Globalization and Business Ethics

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Globalization and Business Ethics

Globalization and Business Ethics Name Institutional Affiliation Globalization and Business Ethics Globalization is a common phenomenon, yet the one that has been associated with threats to human existence and sustainability of the environment (Howell 2009, p. 453). Globalization has elevated the scale of economy in the world. As a result, countries enjoy better access to external markets for exports and imports. Individual business people reap the benefits of the global market when there is an integrated way of doing business among the nations. But as the level of globalized business goes up, so are the challenges that are associated with business activities (Bose 2012, p. 18). Environmental exploitation is rampant to the extent that it has become a threat to sustainability of natural resources. Moreover, pollution is a very huge challenge to the environment at the moment. While business ethics are formulated to help regulate business, a fundamental question still remains: can business ethics intervene at the level of a globalized economy to bring about sanity in the related practices? It is not ethical for a global economy to be run by the desire for more money without considering the impact their activities produce on the environment, other people, and living organisms in general. In line with this, this essay discusses how globalization has negatively impacted different aspects of human life and how ethical theories can be incorporated to avoid further deterioration. Negative Impacts of Globalization First of all, it is necessary to describe how globalization has contributed to depletion of natural resources. For the onset, it is worth mentioning that natural resources are not infinite; in other words, unsustainable use of natural resources can lead to their depletion (Giovanola 2009, p. 438). For instance, use of coal has increased presently. The need for more energy to run the world economy has led to the increase in the consumption of coal. In this regard, coal deposits face a threat of depletion if the rate of their exploitation continues to rise. However, it is unlikely that the coal consumption level will decrease given the energy needs in the world as the economy expands. Similarly, the consumption of petroleum products has also been on the rise. Movements across the globe have increased the demand for fuel to run locomotives and aircrafts as business people travel from place to place; additionally, transportation of goods and services has resulted in the rise of demand for petroleum products. Thus, although globalization is good for the economists, it is bad for the welfare of the humanity because it leads to unsustainable use of natural resources causing their depletion. Future generations may find no natural resources to use if the current trend remains. The second negative impact of globalization is environmental pollution. Globalization has contributed immensely to the environmental pollution since it has encouraged industrialization on a large scale (Howell 2008, p. 247). For instance, the amount of industrial carbon emissions increases every year. The source of the carbon emitted to the atmosphere is the burnt coal in the industries. If measures are not put in place to curb excessive carbon emission, the effects of environmental pollution will be a damaged ozone layer and consequential global warming. Another form of environmental harm that is a result of globalization is water pollution (Rice 2006, p. 376). There are many industries that are struggling to produce goods on a large scale so that the global economy needs can be met. These industries discharge their wastes inappropriately, and these wastes find their way into the water sources. Water pollution thus produces harmful effects on the aquatic animals while posing a threat to the health of the people in the vicinity. Therefore, environmental pollution is a challenge that threatens the wellbeing of humanity owing to globalization. Thirdly, globalization has led to the increased economic pressure on the developing countries that are in a race to fit into the global economic map (Rodrick 2010, p. 84). In this race, they are experiencing a lot of pressure to expand their economic base (Rodrik 2010, p. 85). For instance, many developing countries are struggling to improve and expand their infrastructure. In the process, they find themselves borrowing credits from the developed nations. Meanwhile, the latter are taking advantage of the position of the developing countries to impose trade agreements. For instance, the US is trying to influence most African countries to stop interacting with China; instead, it encourages African nations to trade exclusively with them (Choi, Kim S & Kim J 2010, p. 56). This form of influence is bad because it curtails the freedom of a sovereign nation to make independent decisions and choose trade partners without coercion. Moreover, business people from developed nations are migrating to developing nations to establish businesses that sometimes destabilize local businesses. In addition, natural resources of the developing countries are usually exploited in an uncontrolled manner, which makes their economy suffer due to the poor balance of trade established between the developed and developing nations. Thus, the impact of globalization on the developing countries is negative to a great extent. Ethical Theories Ethics refers to what is right in the eyes of the society. The society has come up with theories that define what a good and a bad act is. Therefore, ethical theories can be viewed as frameworks that direct the society in terms of what is right or what is wrong. In