İŞLETME ETİĞİ

Globalization which is about interdependent and interconnected nations has become a buzzword, especially in the last four decades. It was first defined by Theodore Levitt in 1983, since then has become an ongoing worldwide phenomenon. Most definitions of globalization consist of internationalization, liberalization, universalization, and westernization.

The main benefits of globalization, in general, is about increasing international trade and provision of alternative goods and services, foreign direct investments,
the flow of capital among nations, contribution to employment by providing job opportunities internationally, and advancement of technology.

As the Covid-19 pandemic and Global Financial Crisis exemplify, globalization and its effect on businesses are inevitable and unavoidable, and it is also irreversible since many countries are dependent on each other in terms of different resources.

Although MNE's activities are more recent, the origins of such corporations go back more than four centuries. The first MNE is often considered as ‘British East India Trading Company’ which was founded in 1600.

Misuse of natural and human resources by MNEs are among the most argued critics. It is criticized that MNEs sell products made from natural resources such as oil, minerals, and timber at a much higher price, and the country where such resources are exploited, benefit much less from the sales price mainly due to tax exemptions or other incentives provided to these corporations. Besides, MNEs can create barriers to entry and economies of scale. As a result, some local businesses may be put out of business. Although they may face antitrust violation activities from local governments, they already create income inequality.

In low-context cultures, people are explicit and directly say what exactly they mean. Latin American, Asian, and African countries characterize high-context cultures, whereas Northern European and Anglo- Saxon countries (USA, UK) are examples of low-context cultures.

Relativism is simply the belief that the ethical values and beliefs of one culture are not better than others.

Consumerism is defined as “a modern movement for the protection of the consumer against useless, inferior, or dangerous products, misleading advertising, unfair pricing, and others”.

Check out Table 8.2 Ten Principles of UN Global Compact, page 234.

Check out Table 8.3 OECD Guidelines for Multinational Enterprises on page 235.