INST 4000 Thesis
Ximena de la Camara Campuzano
Corporate Responsibility and Globalization
Liberalization of foreign trade:
Some of the biggest issue 's in today’s economy is the push for liberalization of foreign trade in developing countries. By compelling nations to modify and ease their trading systems so it can be free from regulations while promoting free trade, only weakens their authority. Trade liberalization needs the reduction of governmental restrictions and intervention so the trade between nations has little or no obstacles like tariffs. Absolute free flow of capital with minimal restrictions promises developing nation’s growth under these systems by having more money for the intent of investment and trade. But what it is not often discussed is how it is necessary for some to suffer in order for others to succeed. Examples include low skilled workers who are under paid and employed by multinational corporations. When large companies move into developing countries they tend to get in the way of domestic policies and in some cases bribe their officials to get their way. Walmart in Mexico paid bribes in order to obtain permit to build stores in Elda Pineda’s alfalfa field, less than a mile away from its ancient pyramids. The problem was that the government wanted to limit growth around the pyramids to prevent any damages. After executives were contacted in the main headquarters in Arkansas, they closed the investigation and did not inform law enforcement
Often times the very workers that make globalization possible are the ones being mistreated and are being adversely affected by it. Steps must be taken to fix the moral oversight of globalization. Specifically I would like to look at the use of illegal immigrants to reduce the wages of workers. I want to look at the use of unfair competition to put the workers, farm workers in particular, in a very disadvantaged position. Steps can be taken to make the situation more just for all parties, but it may take a change in Mexican-American border policy.
Globalization is an amazing tool for the world and it helps the economy growth. Sometimes, these big companies like Maquiladora, established their companies in poor countries or places where they can commit some acts without being put under the law. They use the citizens of those countries as workers, often paying them little amount of money or discriminating against who they hired. This often leads to many problems like death or misplacement, like the man I encountered while in Mexico. Giving up my vacation in mexico to give my time to help this man would be a good decision because this man and his deceased wife suffered a violation of human rights and he needs to get compensation from the company and acknowledgement of his human rights being violated.
In chapters four through six, Anja Manuel focuses on the gap between the rich and poor, corruption, and the disruption in age differences in the work force. The issues that unravel in these two countries are extremely important to the United States because the US helps in supplying resources for the poor. The US is therefore left to decide whether or not to continue subsidizing these countries or leaving them to pick up their own economic mess. The truth is that the United States has the power to make important and necessary changes to these working conditions. Since the US often uses these countries for production, they have the opportunity to offer better benefits and conditions to their workers which could cause an exciting, positive chain
Sweatshops and their incorrect usage of labor has been a topic of importance since the 1990's when more people gained knowledge of their "appalling conditions" (Blattman). "A "sweatshop" is defined by the US Department of Labor as a factory that violates 2 or more labor laws" (dosomething.org), like employing children, giving unfair wages, or putting peoples health and safety in danger. Oftentimes the sweatshops exist in countries that experience vast poverty levels such as China, most Asian countries, India, a majority of Latin American countries, and even Los Angeles. But regardless of the knowledge of these factories, the presence of them is still difficult to get rid of due to many of the workers understanding that this job is their only hope for the time being.
adequate wages for the cost of living despite the opposing side’s disagreement with these reasons
Individuals use Twitter as a way to gain notoriety for their business as well. A social media campaign asked people to nominate leading women in global health (Devi, 2015). Globally women’s health is important to many and Twitter is a way to engage women across the globe that are in need of support and assistance. Here global governance and corporate social responsibility are core processes between these two institutions.
Multinationals are being accused of exploiting the resources and workforce of third world countries. Agricultural businesses take the best lands for harvesting the export crops which lessens the amount of good land that the locals can use for their own food needs. Hazardous chemical industries and drug industries misuse the slack safety laws and cause huge disasters. Developed countries are depleting the natural resources of developing countries. Developing countries have natural resources and developed countries have the technology. They make use of the natural resources of the developing countries while at the same time preserving their own natural resources for future (Ferrell, Fraedrich, & Ferrell, 2011). Manufacturing and service industries are bringing more and more poverty in third world countries. They hire more and more labors more than their requirement. They pay them very less amount.
