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Capitalism economics and business ethics

The concept of business ethics has changed how businesses operate by governing the actions of different businesses in the society. However, questions have been often asked on its effectiveness in the application of capitalism. In capitalism, the worker is regarded just as a commodity in the production process. Capitalism works in a free market which is not very common in business ethics. Business ethics infringe on the right of a free economy. Capitalism is believed to go against corporate social responsibility.

Global values, goals and business practices within ethics

Ethical decision making is vital to successfully operating a global business Some Multinational corporations have created committees to oversee global compliance issues Successful implementation of a global ethics program requires extensive employee training Global firms must tailor programs to international markets. Global ethics is not common to all. Important global business practices of ethical concern include bribery, antitrust activities, internet security and privacy, human rights, healthcare, labor and right to work, compensation, and consumerism.

Global ethical issues

A global ethic is defined as an ethical perspective in which there are noteworthy ethical relations between different countries. This combines ethical values and norms in a global scope. Key areas of international ethical risks include the emerging markets which carry significant risks for international investors, Chinese leadership in its promotion of nationalism (which could threaten its relationships with other countries), and the weak economic outlook for many Eurozone countries.

Role of IMF

The international monetary fund IMF Emerged from the Bretton Woods agreement of 1944, it has the following roles

  • Giving short-term loans to member countries
  • Provides foreign currencies for its members
  • Promotes responsible business conduct
  • Recommended new rules for large firms which represent the biggest systemic risk

Role of world trade organization in business ethics

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. WTO agreements are negotiated and signed by the trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct and grow their business. WTO has the following roles:

  • Administers trade agreements, facilitates trade negotiations and settles trade disputes
  • Monitors trade policies of member nations
  • Addresses economic and social issues of many industries; attempts to reduce trade barriers
  • Provides legally binding ground rules for commerce

Multinational corporations in business ethics

Multinational corporations can be defined as public companies that operate on a global scale, without significant ties to any one nation or region. Many MNCs have joined this globally based resource system. They have the following roles:

  • Tracks emerging issues and trends
  • Provides information on corporate leadership and best practices
  • Conducts educational workshops and training
  • Assists organizations in developing practical business ethics tools

References

Michaelson, C. (2010). Revisiting the Global Business Ethics Question. Business Ethics Quarterly20(02), 237-251. http://dx.doi.org/10.5840/beq201020217

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