Corporations and globalization
Corporation – subject of international
law? - NO
► No
ius contrahendi, ius standi or ius
legationis
► No direct rights or obligations from
international agreements
► Usually PRIVATE ownership
► Registered in one country with offices and
representations spread throughout the world
The 2007 Global 500
FORTUNE's annual ranking
of the world's
largest corporations
www.fortune.com
Largest Corporations
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Wal Mart Stores
Exxon Mobil
Royal Dutch/Shell
BP
General Motors
Toyota Motor
Chevron
Daimler Chrysler
Conoco Philips
Total
Most profitable coroprations
1. Exxon Mobil
2. Royal Dutch/Shell Group
3. United Airlines
4. BP
5. Citigroup
Biggest money losers
1. Ford Motor
2. Vodafone
3. Delta Airlines
4. Delphi
5. GM
6. Coca-Cola Enterprises
Institute for Policy Studies Report 2000
► Of
the 100 largest economies in the world,
51 are corporations; only 49 are countries
► U.S. corporations dominate the Top 200,
with 82 slots (41 percent of the total).
Japanese firms are second, with only 41
slots
► There are now 40,000 corporations in the
world whose activities cross national
boundaries
Strongest economies of the world
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
USA
Japan
Germany
France
United Kingdom
Italy
China
Brazil
Canada
Spain
Mexico
12. India
13. Korea, Rep.
14. Australia
15. Netherlands
16. Russian Federation
17. Argentina
18. Switzerland
19. Belgium
20. Sweden
11.
Strongest economies of the world
Austria
22. Turkey
23. General Motors
24. Denmark
25. Wal Mart
26. Exxon Mobil
27. Ford Motor
28. Chrysler
29. Poland
30. Norway
21.
Indonesia
32. South Africa
33. Saudi Arabia
34. Finland
35. Greece
36. Thailand
37. Mitsui
38. Mitsubishi
39. Toyota
40. General Electrics
31.
Corporations – active in globalization
► Benefit
from the economical growth
► Benefit from liberalized trade
► Benefit from free movements
► Benefit from consumer needs and potential
Transnational coroprations
► Foreign
employment
► Foreign sales
► Foreign assets
 World
wide recognizable logo
 Agencies in almost all the countries
 Mostly located in USA, Japan and Europe
Corporation versus state
Functions of the states „overtaken” by
corporations:
 Retirement programs
 Educational programs
 Medical insurance
 Research programs
 Development of new technologies
Corporations and Human Rights
Corporations and Human Rights
► Human
rights violated by the corporations:
1. Economical  right to fair work condition
2. Social  right to social aid
3. Cultural  right to cultural environment
Labour force problem
►
►
►
►
►
►
abuse of children
abuse of women
low payment
lack of healthy work environment
too long working hours
unsafe work conditions
Corporate Social Responsibility





modern strategy of the corporations
philosophy of coroprate business
respecting interests of different groups:
workers, investors, share-holders, trade
partners
based on sustainable development
showing the human face of globalization
Global Compact
►
United Nations program initiated by Kofi
Annan in 1999
► brings together companies from all over the
world
► to support universal environmental and
social principles
Corporation – subject of international
relations? YES
► Influencial
► Economically
strong
► With wide international interests
► Present in most of the countries
Important vocabulary
•
•
•
•
•
•
•
•
•
•
profit
to dominate
activity
to support
transnational
benefit
work environment
force labour
social principles
trade partner