welcome back now we will be focusing on the
globalization as a key context for business
ethics first here we will discuss about what
is globalization and what it is not globalization
has been understood in different ways by different
people globalization actually is not liberalization
it is not universalization it is not westernization
also then what is globalization globalization
is a process (Refer Time: 01:00) which diminishes
the necessity of the common and shared territorial
basis for social economy and political activities
processes and relations we will try to focus
on the definition at each of the key areas
and here we will try to discuss globalization
in that light so when we are talking of globalization
as a process which diminishes the necessity
of a common and shared territorial basis we
are here speaking of globalization as deterritorialization
of sharing what it is a deterritorialization
for like forming social relationships (Refer
Time: 02:00) and so the barriers of the country
are no longer acting as barriers and it has
been facilitated by the development of technology
here due to the development of technology
we can form friends with people from any parts
of the world and we don't have to restrict
ourselves in terms of social relationships
with the people restricted within our own
area our small may be our small territory
or our country or our state but we can expand
our horizon to other countries other continents
as well so when you talking of globalization
we are talking of the necessity (Refer Time:
03:00) diminishing requirement of a common
territorial basis for sharing of social economic
and political activities and processes and
relationships so here the focus is mainly
on opening up of certain activities due to
the enhancement of the technologies and different
decisions taken at the political level to
remove the barriers
so that the economic activities can be done
across borders and the business processes
can also be done across borders this however
has from the ethical when this context is
that of globalization and why it is a context
of business ethics as a major context of business
ethics because it opens up the discussion
regarding three important aspects one is that
of cultural issues second is that of the legal
issues and third is that of the accountability
issues so when originally there are territories
we can understand there is something which
are called rules and laws which are followed
in a particular country when you are talking
of culture which is specific to a particular
territory the and we are accountable to the
particular territory where we are doing the
business (Refer Time: 05:00) but with respect
to globalization these could be taken as these
could give rise to ethical issues as like
if i am going to a different country to produce
my things with like we are talking with respect
to m n cs then whose rules do i follow the
law of which land do i follow then the business
is accountable majorly to whom the what stake
do the citizens of that country where the
m n c goes and produces its things what stake
do they have in the business of the m n c
can they demand something can they place their
needs to the m n c and how far the m n c (Refer
Time: 06:00) is accountable to their needs
and demands do the m n cs need to take care
of the difference in the cultural issues also
prevailing across the different countries
or there need to be one universal culture
that is followed so how do they address small
small issues which may arise from these three
different perspectives are the ethical issues
which are concerned with globalization as
a key context of doing business now
let us focus on how globalization may have
an impact on different stakeholders so what
(Refer Time: 07:00) globalization provides
yes definitely it provides for greater profitability
but it also provides for greater risks lack
of regulation of global capital markets leading
to additional financial risks and instability
to the now we are discussing different stakeholders
and how globalization may affect them first
take the case of employees corporations may
outsource their production to developing countries
in order to reduce cost in global marketplace
but this in one sense it may provide jobs
but it also provides a potential risk for
exploitation (Refer Time: 08:00) of employees
through poor working conditions
next when you are talking of consumers um
so the global products it may provide social
benefits to consumers across the globe but
it may so happen uh it may get protests from
people based on like they are trying to propagate
materialism personalization and that is what
is spreading through globalization so it can
bring in like cheaper prices to the consumers
but the vulnerable people in the countries
like may also face (Refer Time: 09:00) possibilities
for the by the different m n cs vulnerable
people so when we will discussing in later
part consumers and business ethics because
in this part what may so happen it may give
rise to issues of discrimination in the sense
like who can buy who cannot buy sort of and
in many cases give rise to self exclusion
by the consumers like who can go to the specific
place to buy certain things branded things
and other things so these may give rise to
some ethical issues which we will be discussing
at length in our next discussions that follow
when you are talking of suppliers and competitors
so suppliers may face regulations (Refer Time:
10:00) from the m n cs through supply chain
management so if this process of globalization
may have a negative impact on the indigenous
players small players who may not be ah in
a position to withstand the competition given
by global players so this could be like uneven
competition and may lead to the may be life
threatening in the terms of existence of the
business for small suppliers
civil society global business activities brings
the company in direct interaction to the local
communities (Refer Time: 11:00) so which may
lead to erosion of traditional community life
and that may make pressure groups actively
involved in get involved in order to make
a policing on the corporation and where the
