Ethics, Social Responsibilities and Globalization

**ETHICS, SOCIAL RESPONSIBILITIES AND GLOBALIZATION** Learning Objectives: - Analyze ethical consideration in entrepreneurial decision-making. - Explore the concept of social responsibility in the context of entrepreneurship. - Understand the impact of globalization on entrepreneurial...

**ETHICS, SOCIAL RESPONSIBILITIES AND GLOBALIZATION** Learning Objectives: - Analyze ethical consideration in entrepreneurial decision-making. - Explore the concept of social responsibility in the context of entrepreneurship. - Understand the impact of globalization on entrepreneurial ventures and the importance of ethical practices in a global business environment. Concept Notes: Technopreneurship combines technology and entrepreneurship, driving innovation and solving modern challenges. In this advancing world, entrepreneurs must navigate ethical dilemmas, embrace social responsibility, and adapt to globalization's impacts while maintaining integrity. **ETHICS** **[What is Ethics?]** - Ethics is the branch of philosophy that studies moral principles, values, and rules governing human behavior. It examines what is right and wrong, which actions are good or bad, and how individuals and societies should act. - Ethics serves as a foundation for making decisions, resolving conflicts, and understanding the nature of human conduct. - It deals with internal values that are part of corporate culture and shapes decisions concerning social responsibility with respect to the external environment. **[The Three Domain of Human Actions:]** - **Domain of Codified Law (Legal Standard)** - Values and standards are written into the legal system & enforceable in the courts. - It involves a set of rules by the lawmakers that individuals are required to follow. - **Domain of Ethics (Social Standard)** - No specific laws but have standards of conduct based on shared principles and values about moral conduct that guide an individual or company. - **Domain of Free Choice (Personal Standard)** - Pertains to behavior about which the law is disregarded and individual/organization has complete liberty or freedom. **[Different Approaches to describe values for guiding ethical decision making]** 1. **Utilitarian Approach** - Focuses on consequences of actions. The ethical decision is one that produces the greatest good for the greatest number of people. 2. **Individual Approach** - Emphasizes actions that are in the individual's best interest, assuming they will lead to decisions that benefit everyone in the long term when people act with integrity. 3. **Moral right Approach** - Stresses respect for the fundamental rights and freedoms of individuals, such as privacy, freedom of speech, and health and safety. [Moral Rights to Consider:] a\. Right of free consent b\. Right to privacy c\. Right of freedom of conscience d\. Right of free speech e\. Right to due process f\. Right to life and safety 4. **Justice Approach** - Focuses on fairness and equality. Ethical decisions should ensure the benefits and burdens are distributed fairly and that rules are applied consistently. **[Principles to Guide Ethical Behavior]** - Honesty - Integrity - Promise-keeping - Fidelity - Fairness - Caring for others - Respect for others - Responsible citizenship - Pursuit of excellence - Accountability **SOCIAL RESPONSIBILITY** Entrepreneurs have a duty to contribute positively to society while pursuing profits. **[What is Social Responsibility?]** - It is an ethical theory in which individuals are accountable for fulfilling their civic duty, and the actions of an individual must benefit the whole society. In this way, there must be a balance between economic growth and the welfare of society and the environment. **[Every company or organization have this type of responsibilities:]** 1. **Environmental Responsibilities** -- It is the actions that protect the environment and in particular, to minimize or illiminate any adverse impact on the environment stemming from the company's own business activities. 2. **Human Rights Responsibilities** -- It involves providing fair labor practices like equal pay for equal work. 3. **Economic Responsibility** -- It involves improving the firm's business operations while participating in sustainable practices like using a new manufacturing process to minimize wastage. - It is the process by which businesses or other organizations develop international influence or start operating on an international scale. 1. **Access to the New Cultures** - Globalization fosters cultural exchange, allowing people to experience diverse traditions, cuisines, and ideas, promoting understanding and creativity. 2. **The spread of Technology and Innovation** - It accelerates the sharing of technological advancements, improving productivity and solving global challenges more efficiently. 3. **Lower Costs of Products** - Globalization allows companies to find a lower price of material to use for their products, and also increases global competition which drags prices down and creates a large of variety of choices for consumers. 4. **Higher Standards of Living Across the Globe** - Globalization raises standards by providing access to diverse goods, services, and advanced technologies. It drives economic growth, creating jobs and improving income levels, which enhance healthcare, education, and overall quality of life. 5. **Access to New Markets** - Businesses can expand their operations internationally, reaching more customers and boosting sales and profitability. 6. **Access to New Talent** - Companies can tap into a global talent pool, benefiting from diverse skills and perspectives to drive innovation and growth. 1. **International Recruiting** - Recruiting across countries creates unknown for HR teams, and it may lead to job displacement in local markets and increased competition for domestic workers. 2. **Managing Employee immigration** - It is difficult to secure visas for employees that are foreign nationals as immigration laws are often changing. 3. **Incurring Tariffs and Export fees** - Depending of the market, selling in the other country is quite costly. 4. **Payroll and Compliance Challenges** - Managing overseas payroll and maintaining compliance with changing employment and tax laws is a common global expansion obstacle. 5. **Loss of Cultural Identity** - Globalization begun to meld unique societies together especially when a country became easier to access. Depending on what's popular, other countries tries to imitate them, and when the cultures begins to lose their unique features, they lose their global diversity. 6. **Foreign Worker Exploitation** - Although globalization can cause lower price of products, it also creates tough competition that leads some companies to search for cheap labor sources. 7. **Global Expansion Difficulties** - When expanding to new countries, companies must be aware of how to navigate new legal systems, otherwise missteps leads to impediments and severe financial and legal consequences. 8. **Immigration Challenges and Local Job Loss** - Some countries tightening their immigration policies making it more difficult for immigrants to find jobs in new countries. 1. **Building Trust and Reputation** - Ethical practices foster trust with customers, suppliers, and business partners worldwide, providing a competitive advantage. 2. **Compliance with International Regulations** - Ensures adherence to global legal standards, reducing the risk of penalties and legal issues. 3. **Enhanced Customer Loyalty** - Consumers are more likely to support companies that uphold ethical values, such as environmental sustainability and fair trade. 4. **Attracting and Retaining Talent** - Ethical companies attract top global talent who seek organizations aligned with their values. 5. **Sustainable Business Growth** - Promotes long-term success by encouraging responsible resource use and environmental stewardship. 6. **Cultural Sensitivity and Respect** - Understanding and respecting cultural differences strengthens relationships with international stakeholders. 7. **Risk Management** - Reduces the likelihood of scandals, frauds, and reputational damage. 8. **Corporate Social Responsibility** - Companies that embrace CSR help address global issues like poverty and inequality.