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Weekly UpdatesAn extensive review of the corporate literature reveals that in the business world, globalization conveys interdependence, integration, and connectivity of the world community (for detail see Ali, 2000). Based on this review and familiarity with the latest conceptual developments in the areas of global and competition studies, the following definition of globalization is suggested: Globalization is a set of beliefs that fosters a sense of connectivity, interdependence, and integration in the World community. It highlights commonalties without overlooking differences, and it extends benefits and responsibilities on a global scale. In terms of business operations, globalization means the ability of a corporation to conduct business across borders in an open market, the maximizing of organizational benefits, without inflicting social damage or violating the rights of people from other cultures.
There are certain elements in the above definition that are important for understanding the linkage between business operations and societal development.
Interdependcnce
This refers to the fact that in the globalization era, events that take place in a given country have an immediate and direct impact on other countries. Countries and societies no longer live and operate as isolated self sustained entities. In addition, these events influence the business operations and market position of corporations. For example, Procter & Gamble on February 26, 2001, cited the economic crisis in Turkey and the devaluation of its currency, the lira, as the reason for the possible decline in its profit.
Connectivity
This is a qualitative aspect of the human journey across time. People are aware, regardless of their geographical space, of the existence of a world community. Connectivity refers to the tact that today's communities, groups and individuals across the globe share a common set of expectations and principles. That is, these forces across the globe anticipate civility in behavior and conduct. In fact, civility becomes the foundation for global transformation. Likewise, connectivity means that geography and times are no longer a major constraint for people to interact, participate, and be involved in activities globally. Information technology, openness and corporate activities render many of the psychological and physical barriers obsolete.
Integration
Minimizing the impact of negative events and maximizing benefits become more than ever a collective endeavor. Fighting AIDS, corruption, money laundering, drugs, poverty, economic crises, and environmental and terrorist threats, for example, is no longer confined to one government. Governments all over the world along with non-government organizations and corporations, have to join resources together to design programs and strategies to eliminate or reduce threats to the well-being of the world community. World economic and trade activities clearly accelerate interdependence and integration. At this time, these activities have been accompanied by cultural and political transformations that have profoundly altered world realities and intensified connectivity.
Awareness of Commonalities and Dissimilarities
This is one of the most misunderstood elements. Some think-tank intellectuals suggest that the globalized world must be created according to the image of the existing superpower(s). That is, there must be a global unification of cultural, economic, and to some degree political orientations. Globalization, however, neither seeks unification nor promotes convergence. Indeed, globalization, in its spirit and aims, appreciates differences and treats them as a foundation for human self-expression, creativity, and co-existence. Globalization provides a fine balance between pragmatism and idealism. Thereby, it lays the foundation for civility and for genuine tolerance and diversity. It is worth mentioning, however, convergence around effective organizational practices and in areas of trade rules and regulations, and human rights may as a result take place.
Global corporations and executives advance diversity and consider differences, be they ethnical or otherwise, as a foundation for open markets and competition. Global corporations, therefore, do not support or promote global cultural and economic unification. They understand that the world's diversity in all its forms manifest opportunities and dynamism. For example, Caterpillar (1992)asserts,
Similarly, Cot Herkstroter (1996), Chairman of the Dutch/Shell Group, argues that "[t]hose who would impose one standard on the whole globe, the moral imperialists are clearly wrong." Global managers, unlike politicians, are not comfortable with hegemony. William Holland (1996), Chairman and CEO of United Dominion Industries, asserts that businesspeople should "question the so-called `facts' that politicians and media send out." He calls for nurturing understanding among citizens of the world rather than dominating others. This signifies a fundamental difference between hegemonic and global managers' orientations toward global affairs. Global managers perceive globalization as an inclusive process that maximizes participation and induces access to global economic and technological benefits.
Shared Benefits and Responsibilities
Previous world systems condoned benefits for the hegemonic power and giant corporations but released them from any moral or economic obligation to the rest of the world. In the globalization era, benefits and responsibilities go hand in hand. Not only in an open market system do goods and services cross borders with minimal or no barriers, but also rules of law are observed. Furthermore, corporations view the whole globe as the arena for their activities. No market or region is ignored or left behind. Corporations pursue opportunities in every corner of the world and simultaneously consider the present and potential consequences of their activities on the communities and regions where they operate. All global actors' activities are scrutinized and transparency is normal.
The preceding elements highlight the nature of globalization as a concept that will enable the world community, to step forward with optimism to overcome formidable obstacles. More importantly, however, globalization provides the key for understanding the transition, as a world community, to a new millennium. Therefore, the nature of these elements strengthens the belief that the future is brighten than was once thought.
REFERENCES
Ali, A. (2000). Globalization of business: practice and theory. New York: Haworth Press
Artzt, E. (1990, May 21). Strategies for global growth. Speech delivered at a meeting for leading financial analysts at Procter & Gamble, Cincinnati, Ohio.
Caterpillar (192). Code of worldwide business conduct and operating principles. Peoria: Caterpillar.
Cohen, W. S. (1998a, Oct. 16). Remarks at Fortune 500 Forum Dinner Keynote. Pittsburgh, PA. Defense Issues on the web: www.defenselink.mil.
Friedman, T. (1998, April 18). Techno-nothing. The New York Times, A27.
Gorbachev, M. (2000, December 25). Dear Mr. Bush. Washington Post, A45.
Herkstroter, C. (1996, December l), Dealing with contradictory expectations: Dilemmas facing multinationals, Vital Speeches of the day, 100-105.
Hodgetts, R. and Luthans, F. (1994). International management. New York: McGraw-Hill
Holland, W. R. (1996, May 12). Citizens of the world -- Building bridges across boundaries. Vital Speeches of the Day, LXII, 562-64.
Rothkopf, D. (Summer 1997) In Praise of Cultural Imperialism? Foreign Policy, 38-53.
Stonecipher, H. (1996). At what price peace. Vital Speeches of the Day, 62 (8), 250-251.
Thatcher, M. (1993). The Downing street years. New York: Harper Collins
Waltz, K. (2000). Globalization and American power. National Interest, Spring (59), 46-56.
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