Globalization and Business Ethics

Globalization involves companies operating across borders. This creates complex ethical dilemmas because what is right in one country might be wrong in another.

Key Ethical Issues

1. Labor Standards (Sweatshops)

• Issue: Nike (in the 90s) faced backlash for using factories in Vietnam/Indonesia with poor conditions and child labor.
• Dilemma: Is it ethical to pay local minimum wage ($2/day) if it lifts them out of poverty, even if it seems exploitative by US standards?

2. Environmental Dumping

• Companies moving polluting factories to developing nations with weak environmental laws.
• Result: "Exporting Pollution".

3. Corruption & Bribery

• In some countries, "Gift Giving" (Bribery) is standard business practice. In the UK/USA, it is a crime (FCPA / UK Bribery Act).
• Challenge: If you don't bribe, you lose the contract. If you bribe, you go to jail home.

4. Cultural Relativism vs Universalism

• Cultural Relativism: "When in Rome, do as the Romans do." (Accept local unethical practices).
• Ethical Universalism: "Human rights are universal." (Refuse to use child labor everywhere).

Managing Global Ethics

1. Global Code of Conduct: A single standard applied worldwide (e.g., "We do not use child labor anywhere").
2. Supply Chain Audits: Inspecting suppliers' factories to ensure compliance.
3. Fair Trade Certification: Ensuring farmers/workers get a fair deal.

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