Globalization & Ethical Challenges
Ethics is an everyday occurrence in one’s personal life as well as in corporate world. Business ethics
examines ethical principles and moral or ethical problems that arise in a business world. Due to
globalization of markets and production processes, an ever-increasing number of marketers and business
organizations have to deal with ethical issues in cross cultural setting.
The corporate leaders and senior managers working with every global organization are facing
various dilemmas and concerns spamming various disciples like marketing, finance, human resource
production, etc.
Phenomenon called Globalization
Globalization is a phenomenon that has led to the integration of regional economies, societies
and cultures through communication, transport and trade. It is closely linked with economic
globalization that stands for the integration of national economies into the international economy
through trade, foreign direct investment, capital flows, migration, the spread of technology and military
presence.
Business Ethics and Need of Business Ethics
Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that
examines ethical principles and moral or ethical problems that arise in a business environment. It
applies to all aspects of business conduct and is relevant to the conduct of individuals and entire
organizations. It aims at inculcating a sense of value orientation within company’s employee as to how
to conduct business responsibly.
Some organizations choose to recast the concept of business ethics through other terms like
integrity, social responsibility, customer welfare, employee welfare, social value added, transparency and
disclosure in accounting and environmental protection.
Ethics is needed to business for several reasons:
It is a human trait that man desires to be ethical, not only in his private life but also in his
business affairs
Most people want to be part of an organization which they can respect and be publicly
proud because they perceive its purpose and it to be honest and beneficial to the
society.
Most top managers would like to respond to this need of their employees and they
themselves feel an equal need to be genuinely proud of the company, they are directing.
Ethics create credibility with the public:
A company perceived by the public to be ethically and socially responsive will be honored and respected
even by those who have no intimate knowledge of its actual working. There will be an instinctive
prejudice in favor of its products, since people believe that the company offers value for money. Its
public issue will attract an immediate response. Ethics give management credibility with employees.
Law cannot protect society, ethics can:
◦ Ethics is important because the government aw and lawyers cannot do everything to
protect society. Technology develops faster than the government can regulate. People
in an industry often know the dangers in a particular technology better than the
regulatory agencies. Further, government cannot always regulate all activities which are
harmful to society. Where law fails, ethics can succeed. An ethically-oriented
management takes measures to prevent pollution and protection of worker’s health
even before being mandated by law.
