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Awrrd 2009

St.GallenWingr ol Excellencc ShofwanAl-Banna Choiruzzad ShofwanAl-BannaChoiruzzad St.GallenWings of ExcellenceAward 2009

Boundaries as Bridges:
Actors
Business
A Reflectionfor Transnational

My first arrivalat Japanwas deeplydominated by admiration- getting stricterin Europeand almost all parts of the World.aThe
b o t h o n J a p a n 'tse c h n o l o g i etsh a t I s a w f o r t h e f i r s t t i m e ( i n c l u d - so-called"flat world" seemsto be jagged.Politicaland economic
i n g a s i m p l ev e n d i n gm a c h i n ei n K a n s a Ii n t e r n a t i o n aAl i r p o r t ' s boundariesare still there - and may becomestrongerin the fu-
corner),and on how the globalisationhas made it possiblefor me tu re.
to be there.In my grandfather'sdays,goingabroadwas a difficult
thing that could take months or even years.lt was the reason Thosewho live outsidethe developedworld may noticethat this
why everytime somebodyis goingto departfor hajj,we will have is not new. In Middle East,lsraelisand Arabshave beenfighting
a traditionalfestivalto pray for his or her safety.In my father's for a territory for decades.In many countries,nationalismis still
days,it was getting shorter- but still difficult and long. Now it sacred:it can mobilisemillionsof people.ln 2002,a borderdis-
is easierto go from one part to anotherpart of the globe.lt takes pute between Indonesiaand Malaysiasparkeddemonstrations
only sevenhoursfrom Jakartato Osaka.Theworld is getting more and cyberwar in the "netscape"(anothermoverofthe flattening
connected. of the world mentionedin Friedman's book).lt is not only that the
internet could not eliminate boundaries.To some extent. even
Duringmy secondtrip to Japan,in 2008,I realisedthat something the boundariesare invadingthe'cyberworld'.
differentwas happeningsimultaneously. The immigrationofficer
askedme to put my fingerson a machine.My finger prints were The currentglobalcrisisis strengtheningthe presenceof bound-
taken."Forsecurity,5ir!" he told me. I smiled. aries.The difficult economicsituationforces companiesto cut
productioncosts,fire more employeesand acceptfewer employ-
Introduction:The Flatand the Fortress ees.Economicinsecurityriseon personaland nationallevel.The
economicgap within and betweennationsis becomingmore visi-
Inspiredby histravelto Bangalore,India,ThomasFriedmanwrote ble. A scholaron internationalsecurity,Heiki Patomaki,warned
a revelationarguingthat "TheWorld is flat". Countriesare no lon- that a similarsituationin 1930shad leadto a WorldWars- where
'level playingfield'.All competitors,despite nationswere fighting for politicalboundaries.
ger in a different of
their historicalbackground, are now havingequalopportunities.'
Politicaland economicboundariesare fading away in a fast pace. | firmly believethat the world is still flattening,thanksto human
creativity.However,it does not imply that boundariesare dimin-
N o t h i n gt h a t F r i e d m a np u t t h e c r u m b l i n go f B e r l i nW a l l a s o n e ishing.Peopleare making boundariesto ensuretheir securityin
primary mover of the World'sflattening, one should be aware an ever changingenvironment.Rosenau, a leadingInternational
that the collapseof the World TradeCentre'sTwin Towerswas a Relationsscholar,termed this as "fragmegration":the globalisa-
'home- tion is markedwith a twin force of integrationand fragmenta-
symbol of an entirelydifferent story.'zThe emergenceof
land security'doctrinecreatedexcusesfor the strengtheningof tion.6Peoplecreatefortressesin a flatteningworld.
border control in North America.rlmmigration proceduresare

aForfurther discussion,seeAlessandraBuonfino,"Politics,Discourseand lmmigrati-
on as a securityconcernin the EU:a tale of two nations,lta ly a nd Britain",accessed
from <http://wwwessex.ac.u k/ecpr/events/joi ntsessions/ paperarchive/uppsala/
'ThomasFriedman, TheWorldis Flat:a BriefHistoryof the TwentyFirstCentury, ws16/Buonfino.pdf>and JamesD. Ross,"securitizingMigration after 11 March",
I I r
- t!.'
| : :.-
a i ?.- a
^a-a
( F a t r aSr ,t r a u&
j
"TenForces
s Giroux:2005).
theWorld:fromTheWorldis FlatbyThomasFriedman",
that Flattened
accessedfrom<http://www.greece.k12.ny.uslflät/FLAT%2ONotes.pdf>
taken from <http://www.realinstitutoelcano.org /analisis / 460/ ARl56-20041.pdf >
5Heikki Patomaki,The PoliticalEconomyofGlobal SecurityrWar, FutureCrisesand
Changesin Global Covernance(LondonrRoutledge2008).
.::i.
St.Gallen o rPresidentGeorgeW.Bush,"iecuringtheHomeland,StrengtheningtheNation", olames N. Rosenau,Distant Proximities:DynamicsBeyondClobalization,(Princeton S t . G a l l e na
Sym pos iu m accessed from <http://www.gllinvestiSations.net,/lMG/pdf /doc-ß3.Pdf> PrincetonUn iversityPre5s,2003). Symposium

