Wednesday, December 25, 2013

Stakeholder Management

One of the initial arguments that Bendell (2000) has espoused in the first chapter of his book was about the concept of globalization in which Bendell critically assessed the meaning and implication of the term. Citing what others were saying about the term globalization, Bendell noted that the term globalization is not new suggesting that the fluidity of the term has led to a debate about what is really true about globalization.
   
Given the above concept, this paper will attempt to shed light about what really are the arguments raised by Bendell, what are his contributions, and the areas the writer has made these contribution. As one could notice upon reading from the first few lines of the first chapter, Bendell himself was raising his own argument regarding the use of the term globalization contending that globalization is simply a deepening of the trend towards internalization which has waxed and waned over the last century (Bendell, p. 32). In view of this, this paper will be a critical review of Bendells work and will try to identify in what areas the author has great contribution. Thus, the paper will also be a critical analysis and at the same a summary of the authors main agenda in his work.

A brief review of the main content   
As mentioned earlier, one of the key issues that the author has discussed in his book is the term globalization. Indeed the idea that Bendell has raised provides a legitimate avenue by which the term globalization should be viewed. Currently, globalization is seen in a more positive outlook. While this paper does not suggest a pessimistic view of the term globalization, yet it appears that it is unavoidable to talk about the negative aspect of globalization given what Bendell has discussed. According to Bendell, the challenges generated by the growth in cross-border economic transactions in trade, production and finance are multiple and operate at the level of international institutions, the state, social movements and the private sector. There is a fear that the imperatives of competing in the global market place force governments to prioritise economic objectives at the expense of environmental protection (p. 32).
   
Another major issue which is part of the main content of this chapter is the environmental concern in an age of globalization. In this issue, Bendell cited the slow progress of the result of the United Nations Conference on Environment and Development held in 1997 on environmental protection. He contended that the cause of the poor implementations of the goals of the UN conference on environmental protection was the inter-state reforms that are geared towards higher direct returns of investments. Bendell pointed out that the transnational national groups (or the TNCs) want to affect world politics in whatever ways they can they are not oriented merely towards influencing statesthey engage in traditional state oriented politics only to the degree and extent necessary to the dilemmas at hand (p. 33).
   
The failure of the NGOs to deliver environmental protection in view of their approach paved the way for the growth of more radical groups which confronted the corporate sector regarding the increasing institutionalization and bureaucratization of certain parts of the environmental movement. Apparently, institutionalization and bureaucratization hinders the speedy response of the environmental movement towards environmental degradation. What Bendell was actually pointing out were the various efforts towards creating or promoting a global solution on the environmental degradations in an effort to create a sustainable environment and sustainable world.
   
Quite obviously however, Bendell blamed on the Transnational companies the failure of the various efforts to create an environment protection amidst the environmental degradation taking place in various parts of the globe. What Bendell was trying to point was that the political impact of these TNCs, under the auspices of the various international trade agreements such as the Multilateral Agreement on Investment (MAI), the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). Bendell in effect, regarded this moved by the TNCs was manipulation of the states where they operate as the host country are tied and bound by the provisions of such international trade agreements and by the threats of those multinational companies of industry relocation if they imposed restriction on them in view of environmental concern.
   
Likewise, the evaluation made by Peter Newell regarding the emergence of what he called the new politics in the age of globalization gives a broader concept of a new approach towards establishing a more coherent relationship among non-government organizations and transnational corporation. Willey stated, Almost all intergovernmental organizations now accept, as a norm of world politics, that they must have working relationships with NGOs (p. 3). This relationship becomes significant as it allows non-government organization to influence both transnational corporations and governments in such a way that global economic affairs follow new social norms that regulate transnational corporations policy and activities. 

As Bendell (2000) put it, NGOs are actively working to develop international behavioural norms from which companies find it increasingly difficult to escape, wherever they operate (p. 32, 33). The integration of both legal as well as ethical responsibilities being endorsed by non-government organizations to transnational corporations is seen as a powerful tool in the achievement of organizational goals and objectives because of the insistence of social obligation which pertains to the CSR or corporate social responsibility. To explain this, Hearn and Michelson (2006) wrote, Organizations that act in a socially responsible way might enhance their image and reputation among their principal stakeholders in the marketplace, thereby improving financial returns (p. 248).  This only explains how vital the relationship of TNCs and NGOs is towards success in sustainable development goals and objectives as Mintzer put it, As NGOs strengthen their technical and policy capabilities, they are granted greater access, albeit often informally, to the decision-making levels of international processes (p. 272).

