Stakeholder Analysis Paper
ghtyui52000
GlobalVillageStakeholder.pptThe Global Village
as a Stakeholder
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If you shrink the earth's population to a village of 100 people,
it would look something like this:
60 Asians
12 Europeans
15 from the Western Hemisphere
(9 Latin Americans, 5 N. Americans, and 1 Oceanian)
13 Africans
50 would be female and 50 would be male
80 would be non-white and 20 would be white
20 people would earn 89% of the entire world's wealth
25 would live in substandard housing
17 would be unable to read
13 would suffer from malnutrition
1 would die within the year and 2 would give birth within the year
2 would have a college education
4 would own a computer
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globalization:
Integration of the world's culture, economy, and infrastructure driven by the lowering of political barriers to transnational trade and investment, and by the rapid proliferation of communication and information technologies.
The term is often used in reference to the substantial impact of free-market forces on local, regional and national economies.
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http://www.pbs.org/wgbh/commandingheights/hi/story/ch_menu_03.html
Ch. 8 The Global Village
The modern world system of what we currently call "free trade" and "globalization" has been around for about 200 years (with interruptions though), as one of the main engines of development since the Industrial Revolution.
the guiding principles of this neoliberalism include:
Sustained economic growth as the way to human progress
Free markets without government "interference" would be the most efficient and socially optimal allocation of resources
Economic globalization would be beneficial to everyone
Privatization removes inefficiencies of public sector
Governments should mainly function to provide the infrastructure to advance the rule of law with respect to property rights and contracts.
Some of the assumptions that are made to support the neoliberalism ideology:
Humans are motivated by self-interest, greed etc, expressed best through pursuit of financial gains
Actions that result in greatest financial gains benefit society the most
Competitive behavior is more rational for individuals than cooperation, hence societies should be structured around this motive
Progress is measured by increased materialistic consumption and so ever more consumption should be favored.
Some of the forces that have accelerated globalization include:
- The end of Communism
- Information technologies
- Entrepreneurships and entrepreneurs
- Free-trade and trade agreements
- The IMF and World Bank
- Growth of transnational firms
- A shift to service economies
- Global political forces
There are 93,000 transnational corporations worldwide, with over 500,000 subsidiaries.
Seventy-one of the world's top 100 economies are corporations.
Royal Dutch Shell's revenues are greater than Venezuela's Gross Domestic Product. WalMart is bigger than Indonesia. General Motors is roughly the same size as Ireland, New Zealand and Hungary combined.
The Top 200 corporations' combined sales are bigger than the combined economies of all countries minus the biggest 10.
The Top 200s' combined sales are 18 times the size of the combined annual income of the 1.2 billion people (24 percent of the total world population) living in "severe" poverty.
| “TNCs… the most powerful human organization yet devised for colonizing the future” – Donaldson |
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Ethical Issues in Globalization
- Loss of nation-state sovereignty
- Crime and corruption
- Economic poverty and slave labor
- Free trade policies and implications
- Westernization (Americanization) of cultures
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4
Planning, organization, leading, controlling
“The Panama Papers should be a wake-up call, shining a light on dysfunctional tax codes around the world — but much of the problem has been staring us in the face. Among the 500 corporations in the S.&P. 500-stock index, 27 were both profitable in 2015 and paid no net income tax globally, according to an analysis by USA Today.”
“A study released Thursday by Oxfam says that for each dollar America’s 50 biggest companies paid in federal taxes between 2008 and 2014, they received $27 back in federal loans, loan guarantees and bailouts.”
“Another academic study found that tax dodging by major corporations costs the U.S. Treasury up to $111 billion a year. By this math, less than one-fifth of that annually would be more than enough to pay the additional costs of full-day prekindergarten for all 4-year-olds in America ($15 billion), prevent lead poisoning in tens of thousands of children ($2 billion), provide books and parent coaching for at-risk kids across the country ($1 billion) and end family homelessness ($2 billion).”
http://www.nytimes.com/2016/04/14/opinion/the-real-welfare-cheats.html?ref=opinion
http://www.theguardian.com/world/2016/apr/14/us-corporations-14-trillion-hidden-tax-havens-oxfam
Modernization Paradigm
transnationals serve a beneficial role in breaking through constraints and obstacles that impede development in LDCs
they expand production
they bring in needed capital, technology, management
they create jobs
they reinvest profits into local economy
they aid the host country's development plans
assist in creating "global business community“
assumes that LDCs must go through stages that industrialized countries went through to become "modernized“
from agriculture to industry to foreign trade
but, you have to consider that the conditions that aided development in US do not necessarily apply to other countries
US had remarkable resource base, pool of strong young immigrants, strong social institutions, greater equality between individuals
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Modernization Paradigm vs. Dependency Paradigm
Dependency Paradigm
transnationals hinder or distort the development of LDCs
they exploit cheap labor, natural resources, local capital
they distort development by introducing inappropriate technologies and products
they send profits back to richer home nations
they create benefits only for the elite in LDCs, widening the gap between the rich and poor in these countries
they undermine local business initiative and leadership
they encourage the use of expensive & unnecessary consumer goods
assumes that the reason LDCs have it so bad is because of the development of capitalist countries
"one's profit means another's loss”
“global business community" cannot truly exist; the world cannot support every country as a capitalist nation - not enough resources
David Korten - "When Corporations Rule the World"
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Modernization Paradigm vs. Dependency Paradigm
https://www.youtube.com/watch?v=3O_Sbbeqfdw
RR explains TPP
Trans-Pacific Partnership
A free trade agreement between the United States and 11 other trading partners bordering the Pacific Ocean.
