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Globalenvironment

environment, ,
Global
Stakeholdermanagement
managementand
and
Stakeholder
Multinational
nationalcorporations
corporations
Multi

Environmental
Sciences
and
Environmental Sciences and
Ethics
Ethics

Members
MuzammilAkram
Akram
Muzammil
AyeshaBilal
Bilal
Ayesha
ZillEEHuma
Huma
Zill
Faizan
Ahmad
Faizan Ahmad

Overview
The connected global economy and
globalization.
Capitalism: One system with different
faces.
Multinational

enterprises

as

stakeholders.
MNE guidelines for managing morality.

Muzammil Akram
Roll # 12

Globalization:
Globalization is a process that
encompasses causes, course and
consequences of transnational
and transcultural Integration of
human and nonhuman activities

Globalization:
Globalization involves

Economic integration

The

transfer of policies across borders

The transmission of knowledge

Cultural stability

The reproduction

Discourses

of power

Reasons of
Globalization
Market

Maturity.

Market

Share.

Business

Expansion.

Technology.
Free

Trade.

Tariff

Barrier Reduction.

Positive Effects
Offers

Greater Opportunities

Decreases
Promotes
Open

Poverty

higher Growth Rates

excess towards

capital flows.

technology.

Cheaper imports
and larger export
markets

Dark side
Crime
Drug

and corruption.

Consumption.

westernization
Massive

Layoffs

Crime and
Corruption
2015 Report Estimates Corruption cost

$500 Billion annually


That

is 1 pc of Global economy.

Every

third cigarette is exported on

black Market.
Most

corrupted countries are Nigeria,

Iran, Colombia and Uganda

Economic Poverty
High

poverty level in Third World

Countries.
Life

expectancy is short in these

Countries.
Not

following Capitalism properly.

So,

they are ignored by

Globalization.

Child Labor
In

Africa, Children are buy and

sell to work in the industrial


projects and plantation.
Annually

wages of under 14 is US

$135 to US $165

Major
Competitive
Factors

Best

recruitment at all Levels.

High

Quality Product Manufacture .

Innovative

Product

Products are designed.

Delivered at Competitive Cost.

Continuous

Quality is Imperative.

Major
Competitive
Factors
Mergers,

Acquisition, and strategic

alliances increase the scope of


products.
Web-based

technologies connect

customers with products.

Top 20
Countries
Practices
Apple
Google
Amazon.com
Berkshire

Hathaway

Disney
Starbucks
Southwest
FedEx.

Airlines

Top 20 Countries
Practices
Costco.
Nordstrom.

Face book.
Coca Cola.
Johnson & Johnson.
Microsoft.
BMW.
Netflix.
JP Morgan Chase.

Capitalism
An economic system that

major portion of production


and distribution is in
private hands, operating
under what is termed as
profit or market system.

Features

Companies

Private

Profit

No

Property

of Motive

Government interference

Democratic

Competition

Faces of Capitalism
Frontier Capitalism

Consumer Capitalism
Theoretical economic and social
political condition in
whichconsumer demandis
manipulated, in a coordinated way,
on a very large scale,
throughmassmarketingtechniques, to the
advantage of sellers

Features

The

value of a product is determined by

the

desire of the individual

Laissez

faire - enterprise system

Manipulate

the customer is such way to

attain customers Profit.

Economy

Free

has profit mentality.

Trade economy.

Downsides
Income
More

inequality.

Consumption and there is low

saving rates.
Weak

central government.

Producer Capitalism
Producer Capitalism based on
controlled production,
employment, and statist policies
governed by top-down central
bureaucracies.
Customer Focus is not at
the center of supply and
demand.

Features
Producer

determine price, quality,


and availability
Mainly focus on production rather
than customer
Full employment due to main focus
on production.
Statist Policy means no change in
policy.

Downsides
Consumer

dissatisfaction due

to no focus on customer.
Wages
Slow

system.

Innovation

Family
Capitalism
The family and clan elders
traditionally set the interwoven
business , cultural, social and
infrastructural Rules that govern
the structure and functioning of
businesses

Features
Collectivist

society system means

dominating family businesses.


Created

by Chinese Diaspora.

Extended

Clans dominate business

and capital flows.

Downsides
Creating

modern corporate

Organization.

Creating money markets.

Lack

of openness to innovation.

Possibility

of corruption and

monopolistic control.

Frontier
Capitalism

Frontier Capitalism is a new,

experimental and entrepreneurial


system of economic activity.

Features
Government pursues for profits
business activities.
Entrepreneurial class sprouts.

Stages
Stage 1

Downsides
Must

establish rule of law and open

borders.
Curb

criminality.

Legal
The

systems are weak.

risks of life and limb are presents.

Sustained
Large

growth

capital investor needed.