governments are weak and tolerant so it may
so happen like if there are the rules of the
land the laws are not prominent enough it
may so happen the civil society organizations
may emerge as active pressure groups so that
they can do policing (Refer Time: 12:00) on
what the m n cs are doing are they addressing
the needs of the stakeholders like the local
community like the environment like the people
of the developing country at large and whether
any difference or social injustice is being
to also to for the environment whether it
is polluting the environment are not different
issues and may be taken up by the civil society
organizations to see to put a check on whether
in the m n c in the process of bringing in
jobs to the developing country or to give
an access to the products at a cheaper global
(Refer Time: 13:00) products at a cheaper
rate to the developing countries are creating
any imbalance or social injustice and disturbing
the equilibrium of that country so if the
government rules and regulations are not that
well developed or law is silent about what
are the practices to be followed then civil
society organizations may become active and
start dealing with these issues and act as
pressure groups on m n cs so that they pay
heed to these issues raised by civil society
organizations and incorporate them in the
practices which are relevant to that particular
country where they are doing their business
(Refer Time: 14:00)
government and regulations globalization weakens
the government and increases the corporate
responsibility for jobs welfare maintenance
of ethical standards etcetera globalization
also confronts governments with corporations
from different cultural expectations about
issues such as bribery corruption taxation
and philanthropy what we try to mean over
here like m n cs which are going to developing
country and if the government is not active
enough there about the upgradation of the
life of the citizen and with respect to welfare
job creation and other things it (Refer Time:
15:00) comes as a responsibility of the corporate
which we talk of the social responsibility
of the corporate for creation of more jobs
welfare maintenance of ethical standards etcetera
so this can have both ways impact because
the corporation is becoming responsible for
the activities which actually government also
responsible for they may take this as a mode
of extracting benefits from the government
in terms of relaxations involved in doing
business in that particular land in that particular
country so this has to be used with a very
caution (Refer Time: 16:00) like how we will
discuss this more when we will be talking
of corporate citizenship to what extent this
is a welcome move and to what after what it
is not because if the corporation becomes
responsible for doing all the activities that
the government is supposed to do for the people
of its country then it may give rise to certain
rights of the corporation and that if they
are not ethically oriented value oriented
they may use it as a part of exploiting in
getting benefits for their own self so this
has to be used with very caution
so globalization so (Refer Time: 17:00) what
happens because there are no territories involved
and government may not have specific rules
and stated guidelines regarding different
issues like bribery corruption and taxation
etcetera so these main and cultural expectations
vary according in the explanation of what
is bribery what is corruption and these factors
these may give rise to certain ethical issues
when the m n c is functioning in different
different countries and according to the there
could be culture specificity over explanation
of these terms and how the government is strict
or relaxed about (Refer Time: 18:00) the following
of these issues in their own country and the
m n c may face certain issues regarding that
and it has to be very cautious about it has
to have a proper knowledge base about the
cultural explanations of these terms in the
country in which they are doing their business
now what we are going to discuss is the difference
in who is responsible for business like following
business ethics and how the different three
different regions vary in their explanations
and the sharing of responsibilities why we
are going to discuss this difference here
is to (Refer Time: 19:00) focus on the issue
like though globalization has deterritorialized
social activities economic activities political
activities and business has a free flow the
activities of the business have a free flow
across different regions of the world but
still there are difference in conceptualization
about the ethical issues and the responsibilities
and accountabilities based on geographical
regions and these are mainly majorly due to
cultural issues so by focusing on this discussion
over here we try will try to focus on the
things like even though there is (Refer Time:
20:00) deterritorialization but as a m n c
or as a business house who is doing businesses
spread across different countries or across
different regions we definitely have to take
into account we have to keep in our mind the
like the orientations of these different regions
based on what they understand to be who is
responsible for the ethical conduct of the
business who is accountable for it and what
are the different approaches taken in maintaining
the business ethics
so what we will see like in when we are talking
of who is responsible for ethical conduct
in business we find like the answer is different
when you are looking into europe north america
and asia in europe it is social (Refer Time:
21:00) control by the collective in north
america the onus is on the individual and
in asia it is the top management when we look
into who is the key actor in business ethics
in europe we find again it is the collective
body like government like trade unions like
corporate associations in north america it
is the corporation and in asia it is government
and corporations so in all cases you find
like though at this level for europe north
america and asia in all three cases it is
mentioned the government corporate associations
the corporations or the government and the