Identify the main areas where it makes a contribution
Primarily, Bendells arguments regarding the integration of environmental protection consciousness provides a wider spectrum as it extends its influence from government to transnational corporation. Likewise, NGOs ability to influence is governed by the fact they do not engage in violence as a political tactic nor involve in politically motivated acts thus it is defined as An NGO is any non-profit-making, non-violent, organized group of people who are not seeking government office (Willey, p. 4, 5).
   
Bendell explained that previous attempts to regulate the policies of companies responsible for environmental concerns referring to 21 Agenda and the UNCTC Agenda were a failure however, its replacement  the UNCTAD (the United Nations Conference on Trade and Development) provided a binding commitment which in turn produced cooperation and collaboration among industries in the international level. Bendell noted the growth in voluntary agreements, self-monitoring, and the proliferation of sustainability audits of corporations by external consultants (2000, p. 34). In effect, the efforts made by TNCs as Bendell recalled, are simply to affect world politics in whatever ways they can (2000, p. 33). 
   
Started as an advocacy group in the late 19th century and early 20th century aiming at protecting natural areas, it grew further covering other areas of environmental issues such as acid rain and global warming andor climate change.  In this regards, many government and non-government efforts have adhered spearheading sustainable development that influenced the economic sector, primarily the industry which are seen actively participating in this endeavor in recent years. Thus, the relationship that goes on to pursue worldwide sustainable development is a process that begins with the initiatives made by the NGOs which makes efforts directly influencing the United Nations and transnational corporations.  United Nations in response coordinates the matter among states and countries that make regulations on environmental protection. It clearly illustrates that the industry sector possesses the greatest responsibility in the issue of sustainable development because of the pressures coming from non-government organizations and local governments. Dauvergne quoted,  economic factors have come in recent years to be predominant in explaining industry positions on environmental issues (p. 290).
   
The contributions as a result of this collaboration are noted in several achievements made by different sectors considering the fact that government efforts are less compared to the efforts made by TNCs and NGOs.  In the business sector for instance, voluntary guidelines on the environment was endorsed by the International Chamber of Commerce or known as the Business Charter for Sustainable Development. At the same time, the transnational corporations voluntarily involved themselves as part of the solution to environmental problems (Bendell, 2000, p. 34), thus making themselves partners with government and non government in pursuit of sustainable development, which is the development that meets the needs of the present without compromising the ability of future generation to meet their own needs. Some NGOs on the other hand, has derived strategic turn making use of issues of institutionalisation and bureaucratisation (Bendell, p. 34), which is against the concept of globalization that hampers environmental movements.  Bendell noted that NGOs made partnership with UNCED as a strategy in pursuing change in company behavior instead of relying on government regulations and activities (p. 34).  As a result, there is an increase in groups targeting companies in the pursuit of sustainable development.
   
Likewise, Bendells arguments on sustainable development will similarly impact the government sector because of its failure to impose rules that govern environmental issues as a result of globalization.  As he noted in the early part of the chapter that, There is a fear that the imperatives of competing in the global marketplace force governments to prioritise economic objectives at the expense of environmental protection (p. 32).  The outcome of this is that, local governments have less control over institutionalizing sustainable development with non-government organizations and with business sectors.
Evaluate this contribution (argument)
   
The contribution of Bendells argument lies primarily on the understanding of the impact of globalization on the international concern on environmental degradation spearheaded by the NGOs and United Nations Conference on Environment and Development. The issue raised by Bendell on the status of the various international efforts on the environmental protection should be held timely and appropriate given the existing economic and environmental condition.
   
Bendell mentioned about the impact of economic manipulations and exploitation of the TNCs that result to environmental degradation, in view of the companies greater freedom to choose where to base their business (p. 35). He also cited the various efforts of the NGOs and the United Nations towards the promotion of the international environmental protection. However, he failed to point out what was the consequence of this environmental degradation as a result of this economic manipulation and exploitation which are the basic argument for upholding environmental protection. According to Cross (1999), failure to address existing environmental conditions is likely to result in economic and political instability, life-threatening health effects, and possible international conflict (p. 134).
   
Bendell, though, provided another significant contribution in the area of providing solution to the seemingly irreconcilable conflict of interests. Apparently, what Bendell were suggesting in his discussion of the increasing power of the consumer is that everyone has the responsibility towards the future of the environment in particular and the world in general. This could be done by exercising threats of boycotts against companies that contributes to the degradation of the environment. That is, every individual has the duty to protect the environment to makes the world livable. Bendell should therefore be credited for this idea if indeed, he was thinking of the individual efforts to address the issue of sustainable development in terms of the economic concern in view of the impact of globalization.

