Question

How do corporations deal with corruption? What is the relationship between capitalism and globalization?

Answer 1

Corruption is one of the growing concerns that every company is facing in this modern world. Corruption mainly occurs due to human's greed in order to earn more or offer help to his related persons. Corruptions in corporates can be eradicated through the following ways:

1. By framing a strong code of conduct policy strictly banning all types of bribery and to show that the company has a zero-tolerance with respect to the corruption and bribery

2. Have a complete review of all the departments and processes in the company which are prone to bribery and take effective measure in order to eradicate such activities

3. Formulate and encourage whistleblowers in order to report the activities of corruption and send a message to all the employees regarding the strategies and goals of the company will be hindered with the corruption

4. Create a greivance cell where the employees and customers can communicate regarding the activities of corruption taking place in the company

Relationship between capitalisation and globalization :

Capitalism : It is the system of economy in which the private parties other than the government controls the means of production mainly having profit motive rather than public welfare

Globalisation : It is process of business in which a particular corporation opens up its doors to outside world to trade and communicate in order to increase the network of sales thereby creating new markets for its products.

Relationship : With the help of globalisation, a capitalist economy and transcend its operations crossing borders of the nations which helps in taking the means of production in an economy to the next level of utilisation like availability of cheap labour, adapting to a more technological method of production, getting resources and raw materials at a cheaper price etc., This massively increases the flexibility that corporations have to choose where and how they operate.

As the company has access to financial markets all over the world funding to the company can be more enhanced and competitors offering flexible interest rates

So, by this we can conclude that globalisation of economy takes the fruits of capitalism to a whole new level.