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Chapter 6
International business: Moral and ethical
issues and globalisation
Overview
The increasing connectedness of world trade and culture brings with it several
important moral issues regarding labour standards, trade regulation, cultural and
economic domination, and the increasing size and power of global corporations. This
last item, in particular, has important implications for the democratic institutions by
which countries are governed. This chapter looks at these issues related to world
trade and its regulation.

Key terms
• trade governance • distributive justice
• international standards • cultural relativism
• democracy • child labour
• bribery • sweatshops
• multinational companies (MNCs) • human rights
• globalisation • World Trade Organization (WTO)
• democracy • International Monetary Fund (IMF)
• equality • World Bank
• cultural homogenisation

Learning objectives
After studying this chapter, students should be able to:
• understand the nature and history of globalisation
• explore the moral issues relevant to globalisation and its impacts on power
distribution around the world
• explain the operation of multinational corporations (MNCs) and understand
the moral criticisms made against them
• identify the legal and moral responsibilities of MNCs.
96 Moral Issues in Business 3e Instructor’s Manual

Lecture outline
Globalisation
Globalisation refers to the social, cultural, political and economic aspects of an
increasingly interconnected world in which distance, communication, technology,
culture and ideas have become universal instead of localised.
Global institutions
• Some of the most important global financial and trade institutions include the
World Bank, the IMF and the WTO.

Moral issues and globalisation

• Democracy does not provide for civil control over global institutions or
corporations. The power of corporations rivals, or exceeds, that of nations.
• Equality: The negative aspects of globalised trade tend to be concentrated on
poorer countries. Engagement in globalised markets may require the loss of
national sovereignty over internal policies.
• Homogenisation of world cultures refers to the westernisation, primarily
Americanisation, of national cultures and issues stemming from this shift.
• Distributive justice: Most of world’s resources, much of which are sourced from
developing nations, are enjoyed by a small percentage of the world’s population,
mostly in the developed world.

Multinational corporations (MNCs) and moral issues

The increasing economic and political power of MNCs is often not subject to
democratic controls.
• Corruption and cultural relativism: The culture and business practices of
countries vary markedly around the world, and corporations can sometimes
fall foul of these mixed practices.
• Child labour and sweatshops: The lack of regulations in some developing
countries allows for the exploitation of workers, including young children, in
order to reduce costs and boost profits.
• Harmful products: The lack of regulations in some countries may result in the
import and export of unsafe products.
• Human rights are sometimes violated, as businesses may accept immoral
practices based on a ‘when in Rome …’ attitude.

MNCs and moral management

The moral issues surrounding the operations of global corporations are difficult to
address, as corporations operate outside of individual state sovereignty.

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 Chapter 6: International business: Moral and ethical issues and globalisation 97

MNCs global corporate responsibility

The Caux Round Table Principles for Business were launched at the United Nations
World Summit on Social Development in 1995 and consisted of a set of ethical
principles for businesses operating internationally. These principles can be reviewed
at the following website: http://www.cauxroundtable.org/index.cfm?menuid=8
The social contract perspective
This perspective argues for the acceptance of social responsibility involving the
development of strategies, policies and practices that address dilemmas for MNCs as
well as broader moral issues.
Integrative social contract (ISC) programs
Integrative social contract programs that provide strategic, cultural and internal
preparation for a social contract approach may involve:
• impact assessments
• stakeholder engagement
• social performance plans
• social performance audits
• local content plans
• social investment plans.

Tutorial
Westerners who travel on business to other lands frequently find themselves trying
to do business against a backdrop of cultural patterns and expectations that they do
not fully understand. How should businesspeople deal with customs that conflict
with their own sense of ethics and law? US professor of global marketing Jeff
Fadiman discusses bribery in non-western countries – the reasons for it, the different
kinds one can encounter and how it is done. Because in many non-western countries
turning one’s back on all requests for pay-offs can be commercial suicide, Fadiman
recommends that westerners play the local bribery game – but with their own rules.

Discussion questions
1 What are some problems that Australian companies might face in the
international arena?
2 What are the dangers of running a business in an area where a company does
not have a good understanding of the culture?
3 In your opinion, what dilemmas do businesses generally encounter in different
cultures? How might businesses overcome or improve these situations?
4 You have been appointed as a consultant for an international business – and they
thought of starting business with Australia – deriving from the contents of this
chapter, and your readings, what would be your suggestions?

