The Global Reach of Enterprise

globalization

Written by Alam Zia

Globalisation is an underlying trend that has been taking the world by storm for the past fifty years. This trend refers to the ever-growing connectedness between people across the world wether it be socially, politically or economically. As I am a nineteen year old undergraduate one could assume my attention centers social and political concerns. Such as, my dissipating nationalism or the conceivable election of a reality television host. On the contrary, as a hopeful entrepreneur, I dwell on the economic factors of globalisation.

Modern technology has given ease to the conduct of trade and through that has given rise to Multinational Corporations (MNCs). In 1996 the top hundred MNCs were responsible for a third of trade in the entire worlds market[1]. The same hundred corporations also owned a quarter of all stock of foreign direct investment (FDI)[2]. These numbers are undoubtedly increasing and prove that large corporations are no longer concerned with domestic domination but are pursing to encompass the global market.

These companies have great power and with that they must have a great sense of responsibility as well, right? Most do, and thereby display programs of corporate social responsibility on their illustrious websites. But that has been shown, in the past and present, to be a veil for some select MNC’s such as Volkswagen. CSR programs encounter the dilemma of implementing characteristics like sustainable operations but lack to create initiatives for real positive change.

This is where social enterprise comes in, for me, for substantial causes and for the future. Social enterprises bridge the gap between businesses and societal issues by using non-traditional models. Doing good and being profitable is the ultimate goal. The aforementioned economic globalisation will also have an effect on this ever-growing sector. Expert in MENA, Soushiant Zanganehpour, believes that:

“The fundamental values of social entrepreneurship [will] become incorporated into  mainstream business practice. The implications of this for large businesses and brands will  vary; some may see it as a threat while others will see this as an opportunity to reinvent themselves to redefine purpose, responsibility and expectations in order to build loyalty with a new emerging consumer demographic.”

The emerging populace he refers to is the millennials and inferably the upcoming workforce of Generation Z (those born in 1995-2000’s). Social enterprise challenges the norms instilled by major corporations and forwards fluidity that is paralleled to the factors of economic globalisation. My opinion, based on the content above, is that corporations have a duty to not only preserve our fragile world but to also enhance it. Wether it’s targeting environmental or societal issues on a global or a local scale there is a need for action. Of course this is easier said than done but hundreds of attempts to do good and falling short are better than not trying at all.

 

[1]  G. Shangquan, ‘Economic Globalization: Trends, Risks and Risk Prevention’, (2000), (http://www.un.org/en/development/desa/policy/cdp/cdp_background_papers/bp2000_1.pdf), Date Accessed: Jun 28 2016

[2]  J. Stopford, ‘Multinational Corporations’, (1998), pp. 1-3 (http://online.sfsu.edu/jgmoss/PDF/635_pdf/No_22_Stopford.pdf), Date accessed: Jun 29 2016

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