1. Current global governance arrangements favour flexibility over
rigidity, prefer voluntary measures to binding rules and
privilege partnerships over individual actions. This article is
published as part of a thematic collection dedicated to
global governance.
Global governance is a product of neo-liberal paradigm shifts in
international political and economic relations. Some scholars
argue that global governanceas it is practiced is not working
(Coen and Pegram, 2015: 417), while others believe that global
governance is constantly adapting by readjusting strategies and
approaches to solutions and developing new tools and measures
to deal with issues that impact communities throughout the
world (Held and Hale, 2011). Rather than judging current global
governance, this contribution seeks to provide an overview of
the current state of global governance by discussing its present
statevis à vis the challenges that it faces and its future.
As such, the concept of global governance relates to the
interaction ofmyriad collective or individual entities emanating
from various societal and professional orientations, which form
networks that engage to address issues that threatenlocal and
global communities.
The current phenomenon of global governance is well captured
by Biermann and Pattberg in their overview of global
environmental governance for the Annual Review of
Environmental Resources of 2008.
A multitude of actors define and shape the current structure of
global governance. States, international organizations, non-
governmental organizations (NGOs), multinational corporations,
scientific experts, civil society groups, networks, partnerships,
private military and security companies, as well as transnational
criminal and drug-trafficking networks provide world politics
with multi-actor perspectives and take part in steering the
political system (Dingwerth and Pattberg, 2006; Biermann and
Pattberg, 2012; Karns and Mingst, 2015). Global

2. governance actors broaden the scope of activities in which they
are involvedand they also change the patterns of interaction and
cooperation in tackling current issues on a global level. Current
global governance arrangements favour flexibility over rigidity,
prefer voluntary measures to binding rules, choose partnerships
over individual actions, and give rise to new initiatives and
ideas.
Global governance is arguably inevitable for the survival of the
human race in present and future generations. Although global
governance sometimes appears fragile and ineffective in
response to current challenges, the trend of globalization and
the demand for global governance approaches have already
passed the point of no return. The future of global governance
will be mainly shaped by the following five factors: individual
empowerment, increasing awareness of human security,
institutional complexity, international power shift and liberal
world political paradigm.
Human security isan innovative concept for security in response
to horizontal (such as military, economic and political) and
vertical (such as individual, state and global) threats, which
traditional security concepts cannot effectively control
(Grayson, 2008). The focal point of state security is too narrow
to encompass the myriad threats that challenge societies today.
The threat of sovereign states engaging in large-scalewar is less
probable today than at any time in modern history. Third, we
must additionally consider “institutional complexity” (Held and
Hale, 2011) as another direction for future global governance
development. As the trend of individual empowerment gains
more momentum, the influence of civil society is expected to
grow in terms of authority and resources. Various non-state
actors will not only affect their national governments’ behavior
more significantly, but will also engage in networks of
transnational relations more actively. International institutions
in global governance will likely keep expanding to “regime
complex”, a concept defined as “an array of partially
overlapping and nonhierarchical institutions governing a

3. particular issue area” (Raustiala and Victor, 2004).
Fourth, global governance in the future will be also be shaped
by power shifts in international relations. Almost all the
traditional institutions of global governance were initiated
by Western countries, and their pluralistic political culture and
influential civil societies have shaped the political context of
global governance.
The list of parties to the Convention on Certain Conventional
Weapons encompasses the states who have signed
and ratified or acceded to the international agreement
prohibiting or restricting the use of certain conventional
weapons which may be deemed to be excessively injurious or
have indiscriminate effects.
... This also requires improved coordination among various
stakeholders and enhanced information sharing. (v) Responsible
sovereignty: This principle ... Robust governance implies
mutual accountability, verified by transparent and credible
mechanisms and pro-... international cooperation. Besides being
a manifestation of international solidarity, international
cooperation is a means to promote common interests.
Business and Government in the Global Context
BUSM3886
(CSR)
n the
context of business, government and

4. globalisation
Learning
overview
Sociologist Raymond Baumhart (Cited in Velasquez, et al.,
2015) once asked a question to business people - What
does ethics mean to you? Some of the replies were:
• Ethics has to do with what my feelings tell me is
right or wrong;
• Ethics has to do with my religious beliefs;
• Being ethical is doing what the law requires;
• Ethics consists of the standards of behaviour
our society accepts;
• I don't know what the word means!
What is ethics, then?

5. • It is not easy to define ethics and the views
many people have about ethics are tentative.
• In general, ethics may refer to “well-founded
standards of right and wrong that prescribe
what humans ought to do” (Velasquez, et al.,
2015).
?
behaviour. It therefore has relevance to the way people
behave in organisations.
ds of
conduct governing an individual or group in work
situations (Trevino & Nelson 2006 and 2014)
of development of a country, individual characteristics,
issue intensity, and
Ethical Organisation
ethical behaviours among all

6. harassment, deception and endangerment
itimate
business activities by legitimate or illegitimate
organisations (As-Saber and Cairns, 2015)
standards is a duty of management, staff, the board,
investors – all stakeholders really
A taxonomy of ethics and legitimacy
High Business
Type 2
‘Legal but
morally questionable’
Low Ethical
Legitimacy
Type 1
‘Both morally and

7. legally appropriate’
High Ethical
Orientation
Type 4
‘Both morally and
legally inappropriate’
Low Business
Orientation
Type 3
‘Illegal with
moral high ground’
Legitimacy
Source: As-Saber, S. & Cairns, G. (2015)

8. What is Corporate Social
Responsibility?
Definition of CSR
According to McWilliams (2015),
“Actions of firms that contribute to social welfare,
beyond what is required for profit maximization,
are classified as Corporate Social Responsibility
(CSR)”.
Evolving Meanings of CSR
• … bearing in mind the impact of the company’s
actions on societies.
• … a commitment to take actions that safeguard and
improve the welfare of society as a whole, and the
company’s own interests.
• …assumes that the corporation has economic and
legal obligations as well as responsibilities to society
that extend beyond these obligations.

9. Carroll and Buchholtz 2015
Based on: Crane Matten & Spence (2008)
CSR perspectives
– Friedman
– Carroll
- Freeman
14
Classical view – the case against CSR
other behaviours – separation thesis.
performance.

10. business is profit.
15
Classical view - Friedman
Friedman’s (1970) arguments against CSR:
artificial person and in this sense may have artificial
responsibilities, but “business” as a whole cannot be said to
have responsibilities’
xecutives have the responsibility to conduct the
business in accordance with the desires of the owners of
the business …make as much money as possible while
conforming to the basic rules of the society, both those
embodied in law and those embodied in ethical custom
16
The case against CSR – Karnani (2010)
Karnani’s arguments against:
to boost profits will end up increasing social
welfare” – trickle down benefits?

11. - misalignment between private and
public interests
- otherwise
incompetent or selfish.
17
Ed Freeman, CSR and Stakeholder Theory
• Unlike Friedman, Freeman (1986, 2010) asks
the question, “For whose benefit and at whose
expense should the firm be managed?”
• He considers anyone with a stake/claim in the
firm has the right to contribute in the way a firm
should operate.
• Stakeholders may include employees,
shareholders, competitors, customers, local
community and so on…

12. 18
Source: http://www.spidermak.com/en/ed-freeman-and-his-
stakeholder-theory
Three domain approach
Source: Schwartz and Carroll 2003, p.509)
Legal
Economic Ethical
Legal Ethical
Legal
Economic
Economic
Ethical
Legal
Economic
Ethical
21

13. Corporate social responsibility –
Carroll’s pyramid
Philanthropic responsibilities
Ethical responsibilities
Legal responsibilities
Economic responsibilities
(Carroll 1991, 1998)
Source: Carroll (1991)
The Four Components of CSR
Please see: Carroll and Buchholtz 2015; Trevino and Nelson
2014
Responsibility
Societal
Expectation
Examples

14. Economic
Required
Be profitable. Maximize sales,
minimize costs. People money,
health and well being, taxes
Legal
Required
Obey laws, adhere to
regulations, pay taxes
Ethical
Expected

15. Avoid questionable practices.
Do what is right, fair, and just
Philanthropic
Desired/
Expected
Be a good corporate citizen.
Give back.
Ethics, CSR and Bad Apples
VW (emissions scandal) – Exon Valdez oil
spills in Alaska– BHP Billiton (Ok Tedi/Brazil) –
Securrency (bribes) – Commonwealth Bank
Australia (Financial Planners and Insurance) –
National Australia Bank (Financial Planners) –

16. Foxconn (suicides)
And there are many claims against other corporations – in your
own
time please refer to http://anonhq.com/10-corrupt-corporations-
alecs-
dirt-hands/
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
https://www.youtube.com/watch?v=f1ER6uOx3Ks
The Framework Behind the Selection Process
Some of the Most Ethical Companies in the World, 2017
For a full list, please see:
http://worldsmostethicalcompanies.ethisphere.com/honorees/
Company Industry Country

17. 3M Company Industrial Manufacturing USA
Accenture Consulting Services IRELAND
Aflac Incorporated Accident & Life Insurance USA
Allstate Insurance Company Property & Casualty Insurance
USA
Alyeska Pipeline Service Company Oil & Gas, Renewables USA
Applied Materials, Inc. Electronics & Semiconductors USA
Arthur J. Gallagher & Co. Insurance Brokers USA
Avnet, Inc. Electronics & Semiconductors USA
Baptist Health South Florida Healthcare Providers USA
BDP International, Inc. Logistics & Transportation USA
responsible corporate behaviour, most businesses embrace a
range of CSR practices
to do more to make a real difference in these extremely
important management areas.

