Globalization has resulted in the relentless upsurge of global trade. The process is a culmination of initiation of novel markets thus allowing importation and exportation to augment. It has equally permitted entities to create centres in other countries.
Evidently, corporations are the key supporters and recipients of such a move since they gain entrée into untapped markets. Indeed, the past decade, has seen phenomenal expansion in global business in the service and commodity divisions. The telecommunication commerce has developed tremendously.
An example is evident in Vodacom, which is a market leader in the industry. Consequently, it has expanded from its traditional market in Europe and America. This entity has launched its presence in Africa and southern Asia in the last decade. The two markets are lucrative and untapped thus a priority for any entity going global (Manole & Spatareanu, ND).
Entry into new economies has presented the management of these entities with new challenges. These challenges have mainly resulted from the expansion in the entity and entry into other economies. A decade ago, most global firms had subsidiaries in few nations. Currently, entities have subsidiaries in multiple countries thus, posing a huge task of managing these entities. Consolidation of record is an enormous task since the mangers have to convert funds from various currencies.
In addition, conversion of such funds exposes these entities to exchange rate uncertainties. Therefore, the managers have an obligation to coin plans that will mitigate an entity from such uncertainties. These strategies include hedging, which are intricate to design. Indeed, globalization exposes firms to additional risks. Therefore, current managers have prioritized risk management to curb risks resulting from globalization.
Globalization has resulted in changes in the entity hierarchy ensuring representation of subsidiary in the parent entity (Manole & Spatareanu, ND). In yester years, foreign entities preferred to employ expatriates. In its overseas subsidiaries, Vodacom has employed the residents of that nation rather than expatriates. The varying regulations in nations have warranted these nations to employ professional from those who have experiences in the country’s system.
Corporate responsibility and ethics is an aspect of management that has developed enormously due to mushrooming of entities. Essentially, this area relates to the corporations acknowledging the community from which they generate their revenues and not only acting in their concerns but also that of the society.
Conversely, ethics are the norms that the community seeks to enforce. However, the values are not in legislation. These norms encompass sincerity, objectivity and steadfastness. Years back, this aspect of management mattered less. However, currently entities have embraced the above practises. Embracing these practises has meant that the managers act ethically since it gives the corporation an awful image in the community.
Ethics have set certain standards that management ought to accomplish thus, making managing tricky. Managements need to be stringent in their undertaking since their action directly influencing the image of the particular entity. Conversely, corporate responsibility has financial ramification since an entity has allocate funds for this undertaking. Therefore, mangers have to budget intelligently and avoid any unnecessary expenditure (Goodpaster, 1983).
Currently, entities support many benevolent projects globally. Microsoft has undertaken many charitable projects worldwide. The funds expended to support charity work originate from the entity’s coffers. Overtime, the budgetary allocations for corporate responsibility have expanded considerably. The society has assumed this trend and many corporations are participating in the above activity.
Corporate responsibility boost an entity appeal to the society since it show the willingness of the entity to tackle problem facing the community. Adherence to ethics serves as an indication of the management competence and their endeavour to promote positive practises (Reed, 1999).
The changes resulting from corporate responsibility have ensured that entity constantly make allocations for charity. In addition, corporations have acknowledged their responsibility to the society. Ethics have ensured stringently management in entities.
References
Goodpaster, K. (1983). The concept of corporate responsibility. Springerlink, 2 (1), 1-22.
Manole, V. & Spatareanu, M. (ND). What is takes to Export? Evidence from African Investment Climate Surveys. Web.
Reed, D. (1999). Three Realms of Corporate Responsibility: Distinguishing Legitmacy, Morality and Ethics. Springerlink, 21(1), 23-35.