New Horizons in International Business series
Edited by John R. McIntyre, Silvester Ivanaj, Vera Ivanaj and Rabi N. Kar
State regulations to protect the environment have increased all around the world, and all large companies have developed corporate social responsibility (CSR) programs. However, the environmental crisis is not over, and is even worsening year after year. Why? Many explanations are possible. One of these is that despite the efforts of their promoters, these programs and regulations did not achieve their goals because they failed to discipline the very complex organizations that companies have developed to adapt to globalization. This chapter describes the transformation of firms in the phase of globalization initiated in the early 1980s, and analyzes the reasons for the failure of both regulations and CSR programs to reduce effectively the ecological burden of industrial activities. It then shows how regulations and CSR programs progressively adapt to this globalized context and suggests ways that could make the control of the global firms more effective. The conclusion returns to the role of the organization in generating social costs.
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