Ethical Business In The Global Economy

Author: Abraham Allotey BA, MBA

University of East London

East London Business School

Postgraduate Programmes

Date of Submission: June 7th, 2002

Contents:

1. Introduction ______________________________________________________ 3

2. Definitions of Ethics and Business Ethics _______________________________ 4

3. Social Responsibility of Business _____________________________________ 5

3.1 Responsibilities of Business ­ Archie Carroll′s Model ___________________ 5

4. The Shortcomings of Ethical Decision Making in Global Business ____________ 6

4.1 Rules of The Game _____________________________________________ 6

5. Conclusions______________________________________________________ 8

6. Recommendations _________________________________________________ 9

7. Literature, References, BBC World TV Interview_________________________ 10

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1. Introduction

Globalisation, economic integration, global sourcing, and/or the extending of

businesses into other nations for reasons as gaining competitive advantage,

larger market share, economies of scale etc. etc., have focused attention on the

topic of ethics. The driving force behind all business activities on this planet, if

not for the purpose of attaining success, is believed often times to be profit,

although, not all businesses make this target their ultimate objective.

According to Becker (1996, p. 25) success in business has not always being

accompanied by good performance in ethics. He went further to state that, for

most people, success means productive adaptability and ultimately, profitability

in the increasingly competitive market.

Wheelen and Hunger (2002, p. 41) also wrote that, "some people even joke that

there is no such thing as "business ethics", and that they call it an oxymoron,

meaning a concept that combines opposite or contradictory ideas". The authors

confirmed the truth in that sarcastic comment on the basis of an evidence that

was found in a survey.

In trying to write this report, the following questions on ethical issues keep

recurring frequently:

- What if ethics tells one to be good, and experience teaches that his or her

company cannot afford it?

- To what extent are one′s company′s values valid and applicable in totally

different cultural circumstances?

- Who are one′s stakeholders, how far does his or her corporate

responsibilities extend itself?

- What policy is most recommendable and effective in order to strengthen

the morals of a company: A compliance and control oriented strategy, or

an emphasis on responsibility and self-regulations?

- What can we leave to the government with regard, for example, to

employment policies and human rights, and where does the role of

corporations come in?

Being of the opinion that there are indeed no magic formulas for solving ethical

dilemmas, it is my belief that it is still helpful to have a framework with which

one could organise his or her thoughts.

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