Question

In: Accounting

It is often said that globalization creates interdependence between different countries and their populations. This is...

It is often said that globalization creates interdependence between different countries and their populations. This is also true of a company and its stakeholders. Aracruz had what appeared to be legal property rights to the land the Native Americans were claiming. Both sides, the protesters and the company, were interdependent. Aracruz needed their labor and they needed the jobs provided by the company. The government needed the exports developed by the company and the jobs the company created. When viewed from the interdependent view, what should Aracruz do to work effectively with its stakeholders? Or, should it claim the land as its property and deal with the protesters as outlaws and squatters?

Solutions

Expert Solution

With the inculcation of environmental consciousness among various countries of the world and the development of countries especially after the World War II which gave power to various entities that formed after this world war to work as per their needs and can modify and fine tune the policies by doing comparative assessment with other countries of the world. This method of comparative politics is what we are implementing on the problem of global warming where even those countries which are not producing that much green house gas is adopting various measures to reduce their Carbon footprints as it will give them financial benefit. This methodology makes thinks a bit complex as the countries like China which are developing and is producing high amount of carbon dioxide oxide have to follow the same policies as that of Netherlands which is working very hard on green energy, but this is very effective in long run because the standards which Netherlands is following is up to the mark and if developing countries would be following these policies then they can have their development intact and won’t cause any problem to the climate.


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