LECTURE/ HANDOUT 14- MORAL CHALLENGES OF GLOBALIZATION

OBJECTIVES:
 Identify the important challenges of globalization
 Analyze the philosophical doctrine of Pluralism to be able to understand moral
matters
 Discuss the effects of globalization in business ethics

Globalization has renovated the globe from a collection of separate

communities interacting infrequently into a virtually one multi-faceted community.
Politically, economically, and culturally therefore, communities across the world now
function in what is fundamentally a shared space although divided into artificial political
condominiums called nation-states. The transnational relations made possible by
globalizing forces and processes have opened up new forms of social bonds and
responsibilities.
In a globalized era, peoples and communities across the world have
become culturally connected, the distinction between the global and the local has
become progressively blurred and actions and events in one locality carry with it the
potential to breed transnational and transgenerational impacts. It is precisely for these
reasons that moral reflection about our responsibilities and obligations in a globalized
age has become an impressive.
Having established the significance of globalization in human
relationships, the issue of transnational harm also arises. “Harm” as a concept is
fundamental to ethics. Defined broadly as “damage or loss caused by a person on an
event” or “the violation of core interest in physical and mental wellbeing,” harm defines
the core of human obligation to others—and by ‘others’ it means fellow human beings
and everything that thrives in the natural environment like plants and animals
(OED,2000; Shapcott, 2008; Peter Osimiri, 2015).

Moral Challenges of Globalization

1. The rise of radical inequality
As the world become more technologically advanced, the gap between
the rich and the poor is becoming even more pronounced. The global financial scenario
is that wealth is concentrated in the hands of the few, while it leaves the majority in
poverty. (Colado, 2006). Simply put, some people benefit at the expense of others.
Globalization is used by advanced capitalist countries to perpetuate their political and
economic leadership or dominance (Ali, H. A. (2009). Both the consequentialist and
deontological perspectives find globalization morally condemnable from. Deontological
perspective is an approach to ethics that looks at the rightness and wrongness of the
action itself (Mastin, 2008). On the other hand, for Consequentialism an action is right or
wrong based on the results of the action (Mastin, 2008). From the consequentialist
perspective, the ethical argument against globalization is that it fails to maximize
happiness for the greatest number of people (Singer, 2000). From a deontological point
of view, globalization will be condemned on the account that exploited populations are
treated as “means to an end” and not as “end in themselves ( Kant, 1948; Peter
Osimiri,2015).

2. The problem of managing global environment to prevent global ecological

collapse
Today’s world is confronted by a host of environmental problems that
carry with them potential planetary consequences (Peter Osimiri, 2015). The ozone
layer is rapidly depleting. Global warming has created a chain of extreme changes in
weather conditions. The ecosystem worldwide is experiencing rapid reduction in the
number of species (Scholte, 2005, p.72). Even though industrial activity is mostly
confined in the West and more recently to some part of Asia, the entire world is
suffering from the effects of climate change. Thus, while the advanced capitalist
countries enjoy the benefits of industrialization; the rest of the world is forced to share in
the negative consequences resulting from industrial activity (Peter Osimiri, 2015).
Exacerbating the global environmental problems is the explosive human population
growth that is threatening to exceed the Earth’s capacity to support (Mcleish, 2010).

3. The intrusion of international economic organizations on indebted nations

International financial institutions are corporations that act as a mediator
to bring about an agreement. These types of institutions typically deal with lending
money to countries so that these countries could implement its developmental plans
and projects. The largest international financial institutions are the World Bank and
International Monetary Fund. These institutions were established in a 1944 United
Nations Monetary and Financial Conference participated by all World War II allied
nations held in Bretton Woods, New Hampshire, USA and resulted in what is called the
Bretton Woods Agreement wherein the US dollar was established as the global
currency (Bordo & Eichengreen, 2007). But the question is : To whom are the
institutions accountable and are they accountable to those whom they directly affect?
(Woods and Narlikar, 2001). In the sphere of economic management, states are
increasingly losing their sovereignty since international economic organizations can
address issues which were previously dealt with at the level of national
governments(Woods and Narlikar, 2001). International financial institutions are seen to
have become so powerful it can forcibly impose economic policies on societies (state,
country, nation, government) in different parts of the globe.

Calls for a Global Ethics

To manage global ethical problems, some scholars have suggested that
the time has come for the world to develop global ethic. The global ethic perspective
assumes that a set of shared ethical values and standard will help lessen social
injustices committed by a large global community; and that this ethic is indispensable for
global peace and justice ( Gepharrdt, 2011). Moreover, a value was deemed universal if
people of different places and situations and at almost all times hold in common
(whether consciously, explicitly, or as expressed in behavior) that this value is important
to uphold, follow, protect, preserve (Crowder, 2004). Professor Rachels also pointed out
that the importance of a universal value is that “ there are some moral rules that all
societies will have in common, because those rules are necessary for society to survive”
(Rachels, 2004).

