Block 1 - Globalization

Corporate Social Responsibility (CSR), Block-1 4/10/2020
The Niche Project
Introduction to the Foundation

Course on
Corporate Social Responsibility
(CSR), SRHR and Innovative
Leadership
Foundation Course on CSR, SRHR and Innovative Leadership 1

BUFT Management in the Netherlands BUFT Faculty Training Program (i)
Aug. Sept.
2014 2014

S. M. Akterujjaman, Associate Professor of BUFT 1

BUFT Faculty Training Program (ii) BUFT Faculty Training Program (iii)
Nov. Feb
2014 2015

BUFT Faculty Training Program (iv) BUFT Faculty Preparing the Course
Oct
2015
Feb.
2016


The Foundation Course on CSR, SRHR and IL (i) The Foundation Course on CSR, SRHR and IL (ii)
After completing the course the students:
The course will cover following five areas.
have a clear understanding of sustainability
Corporate Social Responsibility (CSR) challenges on both global level as well as for the
Sexual and Reproductive Health Rights (SRHR) RMG sector in Bangladesh;
have a clear understanding of the concept of CSR
Innovative Leadership and the driving forces behind it;
Sustainable Development are able to give arguments why the RMG Sector
in Bangladesh should put CSR into practice and
Business Strategy have ideas on how to realize this.

The Foundation Course on CSR, SRHR and IL (ii) The Foundation Course on CSR, SRHR and IL (ii)
Course: Block Course: Block
1.Business Trends in a Globalized World
2.Glance at the RMG sector in Bangladesh 9. Business and the Environment
3.Sustainable development 10. Green production
4. The concept of CSR 11. Factory Visit
5. Story of a product assignment 12. CSR throughout the value chain
6. Who is driving the CSR agenda in Bangladesh 13. Implementing CSR
7. Human Rights and labor issues 14. The business case for CSR
8. Sexual Reproductive Health Rights (SRHR)
15. Individual written exam


Overview
1. Background globalization
2. Definition of globalization
3. Aspects and characteristics of globalization
Corporate Social Responsibility 4. Causes of globalization
5. The positive effects of globalization
(CSR)
6. The negative effects of globalization
Block No.1 7. Conclusion
Chapter Title: Business Trends in globalized world
Course Teacher: S. M. Akterujjaman
Associate Professor
Dept. of Business Administration, BUFT
1. Background globalization (1) 1. Background globalization (2)

• There was a time when most regions were economically self-
sufficient. Locally produced foods, fuels and raw materials
were generally processed for local consumption. Trade
between different regions was quite limited.
• Today, the economies of most countries are so interconnected
that they form part of a single, interdependent global economy.


1. Definition of Globalization (i) 1. Definition of Globalization (ii)

In history In history
There was a time when regions were almost economically self- There was a time when regions were almost economically self-
sufficient: sufficient:
 Only locally produced foods, fuels and raw materials  Only locally produced foods, fuels and raw materials
 All products were generally processed for local consumption  All products were generally processed for local
 Trade between different regions was quite limited consumption
 Trade between different regions was quite limited

1. Definition of Globalization (iii) 1. Definition of Globalization (iv)

As of today: What is Globalisation?
The economies of most countries are so interconnected that they ‘Globalization—broadly defined as increasing
form part of a single, interdependent global economy. worldwide integration and interdependence,
based on the flow across national borders of
goods, services, capital, people, ideas,
cultures, and values’
Source: Business trends2014,Deloitte university press


1. Definition of Globalization (v) 1. Definition of Globalization (vi)

Globalization has expanded the resources, products,
services and markets available to people. The
Globalization is the ongoing process that
broadening set of interdependent relationships
among people from different parts of a world that
deepens and broadens the relationships and
happens to be divided into nations. It is the process interdependence among countries.
of growing interdependence among countries. International Business is a mechanism to
People get more variety, better quality or lower bring about globalization.
prices because of globalization. However, these
connections between supplies and markets would
not happen without international business.

3. Aspects and characteristics of 3. Aspects and characteristics of

globalization (1) globalization (2)
Four basic aspects of globalization: Two Characteristics:
trade and transactions
Denationalization- national
boundaries becoming less
capital and investment movements relevant.
migration and movement of people

Internationalization- entities
cooperating across national
dissemination of knowledge borders.
(Source: IMF (2000))
Wild, J., Wild, K., & Han, J. (2008). International Business: The Challenges of Globalization. Upper Saddle River, NJ: Pearson Prentice Hall.


