Responsibility international financial intuitions that wrote them (Trakaniq 2015)

Responsibility of International
Businesses

The death of a protester in Genoa in
2001
was just the start of the casualties in the war against globalisation. For decades people in the developing world have
protested the austerity measures imposed
in their country, what is new is the recent
wave of riots in the developed countries. Overnight, globalisation has become
the most pressing issues of our time. The West has driven the globalisation agenda, ensuring
that it reaps a disproportionate share of the befits at the expense of
the developing world. Not only trade liberalisation but also in agricultural
and infrastructure projects recommended by the West
have massively backfired, the projects designed with western advisers and funded by the world bank have almost always
failed(Stiglitz 2003). Other disadvantages include the destruction of the environment,  corrupted political practices and lack of cultural
adaptation.  The worldwide reaction
against the policies that drive globalisation has evolved from optimistic to
distrustful. The screams of the poor in Africa and developing countries in
other parts of the world have been largely unheard in the West, the problem
became evident when the financial crises became abundant, and poverty rose (Stiglitz 2003). The
disadvantaged have no way to influence the international financial intuitions
that wrote them (Trakaniq 2015) .Global
level cooperation among nations proceeds through international economic organisations. While the WTO sets the
institutional foundation for the global
trading system, the IMF and the World Bank provide a framework for global monetary and financial systems(Hurst 2017). Globalisation has provided renewed attention to intergovernmental
institutions such as the United Nation (UN) and the world Health Organisation (WTO). To
recognise the failures of globalisation, we must deconstruct and analyse the
main institutions that govern globalisation: the IMF, the world bank, WTO &
a large number of UN organisations (Stiglitz 2003). Most of these organisations are run and influenced by developed
countries. Over time it became apparent that the IMF and the world bank became
the new missionary institutions, through which the western idealism was pushed
on reluctant developing countries. Aggarwal & Evenett
(2013) believe that WTO has resulted
in global fragmentation and only seeks to benefit
developed countries. Globalisation has
not brought the promised economic benefits for many in the developing world, the actual number of people living in
poverty has increased by 100 million the same time as total world income grew.
In Africa standards of living continue to
fall alongside income.. The gained years in life expectancy has now started to
decline with Aids and poverty at large. Countries that have abandoned
socialism, installed reasonably honest
governments, balanced their budgets and
kept inflation down are struggling to attract private
investors and cannot have sustainable growth(Stiglitz
2003). Globalisation has
lead to financial contagion. Haque (2011) believes
that  “the set of ideas inherited from
the industrial age that no longer works for business, people, society, or the
future” therefore it is critical the approaches to managing globalisation are
re -amped. The proportion of people in extream
poverty declined by more than half between 1990-2015(Steffen et al 2015). Global GDP has expanded sixfold due to rapid
development nevertheless growth drivers such as rapid urbanisation and use of
fossil fuels are no longer sustainable, globalisation has created winners and losers.
Climate change has increased the vulnerability of extream weather events and
changing rain patterns; the socio- economic impact is greatest in communities
of the developing world who already suffer from extream poverty, malnutrition
and associated diseases(Stiglitz 2003). The Guardian reported that the economic impact of global
warming costs the world more than $1.2 trillion a year, wiping 1.6% annually
from global GDP (Harvey 2012). By 2030 the cost of climate change and air pollution
will rise to 3.2% of global GDP, with the world’s least developed countries
forecast suffering losses of up to 11% of their GDP(Harvey 2012). Michael
Zammit Cutajar, former executive secretary of the UN Framework Convention on
Climate Change, said: “Climate change is not just a distant threat but a
present danger – its economic impact is already with us.”. The World Bank
estimates that failure to take action now to halt climate change puts 100
million people at risk of falling back into poverty by 2030(Rozenberg et al. 2015).
The sustainable development goals (SDGs) (figure 1) are the new set of goals,
targets and indicators that the UN member states will be expected to use to
frame their agendas and political policies over the years(Harvey 2012). These
goals follow and expand on the millennium development goals (MDG’s) which were
set as a target in 2001 and expired in 2015. 
The MDGs; reduce poverty and hunger; achieve universal education;
promote gender equality; reduce child and maternal deaths; combat HIV, malaria
and other diseases; ensure environmental sustainability; develop global
partnerships were deemed to be too narrow, failing to consider the root causes
of poverty(UNICEF Zimbabwe 2017). The goals lacked attention to economic development
and ignored the holistic nature of development and highlights the original
MNG’s ineffectiveness of existing approaches to managing globalisation  (Jacoby & Meunier, 2010).

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Unlike the MDG the SDG were chosen
around the UN largest consultation programme. The group consisting of
representatives from 70 different countries had its first meeting in March
2013, by August 2015 the goals and targets along with the preamble and
declaration that comes with them were agreed (Harvey 2012). Now
it is more viable that the SDG’s “can provide essential solutions and resources
that will put our world on a more sustainable
path” (Ban Ki-moon, 2016).The UN Global
Goal 17 recognises business as indispensable to sustainable development. As
consumer culture shifts towards sustainable practices, a few businesses have
already adopted the goals into future objectives and market direction many to
benefit from the financial gains it brings. However, most businesses recognise
sustainably as a target in corporate social responsibility (CSR), investment
into CSR is heavily adopted to protect brand reputation.

 

The
Business and Sustainable Development Commission identifies that “Business
leaders need to strike out in new directions to embrace more sustainable and
inclusive economic models.” (Malloch-Brown et al.
2017) .”The set of ideas inherited from the
industrial age that no longer works for business, people, society, or the
future” (Haque, 2011).  By incorporating
the Global Compact principles into strategie

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