18. governments
should also put real efforts in making corporations more ethical
and socially responsible.
Conclusions
Finally…

19. Let us hope for a better, harmonious,
ethical and socially responsible
corporate world!
Thank You!
References
• As-Saber, S. & Cairns, G. (2015). ‘Black international
business’ – critical issues and
ethical dilemmas. In A. Pullen & C. Rhodes (eds.), The
Routledge Companion to Ethics,
Politics and Organization. Routledge, London: 119-131.
• Carroll, AB (1991). 'The pyramid of corporate social
responsibility: Toward the moral
management of organizational stakeholders', Business Horizons,
34(4): 39-48.
• Carroll, A., Buchholtz, A. 2015. Business & society : Ethics,
sustainability, and
stakeholder management (9th ed.). Mason, Ohio: South-
Western/Cengage Learning.
• Crane. A., Matten, D. & Spence, LJ. (2008). Corporate Social
Responsibility: In Global

20. Context, In Crane. A., Matten, D. & Spence, LJ. (eds.).
Corporate Social Responsibility:
Readings and Cases in Global Context, Routledge, London: 3-
20.
• Freeman, R.E. (2010). Strategic Management: A Stakeholder
Approach, Cambridge
University Press, Cambridge.
• Friedman, M. (1970). The Social Responsibility of Business is
to Increase its Profits, The
New York Times Magazine, September 13, 1970. Available at
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-
business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html

21. http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
References
• Karnani, A (2010) 'The Case Against Corporate Social
Responsibility', Wall Street
Journal, 23 August 2010.
• Matten, D & Moon, J (2008) Implicit and explicit CSR: a
conceptual framework for a
comparative understanding of corporate social responsibility,
Academy of Management
Review 33(2): 404-424.
• McWilliams, A. (2015). Corporate Social Responsibility.
Wiley Encyclopedia of
Management. 12:1–4.
• Schwartz, MS & Carroll, AB (2003) ‘Corporate Social
Responsibility: A Three-Domain
Approach’, Business Ethics Quarterly, 13(4): 503-530
• Trevino, L. and Nelson, K. 2014. Managing Business Ethics:
Straight Talk about How to
Do It Right (6th Edition), John Wiley, New York.
• Velasquez, M., Andre, C., Shanks, T., Meyer, M.J. (2015).
“What is Ethics?”, Markkula

22. Center for Applied Ethics, Santa Clara University, Santa Clara,
Available at
https://www.scu.edu/ethics/ethics-resources/ethical-decision-
making/what-is-ethics/
12/04/2018
1
Business and Government in the Global Context
BUSM3886
(CSR)
context of business, government and
globalisation
Learning
overview

23. 12/04/2018
2
Sociologist Raymond Baumhart (Cited in Velasquez, et al.,
2015) once asked a question to business people - What
does ethics mean to you? Some of the replies were:
• Ethics has to do with what my feelings tell me is
right or wrong;
• Ethics has to do with my religious beliefs;
• Being ethical is doing what the law requires;
• Ethics consists of the standards of behaviour
our society accepts;
• I don't know what the word means!
12/04/2018
3
What is ethics, then?
• It is not easy to define ethics and the views

24. many people have about ethics are tentative.
• In general, ethics may refer to “well-founded
standards of right and wrong that prescribe
what humans ought to do” (Velasquez, et al.,
2015).
?
12/04/2018
4
with human interaction and
behaviour. It therefore has relevance to the way people
behave in organisations.
conduct governing an individual or group in work
situations (Trevino & Nelson 2006 and 2014)
of development of a country, individual characteristics,
issue intensity, and
Ethical Organisation
ethical behaviours among all

25. harassment, deception and endangerment
business activities by legitimate or illegitimate
organisations (As-Saber and Cairns, 2015)
standards is a duty of management, staff, the board,
investors – all stakeholders really
12/04/2018
5
A taxonomy of ethics and legitimacy
High Business
Type 2
‘Legal but
morally questionable’
Low Ethical
Legitimacy
Type 1

26. ‘Both morally and
legally appropriate’
High Ethical
Orientation
Type 4
‘Both morally and
legally inappropriate’
Low Business
Orientation
Type 3
‘Illegal with
moral high ground’
Legitimacy
Source: As-Saber, S. & Cairns, G. (2015)

27. What is Corporate Social
Responsibility?
12/04/2018
6
Definition of CSR
According to McWilliams (2015),
“Actions of firms that contribute to social welfare,
beyond what is required for profit maximization,
are classified as Corporate Social Responsibility
(CSR)”.
Evolving Meanings of CSR
• … bearing in mind the impact of the company’s
actions on societies.
• … a commitment to take actions that safeguard and
improve the welfare of society as a whole, and the
company’s own interests.
• …assumes that the corporation has economic and

28. legal obligations as well as responsibilities to society
that extend beyond these obligations.
Carroll and Buchholtz 2015
12/04/2018
7
Based on: Crane Matten & Spence (2008)
CSR perspectives
– Friedman
– Carroll
- Freeman
14
12/04/2018
8

29. Classical view – the case against CSR
haviour different from
other behaviours – separation thesis.
performance.
business is profit.
15
Classical view - Friedman
Friedman’s (1970) arguments against CSR:
artificial person and in this sense may have artificial
responsibilities, but “business” as a whole cannot be said to
have responsibilities’
y to conduct the
business in accordance with the desires of the owners of
the business …make as much money as possible while
conforming to the basic rules of the society, both those
embodied in law and those embodied in ethical custom
16

30. 12/04/2018
9
The case against CSR – Karnani (2010)
Karnani’s arguments against:
to boost profits will end up increasing social
welfare” – trickle down benefits?
- misalignment between private and
public interests
- otherwise
incompetent or selfish.
17
Ed Freeman, CSR and Stakeholder Theory
• Unlike Friedman, Freeman (1986, 2010) asks
the question, “For whose benefit and at whose
expense should the firm be managed?”
• He considers anyone with a stake/claim in the
firm has the right to contribute in the way a firm
should operate.

31. • Stakeholders may include employees,
shareholders, competitors, customers, local
community and so on…
18
12/04/2018
10
Source: http://www.spidermak.com/en/ed-freeman-and-his-
stakeholder-theory
Three domain approach
Source: Schwartz and Carroll 2003, p.509)
Legal
Economic Ethical
Legal Ethical
Legal
Economic
Economic
Ethical

32. Legal
Economic
Ethical
12/04/2018
11
21
Corporate social responsibility –
Carroll’s pyramid
Philanthropic responsibilities
Ethical responsibilities
Legal responsibilities
Economic responsibilities
(Carroll 1991, 1998)
Source: Carroll (1991)
The Four Components of CSR
Please see: Carroll and Buchholtz 2015; Trevino and Nelson
2014

33. Responsibility
Societal
Expectation
Examples
Economic
Required
Be profitable. Maximize sales,
minimize costs. People money,
health and well being, taxes
Legal
Required

34. Obey laws, adhere to
regulations, pay taxes
Ethical
Expected
Avoid questionable practices.
Do what is right, fair, and just
Philanthropic
Desired/
Expected
Be a good corporate citizen.
Give back.

35. 12/04/2018
12
Ethics, CSR and Bad Apples
VW (emissions scandal) – Exon Valdez oil
spills in Alaska– BHP Billiton (Ok Tedi/Brazil) –
Securrency (bribes) – Commonwealth Bank
Australia (Financial Planners and Insurance) –
National Australia Bank (Financial Planners) –
Foxconn (suicides)
And there are many claims against other corporations – in your
own
time please refer to http://anonhq.com/10-corrupt-corporations-
alecs-
dirt-hands/
The Framework Behind the Selection Process
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]

36. mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
https://www.youtube.com/watch?v=f1ER6uOx3Ks
12/04/2018
13
Some of the Most Ethical Companies in the World, 2017
For a full list, please see:
http://worldsmostethicalcompanies.ethisphere.com/honorees/
Company Industry Country
3M Company Industrial Manufacturing USA
Accenture Consulting Services IRELAND
Aflac Incorporated Accident & Life Insurance USA
Allstate Insurance Company Property & Casualty Insurance
USA
Alyeska Pipeline Service Company Oil & Gas, Renewables USA
Applied Materials, Inc. Electronics & Semiconductors USA
Arthur J. Gallagher & Co. Insurance Brokers USA
Avnet, Inc. Electronics & Semiconductors USA

37. Baptist Health South Florida Healthcare Providers USA
BDP International, Inc. Logistics & Transportation USA
responsible corporate behaviour, most businesses embrace a
range of CSR practices
far enough and need
to do more to make a real difference in these extremely
important management areas.
governments
should also put real efforts in making corporations more ethical
and socially responsible.
Conclusions
12/04/2018
14

38. Finally…
Let us hope for a better, harmonious,
ethical and socially responsible
corporate world!
Thank You!
References
• As-Saber, S. & Cairns, G. (2015). ‘Black international
business’ – critical issues and

