Introduction
Towards the end of the twentieth century, it became apparent that fundamental changes were afoot in the world economy that profoundly affected business, politics, society, citizens and the ways in which various stakeholders interacted with each other. This process became known as globalization, which became a frequently overused and contested term that came to mean all that was good or bad in the world economy. For those who welcomed the supremacy of markets and economic liberalism, globalization offered the possibility of boundless growth and prosperity, not only for developed countries but also for those developing countries brave enough to embrace rather than resist globalization in all its manifestations (Johnson & Turner 2003). For others, globalization threatened rising inequality, economic anarchy and a surrender of political control. In developed countries, job losses and the unraveling of social progress were anticipated as a result of greater competition from low-cost countries whereas developing countries feared that their former colonial subjugation had been replaced by the dominance of market forces and its agents in the form of multinational enterprises (MNEs) (Johnson & Turner 2003).
Many firms begin the internationalization process when they are relatively small and develop their overseas presence gradually. They establish themselves in their domestic market first and then start to move abroad via a series of incremental steps. This movement abroad tends to occur earlier in the case of companies established in small domestic market. The biggest obstacles to internationalization are lack of knowledge and resources. Incremental learning reduces the perceived risk of overseas investment and continuing internationalization is encouraged by presence in a foreign market (Johnson & Turner 2003). The impact of an internationalized business upon the economy depends upon the prevalence of an entrepreneurial culture. This varies across space with some regions or localities well known for generating ‘clusters’ of dynamic firm that benefit from information spillovers as well as other intangible factors. The development of clusters can be of special importance to different business allowing them to bypass some of the financial and other practical problems that they would otherwise face in their development (Johnson & Turner 2003).
International businesses create a different kind of impact to the environment. Once founded in newer markets, the tendency for other firms is to improve their strategies to counter the threat of international companies. Their emergence leads to a tougher competitive environment but the company’s tend to focus on the better delivery of services to their clients. International organizations are affected by various things in its environment. They are affected by the situation in the environment. Most business would want to go international because of the privileges acquired from internationalization. The paper will discuss about two strategic issues that international companies perceive as vital components in showing that a company has corporate responsibility and has strategies pertaining to it.
Example of international organization
Apple was founded by Steven Jobs and Stephen Wozniak in 1976; Apple Computer Company revolutionized the personal computer industry and epitomized the rise of clean industry in the New West (Birzer & Schweikart 2003). In 1984, Apple introduced the Macintosh, which was aimed at the business and education markets, by which time the company had already not only changed American industry but had reshaped entire areas of the West around silicon. In 1996, after a series of CEOs failed to keep Apple profitable, Steve Jobs returned under the rubric interim CEO and soon launched a new marketing and licensing relationship with Microsoft. In 2000 his direct sales concept, the Apple Store brought the company back to profitability (Birzer & Schweikart 2003).In 1994 Apple computers launched a new line of computers based on the PowerPC processor chip. The creation of the new chip was a joint venture between Apple Computers, IBM, and Motorola, and because the new chip was capable of being compatible with the market leading Intel chip, it was marketed as a major breakthrough in computer technology. If emulation software was purchased by a consumer, the consumer could run both software made for Apple computers and software made for Intel PCs on the same Apple machine. The machine was even being called a PC with a free Mac inside (Gottinger 2003).
Apple computers had controlled about 8-10 percent of the personal computer market since 1984, and recently it had been struggling financially (Gottinger 2003). Those at Apple hoped that compatibility with the Intel-based PC and its 85 per cent market share would dramatically increase the market share of Apple computers. The results from the introduction of the new product were not everything Apple had predicted or had hoped for. The increased competition from the PowerPC chip forced Intel to slash the price of their Pentium chips by 40 per cent. Thus Apple did not live up to its promise of cheaper computers (Gottinger 2003).
Apple Computers Inc is considered to be one of the businesses that created a huge amount of change and improvements in the computer industry. It brought about different changes to the industry; these changes are still visible in the present and it still provides benefits to different people even at this times. The products of the company provide benefits not only to the clients but to competitors as well. The company’s products were used as a basis by other computer company’s in designing the specifications and physical characteristics of their product. It also serves as a meter of how products are designed. The company offers various products for the different market it targets. Apple Computers Inc. has made products for its consumers found in various parts of the world. It has reached places not reached by its competitors and it tries to satisfy all the needs the needs of their clients wherever they are. The company considers 2 issues as the ones they believe as an important component in addressing social responsibility for businesses. The two aspects that the company considers contribute to the participation of business in showing that they have social responsibility. These issues are discussed below.
