Business Responsibility - Maersk

about sustainability and responsibility of companies in a globalized business world.

the benefits, need and demand for CRS etc

Business responsibility in a globalized world

The globalization of the world is a gradual but ongoing process that has led to many changes both good and bad. As borders are diminished and communication tools are made more efficient, businesses spread far from where they originate and develop across borders. Along with possibilities to earn more and go bigger faster the companies do not only face a larger and more diverse market but also more informed and concerned consumers and citizens.

This essay will compare the efforts of the global Danish company Maersk to the general tendencies of the globalized business world and the new "paradigms" focusing on sustainability and principles of responsibility.

Globalization

"globalization is creating a new economic world order with new players and new rules - and this is opening up a world of business opportunities". (Ellis 2010:19).

In order to understand these new business tendencies, knowing some of the developments of cultures, countries and markets are important.

Globalization is among other things a result of gradual technological developments. Technology has provided the ability of communicating more efficiently, removing most of the previous restrictions of time and space making it possible for previous processes to be completed much faster leading to larger profits. "...we live in a unitary world in which space and time have collapsed and the experience of distance imploded for ever... giving way to international markets, moneys and media" (Sreberny-M, 1996: 177).

People across the globe can get access to informations about foreign cultures, politics, way of life and developments (Sreberny-M, 1996:186). Along with a broader awareness of the surroundings through developed media types, range and availability, globalization has demolished borders and frameworks previously limiting and fixing the manner in which we are able to move between financial, social and cultural boarders. This has increased the possibilities of companies but also increased the amount of influence on their surroundings.

Globalization is of course positive if you look at from an economical, western point of view. However, the areas to which businesses spread are also exposed to negative consequences.

Consequences.

Climate changes and global warming caused by pollution, child workers in factories of famous companies etc. are among the cases that awakes fury in the western societies where many of the responsible companies originate from (Ellis, 2011:16). The negative consequences and immoral actions expose a back side of the thriving globalizing economies, which have resulted in rules and regulation from both businesses and governments.

Corporate scandals and the recent crisis have changed the focus of the business world, or more accurately, the priorities of the consumers and investors. The traditional business models are being stretched to fit the new needs and demands and companies are responding with attempts to convince the investors through responsible and sustainable business actions (Ellis, 2011:15).

Another backside of globalization is the risk of cultural "homogenization" or "synchronization" - as values from most western countries are spread along with the now wider ranging businesses and media (Sreberny-M, 1996: 179).

Responsible consumers. Responsible companies

- ethical consumerism and social capitalism

"In short, the 21st century business of business is still business. But the rules of how to stay in business are changing" (Ellis, 2011:14)

Along with new technology came media developments that started to be less "self-centered". It has become not just possible but important to stay informed about circumstances beyond country borders, to know about other countries and cultures, to know how society is changing and to understand how the choices they make can affect surroundings and future generations.

The modern consumer is more "aware" and is placed in a society where not just the name but also the values attached hold a significant meaning and strength. The consumer is connecting his/her own identity with whatever company/brand they choose to support and are more aware and concerned with what they represent (Sreberny-M, 1996: 193). Weather it be work condition, environmental hazards or exploitation of resources or surroundings, the consumer has a higher sense of responsibility. This is known as "ethical consumerism" where day-to day consumer and purchase decisions are strongly related to environmental and ethical concerns (Rubera et.al.2011: 65). This is reflected in the offers of many modern companies who do their best to meet the new demands and expectations and furthermore make the efforts visible to the public eye. As well as regulations made to secure human rights and protect nature, programs have been made to protect local traditions and culture from the globalized capitalist systems. (Sreberny-M, 1996: 180).

"Companies have not been slow to recognize the positive public value attached to the notion of "globalization" as a unifying process of recognition of a common humanity, and coolly to adapt it for their own purposes" (Sreberny-M, 1996: 183). Time warner, Sony etc are among companies who understood how to use this to promote their business with mottos such as "think globally, act locally" they are advocating awareness and ecological concern to their surroundings (Sreberny-M, 1996: 183). Nike integrated CSR as a response to accusations of child labour and generally more and more companies take it upon themselves to create environments that support not just their own employees but also the surroundings they are situated in, in order to make long term businesses sustainable and defendable (Ellis, 2011:16). Businesses are developed in a way where current needs are met without compromising or negatively affecting future circumstances for others.

The focus on sustainability and responsibility however, is not a new phenomena. It already had focus in the 18th century where the "father of capitalism", Adam Smith, both defended and criticized capitalism "advocating self-interest-based economic exchange", but on the other hand also talked about