39. ethical dilemmas. In A. Pullen & C. Rhodes (eds.), The
Routledge Companion to Ethics,
Politics and Organization. Routledge, London: 119-131.
• Carroll, AB (1991). 'The pyramid of corporate social
responsibility: Toward the moral
management of organizational stakeholders', Business Horizons,
34(4): 39-48.
• Carroll, A., Buchholtz, A. 2015. Business & society : Ethics,
sustainability, and
stakeholder management (9th ed.). Mason, Ohio: South-
Western/Cengage Learning.
• Crane. A., Matten, D. & Spence, LJ. (2008). Corporate Social
Responsibility: In Global
Context, In Crane. A., Matten, D. & Spence, LJ. (eds.).
Corporate Social Responsibility:
Readings and Cases in Global Context, Routledge, London: 3-
20.
• Freeman, R.E. (2010). Strategic Management: A Stakeholder
Approach, Cambridge
University Press, Cambridge.
• Friedman, M. (1970). The Social Responsibility of Business is
to Increase its Profits, The
New York Times Magazine, September 13, 1970. Available at

40. http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-
business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
http://www.colorado.edu/studentgroups/libertarians/issues/fried
man-soc-resp-business.html
12/04/2018
15
References
• Karnani, A (2010) 'The Case Against Corporate Social
Responsibility', Wall Street
Journal, 23 August 2010.
• Matten, D & Moon, J (2008) Implicit and explicit CSR: a
conceptual framework for a

41. comparative understanding of corporate social responsibility,
Academy of Management
Review 33(2): 404-424.
• McWilliams, A. (2015). Corporate Social Responsibility.
Wiley Encyclopedia of
Management. 12:1–4.
• Schwartz, MS & Carroll, AB (2003) ‘Corporate Social
Responsibility: A Three-Domain
Approach’, Business Ethics Quarterly, 13(4): 503-530
• Trevino, L. and Nelson, K. 2014. Managing Business Ethics:
Straight Talk about How to
Do It Right (6th Edition), John Wiley, New York.
• Velasquez, M., Andre, C., Shanks, T., Meyer, M.J. (2015).
“What is Ethics?”, Markkula
Center for Applied Ethics, Santa Clara University, Santa Clara,
Available at
https://www.scu.edu/ethics/ethics-resources/ethical-decision-
making/what-is-ethics/

42. 18/04/2018
1
Business and Government in the Global
Context BUSM3886
Topic Nine: Business, Government and
Sustainable Development
Associate Professor Darryn Snell
18/04/2018
2
Issues to Discuss:
• Sustainable development
• Climate Change
– The Scientific Evidence
–The Political Response

43. • ‘Carbon Lock-In’ and Decarbonising the economy: The
Case of Victoria, Australia
• Discussion questions
• Readings for this topic
18/04/2018
3
Objectives:
• To understand the significance of sustainable
development
• To recognise the impact of climate change and why
addressing global warming might be difficult.
• To consider the complexity inherent in apparent
disagreements across multiple levels of governments,
businesses and civil societies
18/04/2018

44. 4
What is Sustainable Development?
"Sustainable development is development
that meets the needs of the present without
compromising the ability of future
generations to meet their own needs”.
- Our Common Future,
also known as the Brundtland Report, 1987
18/04/2018
5
Three major components of
sustainable development
18/04/2018
6

45. Climate Change: The scientific evidence
The intergovernmental Panel on Climate(IPCC) has concluded
in its Fourth
Assessment Report (2007) that:
• Warming of the planet is unequivocal, as evidenced by
increases in global average air
and ocean temperatures, the melting of snow and ice caps and
rising sea levels.
• Global warming since the mid-20th century is ‘very likely’
due to human activities.
• Climate change will have different impacts on different
regions and localities.
• Evidence indicates the negative costs of climate change are
likely to be significant and
will increase over time.
• With the increase in global temperatures, many ecosystems are
likely to struggle
resulting in major social, economic and ecological impacts
(drought and bushfires,
flooding of coastlines and small island states, ocean
acidifications, extinction of flora
and fauna, spread of insects and tropical diseases).

46. 18/04/2018
7
Climate Change: reconsidering politics
Global warming is a political issue/situation
– Conflict – many agents pursuing their own
interests
– Power – used by those who possess it to gain
advantage
– Uncertainty – difficult to predict the outcome
18/04/2018
8
Climate Change: The political response
• “climate change is the greatest moral, economic and social
challenge
of our time” (former Prime Minister Kevin Rudd).
• “The argument [on climate change] is absolute crap.”
(Opposition

47. Leader Tony Abbott 12 December 2009).
• “I don’t think we can say that the science is settled
here…whether
carbon dioxide is quite the environmental villain that some
people
make it out to be is not yet proven” (Opposition Leader Tony
Abbott
14 March, 2011).
• "We do need to do something about emissions and the
Coalition's
position is that climate change is real. Humanity is making a
contribution. It's important to have a strong and effective policy
to try
to bring emissions down and that's what we're doing”
(Opposition
Leader Tony Abbott 15 March, 2011).
18/04/2018
9
Malcolm Turnbull’s (Australia’s current PM) statements
while in Opposition
“We are as humans conducting a massive science experiment
with this planet. It’s the only planet we’ve got…. We know that

48. the consequences of unchecked global warming would be
catastrophic. We know that extreme weather events are
occurring with greater and greater frequency and while it is
never possible to point to one drought or one storm or one
flood and say that particular incident is caused by global
warming, we know that these trends are entirely consistent with
the climate change forecasts with the climate models that the
scientists are relying on…. We as a human species have a
deep and abiding obligation to this planet and to the
generations that will come after us” (2010).
18/04/2018
10
Malcolm Turnbull’s (Australia’s current PM) statements
while in Opposition
“Politicians and shock jocks, scientists and coal barons, all of
them can argue for as long as they like, but they cannot

49. change the physical reality. I won't linger on climate change –
the hopeless, confused, hyper-partisan nature of the debate is
too well known to rehearse” (Malcolm Turnbull’s Speech,
Republican virtues: Truth, leadership and responsibility, 2012
18/04/2018
11
PM Malcolm Turnbull in response to the Opposition
Australian Labor Party’s commitment to introduce 50%
Renewables
‘Is new Australian prime minister Malcolm Turnbull already
a climate change turncoat?’ The Guardian
“Opposition leader Bill Shorten] is highlighting one of the
most
reckless proposals the Labor party has made. Fancy
proposing, without any idea of the cost of the abatement, the
cost of proposing that 50% of energy had to come from

50. renewables! What if that reduction in emissions you needed
could come more cost-effectively from carbon storage, by
planting trees, by soil carbon, by using gas, by using clean
coal, by energy efficiency?” (September 2015).
18/04/2018
12
Turnbull Government’s National Energy Guarantee Policy
National Energy Guarantee Policy aims to address trilemma:
1. energy security
2. affordability
3. emissions reduction
Political divisions have emerged:
• ‘States threaten to call off energy deal if renewables
undermined’
(The Guardian 12 April).
• ‘National energy guarantee will 'lock in' poor climate

51. outcomes, ACT
says’ (The Guardian, 17 April 2018).
• ‘Manufacturing bosses call on states for speedy national
energy
guarantee take-up’ (Australian Financial Review, 15 April).
18/04/2018
13
Political Players
(Stakeholders/Vested Interest)
• Businesses– local state and global (MNCs and TNCs)
• Governments – local state and global
• Civil Societies – local state and global
• Collectively their interest derive from a number of
sources: social (implications of global warming,
political (to be active in pressuring governments –
involved in decision making) and economic (who
stands to win or lose)

52. 18/04/2018
14
Climate Change as a Global Issue
It conflicts with state sovereignty
– Requires a global solution that may be at odds
with state sovereignty (national mandate)
– The solution requires deference to formal global
institutions – UN, World Bank, WTO, etc
– Global pressure groups like Greenpeace act as
spokespersons for civil society and seek to
influence governments at all levels
18/04/2018
15
Climate Change as a State Issue
• Challenge from global institutions – help to form and
implement a global solution
• Challenge from local and international business –
generally concerned with costs to those generating green

53. house gasses
• Challenge from civil society – mixed – some concerned
with the impact on the household budget – others with
climate change
18/04/2018
16
Climate Change as a Business Issue
• The future of all those industries/businesses relying on
fossil fuels are directly affected
• Despite “creative destruction” (Schumpeter) being a key
feature of the capitalist system – those industries
rendered redundant resist
• Despite the claim that capitalism is based on
entrepreneurship and risk taking threatened industries
believe they have a right to corporate welfare

54. 18/04/2018
17
Climate Change as Business Opportunity
• On the creative side of the business equation renewable
energy provides an opportunity for both old and new
businesses – old in moving to the new technology and
new in terms of establishing businesses in solar, wind,
tides and geothermal
• Once again cannot talk of a unified business position
18/04/2018
18
Civil Society Activism
• Increased severe weather events impact directly on
people – indirectly on the economy

55. • Concern over the inheritance we will pass on to future
generations
• Increased electricity costs
• Loss of jobs
• Lower standard of living
18/04/2018
19
‘Carbon Lock-In’ and Decarbonising the Economy
‘Carbon lock-in refers to the systemic bias against carbon-
saving technologies despite their obvious economic and
environmental advantages. It results because of inertia at
the corporate, government and system-wide levels and
these inertia are themselves the result of the historical
development of the technological system at hand’ (Perry,
2012).
18/04/2018

56. 20
18/04/2018
21
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
“the state was not inclined to let private
enterprise in on a good thing” (F.W.
Eggleston, the former Attorney-General of
Victoria, 1932: 161).
18/04/2018
22
A Very Short History of Power Generation in Victoria’s
Latrobe Valley

57. 18/04/2018
23
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
18/04/2018
24
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
18/04/2018
25
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
18/04/2018
26
A Very Short History of Power Generation in Victoria’s

58. Latrobe Valley
18/04/2018
27
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
18/04/2018
28
Responses of Multinational Corporations
Leaders or Lagers in Climate Change
Mitigation?
Evidence:
• Some diversification into renewable
energy
• Acknowledgement of climate
change science

59. • Initial opposition to Rudd/Gillard
Government’s effort to put a price on
carbon.
• Some willingness to participate in
Government proposals to bring
about early retirement of polluting
assets
Yallourn Power Station
Loy Yang A
Hazelwood and Loy Yang B
18/04/2018
29
Transitioning to What?
By Whom?
To Whose Benefit?

