Globalism: The impact on corporate giants

Globalism

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Plenty of debate has been seen making rounds, discussing the effects of globalism as opposed to economic nationalism.

While on the one hand, President of United States, Donald J. Trump, was noted saying, as he opposed globalism during his 2016 presidential campaign.

We will no longer surrender this country, or its people, to the false song of globalism – Donald J. Trump, President of United States

The Canadian Prime Minister, Justin Trudeau, on the other hand, was seen pitching globalism to some of the corporate giants that run the Silicon Valley, last month. Trudeau suggested the California-based tech firms to set-up businesses in Canada, taking into consideration the country’s new fast-track visa and globalist approach to things.

Understanding Globalism as an Important Social Cause

In order for us to identify how globalism can benefit corporations, we must first start by understanding the concept of ‘globalism.’

What is Globalism?

Consider the following:

Globalism is the belief in leading a life that abides by the term ‘Globalization.’ To grasp the meaning of globalism, it is, therefore, vital for us to understand globalization.

Globalization refers to the process of promoting connectivity amongst people from across the globe. The term represents no claims as to whether globalization is beneficial to the society.

Whereas, globalism is a theory that is firmly rooted in the concept of globalization and argues that it is beneficial for everyone.

Therefore, in simple words, globalism is a belief that supports the creation of ‘one world’ and rejects the roles of separate nations each with their unique identity, cultural belief, etc. It is a so-called anti-American culture and encourages Americans to adopt a perspective that sees things with respect to the ‘world’s view’ as opposed to the ‘American view.’

Key Concepts of Globalism

Globalism is firmly based on the following four fundamental concepts:

  • Global Culture: An emphasis on the belief of sharing a standard set of social and political norms across the globe.
  • Neoliberal View of Personhood: This principle promotes the implicit belief that human beings are and should be viewed from a similar perspective as goods and services.
  • A Borderless World: The idea of a borderless world promotes the ability to allow an exchange to take place regardless of boundaries. This belief focuses on the free movement of people, goods, money, and services all across the globe.
  • Flat Earth Morality: This concept promotes the understanding that all individuals and entities should make decisions while keeping in mind the effect it would have on the entire planet.

Globalism & Corporations

Displaying an interest in social responsibility has always been important to businesses of all sizes. Allowing them to demonstrate that a company takes an interest in issues extending beyond just profits and its corporate interests, taking on social responsibility allows businesses to build a highly regarded reputation in the industry.

For a business in search of a social cause that matches its profit-driven strategies, globalism stands out as a cause that allows companies to ‘make a difference’ and maximize their profits – both at the same time.

Benefits of Globalism for Businesses

The simple belief that businesses should be free to trade regardless of any border, or that they should be able to have offices set-up in different countries allows them to address their business goals and social responsibilities side by side.

The following are three ways globalism benefits our society’s profit-driven businesses:

1. They can easily become a trusted brand

Being able to establish brand identity in different regions of the world will allow a company to develop a real image of themselves.

2. They can save on taxes

For corporations looking to keep a large piece of the pie all to themselves, globalism allows them to turn to tax havens.

3. They can acquire a well-seasoned employee base

Imagine every business being able to work with cheap labor from China. Being able to have their base set-up all across the globe, businesses can have access to a well-seasoned team of employees, and that too at more affordable rates.

Globalism is the Best Social Cause for Corporate Giants

There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits – noted Milton Friedman, Nobel Prize winner and American economist.

Reflecting on Friedman’s view that stresses the importance of businesses to utilize their resources to their full potential, globalism can become perhaps the most influential social cause amongst corporate giants.

While influential figures, such as Trudeau, are seen advocating for globalism, it is to be noted that globalism has already taken its place in the hearts of few of the dominating corporations, including:

Coca-Cola

Coca-Cola is a multi-billion dollar corporation and is ranked amongst the big guns in the industry. The corporation, very soon in their run, realized that they could never achieve their set business goals if they continued to focus on the United States solely. The company quickly looked to expand into new territories and currently caters to consumers worldwide.

Royal Dutch Shell

In the 90s, Shell was primarily organized on a national basis. In other words, each country had its own independently operating company under the banner of Shell. It was in 1998 that Shell acknowledged that its country-centric model was not appropriate and decided to take a globalist approach.

McDonald’s

If there is a corporation that best sets the example for all the others for globalism, it would be McDonald’s.

McDonald’s exercised globalism by adapting to the needs of the global market. They offered halal menus that met the food preparation standards set by Muslim countries and kosher items for the Jewish community in Israel. McDonald’s currently stands with 14,155 restaurants in the United States and a little over further 22,744 in international locations. The corporation, extending beyond borders and uniting people of different parts of the world, had worldwide revenue of $24.62 billion in 2016.

Although these three corporations represent only a small chunk of the growing number of companies that have or are looking to adopt globalism, they allow us to understand the significant impact of globalism on the corporate sector.

Globalism: The impact on corporate giants