COMPARATIVE BUSINESS ETHICS

Comparative Business Ethics: Social Responsibility

Comparative Business Ethics: Social Responsibility

The end of the twentieth century saw a number of emerging business ethics as a result of changing community attitudes and lifestyles. What are the likely business ethics of the twenty first century? Australian laws in relation to business ethics are weak? Discuss

Ans: Corporate Social Responsibility (CSR) has become a fixture on the agendas of corporate boards in much the same way as environmental issues did a decade or so ago. To what extent social responsibilities should be made legally enforceable remains a matter of some fierce debate (Vaaland, 2008, 10). There are already many laws in Australia that bind corporations in respect of such “social” issues as occupational health and safety, labour standards, privacy, non-discrimination and environmental protection (www.nabgroup.com).

But should there be more specific human rights coverage, especially in respect of off-shore corporate activities in developing countries where there are well-documented examples of corporate abuse - or corporate complicity in host-state abuses - of rights to life, protection from physical harm, trade union membership, labour standards and workplace conditions, and others?

Corporate Social Responsibility

Corporate social responsibility (CSR) encompasses the economic, legal, ethical, philanthropic and discretionary expectations that society has of a firm at a given point in time. Until very recently, most firms viewed business ethics only in terms of administrative compliance with legal standards and adherence to internal rules and regulations in international business transactions (Montiel, 2008, 82).

In today's environment, it is imperative to pay attention to business ethics around the world and firms must earn the respect and confidence of their customers in order to succeed. Legal and ethical behavior are of paramount importance and companies and individuals alike are being held increasingly accountable for their actions, as demand grows for higher standards of corporate social responsibility (McBarnet, 2008, 70).

Discussion on Business Ethics

While business ethics emerged as a field in the mid-19th century, international business ethics did not emerge until three decades ago. Managers and researchers have since then begun focusing on infinitely more complex issues in the international marketplace as value judgments differ widely amongst culturally diverse groups (Marin, 2009, 67).

There are several issues that have become salient such as comparison business ethical transactions from various religious perspectives, varying global standards, e.g., such as the use of child labor, the way multinationals take advantage of international differences, such as outsourcing production and services to low-wage countries, the permissibility of global business transactions with pariah states, and an overall search for universal values as a basis for international business transactions (Kinley, Nolan, Zerial, 2007, 30).

The rapid pace of globalisation in the last decade has compelled multinational enterprises to leverage their resources to alleviate a wide variety of social problems. The pharmaceutical industries have priced their drugs well below market price in developing nations to avoid negative publicity, whereas those engaged in manufacturing have restricted environmental pollution regardless of the local laws and customs (www.nabgroup.com).

Furthermore, multinationals should not adversely disturb the balance of payments or currency ...