Here is the speech I gave on the topic:
On 24th April this year, an eight-story building
collapsed in Bangladesh. The building housed many garment factories. Over one
thousand people died and over two thousand were injured. It is regarded as one
of the deadliest accidents in modern history. Could it have been prevented?
Good morning friends, today I am going to speak on Socially
Responsible Globalization. Firstly, I will speak on globalization and it’s
advantages. Then, I will talk about some challenges before globalization, and,
finally I will talk about the need for social responsibility.
Globalization has led to interconnected world,
interconnected economies. It promotes efficiency in production and promotes
economic growth. Consumers get the maximum benefits. It is said, that
globalization is like a rising tide, which lifts all boats. Globalization has
created lot of jobs in various poor countries, lifting millions out of poverty.
There are many challenges for globalization. For most
multinational companies the aim is to maximize shareholder value, and maximize
profits. Many companies outsource their production to poorer countries where
the cost of labor is considerably less. In most cases, they claim that the
local factories are responsible for any accident that may take place. There is
a lot of competition and in the process of cost cutting, the factories
compromise on working conditions and also pay less. There has been a
considerable progress in making companies accountable for adhering to environmental
standards, but there has been limited progress in addressing social issues,
human rights, transparency and corruption.
Accidents such as the Rana Plaza in Bangladesh, or the
suicides in Foxconn factory in China, or any poor working condition in sweatshops
lead to an instant public outcry. The company concerned looses some
credibility, and image. Therefore, now, there is a need for socially
responsible globalization, wherein the stakeholders are important and not only
the shareholders.
Consumer demands and preferences have already made many
companies more aware, more socially responsible. Starbucks claims to sell responsibly grown
and ethically traded coffee. Nike, which was once associated with bad labor
practices, has turned its image around. It was one of the first in industry to
publish a list of factories that it has contacts with. It publishes a report on
the working conditions and pay in its factories acknowledging various issues.
Many people claim that sweatshop factories should be closed.
Many argue that these factories are perhaps the best alternative available to
those people. The factories cannot be closed, however the working conditions
can surely be improved. Globalization should lead to creation of regulatory
frameworks across nations. Companies should be incentivized to be socially
responsible. This combined with consumer
activism and initiatives taken by multinational companies will help in preventing
accidents such as the Rana Plaza in future.
Every company needs to be socially responsible, for its own
benefit and for the benefit of the society. It is a win-win proposition.
