1. © Peter Dicken 2015

2. Making the World a Better Place
Global Shift
Chapter 11

3. Review Concepts to Review Key Words
Corporate social responsibility, global civil society organizations, inequality, WTO, cyclical volatility, environmental regulation, 2008 financial crisis
Key Words
Poverty alleviation, alternative forms of global economic system, the G20, global governance systems, the Bretton Woods agreement

4. Corporate Social Responsibility
Global Civil Society Organizations
Vary from the anti-capitalist to the national
Often have contradictory agendas
Force people to engage with the unevenness of globalization
Corporate Social Responsibility
Milton Friedman: companies only exist to maximize shareholder value
Alternative: stakeholder capitalism
Define: inactive, reactive, active and proactive approaches
Participation may be altruistic or through self-interest
Codes of Conduct
Four major types
devised by TNCs
drawn up by coalitions of interest groups
formulated by TNCs in association with stakeholders
established by NGOs

5. Global Governance Finance International Trade
Bretton Woods agreement, 1944
International Monetary Fund and World Bank created
Since 1970s, agreement undermined, leading to a market-led rather than state-led system
In 1997: Asian crisis, calls for a reformed financial architecture
In 2008: need for a new financial architecture for everyone made plain
Most important development is the emergence of the G20
International Trade
Regulated since Second World War by the GATT and since by the WTO
WTO takes rule-oriented approach to multilateral trade cooperation
Fundamental basis is non-discrimination, based on
most-favoured nation principle
national treatment rule
The Doha Development Round (2001–)

6. Global Governance (cont’d)
Transnational Corporations
– No international regulatory body like the GATT/WTO
– Discuss history of failed attempts to develop an international framework
– Conflicts of interest: TNCs, states, labour bodies, GCSOs
– Tax avoidance
– Geographies of offshore finance
Environmental Regulation
– 1992: Framework Convention on Climate Change (FCCC)
– 1997: Kyoto Protocol
– Problem: developing countries adopting measures that could prevent their future economic development

7. A Better World? Alternative Economies
Neo-liberals: argue for more openness of markets
Anti-globalizers: argue for the opposite
Environmentalists: need to take environment into account
Development of ‘community economies’ and micro-finance
Openness Versus Poverty Alleviation
IMF and World Bank encourage openness as cure for all ills
This only works if playing field is level. Opening up a developing economy will also lead to disaster
hence the need to have means in place to develop robust internal structures
UN Millennium Development Declaration: to alleviate extreme poverty
Aid programmes failing to meet needs
Prosperity is not just about money: it can also be about happiness, well- being