The Global Society

Corporate Social Responsibility (CSR) represents a company’s voluntary commitment to address the ethical, social and environmental factors associated with its operations. Despite its potential for furthering social needs CSR activities may come under severe pressure in an era of increased global competition and during business cycle downturns.

Around the world – from the U.S. to Europe, from Latin America to the Far East – people are losing their jobs in the aftermath of the financial crisis and the consequent economic downturn. In Europe and the U.S., many of them are joining the ranks of the unemployed; in China, many are returning to the rural areas from which they came. In developing countries millions and millions of workers are being pushed into extreme poverty.

Worldwide, 1.3 billion people do not have access to effective and affordable health care. Low- and middle-income countries bear 93% of the world's disease burden, yet account for only 18% of world income and 11% of global health spending.

What systems of infrastructure, education and training are required in poor countries to support a well-functioning health care system?

The new wave of globalization may be expected to create new patterns of inequality within countries. Inequality has long been a problem in developed and developing countries, but the new wave of globalization – through new patterns of outsourcing, offshoring and technology diffusion – may be creating inequality along new lines.

International labor migration promotes economic development in sending countries and can help overcome skill shortages and demographic problems in host countries. Nevertheless, many of these potential benefits are not realized because immigration policies are often too restrictive and not harmonized between host and sending countries.

According to the ILO, income inequality has increased in about two-third of the countries of the world since 1990s. The current global financial crisis and the accompanying worldwide economic recession are expected to further widen the gap between the rich and the poor (ILO 2008).

Globalization and social fragmentation are the two controversial issues that will determine the future world order. Globalization promises to yield substantial economic benefits for all participating countries, but not necessarily for each individual or each group within countries in the short term.

As populations age in many countries all over the world, fewer prime-aged people will be there to care for more of the elderly. Increasing pension and medical care expenditures will raise governments’ (or families’) financial burden. Higher taxation on earned income to cope with the increased financial burden runs the risk of impairing incentives to work and the willingness to learn and qualify for life.

In the aftermath of the collapse of the western financial system, many observers agree that neither unfettered financial markets nor invasive regulation are able to ensure that financial and business leaders will necessarily act in the public interest.