Questions for class 2. Causes of Globalization

Key causes:
 Improved and accessible communications

Please think
of four  Improved and faster logistics
reasons for a  Free Trade Agreements
company to go
overseas?  Global Financial System
 Expansion of Multinational Companies

4. Causes of globalization (1) 4. Causes of globalization (2)

Improved communications Improved transport
• The development of communication • The development of refrigerated and container transport, bulk
technologies such as internet, email and mobile shipping and improved air transport has allowed the easy mass
phones have been vital to the growth of movement of goods throughout the world. This assists
globalisation because they help multinational globalisation.
companies (MNCs) to operate throughout the
world.
• The development of satellite TV channels such
as Sky and CNN have also provided worldwide
marketing avenues for the concept and products
of globalization.


4. Causes of globalization (3) 4. Causes of globalization (4)

Free trade Global banking
• MNCs and rich capitalist countries have always promoted • Modern communication technologies allow vast amounts of
global free trade as a way of increasing their own wealth and capital to flow freely and instantly throughout the world.
influence. • The equivalent of up to $US1.3 trillion is traded each day
• International organisations such as the World Trade through international stock exchanges in cities such as New
Organisation and the IMF also promote free trade. York, London and Tokyo.

4. Causes of globalization (5)

5. The positive effects of
The growth of MNCs
globalization
• The rapid growth of big MNCs such as Microsoft, McDonalds
and Nike is a cause as well as a consequence of globalization.


5. The positive effects of globalization 5. The positive effects of globalization

(1) Changed food supply (2) More efficient markets
• Food supply is no longer tied to the seasons. We can buy food • Efficient markets should be what every economy strives for.
Essentially, the sign of an efficient market is where there is an
anywhere in the world at any time of the year.
equilibrium between what buyers are willing to pay for a good
or service and what sellers are willing to sell for a good or
service.
• If you can improve the way you produce a good or service by
doing things such as outsourcing certain processes or buying
from an overseas supplier that offers discounts, you can then
afford to lower your selling price which results in increased
demand and affordability.


(3) Division of labour (4) Increased standard of living
• Because MNCs search for the cheapest locations to • Hundreds of thousands of people around the world now have
manufacture and assemble components, production processes jobs, have started their own businesses and can provide
may be moved from developed to developing countries where comfort for their families because of globalization. For
costs are lower. example due to globalization many MNCs have increased their
investments in BD. This means thousands of people are getting
highly paid jobs and enjoy a higher standard of living than was
possible earlier.
• It also helps countless people in developing countries to
sustain their families’ livelihoods.



(5) Benefits of the consumer (6) Spread of technical know-how
• Greater competition among producers resulting from • While it is generally assumed that all the innovations
globalization may lead to increased consumers’ choice. happen in the Western world, the know-how also comes
Consumers now enjoy improved quality and lower prices for into developing countries due to globalization.
several products.
• Consumers can get new goods more quickly.

5. The positive effects of globalization 6. The negative effects of globalization

(7) Spread of education
• One of the most powerful effects of globalization is the spread
of education. A good example of that is how the American
managers went to Japan to learn the best practices in the field
of mass production and incorporated that knowledge in their
own production units.
BUFT MoU with China Wuhan Textile University


6. The negative effects of globalization 6. The negative effects of globalization

(1) Less job security (2) Damage to the environment
• In the global economy jobs are becoming more temporary and • More trade means more transport which uses
insecure. more fossil fuels and causes pollution.
• Climate change is a serious threat to our
future.

6. The negative effects of globalization 6. The negative effects of globalization

(3) Resource scarcity (4) Cultural impacts
• In some regions companies overuse natural resources like • Websites such as YouTube connect people across the planet.
water and soils As the world becomes more unified, diverse cultures are being
ignored.
• MNCs can create a monoculture as they remove local
competition and thereby force local firms to close.
Replacing


4. Business Trends Related to • Focus the next billion

• Business with social impact
Globalisation BUSINESS
TRENDS • City Planet
• New collaborations
BUSINESS • Importance of social media will grow
TRENDS
• New leadership
BUSINESS • Reshape composition of top management
TRENDS

4. Business Trends - Future 5. Impacts of globalization on

Scenario garments sector in Bangladesh
The industry that has been
making crucial contribution to
 Companies will keep on sourcing internationally rebuilding the country and its
 Companies will keep on selling internationally economy is none other than the
readymade garment (RMG)
industry which is now the
single biggest export earner for
Bangladesh. The sector
accounts for 81% of total
export earnings of the
country.