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98 Moral Issues in Business 3e Instructor’s Manual

Solutions to end-of-chapter questions

General comment
Many of the answers to these questions are subjective in nature. Consequently,
students may answer in a variety of ways. Some guidance has been provided where
possible to demonstrate how questions might be answered, but most questions are
designed to encourage debate. Where students have been asked to apply theory,
any number of theories might be applied (and could be applied differently
depending upon the students’ approaches). A few examples of how to apply theory
have been provided for guidance. Ethical theory seldom presents us with black-and-
white answers to problems. Sometimes we might favour a particular approach, but
when we analyse a problem using that approach, we may end up with a resolution or
answer that we feel instinctively is wrong. If this happens while completing the
questions here, this presents a perfect opportunity to extend the discussion by
referring to the limitations and criticisms of the theories (which are further discussed
in chapter 2).

Review and discussion questions

1 How have MNCs have acquired such significant power and influence through
globalisation?
The instructor needs to take a look at some papers and some websites in order
to enrich their own understanding prior to opening the discussion with the
students – such as http://www.globalissues.org/article/234/the-rise-of-
corporations. Please note that the students would have their own opinions, as
some might be looking at the issue from a different point of view.
2 What are the advantages and disadvantages of globalisation from the point of
view of both a developing country and a developed country.
Student responses may vary. See the section ‘Global institutions’ for further
information.
3 What are the moral issues that globalisation raises.
Student responses may vary. See the section ‘Moral issues and globalisation’
for further information.
4 What are some of the ways in which MNCs can address the moral and social
responsibilities they face in relation to a particular industry and region?
Though corporate social responsibility is a complex topic, especially when it is
mixed with the requirements of the home and the host countries, MNCs
should always be geared towards and be motivated by being moral and ethical,
rather than concentrating totally on increasing profit.
For further information to share with your students, research the diverse
guides and issues regarding this matter, such as
http://www.iisd.org/pdf/2007/csr_guide.pdf

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 Chapter 6: International business: Moral and ethical issues and globalisation 99

Critical reflection
1 Review the advantages and disadvantages of globalisation as discussed in this
chapter. Does globalisation benefit some countries at the expense of others?
Highlight the contents of the chapter; however, the students will have their
own opinions, and to assist them, it would be great to go to FORBES website
and share the pros and cons of globalisation elaborated in the article:
http://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-
globalization/#289d87f02170
2 Is a company morally obliged to follow the safety guidelines of its home
country (where the company is based) when the standards in the host country
(where the company operates) are lower? In relation to worker safety, what is
the difference between moral obligation and law?
Students will have different views. Encourage them to defend their views.
3 Consider the kinds of strategies and techniques that global agencies such as
the IMF, WTO, Transparency International and the Fair Trade Association can
use to influence or persuade MNCs to improve employee working conditions.
How might they be made more effective?
For WTO – the following can be applied:
• Freer trade: gradually, through negotiation
• Predictability: through binding and transparency
• Promoting fair competition
• Encouraging development and economic reform
This link might help the instructors:
https://www.wto.org/english/thewto_e/whatis_e/tif_e/tif_e.htm
As for the IMF – the instructors can check this link
https://www.globalpolicy.org/social-and-economic-policy/the-three-sisters-
and-other-institutions/the-international-monetary-fund.html and show
students the following two articles:
• Agreement for global firewall, but little beyond that
• Capital Flows: IMF Guidelines criticised.
4 Construct an argument for or against the view that the world’s resources
belong to the world (as opposed to belonging to the citizens of the country in
which the resources are located). Use ethical theory to justify your position.
Students will have different views. Encourage them to defend their views. As a
topic of discussion, consider using the Australian mining industry, mining
magnates, and a mine’s effects on a community (e.g. more custom, higher
rents and gender imbalances) and the original owners of the land (Indigenous
populations). Also issues such as blood diamonds could be discussed.
5 Explain why actual (and perceived) employee equality is important across the
operations of MNCs in different countries. Is this a moral, an industrial
relations or a key business issue?

