Because of technological changes our world is becoming more and more interconnected.
Globalization and Business Ethics Globalization and Business Ethics Business ethics is a well-institutionalized academic field, which deals with the moral dimension of business activity.
In the context of international business, it means the treating of moral questions of international cultures and countries. International business should be sensitive to the environment and not just selfish for its own profits.
Ethically, safety comes first and the profit comes last. The various issues that ethics target are diverse environmental concerns, animal welfare issues, labor practices, fair trade, health concerns, genetic modification, patenting of genes, cloning etc.
International business is both more exposed to a variety of Globalization of business ethics conditions as well as in a position to exploit business ethics due to the sheer size an international company has. The end result of an ethical judgment entails its authenticity from being morally correct.
But moral correction itself is a relative concept and is based upon the cultural perceptions as well as traditions. The international market and business arena can be ethically segmented into the die hard, the dont cares, and the various groups in between.
Companies all around the world are coming under scrutiny from governments, shareholders, customers, trade unions, human-rights groups, and others to prove that their activities are conducted in ethical ways.
Globalization refers to the shift towards a more integrated and interdependent world economy. Globalization has brought a lot of people into contact with the world by declining the barriers of the free flow of goods and services, since the World War II and the dramatic technological change and development in recent years mainly in the past three decades.
This development has made the people around the world to be connected to each other. Information and money flow quicker than ever. Products produced in one town are available to the rest of the world.
It becomes much easier for anyone to travel, communicate and do business internationally.
Free flow of goods and service s has produced many opportunities for business. This whole phenomenon has been called globalization.
Relevance of Globalization for Business Ethics Globalization as defined in terms of the de-territorialization of economic activities is particularly relevant for business ethics, and this is evident in three main areas — culture, law, and accountability. Cultural Issues As business becomes less fixed territorially, so corporations increasingly engage in overseas markets, suddenly finding themselves confronted with new and diverse, sometimes even contradicting ethical demands.
Moral values, which were taken for granted in the home market, may get questioned as soon as corporations enter foreign markets. For example, attitudes to racial and gender diversity in Europe may differ significantly to those in Middle Eastern countries. Similarly, Chinese people might regard it as more unethical to sack employees in times of economic downturns than would be typical in Europe.
Again, whilst Europeans tend to regard child labour as strictly unethical, some Asian countries might have a more moderate approach.
Consider the case of Playboy, the US adult magazine, which had to suspend its Indonesian edition and vacate the company premises in in the wake of violent protests by Islamic demonstrators — even though the Indonesian edition was a toned down version that did not show nudity.
The reason why there is a potential for such problems is that whilst globalization results in the deterritorialization of some processes and activities, in many cases there is still a close connection between the local culture, including moral values, and a certain geographical region.
For example, Europeans largely disapprove of capital punishment, whilst many Americans appear to regard it as morally acceptable. Women can freely sunbathe topless on most European beaches, yet in some states of America they can get fined for doing so — and in some Muslim countries would be expected to cover up much more.
This is one of the contradictions of globalization:Globalization refers to the modern phenomena of cultures, nations and financial institutions around the world becoming more and more interconnected.
As a result of this interconnection, these various institutions are becoming interdependent. This interdependency carries with it ethical and practical. Globalization in Business: Globalization refers to the changes in the world where we are moving away from self-contained countries and toward a more integrated world.
Globalization of business is the change in a business from a company associated with a single country to one that operates in multiple countries. the importance of business ethics in globalisation -a study International Journal of Advancements in Research & Technology, Volume 3, Issue 4, April Business Ethics, Globalisation,Ethics Need,Human Resource etc.
The Critical Role of Ethics and Culture in Business Globalization By Kate Gerasimova Published at September 29, November 11, In Category Blog Tags: Leadership, Org Culture, Talent Management.
Globalization of business is the change in a business from a company associated with a single country to one that operates in multiple countries. Impact of Globalization. Globalization and Ethical challenges involved in that. Research Questions What is Globalization, What are Business Ethics and why are they needed?
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