Introduction to Managing Corporate Responsibility in the Wider Business Environment
Corporate social responsibility is the commitment by organization to contribute in economic development and to behave ethically and improving the quality of life of the employees and their families as well as of society and local community at large. It is the concept in which companies join together for environmental and social concerns in their dealing with stakeholders and in their business operations. It is the concept to achieve success in ways that respect people and honor principled values and the natural environment (Arendt and Brettel, 2010). This report is prepared to analyze the role of corporate social responsibility in wider business environment. Here in the report the effects of globalization on national economies, effects of environmental legislation, directive guidance on companies, responsibilities of firm to improve workforce welfare and the impact of regulatory requirements on interest of corporate stakeholders is discussed.
a)Effects of globalization on national economies
Globalization involves the interdependence of the global economy and increase the integration. It enhances the trade and raises the movement of capital and labor. Globalization highly impacts on the economy of UK. It leads to shift in the economy and increase the international competition for domestic monopolies. This will help companies to reduce prices and cost. Globalization makes it essay for emigrant to work in the UK and it helps nation to plug the job position (Banerjee, 2007). It open the risks for the nation which is outside the control of the government i.e. crisis and capital flows in international market.
It helped to make higher London into the financial center of world. It helps companies of UK to produce wide range of goods and to provide consumer at low prices. Globalization increase the foreign direct investment in the nation as economy of UK is the favored venue for overseas direct investment. It helps in increasing the rate of foreign direct investment both inward and backward in the UK (Bueble, 2009). Country has the extraordinary benefits from FD to the financier. They have the better supply of items and also have ideal assessment framework which resulted in growth of nation.
Globalization provides the benefits to the companies of UK which leads to lower prices for customers. It makes easier for migrants to enter and work in the country which helps UK to fill the job vacancies. It put emphasizes on the importance of human capital for long term economic growth. High level of FDI has been favored venue for overseas direct investment. It raises the level of import penetration that helps them to gain competitive advantages to other countries with respect to industries like clothing and textiles. Globalization proves as a backbone of the economy for the UK that leads to identification of new jobs opportunities and assists them in increased economic growth (Caulfield, 2013).
b)Influence of international institution
Organizations which operate in different countries, international institutions and global bodies highly influence them and they play an important role as they provide financial assistance and funds to these types of companies. These institutes provide funds as well as other support to the firm. These institutes have vital importance for global business organizations. Organization manufactures the safety and harnesses for the aeronautical industry and international institutions provides finance, directives and other kind of support to the company which plays very significant role in their business operations.
There are various institutes that provide these types of services such as WTO, IMF, WFO, World Bank, GATT, and UN etc. Organization follows all the rules and regulations which are developed by these global bodies in order to perform their business operations effectively and gain success (Chapple and Moon, 2005). They fallow all the guidelines of these institutions and laws or regulations developed by government and manufacture high quality of products in order to protect the safety of people and to achieve their goals and objectives by satisfying customers.
Organization takes the advice and financial support from international institutes so that they can perform their functions in much better way and can effectively utilize all resources. Global bodies have developed the several policies and guidelines for the companies which operate in the field of pollutions and emission of harmful gases in order to protect environment. They also developed the regulations and directions for companies that manufacture safety and harness for the aeronautical industry (Crane and Matten, 2007). If these firms not follow their regulations then they might have to face grave consequences of it and it can dilute their image in the internation