Strategic Issues that international firm perceive as important
Economics
The economy of Apple continues to improve as the years develop. This can be a good thing for the industry and for the company. The company and the industry can take advantage of the improvement in the economy through it inviting more investors to put their stakes in the company. The investors would provide a more stable financial source for the company. This would increase the capital of Apple computers Inc and more I-pod mp3s can be made. This also means the products of the company can be improved for the benefit of the clients. With more finances comes better technology that can create better products. The improving economy can also help the company attract more clients. A better economy can attract the citizens of Australia to buy the I-pod products from the company. The improvement in the economy is important because it helps in addressing what will be the limit for the budgets that will be used in providing corporate social responsibility. With better economy means a better chance for the company to use higher budgets in doing activities that promote corporate social responsibility.
Technological
Apple Inc. makes use of various technological innovations that help in increasing productivity and improving the quality of their products. The technologies that used by the company passed international standards and its benefits were proven by various companies. The company can make further use of technology by using it as a means for the organization to provide easier way for the clients to transact business with them. Technology such as the internet can be used by the company as an alternative means for them to do business with their clients. Apple Inc. offered changes in the sector it belonged to. It made sure that it made known newer ideas that will be popular in the music player industry. Technology is the other issue that businesses in the international setting believe as a vital factor in addressing issues pertaining to social responsibility. Technology must be top of the line and it must have lesser flaw so that it can be used to engage in actions pertaining to corporate social responsibility. The technology will help in performing corporate social responsibility faster and with more efficiency. The technology will also be the one that will be used to perform social responsibility. Without technology places that are hard to reach cannot be accommodated and the company cannot perform social responsibility on that place.
Corporate social responsibility and international firms
Business is a social phenomenon. Societies have developed various kinds of social rules, such as legal rules, or even the rules of etiquette, which act as a framework or guide to behavior. Moral rules are sometimes regarded as just another set of social rules, but societies are structured around moral rules in a peculiarly fundamental way. In fact moral precepts are frequently used to criticize the other kinds of social rules which guide human conduct. Most notably there can be clashes between moral rules and legal rules. Corporate social responsibility involves the idea of business being proactive in its relationship with a range of social actors and doing more than just trying to avoid breaking moral rules. Managers of corporations are merely agents of the shareholders in the companies they work for (Theaker 2004). The owners of businesses, the shareholders, are the only people to which managers are accountable and the only responsibility managers have is to act in their interests. This means maximizing profits so that the shareholder will make as much money as possible from their shares. The practice of corporate social responsibility is usually regarded as a public relations function because this is where the company meets the public outside the usual roles of producers and customers. If the beneficiaries of corporate social responsibility are to be treated as ends in themselves, then they should be accorded equal status in defining the relationship between the corporation and themselves. In respect to corporate social responsibility programs it would mean that all stakeholder groups including the potential beneficiaries of such programs should contribute to the decision-making process. This would demonstrate that companies are treating the beneficiaries of corporate social responsibility with good will and as ends in themselves (Theaker 2004).
Taking the comprehensive CSR perspective can be a legitimate move and is of utmost importance to the corporate sector. It is legitimate for two reasons. From a global governance point of view, integrating social and ecological concerns into business strategies is a necessary and important corporate contribution to efforts at moving to some form of governance in these fields. From a corporate governance point of view, CSR is a convincing stakeholder model in the ongoing debate about defining adequate new forms of relationships and decision making within a company, as well as between a company and its environment. Even though neither of these two governance perspectives is usually explicitly associated with CSR, it seems that this is what the new paradigm is essentially about (Möckli & Wenger 2003). Ethics and Corporate social responsibility provides a better relationship between companies and other people in its environment. Ethics and corporate social responsibility contributes to the success or failure of a firm. International organizations need to have corporate social responsibility that will help them develop a good relationship with their clients and other people in their surroundings.
The Corporate social responsibility strategies of the company focus on using the issues of economy and technology to determine what activity can be done to point out that they have corporate social responsibility. The economic stature and technological considerations constitute a big part of how the company wants to show responsiveness to social situations. With limited economic and technological resources come limited actions. The economy and the technology give Apple the opportunity to create strategized actions that will help them show that they care for the society and they can provide assistance to those needing in the society. The strategized actions will depend on the economic situation of the company and the technological capabilities it has.
Conclusion
Just like other international companies Apple Inc considers 2 issues as the ones they believe to be vital factors in showing that they have social responsibility as a company. One of factors Apple believes to be a vital factor in showing they have responsibility is the economy, the other factor is technology. The improvement in the economy is important because it helps in addressing what will be the limit for the budgets that will be used in providing corporate social responsibility. Technology is the other issue that businesses in the international setting believe as a vital factor in addressing issues pertaining to social responsibility Technology must be top of the line and it must have lesser flaw so that it can be used to engage in actions pertaining to corporate social responsibility.
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Credit:ivythesis.typepad.com
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