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100 Moral Issues in Business 3e Instructor’s Manual

MNCs have great responsibilities as they are usually taking advantage of the
resources in a country that might be still developing, so the more they act
against moral, ethical and legal issues, the less this country can be developed.
Therefore, as far as the MNCs obtain a permit to operate in a country they are
obliged to assist this country to prosper – and their aim should not only be to
generate profits and transfer those profits to the home country, but to
encourage the citizens of the developing nation, to work with them for the
development of their country through the help in infrastructure and other
community services that might add value.
6 Is the homogenisation of cultures a moral issue? Why or why not?
Students will have different views. Encourage them to defend their views.
Possible responses might refer to ethical relativism and paternalism.
7 Do wealthy nations have a moral obligation to protect poorer nations? If so,
should MNCs play a role in protecting poorer nations or is this the role of
government? Use ethical theory to support your position.
Students will have different views. Encourage them to defend their views. They
should examine their responses in the context of their beliefs about the narrow
and broad views of CSR.

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 Chapter 6: International business: Moral and ethical issues and globalisation 101

Solutions to Case Study 6.1 – Cash and carry: Bharti

Walmart in India
Case 6.1
Cash and carry: Bharti Walmart in India
By Prikshat Verma, Australian Institute of Business, South Australia

The joint venture between Walmart (United States) and Bharti Enterprises
(India), designed to produce a series of ‘cash and carry’ retail stores
throughout India called Best Price Modern Wholesale, has been dissolved due
to claims that Walmart engaged in practices deemed corrupt under the US
Foreign Corrupt Practices Act (FCPA). Until the dissolution, the partners had
built 20 superstores in such Indian cities as Amritsar, Jammu, Agra, Indore,
Zirakpur, Kota, Ludhiana, Jalandhar, Bhopal, Raipur, Meerut and Lucknow.
Walmart paid US$100 million to acquire Bharti Enterprises’s half share in
Bharti Walmart Pvt Ltd that ran 20 Best Price–branded cash and carry stores.
Walmart stores reportedly spent US$334 million to end the partnership.
A New York Times investigation in 2012 regarding a bribery scheme
involving the opening of Walmart stores in Mexico reported that its
investigation had extended beyond Mexico to China, Brazil and also India
where Walmart had a relatively successful joint venture between 2007 and
2011 with Bharti Enterprises. On 15 November 2012, Walmart said it was
looking for FCPA violations at its Brazil, China and India units. While going
through regulatory compliance checks, Walmart discovered traces of
corruption in the set-up at India and the joint venture deteriorated thereafter as
Walmart was forced to focus on investigating whether it had in any way
violated US anti-bribery laws. Independent auditors and lawyers from US-
based Greenberg Traurig and KPMG India were appointed for an official
probe into the matter. So far Greenberg Traurig and KPMG have spent 26,000
hours on consulting and shaping an anti-corruption compliance program for
Bharti Walmart. Walmart also faced other problems in India, including some
politicians who suggested that it had broken India’s foreign exchange laws
through ‘illegal and indirect capital infusion’ into Bharti Retail, and the
government’s requirement that at least 30 per cent of its retail products be
sourced locally. Indian authorities are also looking into whether Walmart
violated its own foreign investment rules by giving Bharti Retail an interest-
free loan of $100 million. Moreover, as an aftermath of the failed joint venture,
two agents who helped Walmart and its former partner Bharti Enterprises to
obtain licences for stores have dragged both companies to court for allegedly
not paying their fees for the past three years.
In response to the ongoing investigation, Walmart India has suspended
its chief financial officer and its entire legal team in the country. The legal
team allegedly procured licences required for stores and other real estate
approvals. The suspicion is that these officers paid bribes to get the licences.
The Retail Association of India lists more than 50 such approvals from 32
different agencies. Understanding the Corruption Index for India and the way
some government departments function, it is often a daunting task for any
organisation to manage to obtain all the relevant licences without such
‘reciprocal payments’. Given the immense operations of the Bharti group, it is
not possible that bribes were paid without senior management approval, as
most of the relationships required senior managers’ tacit or explicit approval.

