The Global Leaders Environment

Globalization results in the integration of different diverse culture across the globe. Several factors are crucial in ensuring successful global management of the company. Two of these factors are corporate social responsibility and code of ethics. Corporate social responsibility (CSR) refers to a company’s initiatives and measures to take responsibility for effects of its operations on the environmental and social well-being. Ethics, in essence, is doing what is morally perceived as good. Global companies, therefore, have an ethical and a CSR to the citizens of every country. For instance, a chemical manufacturing company can profusely pollute the environment and therefore they must ensure that this is minimized despite how much the people need those chemicals. 

The most critical role of CSR and ethics in global management is to put measures in place to curb any environmental or unethical adverse effects that may arise from their operations. Globalization can be detrimental to human rights through effects that can adversely affect the lives of people. Some of the conspicuous vices because of globalization include; oil spill, air and water pollution, which might lead to diseases such as cancers, relocation of communities resulting from activities such as mining and generation of power. Climatic changes are highly attributable to globalization and corporations. Some of these effects might be uncontrollable, and because of the high demand for some amenities provided by globalization, it is however unfair where a people suffer while corporations profit from this suffering. 

In light of the above, Corporate should embrace a culture or a philosophy which balances the pursuit of business and revenue with a commitment to ethical conduct. The same profits that enable a global entity to detriment the rights of people and inflict damage on the environment should be invested in effecting positive changes to the community. A simple way for companies is to donate to charity. Companies can also pressurize governments and other companies to treat people more ethically. Organizations can invest in the local communities to polarize the negative impact their operations might cause. For instance, they might provide amenities such as building schools, offering medical services, improving irrigation and sanitation equipment. Other than this, a company ought to invest in research in sustainable technologies and ways in which results of their operations are environmentally friendly and ethical to the surrounding communities. 

In the current world, there is an immense change in how people view corporate social responsibility. Most entrepreneurs consider profit and CSR inseparable. Many Global companies usually inculcate how they will change the world in their visions. Therefore, a sole organization responsibility is not only to generate returns to its shareholders but also their overall ethical effect on the people at large. Few people would want to be associated with a company that infringes their human rights for the sole purpose of making profits. Thus, when companies are defining their overall strategy, they should put into account the overall effect on the society at large. 

Many nations have their own set of laws and regulations towards human rights and environmental degradation. Global companies have to oblige to these laws in all jurisdictions. However, this does not mean that corporations should stop at this. In order to succeed in different cultures, companies have to take the extra mile of formulating its own corporate social responsibility policy to add to what is provided in law. Studies reveal that good CSR increases brand loyalty and thereby growing profits. Consumers tend to relate more to a company that values people. Technology advancement, social media, and consumer groups make companies publicize their CSR and therefore CSR, and ethical conduct is vital to global management. 

BRIC countries in economics refer to Brazil, Russia, India, and China. The idea of brick predicts that by the year 2050, China and India will be the world’s most dominant suppliers of manufactured goods and services while Brazil and Russia be similarly dominant as suppliers of raw materials. They are projected as four of the fastest growing economies in the world and thus may attract a large pool of global companies to their end. However, some expected and unforeseen challenges might arise which revolve around the political, economic and socio-cultural being of a nation. 

There is an inherent and unpredictable political risk in investing in the BRIC countries. Familiar enough, any political instability is very unhealthy for business and a such, any political interferences ranging from clashes and war can adversely affect global business. The government of these countries might eventually change its trade policies to favor their own needs. For instance, the introduction of trade barriers that might limit the number of goods exported to the BRIC countries. Secondly, tariffs and additional fees may be increased to protect domestic products. The government of the day also has the option of raising taxes for all foreign companies to protect local companies. All these government regulations hurt global business and therefore a company ought to reconsider before investing in the BRIC countries. 

BRIC countries have the potential of attracting multiple global investors, and because of this, there exists an economic risk. A nation might face inflation which would force the products of a global company being too cheap than in other countries. Too many investors also heat up an upsurge in an unhealthy competition where you might find several companies in the same line of business. However, the most significant financial risk is the exchange risk. When a currency of a country fluctuates, it adversely affects the currency’s exchange rates in the market. The products of the global company become cheaper in the foreign country compared to the mother country. The uncertainty of the exchange rates exposes a domestic currency into foreign currency risk. 

Since the introduction of the term BRIC, many publications tend to classify them as a uniform entity. However, such as an assumption is not valid as the each of the four nations has its own diverse culture, and thus the way they do business is different. Corporation managers have a vital role in managing cultural factors that might arise from globalization. They need to understand the ethical diversity of each country separately. China is the world most densely populated state, and therefore they have a rich history and diverse culture. A manager ought to understand the way they do business and come up with the most ethical compliant way to fit in the country. India is also the second most populated countries, and thus the people question should be a critical consideration for a corporation manager. Brazil is rich in raw materials it has a management structure that superiors provide protection and guidance in exchange for loyalty from subordinates. Russia type of business culture is communist based and very different from other western market economies. The BRICs cultural diversification is different for each of the members, and therefore the principal role of a corporation manager is to come up with a corporate social, ethical responsibility model that best represents the culture of each country. 

In summary, the global leaders’ environment is one that is affected by several factors ranging from political, economic and social factors. Global managers should come up with a structure, which can deal with any unforeseen political and economic rights that may arise due to globalization. However, companies might thrive the two, but to have a direct impact in the foreign country, a sound socio-cultural understanding must be considered. Good global managers should come up with a feasible socio-ethical model that aligns the company to the cultural diversities of the foreign countries.