Canadian Business and Society:
Ethics & Responsibilities
Chapter
Fifteen
Globalization and Business
Responsibilities
Copyright © 2008 McGraw-Hill
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1
Chapter Outline
 Globalization and Implications for Business
 The Debate over Globalization
 International Non-governmental
Organizations
 Institutions of Globalization
 Globalization and Canadian Business and
Society
 Standards of Conduct for Global Business
 Special Challenges of Global Business
 The Acceptance of Global Capitalism
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Globalization
 Not a new phenomenon: goods have been
traded between regions since ancient times
 Corporations now seen as more efficient
than governments in distributing goods and
services needed by citizens
 Today, new view toward trade and market
systems is referred to as globalization
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Defining Globalization
 Globalization: a process of decreasing
constraints on the interactions among the
nations and peoples of the world.
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Defining Globalization
 Economic globalization: the integration of
fragmented markets into a global economy.
 Political globalization: the process by which
world power relationships change, and there
is a loss of sovereignty by the states.
 Social or cultural globalization: the
emergence of a worldwide cultural system.
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The United Nations Global Compact
Human Rights:
1. Respect internationally proclaimed human
rights
2. Not be complicit in human rights abuses
Labour Standards:
3. Uphold the right to collective bargaining
4. Eliminate all forms of forced and
compulsory labour
5. Effective abolition of child labour
6. Eliminate employment discrimination
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The United Nations Global Compact
Environment:
7. Precautionary approach to environmental
challenges
8. Promote greater environmental
responsibility
9. Use environmentally friendly technologies
Anti-Corruption:
10. Avoid corruption (e.g., extortion and
bribery)
http://www.unglobalcompact.org/
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Globalization and the
Implications for Business
 Damage to environment
 Support for oppressive regimes
 Criticism of marketing practices (e.g., tobacco,
pharmaceutical, baby formula, etc.)
 Arms trade
 Treatment of employees (e.g., sweatshops)
 Treatment of indigenous peoples
 Genetic modification of plants and animals
 Corruption and bribery
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The Debate
 Pro globalization
Johan Norberg
 Anti globalization
NoLogo by Naomi Klein
The Pinky Show (Globalization and the
metaphysics of control)
The Pinky Show (Defending Globalization)
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The Debate Over Globalization:
Supporters
 Trade leads to more efficient
production of better goods and
services
 Better opportunities for employment
and higher incomes
 Transfer of capital, technology,
intellectual property, skilled labour
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The Debate Over Globalization:
Opponents

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Benefits received by only a few
Creates unemployment
Increased poverty and inequality
Causes periodic financial crises
Destroys local environment
Destroys cultures
Violates human rights
Questionable payments made
Disrespect of intellectual property
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The Debate Over
Globalization
 Broadening the Debate: The Pros and
Cons of Globalization
By Joyce S. Osland
 Discussion – What stood out to you?
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Broadening the Debate:
The Pros and Cons of Globalization
 The Impact of Globalization on Equality
 The Impact of Globalization on Labor
Conditions
 The Impact of Globalization on Governments
 The Impact of Globalization on Culture and
Community
 The Impact of Globalization on
Environmental Sustainability
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Globalization and International
Non-governmental Organizations (INGOs)
 International Non-government Organizations
(INGOs): groups that hold shared values and
attitudes about the issues relating to globalization
and advocate for changes to improve conditions in
developing countries
 INGOs put pressure on corporations and
governments
 INGOs are also referred to as transnational nongovernment actors (TNGOs) or transnational social
movement organization (TSMOs)
 Example: Amnesty International
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Institutions of Globalization
 Supranational Institution: an
international organization that
transcends national boundaries where
the member states share in decision
making on particular issues pertaining
to the members
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Institutions of Globalization
 The World Bank:
 Provides financial and technological assistance to
developing countries.
 The International Monetary Fund (IMF):
 Fosters financial stability, international trade,
employment, and reduction of poverty.
 Controversy: negative & positive
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Institutions of Globalization
 International Labour Organization (ILO):
 UN agency that seeks to promote social justice
and internationally recognized human and labour
rights.
 World Trade Organization (WTO):
 Coordinates agreements reducing trade barriers.
 Controversy
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Globalization and Canadian Business
and Society
 Pressure to forge international links
 Must meet challenges of global
restructuring (e.g., R&D, education,
competition policy, cost of capital,
etc.)
 Attract more investment in natural
resource plants
 More direct investment abroad
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International Code of Ethics for
Canadian Business Principles
 Community participation and
environmental protection
 Human rights
 Business conduct (e.g., bribery and
compliance with the law)
 Employee rights and health and safety
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Standards of Conduct and
Accountability for Global Business
 Political factors
 Science and technology
 Socio-cultural
 Corrupt practices
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objectives and values
Disclosure of
information
Competition
Financing
Employment and
human resources
Chapter 15
 Environmental
protection
 Stakeholder
consideration
 Corporate governance
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Global Standards of Conduct
 Caux Round Table: “Caux Principles”
 OECD “Guidelines for Multinational
Enterprises”
 “Principles for Global Corporate
Responsibility” (Interfaith
organizations)
 United Nations Global Compact
 Global Reporting Initiative (GRI)
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Special Challenges of
Global Business
 Corruption: The abuse of entrusted
power for private gain (e.g., bribery)
 Human rights: The fundamental rights
and freedoms to which all individuals,
groups, and societies are entitled
(e.g., sweatshops).
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The Acceptance of
Global Capitalism
 Fair trade: Trading partnership which aims
at sustainable development for excluded and
disadvantaged producers (e.g., Fairtrade
Foundation, Oxfam, and Traidcraft)
 Microfinance: Provision of financial products
such as micro-credit or micro-insurance to
people living in poverty (e.g., Grameen Bank
in Bangladesh)
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