CSR and Globalisation

Globalisation in the world leads to businesses operating on an international scale with the ultimate goal of having a global economy. Especially multinational companies expend their capabilities to other countries to reduce carbon footprint, manufacturing oversea and opening satellite operations in other countries. It offers the opportunity for companies in developing countries to gain market access.[i] Businesses become more efficient, globalisation impacts cost structures and the market becomes more competitive. Globalisation affects also the legal frameworks with challenges encompassing the relationship between domestic and international law, the need for regulation in regard to new technologies and the impact on human rights and international protection mechanisms. Globalisation is also connected to an increased exchange of and access to information which leads to consumers making informed decision and shared knowledge. Boycotts can be a tool to raise awareness on adverse human rights issues. Domestic issues such as human rights violations and adverse human rights impact become global and are thus a company´s responsibility. Public awareness on sustainability issues and exchange leads to a quick disclosure of information and CSR infringements are more likely to be discovered. When creating a CSR strategy, globalisation needs to be noticed in regard to the operational environment, various stakeholders and increased efficiency of business processes.

[i]Collins, Mikes, Forbes, The Pros and Cons of Globalization, https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/#108997deccce, called upon 30.07.2017

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