Ethics in a Global Economy

Ethics in a Global Economy

A global economy is the interconnected global economic activities across different countries. The main characteristics of a global economy include globalization, international finance, international trade, and global investment. Globalization is the process by which regional and national societies, economies, and cultures have been integrated through a global communication, trade, and transportation network. International finance includes the transfer of funds across different countries worldwide. International trade includes the exchange of goods and services across different countries across the world, while global investment includes foreign direct investment in different countries worldwide. Business ethics in the global economy has become essential for businesses because of the emphasis on adopting universally acceptable behaviours that are not dictated by local values and cultural beliefs.

Ethics as It Relates to Business in This Global Economy

According to Sober (2021), ethics is categorized into meta, normative, and descriptive ethics. Meta ethics focuses on understanding morality based on moral language and thought. Conversely, normative ethics focuses on prescribing or deciding behaviours, values, and what should be considered wrong, right, deplorable, or admirable. Lastly, descriptive ethics focuses on people’s attitudes toward what they consider morally acceptable. Ethics in the global economy can be defined as a system of values and moral standards. The global economy is characterized by different cultural beliefs that influence people’s values. Therefore, ethics in the global economy can be determined by focusing on religious, cultural, and social factors influencing people’s beliefs and values. Ethics is also influenced by people’s behaviors, which are defined by thinking, exposure to education, and family background. Therefore, businesses in the global economy should understand the background of the people they interact with to integrate ethics into their operations effectively.

According to Svitačová & Kováčiková (2016), business ethics focuses on threats, risks, and problems impacting people’s development. Therefore, ethics in the global economy focuses on applying morality to address issues in the global business environment that could impact humankind. Ethics in the global economy also includes considering cultural values and beliefs in deciding whether an action is right or wrong. The main factors considered in applying ethics in a global economy include personal, personal loyalties, official, economic, legal, and corporate responsibility (Soni, 2020). Personal responsibility includes a person’s ethical code of conduct and is influenced by a person’s values and moral responsibility when making decisions that require resolving an ethical dilemma. Personal loyalties include a person’s attachment to something. Also, personal loyalties may influence a person’s ethics based on what they are willing to compromise to avoid losing what they are attached to. Official responsibility includes the actions of officials in a business or organization based on their roles and responsibilities in the organization. Legal responsibility includes following all the laws regulating business operations.

Economic responsibility is vital in maintaining ethics in a global economy because it ensures that global businesses do not use their influence in society to harm others. According to Cragg et al. (2017), economic responsibility includes making financial decisions by focusing on doing good. For example, an organization can demonstrate economic responsibility by investing in alternative energy sources to prevent environmental pollution and helping the community through scholarships and charity donations. Economic responsibility is linked to environmental responsibility, which is among the pillars of environmental, social, and corporate governance that emphasizes minimizing the negative impacts of an organization’s operations on the environment. Economic responsibility also enables organizations to create a competitive advantage in the global economy by gaining support from the community and creating a good reputation.

Moreover, corporate social responsibility focuses on protecting the interests of an organization’s stakeholders, such as suppliers, customers, employees, and communities in the organization’s business environment (Cragg et al., 2017). One of the reasons why corporate social responsibility is gaining dominance in the global economy is that consumers are becoming more aware of the social and environmental implications of their purchases. The second reason is globalization, which has created new challenges for organizations regarding varying standards, government regulations, labour exploitation, environmental restrictions, and ethical issues. The government regulations that may impact corporate social responsibility include regulations that focus on addressing global problems such as the depletion of the ozone layer, global climate change, depletion of forests and fisheries, biodiversity loss, water and air pollution, and hazardous waste. Corporate social responsibility in the global economy is also influenced by global citizenship, including the economic, environmental, and social actions taken by communities and individuals who recognize everyone’s place in society.

Conclusion

Ethics plays a significant role in business success by ensuring that a business’s operations observe the values and beliefs of the community around the business. Ethics in the global economy can be defined as a system of values and moral standards. It is characterized by different cultural beliefs that influence people’s values and are determined by focusing on religious, cultural, and social factors influencing people’s beliefs, values, and behaviours. The main pillars of ethics in the global economy include personal responsibility, personal loyalties, official responsibility, economic responsibility, legal responsibility, and corporate responsibility. However, economic and corporate social responsibility are the most important pillars because they are impacted by government regulations.

References

Cragg, W., Schwartz, M. S., & Weitzner, D. (2017). Corporate Social Responsibility. Routledge.

Sober, E. (2021). Ethics—normative and Meta. Core Questions in Philosophy, 259–263. https://doi.org/10.4324/9781003030041-34

Soni, V. (2020). Art of Managing Business Ethics with Global Perspective. International Journal of Trend in Scientific Research and Development (IJTSRD), 4(5). https://doi.org/http://www.ijtsrd.com/

Svitačová, E., & Kováčiková, E. (2016). Roles of business ethics in the new global economic environment. International Scientific Days 2016 : The Agri-Food Value Chain: Challenges for Natural Resources Management and Society : Proceedings. https://doi.org/10.15414/

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Unit 1 Pre-Assessment: Ethics
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Ethical considerations need to be implemented and continuously monitored to maintain legal compliance in all aspects of how a business operates.

Ethics in a Global Economy

Refer to the attached document for assignment details and grading rubric.
Note: You must complete the pre-assessment first. Any journals posted before a pre-assessment is completed will not be graded until the pre-assessment is posted.