the light of globalization and its effects on the society, several ethical theories can be used to assess what needs to be done to avert further negative consequences of the economic globalization (White & Taft 2004, p. 451). Kant’s ethical theory, the utilitarianism theory, the environmental ethics, and the virtue ethics are discussed to shed light on the negative effects of globalization outlined above. Kantian, or deontological, ethical theory states that an action is morally right depending on the motives behind it (White & Taft 2004, p. 470). It is founded on the principle of duty: a person is bound by a set of rules and obligations to act ethically. Good motives are grounded by duty and always result in ethical deeds. In the context of globalization, economists can use this theory in their operations in order to control the negative effects. However, this theory has a limitation in this context because it argues that the negative consequences of globalization could not be intentional; that they are accidental and thus do not qualify to make the motives of globalization bad. The theory of utilitarianism states that an ethical action is one that produces common good for the majority (Spash 2013, p. 119). Despite globalization having positive effects on the current generation, its impact on the environment is a threat to the future generations. Therefore, in view of the negative effects outlined above in as far as natural resources and pollution are concerned, globalization does not adhere to the theory of utilitarianism. If economists considered the effects of their activities on the future generations, there could be sustainable use of natural resources as well as preventing environmental pollution as much as possible. Unsustainable use of natural resources only serves to satisfy present needs while ignoring the potential repercussions of the activities on the survival of the future generations. Pollution of the environment endangers living organisms. This is contrary to the main argument of the ethical theory of utilitarianism. On the other hand, environmental ethics is aimed at protecting the environment from the inconsiderate activities of mankind. Environmental conservation is the core principle of environmental ethics. In the current era of globalization, economists seem not to be bothered by the effects of their activities on the health of the environment while, ethically speaking, it is unethical to pollute the environment. Therefore, according to Zsolnai (2011, p. 895), people should try as much as possible to avoid environmental pollution as they carry out their activities. Similarly, the public should use natural resources in a manner that is sustainable along with the knowledge that these resources are finite. Conclusion Taking all the arguments discussed above into consideration, one must admit that globalization has both positive and negative sides. While most of the economists will view it as a breakthrough in their venture for success in business, the general public will view it as a threat to the very existence of humanity. This is so because proponents of globalization focus on the present gains and forget about the possibility of future losses. Moreover, for most of the economists, the current opportunities to expand their business territories stand above the thoughts about the negative impact of their activities on the society. The people who are ultimately affected by the consequences of globalization are the future generations. Ethical theories should be the guide in the way business people carry out their activities. Ethical theories assist individuals focus on the impact of their actions in the society. Therefore, economists should incorporate ethical theories in their activities to shield the future generation from the negative consequences of globalization. They should restrain themselves from unsustainable use of natural resources and minimize environmental pollution as much as possible. References Bose, U 2012, €˜An ethical framework in information systems decision making using normative theories of business ethics’, Journal of Ethics and information technology, vol.14, no. 1, pp.17-26. Choi, CJ, Kim, SW & Kim, JB 2010, €˜Erratum to: Globalizing business ethics research and the ethical need to include the bottom-of-the-pyramid countries: Redefining the global triad as business systems and institutions’, Journal of Business Ethics, vol. 4, no.3, pp.54-65. Giovanola, B 2009, €˜Re-thinking the anthropological and ethical foundation of economics and business: human richness and capabilities enhancement’, Journal of Business Ethics, vol. 88, no. 3, pp.431-444. Howell, R 2008, €˜Globalization and the good corporation: Whither socially responsible investment’, Journal of Human Systems Management, vol. 27, no. 6, pp. 243-253. Howell, R 2009, €˜Ecological ethics for a sustainable world, and some implications for investment’, Journal of Human system management, vol. 27, no. 7, pp. 453-476. Rice, G 2006, €˜Pro-environmental behavior in Egypt: Is there a role for Islamic environmental ethics?’, Journal of Business Ethics, vol. 65, no. 4, pp. 373-390. Rodrik, D 2010, €˜Has globalization gone too far?’, Journal of Challenge, vol. 4, no. 3, pp. 81-94. Spash, C 2013, €˜Economics, ethics, and long-term environmental damages’, Journal of Environmental Ethics, vol. 15, no. 2, pp. 117-132. White, J & Taft, S 2004, €˜Frameworks for teaching and learning business ethics within the global context: Background of ethical theories’ Journal of Management Education, vol. 28, no. 4, pp. 463-477. Zsolnai, L 2011, €˜Environmental ethics for business sustainability’ International Journal of Social Economics, vol. 38, no. 11, pp. 892-899.

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