60. 29
18/04/2018
30
‘Transitioning’ to a ‘low carbon economy’?
Characteristics of the ‘unsustainable’ sector:
– Skilled workforce (credentialed/non-credentialed)
– Stable/ Long-term employment
– Highly Paid
– Unionised
– An aging and male dominated workforce
– Localised
– Declining job opportunities

61. 18/04/2018
31
Community, Remuneration and the Skill Challenges of
Decarbonising the Economy
The ‘Sustainable Sector’:
– More jobs (e.g. fossil fuel versus renewables).
– Jobs for the long-term unemployed and young workers
(‘Green New Deal’).
– Skills (new or old)?
– Remuneration?
– Unions?
– Locality of ‘new’ ‘green jobs’?
18/04/2018

62. 32
The current challenges for managing a ‘just transition’
• Recalcitrant employers
• Fragmented government and political uncertainty
• Workers and unions becoming marginalised and an unjust
outcome pursued by government and employers.
• Maintaining support and ‘spirit’ of workers and the
community.
• Supporting coal or moving beyond coal?
18/04/2018
33
‘Just Transition’
‘Just Transition must not just be about creating ‘green jobs’ to
meet the direct material needs of those workers affected by the
shift to a low carbon economy, but must also be about ensuring

63. those jobs are decent jobs. Environmental transition could not
be
described meaningfully as ‘just’ if the new jobs it provided
could
not ensure that work was productive and safe, delivered a fair
income, provided security and equal opportunity in the
workplace,
provided social protection for families, and better prospects for
personal development’ (TUC, 2008a: 27).
‘A coalminer or a power station worker isn't going to leave their
job
on $120,000-plus with well-regulated shift arrangements and
decent conditions to install low-wattage light bulbs or
insulation’
(Tony Maher, General President of the Mining and Energy
Division
CFMEU)
18/04/2018
34

64. Transition Challenges
Who Leads?
–State or Federal Governments?
–Local government?
–Local community?
–The owners of power generators or other private interests (i.e.
‘the
market’)?
Who Benefits?
34
18/04/2018
35
Final Comments
• It should be easy to see why climate change is such a

65. complex political issue – as are most
• A numerous number of players and a numerous number
of preferred outcomes
• Considerable power differentials between the players –
but power is fluid
• Uncertainty – how will this unfold in the short, medium
and long turn
18/04/2018
36
Discussion questions:
• “Can our capitalist system avoid the worst-case
consequences of global warming?” (Storm, 2009:1032).
Discuss
• .Why is climate change such a complex political and
business issue?
• How might government policies to address climate

66. change impact on businesses and communities?
• Who should lead on finding solutions to address climate
change (Business, Government or Civil society)?
18/04/2018
37
Readings for this topic:
• Storm, S. (2009) ‘Capitalism and Climate Change: Can the
invisible
hand adjust the natural thermostat?’ Development and Change
40
(6): 1011-1038.
• Ihlen, O. (2009) ‘Business and climate change: the climate
response
of the world’s 30 largest corporations’ Environmental
Communication
3 (2): 244-262.
• Snell, D. and Schmitt, D. (2012) ‘It’s not easy being green’:
electricity
corporations and the transition to a low carbon economy’
Competition

67. and Change 16 (1): 1-19.
18/04/2018
1
Business and Government in the Global
Context BUSM3886
Topic Nine: Business, Government and
Sustainable Development
Associate Professor Darryn Snell
Issues to Discuss:
• Sustainable development
• Climate Change
– The Scientific Evidence
–The Political Response

68. • ‘Carbon Lock-In’ and Decarbonising the economy: The
Case of Victoria, Australia
• Discussion questions
• Readings for this topic
18/04/2018
2
Objectives:
• To understand the significance of sustainable
development
• To recognise the impact of climate change and why
addressing global warming might be difficult.
• To consider the complexity inherent in apparent
disagreements across multiple levels of governments,
businesses and civil societies
What is Sustainable Development?

69. "Sustainable development is development
that meets the needs of the present without
compromising the ability of future
generations to meet their own needs”.
- Our Common Future,
also known as the Brundtland Report, 1987
18/04/2018
3
Three major components of
sustainable development
Climate Change: The scientific evidence
The intergovernmental Panel on Climate(IPCC) has concluded
in its Fourth
Assessment Report (2007) that:
• Warming of the planet is unequivocal, as evidenced by
increases in global average air

70. and ocean temperatures, the melting of snow and ice caps and
rising sea levels.
• Global warming since the mid-20th century is ‘very likely’
due to human activities.
• Climate change will have different impacts on different
regions and localities.
• Evidence indicates the negative costs of climate change are
likely to be significant and
will increase over time.
• With the increase in global temperatures, many ecosystems are
likely to struggle
resulting in major social, economic and ecological impacts
(drought and bushfires,
flooding of coastlines and small island states, ocean
acidifications, extinction of flora
and fauna, spread of insects and tropical diseases).
18/04/2018
4
Climate Change: reconsidering politics
Global warming is a political issue/situation
– Conflict – many agents pursuing their own

71. interests
– Power – used by those who possess it to gain
advantage
– Uncertainty – difficult to predict the outcome
Climate Change: The political response
• “climate change is the greatest moral, economic and social
challenge
of our time” (former Prime Minister Kevin Rudd).
• “The argument [on climate change] is absolute crap.”
(Opposition
Leader Tony Abbott 12 December 2009).
• “I don’t think we can say that the science is settled
here…whether
carbon dioxide is quite the environmental villain that some
people
make it out to be is not yet proven” (Opposition Leader Tony
Abbott
14 March, 2011).
• "We do need to do something about emissions and the
Coalition's
position is that climate change is real. Humanity is making a
contribution. It's important to have a strong and effective policy
to try
to bring emissions down and that's what we're doing”

72. (Opposition
Leader Tony Abbott 15 March, 2011).
18/04/2018
5
Malcolm Turnbull’s (Australia’s current PM) statements
while in Opposition
“We are as humans conducting a massive science experiment
with this planet. It’s the only planet we’ve got…. We know that
the consequences of unchecked global warming would be
catastrophic. We know that extreme weather events are
occurring with greater and greater frequency and while it is
never possible to point to one drought or one storm or one
flood and say that particular incident is caused by global
warming, we know that these trends are entirely consistent with
the climate change forecasts with the climate models that the
scientists are relying on…. We as a human species have a
deep and abiding obligation to this planet and to the

73. generations that will come after us” (2010).
Malcolm Turnbull’s (Australia’s current PM) statements
while in Opposition
“Politicians and shock jocks, scientists and coal barons, all of
them can argue for as long as they like, but they cannot
change the physical reality. I won't linger on climate change –
the hopeless, confused, hyper-partisan nature of the debate is
too well known to rehearse” (Malcolm Turnbull’s Speech,
Republican virtues: Truth, leadership and responsibility, 2012
18/04/2018
6
PM Malcolm Turnbull in response to the Opposition
Australian Labor Party’s commitment to introduce 50%
Renewables
‘Is new Australian prime minister Malcolm Turnbull already

74. a climate change turncoat?’ The Guardian
“Opposition leader Bill Shorten] is highlighting one of the
most
reckless proposals the Labor party has made. Fancy
proposing, without any idea of the cost of the abatement, the
cost of proposing that 50% of energy had to come from
renewables! What if that reduction in emissions you needed
could come more cost-effectively from carbon storage, by
planting trees, by soil carbon, by using gas, by using clean
coal, by energy efficiency?” (September 2015).
Turnbull Government’s National Energy Guarantee Policy
National Energy Guarantee Policy aims to address trilemma:
1. energy security
2. affordability
3. emissions reduction
Political divisions have emerged:
• ‘States threaten to call off energy deal if renewables

75. undermined’
(The Guardian 12 April).
• ‘National energy guarantee will 'lock in' poor climate
outcomes, ACT
says’ (The Guardian, 17 April 2018).
• ‘Manufacturing bosses call on states for speedy national
energy
guarantee take-up’ (Australian Financial Review, 15 April).
18/04/2018
7
Political Players
(Stakeholders/Vested Interest)
• Businesses– local state and global (MNCs and TNCs)
• Governments – local state and global
• Civil Societies – local state and global
• Collectively their interest derive from a number of
sources: social (implications of global warming,
political (to be active in pressuring governments –
involved in decision making) and economic (who

76. stands to win or lose)
Climate Change as a Global Issue
It conflicts with state sovereignty
– Requires a global solution that may be at odds
with state sovereignty (national mandate)
– The solution requires deference to formal global
institutions – UN, World Bank, WTO, etc
– Global pressure groups like Greenpeace act as
spokespersons for civil society and seek to
influence governments at all levels
18/04/2018
8
Climate Change as a State Issue
• Challenge from global institutions – help to form and
implement a global solution
• Challenge from local and international business –
generally concerned with costs to those generating green
house gasses

