Transcript Business and Society - Gunadarma University

Canadian Business and Society:
Ethics & Responsibilities
Chapter
Fifteen
Globalization and Business
Responsibilities
Prepared by Mark Schwartz, York University
Copyright © 2008 McGraw-Hill Ryerson Ltd.
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Chapter Outline
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Globalization and Implications for Business
The Debate over Globalization
International Non-governmental Organizations
Institutions of Globalization
Globalization and Canadian Business and Society
Standards of Conduct for Global Business
Special Challenges of Global Business
The Acceptance of Global Capitalism
Chapter 15
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Globalization
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Not a new phenomenon: goods have been
traded between regions since ancient times
Corporations now seen as more efficient than
governments in distributing goods and
services needed by citizens
Today, new view toward trade and market
systems is referred to as globalization
Chapter 15
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Defining Globalization
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Globalization: a process of decreasing constraints
on the interactions among the nations and peoples
of the world.
Economic globalization: the integration of
fragmented markets into a global economy.
Political globalization: the process by which world
power relationships change, and there is a loss of
sovereignty by the states.
Social or cultural globalization: the emergence of a
worldwide cultural system.
Chapter 15
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The United Nations Global Compact
Human Rights:
1. Respect internationally proclaimed human rights
2. Not be complicit in human rights abuses
Labour Standards:
3. Uphold the right to collective bargaining
4. Eliminate all forms of forced and compulsory labour
5. Effective abolition of child labour
6. Eliminate employment discrimination
Environment:
7. Precautionary approach to environmental challenges
8. Promote greater environmental responsibility
9. Use environmentally friendly technologies
Anti-Corruption:
10. Avoid corruption (e.g., extortion and bribery)
http://www.unglobalcompact.org/
Chapter 15
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Globalization and the
Implications for Business
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Damage to environment
Support for oppressive regimes
Criticism of marketing practices (e.g., tobacco,
pharmaceutical, baby formula, etc.)
Arms trade
Treatment of employees (e.g., sweatshops)
Treatment of indigenous peoples
Genetic modification of plants and animals
Corruption and bribery
Chapter 15
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The Debate Over Globalization:
Supporters
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Trade leads to more efficient production of
better goods and services
Better opportunities for employment and
higher incomes
Transfer of capital, technology, intellectual
property, skilled labour
Chapter 15
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The Debate Over Globalization:
Opponents
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Benefits received by only a few
Creates unemployment
Increased poverty and inequality
Causes periodic financial crises
Destroys local environment
Destroys cultures
Violates human rights
Questionable payments made
Disrespect of intellectual property
Chapter 15
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Globalization and International
Non-governmental Organizations (INGOs)
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International Non-government Organizations
(INGOs): groups that hold shared values and
attitudes about the issues relating to globalization
and advocate for changes to improve conditions in
developing countries
INGOs put pressure on corporations and
governments
INGOs are also referred to as transnational nongovernment actors (TNGOs) or transnational social
movement organization (TSMOs)
Chapter 15
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Institutions of Globalization
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Supranational Institution: an international
organization that transcends national
boundaries where the member states share
in decision making on particular issues
pertaining to the members
Chapter 15
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Institutions of Globalization
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The World Bank:
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The International Monetary Fund (IMF):
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Fosters financial stability, international trade, employment,
and reduction of poverty.
International Labour Organization (ILO):
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Provides financial and technological assistance to
developing countries.
UN agency that seeks to promote social justice and
internationally recognized human and labour rights.
World Trade Organization (WTO):
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Coordinates agreements reducing trade barriers.
Chapter 15
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Globalization and Canadian Business
and Society
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Pressure to forge international links
Must meet challenges of global restructuring
(e.g., R&D, education, competition policy,
cost of capital, etc.)
Attract more investment in natural resource
plants
More direct investment abroad
Chapter 15
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International Code of Ethics for
Canadian Business Principles
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Community participation and environmental
protection
Human rights
Business conduct (e.g., bribery and
compliance with the law)
Employee rights and health and safety
Chapter 15
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Standards of Conduct and Accountability
for Global Business
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Political factors
Socio-cultural
objectives and values
Disclosure of
information
Competition
Financing
Employment and
human resources
Chapter 15
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Science and
technology
Corrupt practices
Environmental
protection
Stakeholder
consideration
Corporate governance
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Global Standards of Conduct
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Caux Round Table: “Caux Principles”
OECD “Guidelines for Multinational
Enterprises”
“Principles for Global Corporate
Responsibility” (Interfaith organizations)
United Nations Global Compact
Global Reporting Initiative (GRI)
Chapter 15
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Special Challenges of
Global Business
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Corruption: The abuse of entrusted power for
private gain (e.g., bribery)
Human rights: The fundamental rights and
freedoms to which all individuals, groups, and
societies are entitled (e.g., sweatshops).
Chapter 15
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The Acceptance of
Global Capitalism
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Fair trade: Trading partnership which aims at
sustainable development for excluded and
disadvantaged producers (e.g., Fairtrade
Foundation, Oxfam, and Traidcraft)
Microfinance: Provision of financial products
such as micro-credit or micro-insurance to
people living in poverty (e.g., Grameen Bank
in Bangladesh)
Chapter 15
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