As a common globalization and free trade expansion practices, state government and international organizations are focused on addressing the corporate accountability of multinational companies. Other than requiring certain companies to issue forest and apparel certification, corporate environmental reports are normally broken down into four major categories known as the first-party, second-party, third party, and forth party certification (pp. 57 – 58). Even though there has been a continuous promotion of corporate governance in the global markets, there are no clear evidences that can prove that social and environmental protection could contribute to the improvements of employees’ working condition nor increase the overall business performance of
Corporate governance is a system of authoritative direction or government which includes the specific role and responsibilities of the shareholders, the board of directors, and the Chief Executive Officer (CEO). I strongly agree that through a good corporate leadership among the members of the top management and establishing a strong organizational culture that gives priority to teamwork and fair business practices, it is possible for corporate governance to contribute to the increase in profit and business success of multinational companies even though the implementation of corporate governance could sometimes fail.
Wade discussed and provided evidences that globalization could either increase or decrease poverty and inequality between and within nations. In line with this, India, China, and the rest of the East Asian countries are benefiting from globalization. Since the overall operational costs in developing countries are much lower and more attractive as compared to the operational costs in developed countries, a lot of large-scale multinational companies from developed countries continuously transfer their business