Consider developments in subsequent years
Finally, Bendell pointed out that the result of governments failure to regulate TNCs has strengthened the cooperation of NGOs and TNCs, which adopts a solutions-oriented approach that often provides reforms rather than orientation on environmental problems.  The globalization therefore has placed NGOs in an important position as they pursue their confrontations, co-operative approaches, which for Bendell produce positive results.  He attributed these results to the credibility, skill and energy of some ENGOs to work alongside business and other partners (p. 37), in order to persuade these TNCs to participate.  As a matter of fact, he noted some of these developments among companies that by integrating business approaches to environmental issues in many cases these companies become more proactive in their approaches. 
Globalization has changed the way TNCs perceive alliance with NGOs. Intentionally, these TNCs see partnership with NGOs has more benefits than compliance with government policies. Bendell had quoted from a source that,  in order to pre-empt government regulations, firms often seek to develop their own framework of commitments and obligations, often with the help of NGOs (p. 37), who are able partners in this endeavor.  This condition is even heightened by the fact that public is generally more trusting of NGOs than business (Bendell, p. 37). 
   
This growing situation clearly explains that local governments begin to lose their influence and control over TNCs which is a negative impact of globalization.  One could expect as a consequence that this partnership with NGOs will play around government policies which are less powerful if international norms are to consider. 

On the other hand, the partnership could be advantageous to both business and NGOs through which they can strengthen each others interest.  TNCs in particular can enhance their reputation and image among their stakeholders which in turns provide financial gains on their part.

Similarly, the rise of globalization as Bendell argued, gives consumers the greater power to choose that put pressures on companies to improve their products and services.  Thus, the impact of international trade and market on companies compels the companies to seek support or engage with NGOs in their programs in order to influence consumer choice. The relationship therefore is seen as give-and-take as they work within the norm and expectations dictated by the game of globalization. Bendell wrote, The challenge for NGOs monitoring the global activities of TNCs is to generate norms and expectations by which multinational companies operating in a number of countries feel bound in each of their operations (p. 37). 

Apparently, many of multinational companies used environmental issues in their promotional campaigns.  The Body Shop for instance trades on its green image, which stated, We challenged the notion that any business can be environmentally friendly (Schmidheiny  Zorraquin, p. 17).  Similarly, Schmidheiny and Zorraquin conducted study on multinational corporations in Europe, South Africa, South Korea, Hong Kong and Japan that sought to find out their level of knowledge about environmental issues.  It is surprising that 82 percent of the respondents claimed that their company has recognized sustainability (p. 18).  Although there are instances that they do not understand fully the real concept of sustainable development, the level of awareness regarding the importance of compliance is high by 86 percent.
Make some concluding remarks.
   
There are many issues that must be taken into consideration in order to observe harmony in the partnership in such a way that both parties may engage more in a more serious proliferation of sustainable development considering the fact that there is already scarcity of resources in the coming years. One problem that Schmidheiny and Zorraquin had noticed as suggested in the survey was the confusion of some multinational companies on how to integrate the environmental issues in their corporate strategies and activities. To address this, both TNCs and NGOs must take the responsibility to heighten public awareness about environmental issues and about sustainable development by means of this, companies can easily derive ways and methodology in their strategy as what other companies do.

In addition, TNCs in their efforts towards globalizing their business must promote social responsibility through which more strategies may be drawn. Bonanno and Constance recognized social responsibility as a strategy is about good citizenship which contains four-component strategies such as corporate governance, community development, health and safety, and environmental concerns (p. 32).  Adopting any of these components, TNCs may be able to promote sustainable development that coincides with their companys primary interest which is profit-making.
   
In the same way, it is important also to acknowledge the role of government in this endeavor.  Government sector must find its place in the globalization of environmental issues. Schmidheiny and Zorraquin suggested that government can propose clear, consistent, tax neutral and common sense targets for environmental performance and then give business the freedom to innovate and deliver the desired performance (p. 19). At the height of globalization, government must maintain their position regarding this issue in order to establish a community that supports environmental protection. This could be achieved by means of compliance with the protocol made during international conferences on sustainable development.
  
 Hence, Bendells arguments have contributed in the enhancement of awareness about sustainable development in the age of globalization, particularly the important role of NGOs and TNCs in actively promoting sustainable development in every state.  This is evident as many large corporations adopt the principles in their promotional scheme and corporate goal. 

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