LACK OF CSR, A DISADVANTAGE OF GLOBALISATION?

Over the past century,advances in technology especially communication and transportation,methods of conducting business, and production chains have undergone significant changes. Globalisation has made possible the interchange of ideas,views,products and also manufacturing. Production chains including the fashion industry have been heavily driven by consumer demand thereby most major retail companies to go over-seas, opting for global sourcing other than domestic production.These companies whose sole goal is maximisation of profit and efficiency in the supply chain.The developing countries are happy to receive(in some cases invite them) these foreign businesses that come to take advantage of cheap labor and material resources, as such investments could lead to development in the country and also increase GDP.However, blindness towards other factors other than profit has caused some controversial problems.
Corporate Social Responsibility and company ethics are key players in building a company's brand image and giving a reason for consumers to trust and have confidence in a particular brand.As the reputation of a business increase,it reduces its risks.Businesses have a responsibility to the society,employees,consumers,and even the environment.Primark is an example of  a company that had its profit plunged after dealing with child labor issues and other irresponsible behaviours,a lack in its CSR.

Primark is a big retail chain constituting of over 200 stores across Ireland,the UK,Spain,Netherlands,Germany,Belgium, and Portugal.A clear example of Globalisation.Its products includes clothing's and footwear for children,men and women, accessories, lingerie,and homeward,It employs approximately 36,000 people. Primark is well known for selling clothes at the budget end of the market,sourcing cheaply from 600 major suppliers in 16 countries. Its success is based on, most evidently,only making them in the most popular sizes, and buying stock in huge bulks and varieties.Also, to maintain low prices, Primark tries to keep sale volume high, retain margins low,advertising minimal, produce in a lean efficient manner.However, factories supplying Primark in Bangledash have been surveyed to have precarious working conditions and workers being payed an average of £19.6 monthly,less than half of the living wage of around £44.82.Also, the are subjected to working unto 80hours a week which is even against the Bangledashi law.More than 60% of the women surveyed described how they were subjected to obscene and sexually suggestive language in the work place..http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10026307/Bangladesh-factory-collapse-Primark-to-pay-compensation.html

Many reports have shown a decline in company's social responsibilities and unethical practices increase in the beginning of the 21st century as this is not just a problem only for Primark.Gap,an American mass market retailer was also involved in a class action lawsuit filed by sweatshop workers in Saipan.The allegations included ''off the clock'' hours,where workers were not paid for working overtime in unsafe working conditions.

Globalisation is meant to boost the local economy and improve the standard of living of people,has lacked in proper controls on manufacturing thereby increasing the rate of poverty and making the poor people poorer.Notwithstanding,everybody would not benefit directly from Globalisation.

CSR POLICIES

Corporate social responsibility is a form of corporate self-regulation integrated into a business model.This policy serves as a built-in mechanism whereby a business monitors and ensures it's active compliance with the law, ethnical standards, international behaviours, and even it's environment.

It is also a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through it's activities on the environment, consumers, employees, communities, stakeholders, and all other members of the public who may also be considered as stakeholders.

The benefits of the CSR depends on the nature of the business or enterprise.This is because the definition and application of this policy varies in every business organisation.

Using easyJet as an example, easyjet is a British airline carrier based at London Luton Airport,operating on over 600 routes across more than 30 countries with over 200 Airbus aircraft.Its corporate social responsibility lies with the safety of their customer's, connection with their staff, and the environment. Their environment policy is governed by these promises:

• To be efficient in the air
• To be efficient on ground
• To lead in shaping a greener future for aviation, for example, shaping aircraft design e.g. the ecojet
• Easyjet high efficiency=lower emission=lower fares.

As a way of going greener,they are said to emit 22% less carbon per passenger km than traditional airlines flying the same routes and aircrafts.
Easyjet sees striving for excellence in environmental, social, and ethnical activities as a key behaviour for a successful and sustainable business.It is positive for their share holders, staff, and suppliers.(easyjet.com).

DEMOGRAPHIC CHANGES

When developing a business,future changes and how the external environment could affect the business should be taken into consideration and strategies put in a place.These external factors could be political,economic,socio-cultural,technological,legal or even the environment.Although there is not much way to change these factors but certain strategies can be developed to enable a business or organisation adapt and strive.

Demographic changes have affected industries today in so many ways.Population's age structure is adjusting to changes in living conditions.People are living longer,becoming more diverse, and even in some cases,much more health conscious.Consequently,there is need for businesses to adopt these changes in their products and services.Demographic change is a global issue.

Saga Group Limited,is a UK company that offers different products and services exclusively for people over 50yrs.These includes insurance,home care,holidays, and monthly best selling magazines in the UK. This company must have appreciated the demographic changes in its environment. It's executive chairman stated that ''most of all our country is increasingly in need of a longterm strategic plan for older people- above and beyond raising the retirement age- lest we risk creating a generation of people who are too young to claim a pension and too old to work''.
It has an estimated 2.7million customers and this company provides 4,000 jobs.If floated or sold on the stock market,it's price is estimated to be about £3billion. There focus is to deliver excellence to every customer.