The Challenge of Pluralism

What is pluralism?
Pluralism as a process refers to ways of recognition. It is a state of
society in which members of diverse ethnic, racial, religious, or social groups maintain
an autonomous participation in and development of their traditional culture or special
interest, within the confines of a common civilization (WEB).
In Philosophy, Pluralism is the theory that there is more than one basic
substance or principle (The Basics of Philosophy. 2008). In Ethics, Pluralism is the
supposition that there are many independent sources of value and that there is no
single truth, even in moral matters (The Basics of Philosophy. 2008). In Political
philosophy some points about pluralism claimed by pluralists in the Pluralism Project at
Harvard University (Diana L. Eck 2006) are:
1. Pluralism is not diversity alone, but the energetic engagement with diversity.
2. Pluralism is not just tolerance, but the active seeking of understanding across lines
difference.
3. Pluralism is not relativism, but the encounter of commitments.
4. Pluralism is based on dialogue.
Ethical Pluralism
Ethical pluralism ( also moral pluralism/value pluralism) is the idea that
values may be equally correct, and that there is no single moral system that can
objectively judge an action to be right or wrong. For example, assume a building is on
fire and there are children trapped inside. A woman rushed inside and saved the
trapped children. Unfortunately, having inhaled toxic smoke, her lungs gave out and she
died leaving her own daughter as orphan. Was the woman morally correct in saving
other children while leaving her own child an orphan? Or should she just saved herself
for the sake of her child?
A moral pluralist would conclude that there is no definite way to decide
which is the better course of moral action. Indeed, moral pluralism declares that it is
sometimes difficult to choose between competing values.
Globalization and Business Ethics
As globalization is largely an economic concept and system, it is rational
to have a separate section that deals with the issues and challenges it creates that
concern business ethics. Basically, business ethics is a form of applied ethics that
examines moral principles concerning business environment involving issues about
corporate practices, policies, business behaviors, and the conducts and relationships of
individuals in the organizations.
Globalization has made the world a global village. Although businesses
grew and the globalized environment has provided more markets and numerous
opportunities, but with it also came various ethical issues, and many other business
malpractices. Additionally, sundry business crimes have existed such as cybercrimes,
sexual harassments in work places, and intellectual property and patent thefts.
Focusing on child labor, it is said that globalization paved the way for the
existence of this controversial business practice. Like other ethical issues (such as
homosexuality) the child labor issue is taken differently in different nations. In Europe, it
is seen as unethical activity whereas in Asian countries, it is somewhat tolerated. In
many countries, like India, where poverty is high, children in a family after a certain age
start working to contribute to family income.
The international company Nike in its Vietnamese factory employs
children. Nike Vietnam however, provides free education and food to these children.
Fundamentally though, the main reason for employing children is that it reduces the
cost of production line. Hence, the practice, in many cases, has resulted in legal
conflicts and loss of custom for being seen as immoral.
Globalization as a new challenge to ethics thus requires incorporating
ethics (such as business ethics and environmental ethics) as part of companies’
strategic business programs and alliances. Moreover, it mandates top managements to
establish clear policies that encourage ethical behavior. For instance, all employees
who observe or become aware of criminal practices or corrupt conduct must be
encouraged to report the incident to their supervisors. Furthermore, management
training seminars and orientation meetings that involve discussion of actual situations
can alert employees to potential ethical conflicts.
With the involvement of business ethics as part of business strategic
decision making, companies are even expected to gain a competitive advantage,
goodwill, and recognition in the global business world. They may attract a good
workforce and cater to a healthy organization climate. All these are anticipated to
ultimately lead to good profits and a healthy competition in the international globalized
business world.
Search for Universal Values
Evidently, there are quite a number of moral questions and problems
arising from globalization, that is, from global interdependence and interconnection. To
address these ethical problems, social scientists and philosophers suggest that the time
has come for the world to develop a global ethic, that is, a set of universally accepted
principles that could provide the foundation for regulating global interactions.
Indeed, a set of shared ethical values and standards is central for the
cohesion of society and for the global justice and peace. A shared set of moral values
and principles will make for peace and harmony at the global level. The philosophical
challenge however is that it seems improbable to ascertain normative principles that will
be persuasive across cultures. Notwithstanding, in spite of these ethical variations
across various cultures, it is still very much possible that basic and fundamental values
hold for every society. Developing universally acceptable principles, i.e. global ethics for
administering transnational interactions, is possible, for instance, through the process of
intercultural dialogue.
In globalizing world, it is prudent, for example, to advocate universal
cultural values such as truth, justice, and love. Situations today also ideally call for
working in favor of a universal spirit of fraternity, a solidary altruistic spirit, a decided and
generous will, and the universal will to live in peace. In a situation of disequilibrium and
disharmony, the reawakening of the human spirit of love and compassion may save us
from our own worst extremes. Indeed, material wealth ought to go hand in hand with
moral and spiritual wealth.