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As an example, Arvind Singhal, Chairman of Technopak Advisors,

suggests that if you want to sell thermometers, you usually have to obtain
approval from a department in charge of weights and measures. ‘To me,
much beyond the Walmart example, I sincerely hope that there is a serious
debate about why is it so difficult to do business in India,’ he said. ‘All of these
conditions have only made India a poorer country.’
Walmart has to rely on importing goods to India, which might require
the paying of bribes to Indian custom officers, although the FCPA strictly
prohibits paying bribes to custom officers. However, the situation can only
worsen as if Walmart doesn’t follow the norms. So Walmart has a serious
dilemma – can it wait for months to get its stock cleared by the custom
officers? Now Walmart has to analyse the ‘reward versus risk’ scenario of
their business plans for investing further in the retail industry in India.
Bharti Walmart will limit its expansion of cash-and-carry stores until the
investigation is completed. In a statement, Bharti Walmart said it had
suspended ‘a few associates’ to ensure ‘a complete and thorough
investigation’, although it has indicated that it intends to ‘continue to invest in a
retail concept called ‘Easyday’. Walmart will operate the 20 superstores
already established, and has indicated that it ‘wants to serve India and its
people through its cash and carry business’. Its management believes that the
company has in place ‘the supply chain infrastructure, direct farm program,
and supplier development that enables it to make good investments and
provide good returns for its shareholders’. While it is clear that Walmart’s
growth in Europe and Asia has been impressive, its experiences in India,
China, Brazil, Japan and Germany provide examples of the difficulties of
global expansion. While the success of Walmart in the United States is
unchallenged, the issues discussed above suggest that it has been unable to
replicate such positive outcomes in its overseas operations.
Until a decade ago, paying bribes to win business or speed up
transactions was widely seen as a necessary evil, especially in emerging
markets. In parts of Europe, companies were even allowed to deduct ‘bribes’
against tax. But anti-bribery enforcement has been transformed since the
early 2000s, when non-government organisations started to complain and
America strengthened the FCPA.
The case illustrates the risks for multinationals in doing business in
foreign countries. Corruption provides serious dilemmas for overseas
companies which are torn between the home and host country’s moral
principles and legislation. The FCPA and laws of various countries strictly
prohibit paying bribes to foreign officials, while business practices
simultaneously demand such activities. Under such circumstances, will the
joint ventures between foreign investors and host country organisations work?
The culture and practices of these countries will not change overnight, so
what are the solutions?
Sources: Adapted from R. Bailay & S. Malviya, ‘India Unit of Wal-Mart Suspends Employees’,
ET Bureau, 28 April 2014; R. Bailay & C. Chakravarty, ‘Bharti Walmart Suspends CFO, Legal
Team Due to FCPA Bribery Probe’, ET Bureau, 23 November 2012.
Discussion questions
1 Based on your understanding of the above study, what was the main reason
for the split between Walmart and Bharti Enterprises?
The US Foreign Corrupt Practices Act (FCPA) forbids American firms from
paying bribes. Wal Mart was especially sensitive to claims of violations of the
FCPA as it had earlier faced corruption scandals in Mexico and Brazil, and

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 Chapter 6: International business: Moral and ethical issues and globalisation 103