8

"Clobal Ethicsand InternationalLawTradition".it is a little bit different: "Harmony" is the central In many developingor leastdevelopedcountries.boundarieswere createdas It is time to learnfrom the East.it is important outside:foreign or multinationalcorporations.2007].n a t i o n a l i s me m e r g e da s a r e s p o n dt o i n j u s - ticescreatedby colonialism.:.also in William . and the swersfor their economicand socialdifficultiesare comingfrom rightswill follow.2007]. businessand trade world: there are "rights"of the companiesto be treatedthe same. C a l l e nt Symposium UniversityPress.::i.particularlypoliticalones. for example).GallenWingsof Excellence Award 2009 Shofwan Al-Banna Choiruzzad ShofwanAl-BannaChoiruzzad St. actorin a flat world shouldtake this as opportunity. t!.p. S t .responsibilitycomesfirst.' t o!. ly .or to forgetthe boundaries. what the small man eignty (of course.boundariesalso define who is the "economicrights".this is the reflectionfor transnationalbusinessactorswilling not sayingthat this mentalitywas bad at all..c o u l db e b r i d g e sB. tive insiders".The Globalizationof Ethics.5t. U niversityPress. "outsidepowers"* of course.the emergenceof "nation states"was largelydrivenby fear..poor working conditions.the WTO'sMFN (Most FavoredNations)prin- Thus. "What the superior man seeksis in himself. ones perceivedas the "outsider".peopletend to look at boundaries.GallenWings of ExcellenceAward 2009 This essayis an attempt to answerthis contemporarychallenge. I n s t e a do f t r y i n g t o e l i m i n a t eb o u n d a r i e sa. Sullivanand Will Kymlicka.in William M. times of insecurity. actors to expand their businessto developingand developed countriesby being not sensitivetowards their senseof bound- Sensitivitytowards Boundaries aries.within eachonesown boundaries).sweatshops.I am So. the International to demonstrateresponsibility for others. noticedasthe basisof the ideaof sover. if w e t r e a tt h e m w e l l . rity. G a l l e na Sullivanand Will Kymlicka.Letthem be"posi- identificationwhich was usuallybrought by a feeling of insecu. To maintain harmony.When it is hardto find employment. sRichardMadsen. theme. From the beginning.In the Westerntradition.What the transnationalbusinessactorsshoulddo is not to eliminate. In the East.the popularan. was at first seeksis in others.it is easyto understandthat boundariesare "stronger"at ciple.naturaldestructions a b a d t h i n g ." an attempt to solvethe continentalThirty YearsWar in Europe.In short..or fulfill their hopes.Ethical Uniformity and Diversity".etc.the World TradeOrganization(WTO)and the individualcomesnot from the capacityto act independent- the World Bank.it is not a good ideafor business this as opportunity.The Globalizationof Ethics. lt should be under.which sometimesare not base- The good news is that the revivalof the boundariesis not always less. s m a r t a r er e a li n m a n yc a s e s .but from the capacityto act as a part of an interdependent whole"t.Letthe bound- Boundaries.are emanatingfrom self.By sayingnegative.T Confucius I n A s i a a n d A f r i c a . u s i n e sasc t o r ss h o u l dt a k e 6iven the natureof boundaries.because"the dignity of Monetary Fund (lMF). ariesthereto givea feelingof securityand pride.Boundaries.' ?DanielPhilpott. to expandits businessin developingor leastdevelopedcountries: stoodas a popularreactiontoward an "imageof threat"from the It is important to be a "positiveoutsider"first beforeaskingthe ."Rights"also appearin the "insider"and who arethe "outsiders".(Cambridge:Cambridge M.it was translatedinto a "negativeinsider"mentality:rang- ing from protectionismto xenophobia. Beforeaskingpeopleour rights. Symposium 1-0 il- . How? Learningfrom the EasternPhilosophy TheTreatyof WestphaIia. Then.p.(Cambridge:Cambridge S t .buy daily needs. 20-2r."rights" an institutionalisationof protectionfrom threats coming from are the central theme (take "Human Rights'l"political rights".' '.to conquer."Confucianism..and WTO'sNationalTreatment. t27.