1. What is meant by corporate citizenship in a global economy? Corporate citizenship in a global economy involves a company 's commitment to being global corporate citizens is about the way they run their businesses. The greatest contribution is to do business in a manner that obeys the law, produces safe and cost effective products and services, creates jobs and wealth, supports training, and technology, cooperation, and reflects international standards and values in areas such as the environment, ethics, labor, and human rights. To make every effort to enhance the positive multipliers of our activities and to minimize any negative impacts on people and the environment, everywhere we invest and operate. A key element of this is
Sweatshops have been controversial throughout many years but often neglected by the United States. Factories that fail to offer their employees living wages and fair working conditions can be considered sweatshops. Multinational corporations are using third-world countries to create a product at low wages for long hours under extreme conditions. Children that are under the age of thirteen are involved in child labor in developing countries. Thousands of children work in sweatshops to assist their families. Child labor interferes with their ability to attend schools. Workers that make products in foreign countries are shipped to the United States to create a more substantial profit. Today, people are not aware of working conditions in developing countries; people are suffering from health issues from hours of hard labor. The conditions are often dangerous. “The gazebo factory, for instance, had no secondary exits, no guarding on machines, no first aid supplies, no eye protection--the list kept going” (Frank). Not to mention, poverty has a significant impact on the sweatshops; people are willing to work dirt cheap in dangerous environments to take care of their family. Employees in sweatshops are forced to work in harsh working conditions; individuals are experiencing health issues from working long hours, while manufacturing products under minimum wage, in developing countries employment of children, is also involved. Therefore, laws must be passed to fix these conditions.
Stiglitz, a recipient of the Nobel Prize in Economics, and Andrew Charlton, a fellow economist, propose a new, radical solution to world trade problems – a solution that brings equilibrium to the trading relationships between the poorest and richest countries. The book contains an in-depth, college level understanding of fair trade and its theoretical applications on third world countries. With regards to theoretical applications, the book elaborates on the proposal, which is fair trade, and how it can initiate development in a country. Besides providing a holistic and substantive perspective on fair trade, the book also expounds on the effects of globalization on world trade and the development of third world countries. The book is useful to the study, as it will provide a clearer and better understanding of fair trade and support the arguments in the study. The main limitation of the study is that the book covers a wide area – fair trade, world trade, and third world countries, without going in-depth to labor rights abuse.
In recent years, there has been a drastic and noticeable change in the perceived need to support laborers in developing areas. The most popular and supported method of doing this is through a system known as “fair trade”. The system, simply put, is one created to transfer more profits, and thus a better living, to the workers who make them. This is done through a markup, or premium, in the price of the product (Rios, Finklestein, & Landa, 2014). A large portion of this premium goes to (or at least should) the person who made the good, while another large chunk of it goes towards certification of the fair-trade status of the goods. This leads us to the second part, and arguable detriment, of the
With India’s movement to eliminate trade barriers, and China’s decision for economic reforms since the 1990s, there have been significant changes in the composition and size of the global economy. Ever since the joining of workers from developing countries, the international labor pool has seen approximately twice the size than before. On one side, this is beneficial for high-skilled workers and firms in advanced countries, as they enjoy more trading opportunities, higher labor demand, and lower production costs through offshoring and outsourcing. On the other side, the influx of low wage labor (from developing countries) has brought competitions and may pose a threat to workers in the developed world, as argued by Richard Freeman in “The
The pursuit of the bottom line is the goal of many businesses of a variety of sizes. The ability to buy cheaply, sell dearly and minimize costs across the board gives businesses an edge that allows them to create vast amounts of wealth for those with a stake in the business or corporation, but at what cost? Multinational corporations create great deals wealth but they propagate social and cultural inequality, poverty and environmental damage at rates to rival their gains. Multinational Corporations wield incredible amounts of political and economic clout, clout that allows them to manipulate a region without fear of recourse on the part of the localities in which they reside. The gains of corporations with respect to political and economic
Before going directly into the heart of the subject it is important to understand the beginning of this phenomenon, let’s just start first with a little of history:
The negative impact of transnational corporations in the developing countries’ economy is undeniable. According to Blank & LaPalombara (1980), the biggest obstacle of the developing countries’ economy is the transnational corporations. The process of globalization granted these multinational companies free access to the international local markets all over the world. Their business practices outsource labour markets of these underdeveloped countries. As more and more of these poor nations’ citizens turn to these companies for employment,