Ethical impacts of globalisation

Question 1

Shareholders: Ethical impacts of globalisation

Answer 1

Globalisation provides potential for greater profitability, but also greater risks. Lack of regulation of global capital markets, leading to additional financial risks and instability.

Question 2

Employees: Ethical impacts of globalisation

Answer 2

Corporations outsource production to developing countries in order to reduce costs this provides jobs but also raises the potential for exploitation of employees through poor working conditions.

Question 3

Suppliers and Competitors: Ethical impacts of globalisation

Answer 3

Suppliers in developing countries face regulation from MNCs through supply chain management. Small scale indigenous competitors exposed to powerful global players.

Question 4

Consumers: Ethical impacts of globalisation

Answer 4

Global products provide social benefits to consumers across the globe but may also meet protests about cultural imperialism and westernisation. Globalisation can bring cheaper prices to customers, but vulnerable consumers in developing countries may also face the possibility of exploitation by MNCs.

Question 5

Civil society (NGOs local communities): Ethical impacts of globalisation

Answer 5

Global business activities brings the company in direct interaction to local communities with possibility for erosion of traditional community life; globally active pressure groups emerge with aim to “police” the corporation in countries where governments are weak and tolerant.

Question 6

Government and regulation: Ethical impacts of globalisation

Answer 6

Globalisation weakens governments and increases the corporate responsibility for jobs, welfare, maintenance of ethical standards, etc. Globalisation also confronts governments with corporations from different cultural expectations about issues such as bribery, corruption, taxation, and philanthropy.