Coursepaper on Globalization
Table of Contents
Part I (a)
There is no doubt about the fact that globalization has changed the way of doing business. Going globally is associated with multiple opportunities (Gurnani, 2015). These opportunities include, but are not limited to, expanded market, larger pool of talents, and innovative practices (Collins, 2015). However, going globally also involves addressing a number of ethical challenges. Oznur (1994) suggests that the most evident challenges faced by multinational corporations are related to cultural and labor practices. The former group of challenges involves the need to address cultural barriers and to incorporate the existing differences into a productive and innovative work environment. The latter group of issues implies the creation of equitable work environments. Many companies seeking international expansion fail to address the mentioned challenges, as the temptation to dominate decision making or benefit from cheap labor is great. The notorious examples of the operation of Nike or Ralph Lauren in Asian region demonstrate that while ignoring the ethical standards leads to quick profits, it is likely to destroy a company’s reputation in the long run (Bunting, 2011).
Companies aimed at sustainable development choose to adhere to the principles of international business ethics.The objective of this response is to define international business ethics and to examine how it is able to address ethical challenges facing multinational corporations. Using the examples of Nike, Siemens, and other multinational corporations, the response suggests how international companies and bodies contribute to the achievement of greater equity and improved labor standards. Citing examples from the international business, the response suggests steps towards ethical conduct. The aim of addressing the mentioned issues is to prove that adherence to universal ethical principles preconditions business longevity of multinational organizations.To approach the role of multinational corporations in addressing ethical dilemmas related to globalization, it is advisable to define the process and to examine how it shapes equity and cultural integration. The examples taken from the operation of multinational corporations substantiate the discussion.Akram et al (2011) admit that the concept of globalization is not new, but it has recently become the subject of scrutiny. Farrell (2007) attributes this to the pace of globalization noting that in the period between 1950 and 2004, the volume of merchandise trade has expanded about 7.5 times.
Thus, globalization - “a process that encompasses the causes, course, and consequences of transnational and transcultural integration of human and non-human activities” (Al-Rodhan, 2006, p. 5) - opens great prospects for business. Schmukler (2004), senior economist of Development Research Group at the World Bank, suggests that globalization helps companies to win competitive edge by allowing better access to resources.However, accessing human and non-human resources offered by globalization processes involves addressing a number of ethical dilemmas. Cultural integration is a commonly cited dilemma (Oznur, 1994). The operation of a multinational organization involves facing with and managing a diversity of cultures. When trying to integrate different cultures in a coherent working environment, multinational corporations are faced with a number of challenges. An important …