Globalization Effects upon Power and Responsibility of Firms Essay

Globalization Effects upon Power and Responsibility of Firms - Essay Example Globalization has drawn manifest impacts upon different aspect of businesses and many philosophies and phenomenon exists within the business world got new directions in the era of globalization. The emergence of globalization has also evolved the debate about the power and responsibilities of the companies in the globalized era. This debate is often concluded with the explanation of the phenomenon of Corporate Social Responsibility (CSR) .The notion of Corporate Social Responsibility has also changed significantly due to the emergence of globalization. (Collins, 2003, p143) The following essay aims to discuss the impact of globalization upon the power and responsibilities of the companies and businesses. The essay discusses the emergence of CSR in the context of globalization and discusses some important managerial and environmental issues that drastically need to be addressed through the CSR plans of the companies (Hutton and Giddens, 2001, p312). Globalization effects upon Power an d responsibilities of the firms Globalization has altered the traditional patterns of conducting businesses and the firms of the modern era have become significantly different from the firms of the past. In the wake of globalization the firms are provided with wide variety of opportunities for the development and expansion of their businesses however, at the same time their powers and responsibilities are also affected in the changing business scenario. The effects of globalization upon the power and responsibilities of the firms have appeared to be very important point of discourse for the social scientists, experts and theorists and there have been many approaches divulged by the researchers to identify the core benefits and setbacks of globalization in terms of determining the new dimensions of power and responsibilities of the firms in the era of globalization (Collins, 200, p395). The analysis of the emerging business scenario altered by globalization unfolds some important asp ects regarding the effects of globalization upon the powers of the firms. It appears that globalization has main added to the power of the firms by providing them opportunities to easily manage their operations all over the world. The business scenario has also changed a lot in the emergence of globalization that also strongly affects the power and responsibilities of the firms in the modern era. International trade is going through revolutionary changes in the modern world as the technological advancement has changes the traditional ways of doing trade and now the countries are adopting modern ways to conduct their trade operations. The advancement in technology has revolutionized the international trading activities as well. Computers and internet have drawn strong impacts on the trading, investment and other business related activities. For example the advancement in transportation has enabled the traders to transfer goods and services in short time of period to a far distant pla ce and the communication technology allows the traders of different countries to keep in instant contact with each other with the help of mobile phone and internet (Rodrik, 1997, p68). The firms operating at different scales are now able to easily get involved in the international trade operations because it has also become simple, less expensive and secure with the advancement in technology. The traditional trading system involves a multitude of complicated steps and documents but E-commerce has simplified the process of the international trade and offered a unique ability to reduce the complexities of the system. Now the