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Week 5 Globalisation and CSR

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Page 1: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Week 5

Globalisation and CSR

Page 2: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than a total violation of every principle sacred and moral

Paine (1792) - Rights of Man

Page 3: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

We know that the IMF and World Bank programs have greatly exacerbated

poverty and undermined the basic human and democratic rights on people in

Southern countries to determine our own destiny.

Jubilee South Africa, 1999

Page 4: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Ugandan coffeeprice per kilo

Grower = $0.14 Exporter = $0.31 Transport = $1.19 Processor = $15.96 Retailer = $8.80

(source = Oxfam, 2002)

Page 5: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Features of globalisation

Market mediation Price competition Free movement of capital Free movement of labour? Transaction cost minimisation

Page 6: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Classical Liberal Theory

freedom of the individual to pursue own ends assumptions:

reason rationality

society is merely the aggregation of self interest organisations are mechanisms for pursuing self

interest markets as mediation

Page 7: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

The conflicts of liberalism

collective needs v individual freedom society to protect private rights

Locke government as regulation

De Tocquville metanarrative as explanation

Page 8: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Utilitarianism

the greatest good of the greatest number Bentham, Mill

actions judged by their consequences economics as explanation accounting as tool of analysis power differentials?

Page 9: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

The three leading causes of death in Zambia today include AIDS, malnutrition

and malaria. Each of these is related to the slavish pursuit by the Zambian

Government of the IMF imposed structural adjustment programs.

Africa Faith and Justice Network

Page 10: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

The World Bank

‘…organs of international aid and so-called Third World development were invested with socialist error’ Ronald Reagan, 1981

Bank usually acts in support of American political and strategic interests 1982 USA investigation

Page 11: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

The Third World debt to the North is at once fraudulent, odious, illegal, immoral,

illegitimate, obscene and genocidal.

Declaration of the Dakar 2000 Pan-African Meeting

Page 12: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Enacting globalisation

Cost saving = downsizing = efficiency Effectiveness negated Public = bad; private = good Trickle down theory

Page 13: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

We denounce and reject the globalization of the Neo-liberal model as exclusive,

undemocratic, exploitative, pillaging and genocidal, imposed on the world….

Declaration of the South-North Exchange, Chiapas, Mexico,

October 2000

Page 14: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

The results

Wealth transfer – from the poor to the rich Structural adjustment =

Impoverishment Worsening public services Lower life expectancy Cash cropping instead of sustainability

Proliferation of arms

Page 15: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Globalised CSR

Cultural differences ignored Tick-box approach Window dressing as obfuscation

Page 16: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

CSR does not exist

Managerial primacy Returns to shareholders Short termism Conflicting claims of stakeholders

Page 17: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

People of the same trade seldom meet together, eve for merriment or diversion,

but the conversation ends in a conspiracy against the public, or in some contrivance

to raise prices. It is impossible indeed to prevent such meetings, by any law which

could either be executed, or would be consistent with liberty and justice.Adam Smith

Page 18: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

The myth of the market

Ideology of the free market Utilitarianism Liberalisation = utopia Trickle down effect Benefit to all? Power imbalances

Page 19: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

“After the genocide in Rwanda the situation was awful. There was also no infrastructure to get to the people in

need. And so there were United Nations convoys that just couldn’t get through. This delegation literally just sat there on the road for hours going nowhere. By the time

they finally reached their destination, they discovered that Coke had already been there for two weeks

distributing what they needed. What a fascinating thing – Coke got there before the UN. It shows you just how

powerful the global market is and this brand in particular… I suppose if Microsoft needs to be there,

they’ll be there too.”NGO administrator

Page 20: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

The Free Market

Dominant ideology of the modern western world

If unregulated: Maximises economic wealth Optimises its distribution

Assumption of perfect competition ignored Power differentials ignored

Page 21: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Problems with the free market

Assumption of perfect competition Information asymmetry Power asymmetry Number of buyers / sellers

Role of the state Regulation Redistribution

Page 22: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Regulation

Mediates for market inefficiencies Alleviates power imbalances Allows for wealth / income / welfare

redistribution Imposes sanctions

Page 23: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

The role of government

Minimal = safety (internal & external) Regulatory Redistributive Collective The End of History?

Page 24: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Benefits of CSR

Image Increased turnover Reduced future costs Reduced future liabilities Lower staff turnover Easier recruitment

Page 25: Week 5 Globalisation and CSR. It is impossible that such governments as have hitherto existed in the world, could have commenced by any other means than

Promoting CSR

Regulation? Ethics education? The role of citizenship? Enlightened self-interest


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