What Is the Relationship between Business Ethics and Globalization?

Considerations about business ethics are derived from the desire for the application of basic moral codes in the conduct of the different aspects of business. As such, the relationship between business ethics and globalization refers to the manner in which the concept of globalization and its application to business operations can benefit from the practice of proper business ethics. Since the growth of globalization has led to a rise in the branching out of companies into various counties in the world, ethical business standards help ensure that such operations are rooted in integrity and applicable values. The challenge in the subject of business ethics and globalization is derived from the fact that while some basic moral codes are understood to be universal, some of the specific ethical standards are dictated by the environment, making it essential for companies to understand their market and the ethical requirements that may be unique to that area.

Business ethics and globalization are firmly rooted in the concept of diversity among people and practices as well as the fact that such diversity need not be an impediment since it can be channeled by the company in question into a source of competitive advantage. As such, companies that diversify into other countries and cultures must necessarily develop a master plan that is aimed toward providing a general framework establishing the ethical views of the company and integrating it into the culture of the corporation. This master plan will only be a general guide that will also make provisions for situations where beliefs and societal practices in place in some areas call for a variation of the ethical code. A good example of this can be seen in the case of a company that provides an equal playing field for everyone, regardless or belief or gender.

Assuming a company were to open a branch in a country where women do not have the same freedoms women in other parts of the world take for granted, that company must adjust its ethical code to reflect the culture in that area, even if it might only be an exception, rather than their normal corporate culture. In such a situation, the company might have a vast majority of male employees, something that it would not allow in other societies, but something that it must allow in that particular society due to the politics of business ethics and globalization. The consideration here would be that of expediency, because the culture of the people in that area do not allow women to have the kind of freedom that would allow the company’s business ethics to be implemented. In order to carry out business in that area, the company would have to adjust its ethics or take its business elsewhere so that the culture will not clash with its corporate ethics.