77. • Challenge from civil society – mixed – some concerned
with the impact on the household budget – others with
climate change
Climate Change as a Business Issue
• The future of all those industries/businesses relying on
fossil fuels are directly affected
• Despite “creative destruction” (Schumpeter) being a key
feature of the capitalist system – those industries
rendered redundant resist
• Despite the claim that capitalism is based on
entrepreneurship and risk taking threatened industries
believe they have a right to corporate welfare
18/04/2018
9
Climate Change as Business Opportunity

78. • On the creative side of the business equation renewable
energy provides an opportunity for both old and new
businesses – old in moving to the new technology and
new in terms of establishing businesses in solar, wind,
tides and geothermal
• Once again cannot talk of a unified business position
Civil Society Activism
• Increased severe weather events impact directly on
people – indirectly on the economy
• Concern over the inheritance we will pass on to future
generations
• Increased electricity costs
• Loss of jobs
• Lower standard of living
18/04/2018

79. 10
‘Carbon Lock-In’ and Decarbonising the Economy
‘Carbon lock-in refers to the systemic bias against carbon-
saving technologies despite their obvious economic and
environmental advantages. It results because of inertia at
the corporate, government and system-wide levels and
these inertia are themselves the result of the historical
development of the technological system at hand’ (Perry,
2012).
18/04/2018
11
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
“the state was not inclined to let private
enterprise in on a good thing” (F.W.
Eggleston, the former Attorney-General of

80. Victoria, 1932: 161).
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
18/04/2018
12
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
18/04/2018
13
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
A Very Short History of Power Generation in Victoria’s
Latrobe Valley

81. 18/04/2018
14
A Very Short History of Power Generation in Victoria’s
Latrobe Valley
Responses of Multinational Corporations
Leaders or Lagers in Climate Change
Mitigation?
Evidence:
• Some diversification into renewable
energy
• Acknowledgement of climate
change science
• Initial opposition to Rudd/Gillard
Government’s effort to put a price on
carbon.
• Some willingness to participate in
Government proposals to bring

82. about early retirement of polluting
assets
Yallourn Power Station
Loy Yang A
Hazelwood and Loy Yang B
18/04/2018
15
Transitioning to What?
By Whom?
To Whose Benefit?
29
‘Transitioning’ to a ‘low carbon economy’?
Characteristics of the ‘unsustainable’ sector:
– Skilled workforce (credentialed/non-credentialed)

83. – Stable/ Long-term employment
– Highly Paid
– Unionised
– An aging and male dominated workforce
– Localised
– Declining job opportunities
18/04/2018
16
Community, Remuneration and the Skill Challenges of
Decarbonising the Economy
The ‘Sustainable Sector’:
– More jobs (e.g. fossil fuel versus renewables).

84. – Jobs for the long-term unemployed and young workers
(‘Green New Deal’).
– Skills (new or old)?
– Remuneration?
– Unions?
– Locality of ‘new’ ‘green jobs’?
The current challenges for managing a ‘just transition’
• Recalcitrant employers
• Fragmented government and political uncertainty
• Workers and unions becoming marginalised and an unjust
outcome pursued by government and employers.
• Maintaining support and ‘spirit’ of workers and the
community.
• Supporting coal or moving beyond coal?

85. 18/04/2018
17
‘Just Transition’
‘Just Transition must not just be about creating ‘green jobs’ to
meet the direct material needs of those workers affected by the
shift to a low carbon economy, but must also be about ensuring
those jobs are decent jobs. Environmental transition could not
be
described meaningfully as ‘just’ if the new jobs it provided
could
not ensure that work was productive and safe, delivered a fair
income, provided security and equal opportunity in the
workplace,
provided social protection for families, and better prospects for
personal development’ (TUC, 2008a: 27).
‘A coalminer or a power station worker isn't going to leave their
job
on $120,000-plus with well-regulated shift arrangements and
decent conditions to install low-wattage light bulbs or
insulation’

86. (Tony Maher, General President of the Mining and Energy
Division
CFMEU)
Transition Challenges
Who Leads?
–State or Federal Governments?
–Local government?
–Local community?
–The owners of power generators or other private interests (i.e.
‘the
market’)?
Who Benefits?
34
18/04/2018

87. 18
Final Comments
• It should be easy to see why climate change is such a
complex political issue – as are most
• A numerous number of players and a numerous number
of preferred outcomes
• Considerable power differentials between the players –
but power is fluid
• Uncertainty – how will this unfold in the short, medium
and long turn
Discussion questions:
• “Can our capitalist system avoid the worst-case
consequences of global warming?” (Storm, 2009:1032).
Discuss
• .Why is climate change such a complex political and
business issue?
• How might government policies to address climate

88. change impact on businesses and communities?
• Who should lead on finding solutions to address climate
change (Business, Government or Civil society)?
18/04/2018
19
Readings for this topic:
• Storm, S. (2009) ‘Capitalism and Climate Change: Can the
invisible
hand adjust the natural thermostat?’ Development and Change
40
(6): 1011-1038.
• Ihlen, O. (2009) ‘Business and climate change: the climate
response
of the world’s 30 largest corporations’ Environmental
Communication
3 (2): 244-262.
• Snell, D. and Schmitt, D. (2012) ‘It’s not easy being green’:
electricity
corporations and the transition to a low carbon economy’
Competition

89. and Change 16 (1): 1-19.
5/04/2018
1
1
BUSM 3886
Week 6
Global Institutions and Governance
Dr Joseph H. Kim
School of Management
RMIT University
5/04/2018
2
2
Today’s lecture
• Multilateral institutions of global trade and monetary systems

90. • Regional and bilateral economic integration
• Current issues and implications for businesses
5/04/2018
3
3
What is global governance?
"Global governance is governing, without sovereign authority,
relationships that transcend national frontiers.
Global governance is doing internationally what governments
do at home“
(Frinkelstein, 1995, p. 369)
“Global governance is …
instance of governance in the absence of government”
(Ruggie, 2014, p. 5)
• Implies absence of central authority and the need for
collaboration
and cooperation among governments and others

91. • Means to achieve global governance include activities of
intergovernmental organisations and cooperative arrangements
among states
5/04/2018
4
4
Growing importance of global governance
• Weakening of nation state and rise of globalised non-
government organisations and MNEs
• Blurred distinction between private and public sectors
• Globalisation making national borders, distance and
geographic
space less relevant
• Laissez-faire requiring increase in administrative functions
“Global public domain…is no longer conterminous with the
system of
states…[it] exists in transnational non-territorial spatial
formation, and is
anchored in…institutional networks…across and beyond
borders”
(Ruggie, 2004, p. 519)
5/04/2018

92. 5
5
Selected multilateral organisations
Policy agenda Global Regional
Trade WTO EU, NAFTA, ASEAN,
Mercosur
Monetary IMF EU (Eurozone), CFA franc
Peace UN OSCE
Development finance World Bank ADB, AfDB, EBRD, IDB
Climate change Kyoto Agreement,
Copenhagen Accord,
Paris Accord
Financial sector
regulation
Basel Committee
5/04/2018
6
6

93. WTO
• Multilateral organisation establishing rules for international
trade, and
resolving trade-related conflicts between nations
- Handle disputes constructively
- Common set of rules through the principle of non-
discrimination
- Raise income, generate jobs and stimulate economic growth
• Origins in the General Agreement on Tariffs and Trade
(GATT)
- GATT (1948–1994): Agreement, not an organisation
- Reducing level of ta
developed
economies]
• Established in 1995 to replace GATT
• Encompassing GATT along with two sisters organisations
- General Agreement on Trade in Services (GATS)
- Agreement on Trade Related Aspects of Intellectual Property
Rights (TRIPS)
5/04/2018
7
7
Main areas of WTO
Umbrella Agreement establishing the WTO

94. Three main areas
Goods
(GATT)
Services
(GATS)
Intellectual
property
(TRIPS)
Conflict resolution Dispute settlement mechanism
Transparency Trade policy reviews
Source: https://www.wto.org/
5/04/2018
8
8
WTO and dispute settlement
• Dispute settlement mechanism as one of core activities of the
WTO
- aims to resolve conflicts between governments over trade-

95. related matters
- only WTO member government can bring cases
• Dispute settlement process
- consultation request
- establishment of a panel
- panel report
- appellate review
- implementation
5/04/2018
9
9
WTO and dispute settlement
• WTO does not have its own enforcement capability
• Any country that has lost a dispute case can choose its own
options:
- change its laws or practices to be in compliance
- pay compensation to the winning country
- defy the ruling by doing nothing and be willing to suffer trade
retaliation by winning countries known as ‘punitive duties’
• Is WTO over-reaching?
5/04/2018

96. 10
10
Doha Development Agenda
• A round of WTO negotiations started in Doha, Qatar, in 2001
• ‘Doha Development Agenda’ aimed to;
- reduce agricultural subsidies in developed countries to
facilitate
exports from developing countries
- slash tariffs, especially in industries that developing countries
might
benefit (such as textiles)
- free up trade in services
- strengthen intellectual property protection
• First round in history of GATT/WTO to specifically aim at
promoting economic development of developing countries
• The complexity of an agreement on ‘everything’ among
member
countries in the Doha Round proven to be a challenge
• What is the future Of WTO?
5/04/2018
11
11
Criticisms of WTO?

