made you very tough. Apply your learning's to check changes in the organization. This personal learning link up with the corporate perceptions. These steps are the part of learning process that needs investment of time and energy throughout the life time of an individual or organization.

Precisely, when companies have not check their accounts for a long time then there is some problem started in company e.g. accounts mismanagement. Companies have to check their perceptive in a social context in a regular bases. Integrity is very important for the company and its reputation. This process is very long term but for the company reputation is very important.

Now a day's globalization is very important. Companies have to show their accountability to public. Companies should disclose their strategies or programming to the world.