u s i n e sw s o r l d c a m ew i t h t h e i d e ao f q u o t e a p e r s o n aal d v i c e b .d o w n ' t h ahti g h e ri n v e s t m e nwt i l l h e l pt o r e d u c ep o v e r t y through higher employment and real wages is not always evi.Gallen o D " c e m b e2r 0 0 7 . S t . St. 0 . o m e - Beyond"Trickle-downtheory" and "CorporateSocial t i m e s . I am sorryto R e s p o n d i nt go m a n yc r i t i c sb. FinalReflection d e n t . u t I d o t h i n k t h a t i t i s t h e s a m e . e a rt h e c o n c e r no f t h e i n s i d e r se. I I " HaroonJamal.. However.manypeoplearestilIskepticaItowards boundaries:it emergesfrom fear and insecurity.T h e " s o c i acl o r p o r a t ree s p o n s i b i l i t (yc" S R )T.a c c o m p a n i ew d i t h t h e g l o b a le c o n o m i c r i s i s .45.one shouldbe awareof the natureof societyatlarge"10.boostingits growth.' |.there arestill manythings t o l d i n P e s a n t r e nssu m i t w e l l .realise poor. r s e c o n dy.b u s i n e s sa c t o r sa r e c r e a t i n gC S Rb a s e do n i n t e r n a t i o n a l Responsibility" discourseor the advicesfrom high-paidconsultants.By doing so.No. ublished t h e o n e si n s i d et h e b o u n d a r i e sA.the key is simple: Be sensitivetoward boundaries. h e N e w I n t e r n a t i o n a l i sMt a g a z i n ef. Symposium T2 13 . However. ' t r i c k l e .the pro-growth developmentagenda was accompa..p p .:.Vol. "Does Inequality Matter for PovertyReduction? Evidencefrom I t t!." C o m p a n i ew .' t o r e a c ha n o t h e ri s l a n d o . We can alsoseeit in two wavs:obsta- commitment by businessto behaveethicallyand contributeto c l eo r c h a n c e .Some economistsbelievethat the presenceof the transnationalcom.The wealth createdby these huge companieswill benefitthe whole country.many casesshowed a different story. 5 . P a k i s t a nei c o n o m i s ta.GallenWingsof Excellence ShofwanAl-BannaChoiruzzad ShofwanAl-BannaChoiruzzad St. a s p e c i ael d i t i o nw h i c h w a s t i t l e d " C o r p o r a t er e s p o n s i b i l i tuyn - n f a w o l f w e a r i n ga s h e e pc o s t u m e ) . e c o n o m i cd e v e l o p m e nwt h i l e i m p r o v i n gt h e q u a l i t yo f l i f eo f t h e w o r k f o r c ea n dt h e i rf a m i l i e sa sw e l la so f t h e l o c a cl o m m u n i t ya n d Tomakeit a positivechance. the insecurityand However.:. b r i d g ew i l l b e t h e r e .GallenWings of Excellence Award 2009 p e o p l ew i t h i n t h a t c e r t a i nb o u n d a r i e as c t p o s i t i v e l y" S . Civing 'Aren't good things without being sensitivetoward the "insider'spride" we positiveenough?"some executivesmay argue.n o w I n d o n e s i-a d u r i n gi t s c o l o n i agl o v e r n m e n t ) .. o u r p o s i t i o na s o u t s i d e rh. you see it as an obstacle nied by risinginequality. C a l l e no Symposium ' tbi(t. l.n g a g e positivelyand create harmony. a n l n d o n e s i a n " w i s e words" developmentin the business.o r e x a m p l e p . One important point sometimesforgot- t e n i s a b o u t o u r t o p i c :t h e s i g n i f i c a n coef " b o u n d a r i e s "S.or shut the peskycampaignersup"".H a r o o nJ a m a l a . l-o a A u t u m n 2 0 0 6 .savemoney. neededto be addressed. "You can see a sea in two ways: first.3.The premiseof fear createdby the outside/insidedifferencewill be minimised.h eW o r l dB u s i n e sCs o u n c i l g e o p o l i t i c at rl e n d .4 5 9 .n N e w I n t e r n a t i o n a l i svt o . will not be successful(just as the Dutch "ethicalpolicy"towards g r l e a s td e v e l o p e cd o u n t r i e si t s e l fi s a b l e s s - p a n i e si n d e v e l o p i n o D u t c hI n d i e s. m a s k e d ("w i t h a n i l l u s t r a t i o o The magazinecynicallysaidthat "CorporateResponsibility hasto make money. ing. nd Here is my stand: I positivelycelebratethe rise of CSRas a good y o u w i l l g e t o t h e r ss m i l e f o r y o u " . a . Pakistan'sPovertyTrends". r g u e dt h a t i n m a n y situations. 4 3 9 . milea .but forget to be sensitivetoward the notion of "insider/outsider". and "trickleddown" to the Thus. ^a a s h o C a r e ? "i . Award 2009 St.Bewise and hear C S RT..my father oncetold me. ' " J e s sW o r t h .inThePakistanDeveloPmentReview. o u s e e i t a s a n i n s t r u m e n t to reachyour destination".407. for SustainableDevelopmentdefines CSRas "the continuing seemsto reviveboundaries.

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