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Chapter Twelve: International Business and Globalization

This document discusses ethics in international business and globalization. It addresses several topics: 1. Ethical relativism and how ethical values may differ across cultures but certain moral principles like integrity and doing no harm are important. 2. Rights and responsibilities in international contexts, including moral duties to avoid harm and provide benefits based on power and influence. 3. The context of globalization and debates around issues like free trade, jobs, and impacts on communities. 4. Islamic business ethics principles like honesty, trustworthiness, fairness, and prohibitions against practices like bribery, fraud and interest that can harm society.

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65 views22 pages

Chapter Twelve: International Business and Globalization

This document discusses ethics in international business and globalization. It addresses several topics: 1. Ethical relativism and how ethical values may differ across cultures but certain moral principles like integrity and doing no harm are important. 2. Rights and responsibilities in international contexts, including moral duties to avoid harm and provide benefits based on power and influence. 3. The context of globalization and debates around issues like free trade, jobs, and impacts on communities. 4. Islamic business ethics principles like honesty, trustworthiness, fairness, and prohibitions against practices like bribery, fraud and interest that can harm society.

Uploaded by

Zurul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter Twelve

International Business and Globalization

1
Ethical Relativism Revised
• Do not assume that diverse cultures have diverse
ethical values
• Principles that are held may not be practiced
because of circumstance not abandonment of the
principle (bribery)
• The preservation of one’s integrity is necessary
because integrity is the very core of one’s self
• Be clear about how ethical is defined (different
cultures may have a better view than the West)
2
International Rights
• Moral minimum - acknowledge the “negative
duty” to do no harm
• Moral maximum – the greater the power the
more the responsibility to provide positive
benefits and support to communities
• Donaldson
– United Nations “Universal Declaration of Human
Rights”
• DeGeorge
– Ten shoulds for multinational corporations
3
Context of International Business
• Globalization defined “process of international
economic integration”
• Free Trade – pursuit of profit within social and
economic arrangements that secure free and
open competition.
– This will
• Allocate resources to their most highly valued use
• Distribution in this manner will produce the greatest good
for the greatest number of people
• Improve poverty
• Reduce conflict between nations

4
Counter view
• Create a “race to the bottom”
– Lowest wages, lowest environmental standards,
lowest health and safety, lowest equal rights and
lowest level of self-determination

5
Does creation of mobile jobs support
the poor
• As jobs are exported lower level jobs
disappear in one country but appear in
another because people will have to choose
between economic death or a low paying job
• Reduces people to an economic equation and
disregards theoretical benefits such as
community

6
Behavior in other countries
• Use of contract labor as a means of avoiding
responsibility

7
Impact of Trade barriers
• Regulation bars access to markets (tuna,
hormones in beef)

8
Impact of Global Organizations
• World Trade Organization
• World Bank
• International Monetary fund
– Agenda - if you embrace western capitalism then you receive
support
• Defense
– Regulation seems to increase environmental, worker, and
consumer protection
– Thee organization were created by governments in the countries
regulated
– These organizations are courts or arbitrators trying to resolve
conflict. This is best done in private rather than in public forms.
Remember they are not legislative bodies

9
10
 Set of moral principles that distinguish
what is right from what is wrong.

 Evaluates human practices.

 Prescriptive advice on how to act morally.

11
 Branch of ethics that examines ethical rules and
principles within a commercial context.

12
• In places
 Islam Islam,theethics governs
highest emphasisall
onaspects of
ethical values
life.
in all aspects of human life.

•  The Prophet (P.B.U.H) said:

• "I have been sent for the purpose of perfecting


good morals."

13
HONESTY:

 Secret of success in business.

 Islam encourages truthfulness in business


transactions and raises the status of a truthful
merchant.

 Allah blesses business dealings if both the buyer and


the seller are true to each other.

14
“HONESTY IS THE ONLY POLICY”

15
Trust is a moral virtue and duty incumbent on a
Muslim in the performance of his affairs.

 It demands sincerity in work, avoid fraud, deception,


and other dubious means in selling his merchandise.

16
 Treat people equally.
 Traders should moderate
in all things without profitable side party.
 fair or equal treatment of all our customers.
 consider fair and unbiased and gives the right to
the right.

17
Islam puts certain conditions and restrictions to
obviate the chances of bitterness between the
employer and employees.

Fair wages on time.


good working conditions.
suitable work and excellent brotherly
treatment
should be provided to the workers.

18
what Islam allow:
 seller has right to place Profit as much he
wants but when there is alternative.

 If there is monopoly in some product then


the profit margin need to be small.

what ethics says:


 In any situation your profit margin
should not be double than your cost.

19
 Bribery. (Al-Baqarah: 188)
 Usurping others’ property. (Al-Baqarah: 188)
 Fraud. (Al-Imran: 161)
 Stealing and Robbery. (Al-Maida: 38)
 Income from sources of vulgarity. (Al-Noor: 19)
 Gambling. (Al-Maida: 90)
 Wine and its business. (Al-Maida: 90)
 Interest. (Al-Baqarah: 275)
 Hoarding of foodstuff.

20
WHY ISLAM PROHIBITS SUCH TYPE
OF BUSINESS ?

Islam prohibits certain type of business due to the


“concern to protect health and life”
(Zinkin 2005).

21
The Prophet said:

“ A truthful and trustworthy merchant


is associated with the prophets. ”

(Al-Tirmidhi, Hadith 50)

22

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