difficulties in its Chinese operations. Bharti-Wal Mart suspended employees

including the chief financial officer and the entire legal team as part of an
internal investigation into bribery allegations in India. The main causes of the
split were the alleged bribery scandal and the investigation by Wal Mart as to
whether its company executives in India violated the FCPA by paying local
government officials to secure permission to open stores.
2 Do you think Walmart infringed any moral and ethical codes as it initiated the
investigation of the alleged bribery?
Wal Mart investigated whether money changed hands in a way that violated
the US Foreign Corrupt Practices Act (FCPA), which prohibits American
corporations and citizens from bribing government officials wherever they
operate or reside. It was on the part of ongoing commitment to compliance,
Wal Mart found the issue of corruption and subsequently appointed
independent auditors and lawyers from US-based Greenberg Traurig to India
for an official probe. Suspension of several senior executives in India was a
proof that Wal Mart took the issue seriously enough and responded by taking
the appropriate action. Though, Wal Mart itself initiated the investigation, still
it can be held accountable for infringing moral and ethical issues. The main
reason being, its reactive approach to the whole issue instead of being
proactive in keeping a strict vigil over the initial set up operations, given the
prevalence of corruption in India.
3 Could the alleged payment of bribes to Indian government officials by the
Walmart legal team be considered ‘facilitating payments’ for operating its
business in India according to existing norms?
There exists a big challenge in terms of extending multinationals value system
to subsidiaries as the moment they venture into foreign territories and cross
nation’s boundaries, moral clarity often blurs. The cultural relativist’s creed –
When in Rome, do as the Romans do – is tempting, especially when entering a
country like India, where corrupt practices are prevalent. The chances of
forfeiting business opportunities are more if there is non-conformity with
existing unethical standards. This could be the reason why Wal Mart executives
succumbed to the pressure and indulged into unethical practices for operating
its business in India according to existing norms. But given Wal Mart’s value
system in conformance with ethical imperialism, which directs organisations to
do everywhere exactly as they do in their home country, the strategy adopted
by India executives cannot be considered as ‘facilitating payments’, as it is
against the established value system of Wal Mart as well as FCPA Laws.
4 To what extent should organisations and their officers be held accountable for
ethically-suspect activities by the managers in a subsidiary?
The code of ethics of an organisation outlines a set of fundamental principles.
It is supposed to be the duty of managers at home and subsidiary to adhere to
these principles. These are applicable to both to the home country managers
as well as for the subsidiaries. The failure to apply to these principles should be
a cause for disciplinary action for the managers who are in charge of the
subsidiary operations as well as those executives who are accountable for the

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104 Moral Issues in Business 3e Instructor’s Manual

subsidiaries. For the underlying code of values of fairness, integrity and loyalty,
the organisations and officers should be accountable for ethically suspect
activities of the managers in a subsidiary. Disciplinary action should not be
restricted to the subsidiary managers but should also include company officers.
The audit/ethics committee of the organisation must ensure the effectiveness
of all components of ‘an effective program to prevent and detect ethical
violations’; that includes encouraging reporting and punishing ethical
misconduct. There should be uniformity of applications of
impact/outcome/punishment, otherwise it may lead to complications and
perceived double standards within an organisation that may undermine the
integrity of the codes. Practical differences between Board and employee
activities can be addressed by policy statements accompanying a single
company-wide code.

Solutions to Case Study 6.2 – Hot coffee at McDonald’s

Case 6.2
Hot coffee at McDonald’s
To aficionados of the bean, there’s nothing like a piping-hot cup to get the day
off to a good start, and nothing more insipid than lukewarm coffee. That’s
what McDonald’s thought, anyway – until it learned differently, the hard and
expensive way, when 79-year-old Stella Liebeck successfully sued the
company after she was burned by a spilled cup of hot coffee that she’d bought
at the drive-through window of her local McDonald’s. The jury awarded her
$160 000 in compensatory damages and a whopping $2.7 million in punitive
damages. After the trial judge reduced the punitive damages to $480 000, she
and McDonald’s settled out of court for an undisclosed sum.40
Unlike the outcome of most other lawsuits, the hot-coffee verdict
received nationwide attention, most of it unfavourable. To many ordinary
people, the case epitomised the excesses of a legal system out of control. If
hot coffee is dangerous, what’s next? Soft drinks that are too cold? To
conservatives, the case represented the all-too-familiar failure of consumers
to take responsibility for their own conduct, and to blame business rather than
themselves for their injuries. More policy-oriented pundits used the case as an
occasion to call for reform of product liability law – in particular, to make
winning frivolous suits more difficult and to restrict the punitive awards that
juries can hand down.
However, those who examined the facts more closely learned that the
Liebeck case was more complicated than it first appeared. For one thing,
Liebeck was hospitalised for a week because of third-degree burns on her
thighs and buttocks, which were serious enough to require skin grafting and
leave permanent scars. After her injury, she initially requested $10 000 for
medical expenses and an additional amount for pain and suffering. When
McDonald’s refused, she went to court, asking for $300 000. Lawyers for the
company argued in response that McDonald’s coffee was not unreasonably
hot and that Liebeck was responsible for her own injuries.
The jury saw it differently, however. First, McDonald’s served its coffee
at 180–190°F [82–88°C], which is significantly hotter than home-brewed
coffee. The jury was persuaded that coffee at that temperature is both

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 Chapter 6: International business: Moral and ethical issues and globalisation 105

undrinkable and more dangerous than a reasonable consumer would expect.