corporation (Refer Time: 22:00) the key actor
but who is responsible for the ethical conduct
here the onus lies on the collective body
here the onus lies within the individual within
the corporation and here the onus lies on
the top management body which is within the
government or the corporation
what are the key guidelines for ethical behavior
here we find negotiated legal framework for
business in europe in north america it is
corporate codes of ethics and in asia it is
the managerial discretion here we will try
to point out what is there is a subtle difference
between when you are talking of ethics (Refer
Time: 23:00) and law in the sense what is
defined as the law the stated rules and regulations
for which may or may not have a moral connotation
to it so and what is not defined by law properly
so that can be an ethical concern so what
is not defined by law till some issues about
which there are still not well defined rules
and regulations of the country formed those
are debatable issues which has a moral connotation
those are called to be ethical issues (Refer
Time: 24:00) the ethical issues which get
its shape in terms of well written regulations
formed about it and the comes under law may
be coming under law at a later point of time
but till the time there is no written formal
legislations formed till that time it remains
the gray area or the ethical debate but what
is law the issues which form under law fall
under law may be not be an ethical issue also
for example so like it is right to drive on
the right side or the left side of the road
as per the rule or the law or of the land
can be a legal or the unlegal issue (Refer
Time: 25:00) but it may not be a ethical or
unethical issue because it doesn't have a
moral connotation to it but when it comes
to whether it is ethical means whether it
is right or wrong to have um employing child
labor is a ethical issue so there is a subtle
difference between these two terms and we
have to follow it carefully
so when we are talking of the key guidelines
for ethical behavior in europe it is negotiated
legal framework of business so what we see
it is like more of guided by the norms and
the laws followed north america it is the
corporate (Refer Time: 26:00) code of ethics
which depends on the what the corporation
thinks which are based on its own organizational
culture values and mission and how it has
formalized institutionalized the ethical practices
and ethics management within the organization
what codes of conduct it has written for the
business to follow so that is the corporate
codes of ethics and in asia it is the managerial
discretion based on what the top management
thinks like it is right and wrong and it is
not like a in many cases not like a written
codes of ethics like the which is institutionalized
in terms of this has to be followed
what are the key issues in business ethics
in europe it is (Refer Time: 27:00) social
issues in organizing the framework of business
in north america it is misconduct and immorality
in single decision situations and in asia
it is corporate governance and accountability
all see these differences are again due to
the focus on who is responsible for ethical
conduct of business so because it is a social
control by the collective so key issues here
are the social issues in organizing the framework
of business so whether we have addressed all
the social issues properly or not while we
are framing the business because the control
is in the hand (Refer Time: 28:00) of the
collective so here because the control is
in the hand of the corporation and that too
the individual within the corporation so any
misconduct and immorality in any single decision
situations these are the key issues of business
ethics over here here the control is who is
responsible is the top management and the
it depends on the guidelines are based on
the managerial discretion so the corporate
governance of how this [manage/management]
management board of top management is uh functioning
what are the whether there is a transparency
in that system or not and whom they are accountable
for are the key issues in the in asia for
the business ethics
so who is the dominant stakeholder and what
is the dominant stakeholder management approach
we can understand definitely for europe it
is (Refer Time: 29:00) formalized multiple
stakeholder approach because the control is
on the social control by the collective people
and you can understand the addressed issues
are the social issues in organizing the framework
of the business so the it is the formalized
multiple stakeholder approach see the difference
is here it the focus is on multiple stakeholder
in north america because it is mainly in the
individual hand and it is the focus is more
on the shareholder values because when it
is the corporation the individual the corporation
codes of conduct and the focus is on the misconduct
and [immortal/immorality] immorality in a
single (Refer Time: 30:00) decision situations
and social issues are not focused in over
here so the focus is mainly on the shareholder
value and not on the multiple stakeholder
approach here when you are talking of corporate
governance and accountability so it is an
implicit multiple stakeholder because when
we are talking of corporate governance and
top management and it is not the individual
but it is again the government the corporations
which are the key actors in the business ethics
so it is an implicit multiple stakeholder
module and it is benign managerialism so based
on our focus on who is responsible for ethical
conduct of business and what are the key guidelines
for ethical behavior and other aspects like
the key issues in business ethics (Refer Time:
31:00) so the approach varies from region
to region based on the culture of that region
and while doing business in the different
regions the business organizations has to
be careful of taking into account the differences
which are there in across this different regions
and accordingly they have to see orient their
business practices so that in that framework
it becomes a properly followed ethically done
business in the particular framework where
they are functioning
thank you