Capitalism and
Pakistan

Netherland

was the first capitalism

country

Pakistan

is the country where

capitalism exists

Pakistan

has consumer Capitalism

That refers to Laissez-faire

Capitalism and
Pakistan
Pakistan

is not a capitalist country

but components of laissez-faire


capitalism do exist in Pakistan
Feudal

system in province

Baluchistan, Sindh and some parts


of Punjab is the example of
capitalism

Causes of
Capitalism
Money

and resources are in some

specific hands.
Inequality

in distribution of wealth.

Unimplementation

of Law and

Order situation.

Unfair access to means of

production

Multi National
Corporation
Corporations that own

or control production or
service facilities outside
the country in which
they are based

Multi National
Corporation

Power of MNE
MNE actually focus on powerful
stakeholder ideas and want to
become independent
Its main goal is to increase profit and
getting a comparative advantage of
marketing, Trade , cost, investment,
labor etc

Power of MNE
Its Characteristics are

Operating

Sale Organization.

Manufacturing

Licensed

Earning

place

business in at least 2 countries.

revenues of 25 45% from foreign

market and global strategies

Misuse of MNE
After World War 3 there were many crises for
MNE. Sometimes due to inaccurate labeling
of products cause a huge company loses.

The company often makes wrong


decisions like hiring employees, plant
closing and sometimes interference in
the host country political issues.

MNE
Perspective
Multi National Firms takes benefits
from
International

currency fluctuations

Available labor

Cheaper

cost,

Tax trade incentives,

Use of natural resources

MNE Perspective
Attract

local capital for profit

Increase

job opportunities.

Increase

industrial output and

productively.
Enhance
Boom

Technology.

the economy.

Increase

local labor skills.

MNE guidelines
Consumer

protection.

Employment.
Environmental
Human

conduct.

pollution.

Rights and political

Special Guidelines
Do

not intentional harm.

Produce

good more than harm.

Contribute
Respect
Respect
Pay

to development.

the rights of employees.


the nation culture.

their fair share of taxes..

Special Guidelines
Corporate
Multi

with government.

Nationals that build hazardous

plants are obliged


Multinationals

are responsible for

redesigning the transfer of hazardous


technologies.

Employment
policies
respect

the rights of employees

promote
provide

equal JOB opportunity

equal pay for equal work.

Promote

job stability and job security.

minimally

employees

pay basic living wages to

Political involvement
MNEs

should not pay bribes or make

improper payments to public officials.


MNEs

should avoid improper or

illegal involvement or interference in


the internal policies of host countries.

Environmental
Protection
MNEs should

Respect the host Country Laws,

goals.
Preserve

ecological balance.

Minimize

the risk of Accidents.

Control

the operations leads to

industrial pollution.

Faizan Ahmad
Roll # 28

Ethical Decision
Making
George Ederle identified four distinctive
International Ethical Decision Making
styles
Foreign
Empire

Country Style.
Style.

Interconnection
Global

Style

Style

Foreign Country
Style
For Example, When in Rome , do as the Romans Do

A company applies the values


and norms of its local host.

For Example,
When in Rome , do as the
Romans Do

Foreign Country
Style
Draw Backs
Gross

injustices and inequalities that

are inherent in the norms adopted.


Local

Norms and business practices

dont prohibit some evils such as Child


Labor.

Empire Style
A company applies its own domestic
values and Rules; this can be an
imperialistic practice.

Draw Backs :
This

style

is

form

of

imperialism that disregard local


norms and practices.

Interconnection
Style:
A company applies shared norms with
other companies and groups; National
identities and interests are transcended
and blurred

Interconnection
Style: Draw Backs :
Practical

rather than moral.

Companies

and individual employees

usually dont have quick or direct


access to a commonly shared local,
national and international source to
advice on a particular issue.

Global Style
A company abstracts all local and
regional differences and norms,
coming up with a more
cosmopolitan set of standards and
solutions for its actions in the host
country.

Global Style
Draw Backs :

Impose its own interpretation of a

global morality and truth on a


host culture and norms.
The

Global Style can also suffer

from shortcomings shared by the


foreign country and empire style.

Some World
Wide Unethical
Practices

Philip Morris
Advertise to Kid About
Smoking

Tobacco giant advertise them to

target kids.
Still prominently places ads and
products in magazines.
They continue to try to create the
image of smokers being cool

Philip Morris

Toyota
Toyota Ignored Safety.
In 2009, they learned about sticking
pedals and faulty brakes
instead of addressing the issue, they
added side airbags.
Toyota faced hundreds Death cases

Apple
Apple use Slave Labor
Use Slave Labor that are exposed to
cancerous vapors
The workers live in horrible
conditions and experience
unreasonable workloads and
humiliating discipline