Globalization and Ethical Challenges: 1. Ethics Corresponds To Basic Human Needs

GLOBALIZATION AND ETHICAL CHALLENGES
Reshmi M Gurnani
Introduction
The corporate leaders and senior managers working with every global organization are facing
various dilemmas and concerns spamming various disciplines like marketing, finance, human
resource, production etc. Ethics present solutions to overcome these dilemmas and concerns.
Ethics is an important aspect in life of individuals as well as businesses. It attempts to
distinguish right from wrong and good from bad. It constitutes desirable conduct in a particular set of
social circumstances, prescribes moral codes, norms, beliefs and practices. Business or
corporate ethics is a form of applied ethics or professional ethics that examines ethical
principles and moral or ethical problems that arise in a business environment. It is a
specialized area of moral right and concentrates on application of moral standards to business
institutions and organizations. It applies to all aspects of business conduct and is relevant to the
conduct of individuals and business organizations as a whole.
Business Ethics and Need of Business Ethics

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines
ethical principles and moral or ethical problems that arise in a business environment. It applies to all
aspects of business conduct and is relevant to the conduct of individuals and entire organizations. It
aims at inculcating a sense of value orientation within company's employee as to how to conduct
business responsibly. Because the term ‘ethics’ can pose problems in the international context, i.e.,
the term does not translate well into action and it is difficult to find a common understanding. Some
organizations choose to recast the concept of business ethics through other terms like integrity, social
responsibility, customer welfare, employee welfare, social value added, transparency and disclosure in
accounting and environmental protection. In the present world having severe and all pervasive
deterioration of values, practices of hypocrisy in pursuit of self-interest, corruption, egoism, violence
and pursuit of material wealth is prevalent everywhere. Everyone is on a wild race to acquire more and
more, mostly by shortcut means. There is no end of desire. Further criminalization of the fractured
polity, nexus with the underworld dons, unethical exploitation of religion, corruption, prevalence of
terrorism and trade union militancy are pointers to the burning need of steering a value based course
to the existing ‘cause and effect syndrome’. It is a challenging and uphill journey for individuals,
organizations, nations and is perhaps the last opportunity for heralding an era of world peace and
harmony, rather than resulting in third world war or mass scale annihilation. It is in this context that
values and ethics have its significance.
Ethics is needed to business for several reasons as stated below:
1. Ethics corresponds to basic human needs
It is a human trait that man desires to be ethical; not only in his private life but also in his
business affairs where, being a manager, he knows his decisions may affect the lives of
thousands of employees.
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Moreover, most people want to be part of an organization which they can respect and be
publicly proud because they perceive its purpose and activities to be honest and beneficial to
the society. Most top managers would like to respond to this need of their employees and they
themselves feel an equal need to be genuinely proud of the company, they are directing.
These basic-ethical needs compel the organizations to be ethically oriented.
2. Ethics create credibility with the public
A company perceived by the public to be ethically and socially responsive will be honored and
respected even by those who have no intimate knowledge of its actual working. There will be
an instinctive prejudice in favour of its products, since people believe that the company offers
value for money. Its public issue will attract an immediate response.
3. Ethics give management credibility with employees
Values are supported to be a common language to bring leaderships and its people together.
Organizational ethics, when perceived by employees as genuine, create common goals,
values and language. The management has credibility with its employees precisely because it
has credibility with the public, neither sound business strategy nor a generous compensation
policy and fringe benefits.
Conclusion
What makes the ethics and values in business special relevant and topical in the present day context
in the world is the fact that we are on the threshold of environmental changes of farreaching
consequences. Business ethics present pertinent solutions to the concerns and dilemmas faced by
global organizations. Ethical leadership is essential for the long-term survival and success of any
organization. In the era of globalization, business ethics considerably influence shareholders,
employees, customers, suppliers, competitors, government and civil society. Organizations should
focus on the ethical issues faced by them in various functional areas like marketing, finance, human
resources, production, ICT etc. The commendable work done by global corporations in inculcating and
practicing business ethics underscores the importance of value based leadership in international
business scenario.
Extracts from The Business & Management Review, Volume 5 Number 4
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GLOBALIZATION AND ETHICAL CHALLENGES

Business Ethics and Need of Business Ethics

Ethics is needed to business for several reasons as stated below:

1. Ethics corresponds to basic human needs

2. Ethics create credibility with the public

3. Ethics give management credibility with employees

Extracts from The Business & Management Review, Volume 5 Number 4

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