Discuss the Impact of Globalisation on CSR.

By drawing on academic theories, research evidence and practice-based examples,
Discuss the Impact of Globalisation on CSR.
Corporate Social Responsibility (CSR) has long been under discussion with a continuous evolution
of the definition. Bowen (1953) first explored the concept with an ideology around ‘What
responsibilities to society may business men reasonably be expected to assume?’. It was here when
a firm’s responsibility, outside the profit-and-loss statements, began to emerge. Davis (1960)
further developed social responsibility into a managerial context, and the concept received
evolving refinements after important movements of the 60’s, such as the Civil Rights movement,
the Consumer movement and the Environmental movement (Carroll, 2016). However, some
traditional attitudes believe in the firm only showing economic responsibly and CSR should occur
under the long-term profit interests of a company (Hillman, Keim and Schuler, 2004). Alternative
perspectives and definitions have continued throughout academic research with one of the most
influential CSR models today being Carroll’s CSR Pyramid (1991). This model defining that
corporations hold an economic, legal, ethical and philanthropic responsibility.
Globalisation is defined as “the process of intensification of cross-area and cross-border social
relations between actors from very distant locations, and of growing transnational
interdependence of economic and social activities” (Scherer and Palazzo, 2009, P3). Globalisation
is a product of political decisions, in combination with technological, socio-cultural and
economical advances (Schere and Palazzo, 2009). It has resulted in an increase of foreign direct
investments and global supply chains, with a rising number of global brands operating in
developing countries, with this, national states have loss some political steering power as activities
are expanding beyond that of the state’s territory. The behavior of different communities and
countries begin to influence outcomes of another and the rise of global, social and environmental
problems are not limited by national borders (Beck, 1992). Furthermore, Society values has
become pluralized as an outcome of globalisation; and within a new developed world society, a
world state and world government are missing (Beck, 2000). Additionally, rapid technology
change and reduced cost of transmitting and communicating has occurred leading to advanced,
increased connectivity of people and information.
This essay aims to address what impact the complexities of globalisation have had on CSR.
Firstly, it will explain an instrumental approach to CSR, critically analyzing the key relationship
between the state and the market and their responsibilities. It will next explore and explain how
within the complexity of a Globalisation world CSR cannot sustainably operate with this approach
utilizing the palm oil industry as an example. Following on, it will describe the new role of global
governance within CSR. This discussion breaking down what responsibilities global governance
hold and how this affects the relationship between the firm, the government and the civil society
sector. Finally, an assessment on how a new CSR approach is being applied to the Palm Oil
Industry.