On October 4, 2015, negotiations between the countries were successfully concluded. It now has to go to each country's legislature for approval.
The TPP is between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.
The countries involved produce 40% of the world's total GDP of $107.5 trillion, 26% of its trade, and 793 million of its consumers.
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1. Pay a living wage
2. Stop boot-camp style assembly lines
3. Stop using child labor
4. Investigate all reported acts of abuse
5. Allow truly independent monitoring of factories
http://www.youtube.com/watch?v=M5uYCWVfuPQ
Behind the Swoosh – Jim Keady
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Materials: $10.75
Labor: $2.43
Overhead : $2.10
Factory Profit: $0.97
Total Costs: $16.25
WAGES
BASIC MONTHLY WAGE = Rp 1.243.000
HIGHEST MONTHLY WAGE = Rp 1.333.000
RENT = Rp 200.000
WATER = Rp. 110.000
TRANSPORTATION = Rp 600.000
MONEY LEFT FOR FOOD + ALL OTHER EXPENSES =
Rp 423.000 or Rp 14.100 per day
NIKE USA
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SUBCONTRACTORS
|
WORKERS
GOVERNMENT ?
WHO IS RESPONSIBLE?
PBS REPORTER:
“These employees that are effected are technically not Nike employees, (they) are employees of sub-contractors. But… you said basically that you accept responsibility for the conditions under which they work.”
PHIL KNIGHT:
“No question. And we really look at it as more than a sub-contracting relationship… it’s really a partnership, not in the legal sense, but in the moral sense.”
WHO IS RESPONSIBLE?
“(It’s) real simple. Phil Knight kind of defined it about two years ago. Those workers – we should consider them Nike employees. So that’s our responsibility.”
- Dusty Kidd, Former Nike VP
WHO IS RESPONSIBLE?
ONE ROUND OF GOLF
9.5 YEARS OF WORK
VS.
WHO IS RESPONSIBLE?
WHO IS RESPONSIBLE?
Global Scenarios
...alternative views of possible futures
Market World reflects a vision of the future that is widely held today.
It assumes that free markets, private enterprise, and global market
integration are the best way to increase prosperity and improve human
welfare. Economic reform, privatization, and deregulation are, in thisview,
the key to the future.
Fortress World, on the other hand, focuses on the potential of unattended
social and environmental problems and the growing gap between rich and
poor to diminish social progress and doom hundreds of millions of people
to lives of poverty and deprivation. It foresees the likelihood of widepread
degradation, social instability, rising conflict--and the possibility of
violence and chaos, of a world divided against itself.
Transformed World is an optimistic vision of the future, one in which social
and political--as well as economic-- reforms create a better life, not just a
wealthier one. It assumes that human ingenuity and compassion can
extend opportunity to all of humanity. And it points to tentative changes,
already underway, that may presage such a transformation.
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http://www.pbs.org/wgbh/commandingheights/hi/story/ch_menu_03.html
Ch. 23 9/11
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http://www.pbs.org/wgbh/commandingheights/hi/story/ch_menu_03.html
Ch. 8 The Global Village
The modern world system of what we currently call "free trade" and "globalization" has been around for about 200 years (with interruptions though), as one of the main engines of development since the Industrial Revolution.
the guiding principles of this neoliberalism include:
Sustained economic growth as the way to human progress
Free markets without government "interference" would be the most efficient and socially optimal allocation of resources
Economic globalization would be beneficial to everyone
Privatization removes inefficiencies of public sector
Governments should mainly function to provide the infrastructure to advance the rule of law with respect to property rights and contracts.
Some of the assumptions that are made to support the neoliberalism ideology:
Humans are motivated by self-interest, greed etc, expressed best through pursuit of financial gains
Actions that result in greatest financial gains benefit society the most
Competitive behavior is more rational for individuals than cooperation, hence societies should be structured around this motive
Progress is measured by increased materialistic consumption and so ever more consumption should be favored.
*
*
4
Planning, organization, leading, controlling
*
Modernization Paradigm vs. Dependency Paradigm
*
Modernization Paradigm vs. Dependency Paradigm
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http://www.pbs.org/wgbh/commandingheights/hi/story/ch_menu_03.html
Ch. 23 9/11
