Civil Society and Global Finance Essay Example | Topics and Well Written Essays - 1250 words - 1

Civil Society and Global Finance - Essay Example This transition occurred in the running century, however, it initiated in the 1990s; the reason was increasing competition for economic sustainability and supremacy. In the running decade, the magnitude of the economic activities is considered enormous than previous decades, unfortunately, this success is the cost of ignorance or non-compliance of social and environmental obligations. The companies are more interested in improving their financial positions for obtaining credit facility. The devised financial policies are extremely converged to point of high revenue generation, such that significant environmental and social aspects have been outclass. Such practices was never exercised in 20th century, the companies considered compliance of social and environmental laws obligatory, the financial profits were curtails, production numbers were reduced only to secure the necessary non-financial interests, beneficial for the human society (Clarkson, 2002). As per critics, it was in 1980s when the international investment regime transformed significantly. The attributing factors towards such transformation included "extra-ordinary increase in the volume of global FDI flows and stocks; second, the rising levels of corporate concentration in high technology global production resulting from mergers, acquisitions and network relationships, in particular strategic business alliances; and third, the development and widespread application of information technologies to international corporate organization". During the 1980s and 1990s, the economic indicators of the world economy were negative, and severe slowdown in the foreign direct investment was witnessed, "global foreign direct investment flows declined in 1991 for the first time since 1982, falling from USD 230billion in 1990 to USD 180billion in 1991" (Jan 2002).