97. • A systematic bias toward rich countries and multinational
corporations
• Decision-making process
• Single-mindedly promoting trade at the expense of
environment
5/04/2018
12
12
IMF
• A multilateral organisation promoting international monetary
cooperation and providing temporary financial assistance to
countries with balance of payments problems
• IMF Conditionality: conditions that IMF attaches to loans to
bail
out countries in financial distress, usually requires “belt-
tightening”
- Reducing government borrowing – Higher taxes and lower
spending
- Higher interest rates to stabilise the currency
- Allow failing firms to go bankrupt
- Structural adjustment: Privatisation, deregulation, reducing
corruption and bureaucracy

98. 5/04/2018
13
13
IMF
• Criticisms of IMF
- Lack of accountability
- Creation of moral hazard
- Appropriateness of ‘one-size-fits-all’ strategy?
• Financial crisis of 2008 leading to renewed debates around the
pros and cons of IMF conditionality
5/04/2018
14
14
Regional and bilateral economic integration
• After Doha there has been a proliferation of bilateral FTAs
• Provides preferential treatments to members and

99. discriminates against non-members
• Critics argue bilateral FTAs;
- permit countries with large markets to use their
bargaining power to more effectively
- create trade diversion: a change in trade pattern away
from comparative advantage due to trade barrier
5/04/2018
15
15
Estimated trade creation and diversion effects of
TTIP
5/04/2018
16
16
Current debate: Development agenda
• Inequality between nations and persistent poverty in many
developing countries as major challenges for the world

100. economy
• Multilateral banks (e.g. World Bank) established to help fund
development projects (transportation infrastructure,
agricultural irrigation projects, banking sector reform etc.)
and advise governments to facilitate their economic growth
• Development projects may provide opportunities for MNEs to
engage in infrastructure development
5/04/2018
17
17
Current debate: Climate change agenda
• The environmental impact of human activity is also a major
concern of the 21st century, with the major focus on the
warming
of the Earth’s atmosphere due to greenhouse gas (GHG)
emissions.
• Kyoto Protocol (1997): an agreement committing developed
countries to limit their GHG emission
- After more than a decade of Kyoto Protocol, GHG emissions
increasing at an accelerating rate
• Copenhagen Accord (2009): a declaration by developed and
developing countries to combat climate change

101. - aimed to limit the level of global warming to no more than
2◦C by the end of the century
- developed countries committed to reduce their GHG
emissions by 80% by 2050
5/04/2018
18
18
Current debate: Climate change agenda
• Paris Agreement (2016): a comprehensive climate agreement
signed by 195 UN members
- aimed at keeping a global temperature rise below 2◦C above
pre-
industrial levels
- US withdrew from the agreement in 2017
• Standards and incentive schemes vary across countries
5/04/2018
19
19

102. Implications for businesses
• Businesses need to understand the rules of the game at both
global and regional levels to assess challenges and opportunities
• Businesses ought to make the most of their home region as
they
are often better prepared to compete on regional rather than
global levels
• Businesses need to be aware of and possibly engaged in
political
discussions as these may shape the business environment of the
future
5/04/2018
1
1
BUSM 3886
Week 6
Global Institutions and Governance
Dr Joseph H. Kim
School of Management

103. RMIT University
2
Today’s lecture
• Multilateral institutions of global trade and monetary systems
• Regional and bilateral economic integration
• Current issues and implications for businesses
5/04/2018
2
3
What is global governance?
"Global governance is governing, without sovereign authority,
relationships that transcend national frontiers.
Global governance is doing internationally what governments
do at home“
(Frinkelstein, 1995, p. 369)
“Global governance is …

104. instance of governance in the absence of government”
(Ruggie, 2014, p. 5)
• Implies absence of central authority and the need for
collaboration
and cooperation among governments and others
• Means to achieve global governance include activities of
intergovernmental organisations and cooperative arrangements
among states
4
Growing importance of global governance
• Weakening of nation state and rise of globalised non-
government organisations and MNEs
• Blurred distinction between private and public sectors
• Globalisation making national borders, distance and
geographic
space less relevant
• Laissez-faire requiring increase in administrative functions
“Global public domain…is no longer conterminous with the
system of
states…[it] exists in transnational non-territorial spatial
formation, and is
anchored in…institutional networks…across and beyond
borders”
(Ruggie, 2004, p. 519)

105. 5/04/2018
3
5
Selected multilateral organisations
Policy agenda Global Regional
Trade WTO EU, NAFTA, ASEAN,
Mercosur
Monetary IMF EU (Eurozone), CFA franc
Peace UN OSCE
Development finance World Bank ADB, AfDB, EBRD, IDB
Climate change Kyoto Agreement,
Copenhagen Accord,
Paris Accord
Financial sector
regulation
Basel Committee
6
WTO
• Multilateral organisation establishing rules for international
trade, and
resolving trade-related conflicts between nations

106. - Handle disputes constructively
- Common set of rules through the principle of non-
discrimination
- Raise income, generate jobs and stimulate economic growth
• Origins in the General Agreement on Tariffs and Trade
(GATT)
- GATT (1948–1994): Agreement, not an organisation
- Reducing level of tarif
developed
economies]
• Established in 1995 to replace GATT
• Encompassing GATT along with two sisters organisations
- General Agreement on Trade in Services (GATS)
- Agreement on Trade Related Aspects of Intellectual Property
Rights (TRIPS)
5/04/2018
4
7
Main areas of WTO
Umbrella Agreement establishing the WTO
Three main areas
Goods
(GATT)

107. Services
(GATS)
Intellectual
property
(TRIPS)
Conflict resolution Dispute settlement mechanism
Transparency Trade policy reviews
Source: https://www.wto.org/
8
WTO and dispute settlement
• Dispute settlement mechanism as one of core activities of the
WTO
- aims to resolve conflicts between governments over trade-
related matters
- only WTO member government can bring cases
• Dispute settlement process
- consultation request
- establishment of a panel
- panel report
- appellate review
- implementation

108. 5/04/2018
5
9
WTO and dispute settlement
• WTO does not have its own enforcement capability
• Any country that has lost a dispute case can choose its own
options:
- change its laws or practices to be in compliance
- pay compensation to the winning country
- defy the ruling by doing nothing and be willing to suffer trade
retaliation by winning countries known as ‘punitive duties’
• Is WTO over-reaching?
10
Doha Development Agenda
• A round of WTO negotiations started in Doha, Qatar, in 2001
• ‘Doha Development Agenda’ aimed to;
- reduce agricultural subsidies in developed countries to
facilitate
exports from developing countries
- slash tariffs, especially in industries that developing countries
might
benefit (such as textiles)
- free up trade in services
- strengthen intellectual property protection

109. • First round in history of GATT/WTO to specifically aim at
promoting economic development of developing countries
• The complexity of an agreement on ‘everything’ among
member
countries in the Doha Round proven to be a challenge
• What is the future Of WTO?
5/04/2018
6
11
Criticisms of WTO?
• A systematic bias toward rich countries and multinational
corporations
• Decision-making process
• Single-mindedly promoting trade at the expense of
environment
12
IMF
• A multilateral organisation promoting international monetary
cooperation and providing temporary financial assistance to
countries with balance of payments problems

110. • IMF Conditionality: conditions that IMF attaches to loans to
bail
out countries in financial distress, usually requires “belt-
tightening”
- Reducing government borrowing – Higher taxes and lower
spending
- Higher interest rates to stabilise the currency
- Allow failing firms to go bankrupt
- Structural adjustment: Privatisation, deregulation, reducing
corruption and bureaucracy
5/04/2018
7
13
IMF
• Criticisms of IMF
- Lack of accountability
- Creation of moral hazard
- Appropriateness of ‘one-size-fits-all’ strategy?
• Financial crisis of 2008 leading to renewed debates around the
pros and cons of IMF conditionality
14

111. Regional and bilateral economic integration
• After Doha there has been a proliferation of bilateral FTAs
• Provides preferential treatments to members and
discriminates against non-members
• Critics argue bilateral FTAs;
- permit countries with large markets to use their
bargaining power to more effectively
- create trade diversion: a change in trade pattern away
from comparative advantage due to trade barrier
5/04/2018
8
15
Estimated trade creation and diversion effects of
TTIP
16
Current debate: Development agenda
• Inequality between nations and persistent poverty in many
developing countries as major challenges for the world
economy

112. • Multilateral banks (e.g. World Bank) established to help fund
development projects (transportation infrastructure,
agricultural irrigation projects, banking sector reform etc.)
and advise governments to facilitate their economic growth
• Development projects may provide opportunities for MNEs to
engage in infrastructure development
5/04/2018
9
17
Current debate: Climate change agenda
• The environmental impact of human activity is also a major
concern of the 21st century, with the major focus on the
warming
of the Earth’s atmosphere due to greenhouse gas (GHG)
emissions.
• Kyoto Protocol (1997): an agreement committing developed
countries to limit their GHG emission
- After more than a decade of Kyoto Protocol, GHG emissions
increasing at an accelerating rate
• Copenhagen Accord (2009): a declaration by developed and
developing countries to combat climate change

113. - aimed to limit the level of global warming to no more than
2◦C by the end of the century
- developed countries committed to reduce their GHG
emissions by 80% by 2050
18
Current debate: Climate change agenda
• Paris Agreement (2016): a comprehensive climate agreement
signed by 195 UN members
- aimed at keeping a global temperature rise below 2◦C above
pre-
industrial levels
- US withdrew from the agreement in 2017
• Standards and incentive schemes vary across countries
5/04/2018
10
19
Implications for businesses
• Businesses need to understand the rules of the game at both
global and regional levels to assess challenges and opportunities
• Businesses ought to make the most of their home region as
they

114. are often better prepared to compete on regional rather than
global levels
• Businesses need to be aware of and possibly engaged in
political
discussions as these may shape the business environment of the
future
27/04/2018
1
Future of Work in the Global
Context
Week 9
BUSM3886
Parinita Raje
School of Management
RMIT University
27/04/2018
2