Second, before Liebeck’s accident, the company had received over 700
complaints about burns from its coffee. In response to the complaints,
McDonald’s had in fact put a warning label on its cups and designed a tighter-
fitting lid for them. Ironically, the new lid was part of the problem in the Liebeck
case because she had held the coffee cup between her legs in an effort to pry
it open.
Although the jury found that Liebeck was 20 per cent responsible for
her injuries, it also concluded that McDonald’s had not done enough to warn
consumers. The jury’s $2.7 million punitive-damage award was intended,
jurors later said, to send a message to fast-food chains. Although the judge
reduced the award – equivalent to only about two days’ worth of coffee sales
for McDonald’s – he called McDonald’s conduct ‘wilful, wanton, reckless and
callous’.

Discussion questions
1 Is hot coffee so dangerous, as the jury thought? Should a reasonable consumer
be expected to know that coffee can burn and to have assumed this risk? Is a
warning label sufficient? Is our society too protective of consumers these days,
or not protective enough?
Students might have different opinions here – some might think that hot
coffee is dangerous – others might state coffee is not drinkable if it is not hot;
however, there is a need to look at rights and responsibilities here: rights of
the buyer and the seller, and the responsibilities of both. If there is a warning,
is it difficult to see? Students will have various responses and should be
encouraged to justify their view.
2 In serving such hot coffee, did McDonald’s act in a morally responsible way?
What ideals, obligations and effects should it have taken into consideration?
Student responses will vary.
McDonald’s can print a warning on the cup in an effort to negate
responsibility if the product causes harm. Having said that, McDonald’s cannot
run away from responsibility in the case of any injury, thus, they should have
acted more responsibly.
3 McDonald’s claims that most consumers would prefer to have their coffee too
hot rather than not hot enough. After all, if it’s too hot, they can always wait a
minute before drinking it. Suppose this is true. How does it affect McDonald’s
responsibilities? Given that McDonald’s serves millions of cups of coffee every
week, how important are a few hundred complaints about its coffee being too
hot?
Student responses will vary. Other than printing a warning on drink containers,
what other steps could the company take? Should they reduce the
temperature of their coffee? What is reasonable to accept?
4 Was Liebeck only 20 per cent responsible for her injuries? Do you agree with
the amount of compensatory and punitive damages that the jury awarded her?
If not, what would have been a fairer monetary award?

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106 Moral Issues in Business 3e Instructor’s Manual

Students might argue differently depending on how they look at Liebeck from
the information provided in the case and what is their stand regarding
McDonald’s. The buyer has a responsibility and the seller has a responsibility.
5 Should juries be permitted to award punitive damages in product liability
cases? If so, should there be a limit to what they can award? Is it right for a jury
to award punitive damages against one company in order to send a message to
a whole industry?
Student responses will vary and this is a good issue for discussion, introducing
the topics of fairness and justice. Some students might say ‘you cannot just
send messages by having a scapegoat’, while others would say that this is the
right thing to do. Either argument would need to be supported by excerpts
from the chapter.

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 Chapter 6: International business: Moral and ethical issues and globalisation 107