RMG Export Major Apparel Items Exported

From Bangladesh, in Million USD

Increasing trend in employment Employment (in million workers)

Employment (in million workers)
3.5 3.6 3.6

 In FY 1984-85 the total employment was 0.12 million
which has increased to 4 million in FY 2013-14. 2.8
 The growth rate of worker was 66.67% in FY 1984-85 and 2.2
2.4
shows the positive trend continuously.
2005-06 4220 2006-07 4490 2007-08 2008-09 4925 2009-10 5063 2010-11 5150
Factory Factory 4743Factory Factory Factory Factory
Source: Bangladesh Garment Manufacturers and Exporters Association (BGMEA)


Conclusion (i) Conclusion (ii)

1. Globalisation, caused by : 3. For the RMG sector in Bangladesh this gives advantages:
 Improved and accessible communications
 Improved and faster logistics Invention and innovation
 Free Trade Agreements
 Global Financial System Employment
 Expansion of Multinational Companies
Access to large
2. Results in more international business : international market
 Sourcing
Increase labor
 Selling productivity and skill

Conclusion (iii) Conclusion (iv)

4. For the RMG sector in Bangladesh their however are riks In this course we will discuss
too:
how Corporate Social
Over specialization and over

Responsibility and the
standardization
concepts of SRHR and
Increase power and influence of
multinational companies (MNCs)
Innovative Leadership
potentially can address these
Environmental risk risks and other challenges for
the RMG Sector in
Labour risks
Bangladesh.

Conclusion (iv)

Block 1 - Globalization

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Corporate Social Responsibility (CSR), Block-1 4/10/2020

The Niche Project

Introduction to the Foundation

Foundation Course on CSR, SRHR and Innovative Leadership 1

BUFT Management in the Netherlands BUFT Faculty Training Program (i)

Foundation Course on CSR, SRHR and Innovative Leadership 3

S. M. Akterujjaman, Associate Professor of BUFT 1

Foundation Course on CSR, SRHR and Innovative Leadership 5

Foundation Course on CSR, SRHR and Innovative Leadership 7

S. M. Akterujjaman, Associate Professor of BUFT 2

Foundation Course on CSR, SRHR and Innovative Leadership 9

Foundation Course on CSR, SRHR and Innovative Leadership 11

S. M. Akterujjaman, Associate Professor of BUFT 3

1. Background globalization (1) 1. Background globalization (2)

Foundation Course on CSR, SRHR and Innovative Leadership 15

S. M. Akterujjaman, Associate Professor of BUFT 4

1. Definition of Globalization (i) 1. Definition of Globalization (ii)

Foundation Course on CSR, SRHR and Innovative Leadership 17

1. Definition of Globalization (iii) 1. Definition of Globalization (iv)

Foundation Course on CSR, SRHR and Innovative Leadership 19

S. M. Akterujjaman, Associate Professor of BUFT 5

1. Definition of Globalization (v) 1. Definition of Globalization (vi)

Foundation Course on CSR, SRHR and Innovative Leadership 21

3. Aspects and characteristics of 3. Aspects and characteristics of

migration and movement of people

Foundation Course on CSR, SRHR and Innovative Leadership 23

S. M. Akterujjaman, Associate Professor of BUFT 6

Questions for class 2. Causes of Globalization

 Improved and accessible communications

Foundation Course on CSR, SRHR and Innovative Leadership 25

4. Causes of globalization (1) 4. Causes of globalization (2)

Foundation Course on CSR, SRHR and Innovative Leadership 27

S. M. Akterujjaman, Associate Professor of BUFT 7

4. Causes of globalization (3) 4. Causes of globalization (4)

Foundation Course on CSR, SRHR and Innovative Leadership 29

4. Causes of globalization (5)

Foundation Course on CSR, SRHR and Innovative Leadership 31

S. M. Akterujjaman, Associate Professor of BUFT 8

5. The positive effects of globalization 5. The positive effects of globalization

Foundation Course on CSR, SRHR and Innovative Leadership 33

5. The positive effects of globalization 5. The positive effects of globalization

Foundation Course on CSR, SRHR and Innovative Leadership 35

S. M. Akterujjaman, Associate Professor of BUFT 9

5. The positive effects of globalization 5. The positive effects of globalization

Foundation Course on CSR, SRHR and Innovative Leadership 37

5. The positive effects of globalization 6. The negative effects of globalization

BUFT MoU with China Wuhan Textile University

Foundation Course on CSR, SRHR and Innovative Leadership 39

S. M. Akterujjaman, Associate Professor of BUFT 10

6. The negative effects of globalization 6. The negative effects of globalization

Foundation Course on CSR, SRHR and Innovative Leadership 41

6. The negative effects of globalization 6. The negative effects of globalization

Foundation Course on CSR, SRHR and Innovative Leadership 43

S. M. Akterujjaman, Associate Professor of BUFT 11

4. Business Trends Related to • Focus the next billion

Foundation Course on CSR, SRHR and Innovative Leadership 45

4. Business Trends - Future 5. Impacts of globalization on

Foundation Course on CSR, SRHR and Innovative Leadership 47

S. M. Akterujjaman, Associate Professor of BUFT 12

RMG Export Major Apparel Items Exported

Foundation Course on CSR, SRHR and Innovative Leadership 49

Increasing trend in employment Employment (in million workers)

3.5 3.6 3.6

Source: Bangladesh Garment Manufacturers and Exporters Association (BGMEA)