115. Today’s Lecture
• Changes/challenges affecting employment and employability
• Future work environments
• Attributes employers are looking for in graduates
27/04/2018
3
The Future is Here!
The Fourth Industrial Revolution…
“Developments in previously disjointed fields such as artificial
intelligence and
machine learning, robotics, nanotechnology, 3D printing and
genetics and
biotechnology are all building on and amplifying one another.
Smart systems—homes, factories, farms, grids or entire cities—
will help tackle
problems ranging from supply chain management to climate
change.
Concurrent to this technological revolution are a set of broader
socio-economic,
geopolitical and demographic developments, with nearly

116. equivalent impact to
the technological factors.”
(World Economic Forum, 2016, p.1)
27/04/2018
4
What are the 3 big break-
throughs or challenges that
you imagine will happen in
the next 5 years?
27/04/2018
5
Major trends affecting employment in the future…
Socio-Economic and Demographic Challenges
27/04/2018
6
Major trends affecting employment in the future…

117. Technological Challenges
27/04/2018
7
Work Challenges – Workforce Mobility
Workforce mobility includes the geographical and occupational
mobility of the
workforce.
As employees, not only will you be traveling to different
locations as part of you job,
you will also be more likely to change jobs and careers more
frequently.
Challenges:
• Increase in travel
• Digital collaboration
• Cross-cultural teams
How will future work teams organise, co-ordinate and carry out
tasks? How will
they problem-solve?

118. 27/04/2018
8
Work Challenges – Portfolio Careers
“Portfolio working is when an individual has multi strands
rather than just one
strand to their career” (The Telegraph, 2012)
Challenges:
• Keeping on top of everything
• Stress
• Work-life balance
• Dealing with uncertainty
(Careers NZ, 2017)
How will you manage competing priorities, whilst performing at
your optimum?
27/04/2018
9
Role of government
Issues:

119. • Political stability
• Protectionist politics
• Political lobbying
• Regulations
Impacts:
• Offshoring
• Work-life balance
• Job stability (e.g. impact on
employment)
27/04/2018
10
Future Work Environments
• Workplace models will change as the location of workplaces
vary:
– Workplaces centred around digital locations
– Remote working (e.g. from home), assisted by telepresence
robots and
virtual assistants
– Coworking

120. • Increase in the need for Knowledge workers
…all of these changes will be impacted by changes in socio-
economic,
governmental and business factors.
What implications does this have for graduates? What skills will
you need
to have to succeed in in tomorrows workplaces?
27/04/2018
11
Skills employers are looking for in graduates…
Qualifications &
Experience
Technical
Skills
Generic Skills
(soft skills)
Personal
Attributes
1. Good results

121. 2. Extra
curricular
activities
3. Work
experience
1. Skills specific
to your
degree – how
can you
apply these?
1. Communication
2. Teamwork
3. Problem solving
4. Initiative & enterprise
5. Planning & organising – SMART
goals, managing others
6. Digital Literacy
7. Self-management skills – working
under pressure, reflecting
8. Analytical skills – critically evaluate
information to form conclusions
9. Creativity
10. Flexibility
11. Emotional judgement
12. Innovation
1. Friendly
(approachable)

122. 2. Tactful
3. Good manners
4. Sense of humour
5. Professional ethics
6. Resilient
7. Organisational
(cultural) fit
8. Life-long learning
27/04/2018
12
“Employers are looking for candidates
who have the right degree and skill-sets
necessary for success in the position they
are trying to fill.
This may appear to be an obvious
statement, but many college graduates
don't take this basic message to heart.
The completion of a degree does not

123. guarantee a job. Employers want to know
what you will do for them.”
(Ingbretsen, 2009, para 1)
27/04/2018
13
Further Reading
• Bradford, C. I. & Burkhardt, R. 2017. Proposal to accelerate
social mobility: Incentivizing greater private investment in the
skill development of
21st century workers, Vision 20 Workshop, Brookings Institute,
20 March, accessed at
https://www.brookings.edu/research/proposal-to-
accelerate-social-mobility-incentivizing-greater-private-
investment-in-the-skill-development-of-21st-century-workers/
• Dickson, D. 2016. Technology and Collaboration Shaping the
Fourth Industrial Revolution, LinkedIn, 14 January, accessed at
https://www.linkedin.com/pulse/technology-collaboration-
shaping-fourth-industrial-duane-dickson
• Greenspan, M. (2017). How to launch a successful portfolio
career. Harvard Business Review. 4 March, accessed at
https://hbr.org/2017/05/how-to-launch-a-successful-portfolio-
career
• Hansen, T. (2014) The future of knowledge work: An outlook
on the changing nature of the work environment, White Paper,
Intel, accessed at

124. https://www.intel.com/content/www/us/en/it-leadership/future-
of-knowledge-work-place-transformation-paper.html
• Ingbretsen, Roger (2009, February 18). What employers really
look for when hiring a college graduate. Retrieved from
http://ezinearticles.com/?What-Employers-Really-Look-For-
When-Hiring-a-College-Graduate-in-2009&id=1979848
• Karmel, T. & Carroll, D. 2016. Has the graduate job market
been swamped? NILS working paper series No.228/2016,
Flinders University,
accessed
http://www.flinders.edu.au/sabs/nils/publications/working-
papers/has-the-graduate-job-market-been-swamped.cfm
• Krumm, S., Terwiel, K., & Hertel, G. (2013). Challenges in
norm formation and adherence: The knowledge, skills, and
ability requirements of
virtual and traditional cross-cultural teams. Journal of Personnel
Psychology, 12(1), 33.
• LearnVest (2013). Portfolio Careers: Is the Latest Work Trend
Right For You? Forbes, 27 February, accessed at
https://www.forbes.com/sites/learnvest/2013/02/27/portfolio-
careers-is-the-latest-work-trend-right-for-you/#884fe2b76889
• McKinsey Global Institute, 2016. Technology, jobs, and the
future of work, Briefing Note – Prepared for the Fortune
Vatican Forum,
December, accessed at http://www.mckinsey.com/global-
themes/employment-and-growth/technology-jobs-and-the-
future-of-work
• Oertig, M. & Buergi, T., 2006. The challenges of managing
cross-cultural virtual project teams. Team Performance
Management: An

125. International Journal, 12(1/2), pp.23-30.
• Spreitzer, G., Bacevice, P., & Garrett, L. (2015) Why people
thrive in coworking spaces. Harvard Business Review,
September, accessed at
https://hbr.org/2015/05/why-people-thrive-in-coworking-spaces
https://www.brookings.edu/research/proposal-to-accelerate-
social-mobility-incentivizing-greater-private-investment-in-the-
skill-development-of-21st-century-workers/
https://www.linkedin.com/pulse/technology-collaboration-
shaping-fourth-industrial-duane-dickson
https://hbr.org/2017/05/how-to-launch-a-successful-portfolio-
career
https://www.intel.com/content/www/us/en/it-leadership/future-
of-knowledge-work-place-transformation-paper.html
http://ezinearticles.com/?What-Employers-Really-Look-For-
When-Hiring-a-College-Graduate-in-2009&id=1979848
http://www.flinders.edu.au/sabs/nils/publications/working-
papers/has-the-graduate-job-market-been-swamped.cfm
https://www.forbes.com/sites/learnvest/2013/02/27/portfolio-
careers-is-the-latest-work-trend-right-for-you/#884fe2b76889
http://www.mckinsey.com/global-themes/employment-and-
growth/technology-jobs-and-the-future-of-work
https://hbr.org/2015/05/why-people-thrive-in-coworking-spaces
27/04/2018
1
Future of Work in the Global
Context
Week 9

126. BUSM3886
Parinita Raje
School of Management
RMIT University
Today’s Lecture
• Changes/challenges affecting employment and employability
• Future work environments
• Attributes employers are looking for in graduates
27/04/2018
2
The Future is Here!
The Fourth Industrial Revolution…
“Developments in previously disjointed fields such as artificial
intelligence and
machine learning, robotics, nanotechnology, 3D printing and
genetics and
biotechnology are all building on and amplifying one another.
Smart systems—homes, factories, farms, grids or entire cities—

127. will help tackle
problems ranging from supply chain management to climate
change.
Concurrent to this technological revolution are a set of broader
socio-economic,
geopolitical and demographic developments, with nearly
equivalent impact to
the technological factors.”
(World Economic Forum, 2016, p.1)
What are the 3 big break-
throughs or challenges that
you imagine will happen in
the next 5 years?
27/04/2018
3
Major trends affecting employment in the future…
Socio-Economic and Demographic Challenges
Major trends affecting employment in the future…
Technological Challenges

128. 27/04/2018
4
Work Challenges – Workforce Mobility
Workforce mobility includes the geographical and occupational
mobility of the
workforce.
As employees, not only will you be traveling to different
locations as part of you job,
you will also be more likely to change jobs and careers more
frequently.
Challenges:
• Increase in travel
• Digital collaboration
• Cross-cultural teams
How will future work teams organise, co-ordinate and carry out
tasks? How will
they problem-solve?
Work Challenges – Portfolio Careers
“Portfolio working is when an individual has multi strands
rather than just one

129. strand to their career” (The Telegraph, 2012)
Challenges:
• Keeping on top of everything
• Stress
• Work-life balance
• Dealing with uncertainty
(Careers NZ, 2017)
How will you manage competing priorities, whilst performing at
your optimum?
27/04/2018
5
Role of government
Issues:
• Political stability
• Protectionist politics
• Political lobbying
• Regulations
Impacts:

130. • Offshoring
• Work-life balance
• Job stability (e.g. impact on
employment)
Future Work Environments
• Workplace models will change as the location of workplaces
vary:
– Workplaces centred around digital locations
– Remote working (e.g. from home), assisted by telepresence
robots and
virtual assistants
– Coworking
• Increase in the need for Knowledge workers
…all of these changes will be impacted by changes in socio-
economic,
governmental and business factors.
What implications does this have for graduates? What skills will
you need
to have to succeed in in tomorrows workplaces?
27/04/2018

131. 6
Skills employers are looking for in graduates…
Qualifications &
Experience
Technical
Skills
Generic Skills
(soft skills)
Personal
Attributes
1. Good results
2. Extra
curricular
activities
3. Work
experience
1. Skills specific
to your
degree – how
can you
apply these?
1. Communication

132. 2. Teamwork
3. Problem solving
4. Initiative & enterprise
5. Planning & organising – SMART
goals, managing others
6. Digital Literacy
7. Self-management skills – working
under pressure, reflecting
8. Analytical skills – critically evaluate
information to form conclusions
9. Creativity
10. Flexibility
11. Emotional judgement
12. Innovation
1. Friendly
(approachable)
2. Tactful
3. Good manners
4. Sense of humour
5. Professional ethics
6. Resilient
7. Organisational
(cultural) fit
8. Life-long learning

133. “Employers are looking for candidates
who have the right degree and skill-sets
necessary for success in the position they
are trying to fill.
This may appear to be an obvious
statement, but many college graduates
don't take this basic message to heart.
The completion of a degree does not
guarantee a job. Employers want to know
what you will do for them.”
(Ingbretsen, 2009, para 1)
27/04/2018
7
Further Reading
• Bradford, C. I. & Burkhardt, R. 2017. Proposal to accelerate
social mobility: Incentivizing greater private investment in the
skill development of
21st century workers, Vision 20 Workshop, Brookings Institute,
20 March, accessed at
https://www.brookings.edu/research/proposal-to-
accelerate-social-mobility-incentivizing-greater-private-

134. investment-in-the-skill-development-of-21st-century-workers/
• Dickson, D. 2016. Technology and Collaboration Shaping the
Fourth Industrial Revolution, LinkedIn, 14 January, accessed at
https://www.linkedin.com/pulse/technology-collaboration-
shaping-fourth-industrial-duane-dickson
• Greenspan, M. (2017). How to launch a successful portfolio
career. Harvard Business Review. 4 March, accessed at
https://hbr.org/2017/05/how-to-launch-a-successful-portfolio-
career
• Hansen, T. (2014) The future of knowledge work: An outlook
on the changing nature of the work environment, White Paper,
Intel, accessed at
https://www.intel.com/content/www/us/en/it-leadership/future-
of-knowledge-work-place-transformation-paper.html
• Ingbretsen, Roger (2009, February 18). What employers really
look for when hiring a college graduate. Retrieved from
http://ezinearticles.com/?What-Employers-Really-Look-For-
When-Hiring-a-College-Graduate-in-2009&id=1979848
• Karmel, T. & Carroll, D. 2016. Has the graduate job market
been swamped? NILS working paper series No.228/2016,
Flinders University,
accessed
http://www.flinders.edu.au/sabs/nils/publications/working-
papers/has-the-graduate-job-market-been-swamped.cfm
• Krumm, S., Terwiel, K., & Hertel, G. (2013). Challenges in
norm formation and adherence: The knowledge, skills, and
ability requirements of
virtual and traditional cross-cultural teams. Journal of Personnel
Psychology, 12(1), 33.

135. • LearnVest (2013). Portfolio Careers: Is the Latest Work Trend
Right For You? Forbes, 27 February, accessed at
https://www.forbes.com/sites/learnvest/2013/02/27/portfolio-
careers-is-the-latest-work-trend-right-for-you/#884fe2b76889
• McKinsey Global Institute, 2016. Technology, jobs, and the
future of work, Briefing Note – Prepared for the Fortune
Vatican Forum,
December, accessed at http://www.mckinsey.com/global-
themes/employment-and-growth/technology-jobs-and-the-
future-of-work
• Oertig, M. & Buergi, T., 2006. The challenges of managing
cross-cultural virtual project teams. Team Performance
Management: An
International Journal, 12(1/2), pp.23-30.
• Spreitzer, G., Bacevice, P., & Garrett, L. (2015) Why people
thrive in coworking spaces. Harvard Business Review,
September, accessed at
https://hbr.org/2015/05/why-people-thrive-in-coworking-spaces
https://www.brookings.edu/research/proposal-to-accelerate-
social-mobility-incentivizing-greater-private-investment-in-the-
skill-development-of-21st-century-workers/
https://www.linkedin.com/pulse/technology-collaboration-
shaping-fourth-industrial-duane-dickson
https://hbr.org/2017/05/how-to-launch-a-successful-portfolio-
career
https://www.intel.com/content/www/us/en/it-leadership/future-
of-knowledge-work-place-transformation-paper.html
http://ezinearticles.com/?What-Employers-Really-Look-For-
When-Hiring-a-College-Graduate-in-2009&id=1979848
http://www.flinders.edu.au/sabs/nils/publications/working-
papers/has-the-graduate-job-market-been-swamped.cfm
https://www.forbes.com/sites/learnvest/2013/02/27/portfolio-

136. careers-is-the-latest-work-trend-right-for-you/#884fe2b76889
http://www.mckinsey.com/global-themes/employment-and-
growth/technology-jobs-and-the-future-of-work
https://hbr.org/2015/05/why-people-thrive-in-coworking-spaces
26/02/2018
1
1
BUSM 3886
Week 1
Course Overview
Dr Joseph H. Kim
School of Management
RMIT University
2
Today’s lecture
• Introduction to the course
• Assessment items

137. 26/02/2018
2
3 3
Course coordinator
Dr Joseph H. Kim
email: [email protected]
Consultation Hours: by appointment
4
Overview of BGG
Source: Adapted from Daft (1992)
26/02/2018
3
5
Key topics covered
• Globalisation: past, present and future
• Business in the global context
• Government in the global context
• Neoliberalism and economic development

138. • Global institutions and governance
• Ethics and corporate social responsibility
• Business, government and sustainable development
• Business and government in the global information economy
• Future of work in the global context
• Global challenges: implications for business and government
6
On completion of this course
• Demonstrate knowledge of the complexities of globalisation
and its
impact on business and government.
• Critically assess roles of business and government, and their
interactions in the global context.
• Identify various stakeholders in the global context, and
discuss the impact of
the decisions of business and government on these stakeholders.
• Critically analyse and evaluate key issues facing businesses in
the global
economy and propose how businesses can strategically manage
these
issues.
• Demonstrate academic skills commensurate with postgraduate
study
including academic research and analysis, verbal and written
communication, team work and independent learning.

139. 26/02/2018
4
7
Learning activities
• Lectures (Tuesday 5:30 PM, Thursday 3:30 [repeat lecture])
• Tutorials
• Canvas
• Readings
• Assessments
8
Assessments
Due: 23:55, 26 March (Monday, week 5) Literature review
(10%)
• Individual
• 500 words
Starting from week 6 Group project (40%)
• Group: presentation & report
• 30 + 15 minutes presentation & 2,000 word report
Due: 23:55, 28 May (Monday, week 13) Individual essay (50%)
• Individual

140. • 2,500 words
This course comprises the following assessment tasks. You need
to obtain 50% or
above from the total assessment value to pass this course.
26/02/2018
5
9
Assessment Task 1
• Value: 10%
• Due date: 23:55, Monday 26 March (Week 5)
• Submission via a link on Canvas
• Word limit: 500 words (10% more or less is allowed)
You are asked to write one individually researched review of
one of two journal
articles.
Article 1: Detomasi-The Multinational corporation as a political
actor
OR
Article 2: Block-Swimming Against the Current The Rise of a
Hidden Developmental
State in the United States

141. *The articles are available for download from Canvas
10
Assessment Task 1
Purposes
Your review of the article should show your reader that you:
• have a clear understanding of the key concepts and theories
related to the article;
• can identify and assess the strengths and weaknesses of the
key arguments of the
article;
• can identify and discuss the significance of the article in
relation to the existing
literature (you should include at least three scholarly references
to demonstrate you
have attempted to draw links between your chosen article with
other works in the
field); and
• can present a clear and convincing argument using an effective
academic writing
style including consistent referencing and citation (using
Harvard style)
The criteria against which the paper will be graded are:
• evidence of extensive reading and understanding of the article
as seen in the critique
of the theories;

142. • critical evaluation of the article’s significance to the existing
literature; and
• presentation which includes a clear writing style, good
grammar and spelling and
appropriate referencing.
26/02/2018
6
11
What is critical thinking?
• the discipline of being skeptical or questioning about
statements,
propositions information or norms (Mingers, 2000: 225)
• being thoughtful, asking questions, not simply accepting as
true,
everything your read/hear (Williams, 2015)
• Critique of ‘how we know what we know’
• Involves critical analysis of people’s arguments and
propositions
• Implies coming to a reasoned judgment based on analyses of
claims,
evidence and assumptions

143. 12
Assessment Task 2
• Assignment type: Oral presentation and written report (group)
• Value: 40%
• Due date: presentation during allocated week of tutorial class
(starting
from week 6) and written group report
26/02/2018
7
13
Assessment Task 2
For this assessment, your group is r