Additional resources
Further reading
R. W. Armstrong, ‘An Empirical Investigation of International Marketing Ethics:
Problems Encountered by Australian Firms’, Journal of Business Ethics, 11
(1992), 161–71.
T. Donaldson, ‘Moral Minimums for Multinationals’, Ethics & International Affairs, 3
(1989), 163–82.
A. Ebrahim and E. Weisband, Global Accountabilities: Participation, Pluralism and
Public Ethics (Cambridge: Cambridge University Press, 2007).
W. Higgins, ‘Standardizing Corporate Social Responsibility’, in D. Bubna-Litic (ed.),
Spirituality and Corporate Social Responsibility – Interpenetrating Worlds:
(Farnham, UK: Gower Applied Business Research, 2009).
P. Kirby, ‘Theorising Globalisation’s Social Impact: Proposing the Concept of
Vulnerability’, Review of International Political Economy, 13 (2006), 632–55.
S. Larsson, D. Boud, M. A. Dahlgren, S. Walters, and T. Sork, ‘Confronting
Globalisation: LeArning from Intercontinental Collaboration’, Innovations in
Education and Teaching International, 42 (2005), 61–71.
N. Li, ‘Religion, Opportunism, and International Market Entry Via Non-Equity
Alliances or Joint Ventures’, Journal of Business Ethics, 80 (2008), 771–89.
B. Michael, ‘Theorising the Politics of Globalisation: A Critique of Held et al’s
‘Transformationalism’’, Journal of Economic and Social Research, 4 (2003), 3–
17.
K. Rushton, ‘Business ethics: A Sustainable Approach’, Business Ethics: A European
Review, 11 (2002), 137–9.
G. Sanderson, ‘Black and white Knights: Globalisation, Internationalisation and
Higher Education’, 212-25. (Adelaide: University of South Australia, 2009).
P. S. Sethi, ‘Globalisation and the good corporation: A need for proactive co-
existence’, Journal of Business Ethics, 43 (2003), 21–31.
M. Sillanpaa, M. 1998. ‘The Body Shop Value Report: Towards Integrated
Stakeholder Auditing’, Journal of Business Ethics, 17 (1998), 1443–56.
P. Singer and T. Gregg, How Ethical Is Australia? An Examination of Australia‘s Record
as a Global Citizen (Melbourne: Black Inc., 2004).
A. Sorensen, ‘Value, business and globalisation – Sketching a Critical Conceptual
Framework’, Journal of Business Ethics, 39 (2002), 161–7.
Videos
• BUAD 3311 Lecture Ch 10 Ethical Issues in the Global Arena,
https://www.youtube.com/watch?v=nwR5bCQ54kY

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108 Moral Issues in Business 3e Instructor’s Manual

• Making global labor fair,

https://www.ted.com/talks/auret_van_heerden_making_global_labor_fair?lang
uage=en
• Next Stage of US Occupation – Economic Colonization of Iraq led by IMF,
https://www.globalpolicy.org/social-and-economic-policy/the-three-sisters-and-
other-institutions/the-international-monetary-fund/49148.html?ItemID=1181
• Business ethics: globalization (course ware),
https://www.youtube.com/watch?v=52Nw49y-q9k
• VIU Courses: S2010, Ethical Problems in Globaliztion & Theories of Justice, W.
Vossenkuhl, https://www.youtube.com/watch?v=sx-MfP79LrM
• Global Business Ethics Issues, https://www.youtube.com/watch?v=TxY2ylffYeU
• Ethics of Consumption – cultural capitalism,
https://www.youtube.com/watch?v=GRvRm19UKdA

Useful weblinks
Department of Economic and Social Affairs ECOSOC Support and Coordination –
United Nations
Description: This subsection of the United Nations Department of Economic and
Social Affairs site explains some key issues of globalisation.
Location: http://www.un.org/esa/coordination/globalization.htm

IMF – International Monetary Fund Home Page

Description: Students are encouraged to explore the website of the International
Monetary Fund.
Location: http://www.imf.org/external/index.htm

World Trade Organization – Home page

Description: Students are encouraged to explore the website of the World Trade
Organization.
Location: http://www.wto.org/

Asia–Pacific Economic Cooperation

Description: Students are encouraged to explore the website of the Asia-Pacific
Economic Cooperation forum.
Location: http://www.apec.org/

Social Contract Theory [Internet Encyclopedia of Philosophy]

Description: This web page discusses the theoretical assumptions of social contract
theory.
Location: http://www.iep.utm.edu/soc-cont/

Distributive Justice – Stanford Encyclopaedia of Philosophy

Description: This web page discusses the theory and application of distributive
justice. Students are encouraged to use this broad overview as a springboard for
further research.

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 Chapter 6: International business: Moral and ethical issues and globalisation 109

Location: http://plato.stanford.edu/entries/justice-distributive/

From Sweatshops to Cotton Fields: Child Labor Goes Rural

Description: This web page provides an exploration of child labour in the Philippines.
Location: http://newsdesk.org/2008/03/from_sweatshops/

4 Reasons Why Fair Trade Coffee Is a Scam

Description: This web page provides an alternative perspective on fair-trade
practices.
Location: http://www.cracked.com/quick-fixes/4-reasons-why-fair-trade-coffee-
scam/

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