Journal of Business Ethics - Essay Example

Journal of Business Ethics In the first section of the article, en d the context for the UNGC, Williams discusses the status of business ethics after globalization. Write down three important ideas from this section and explain how they connect case studies we have discussed this semester. Provide a quote from the text to support each idea. Important ideas as depicted from this section include: i) One issue that emerged with the globalization of economy is the lack of common agreement on the appropriate ethical norms that should guide business, especially in developing countries. This was evident when the press and some NGOs played a crucial role in informing the public about the inhumane working conditions in factories that provide many of the products for multinational companies in the developed world. As per the case studies undertaken this semester inhumane acts in various factories has been a fact that it is done by different employers and thus there is need to change the code of ethic from this factories to suit the employees.As indicated “Nike later changed its position, formulated a code of conduct for its suppliers, and became what many consider a model employer”. ii) With globalization several hundred million people in China and India no longer live in dire poverty because of jobs created by multinational companies as they manufactured their products in outsourced factories. However globalisation has curtailed the ability of nation states to control their way of life .i.e. whether is corporate downsizing, bankruptcies, human rights abuses or loss of jobs. iii) Globalization, Technology and the internet have shrunk the borders of our world bringing peoples, cultures and economies together. Businesses had already learned that this new world required global standards for its product and production processes and now was learning that there was a need to have global ethical standards. 2. Write down two important criticisms of the global compact and explain how Williams respond to these criticisms. Include a quote from the text to support. An important group of critics does not believe that economic globalization, as it presently conceived, will ever bring authentic development to the poor, even if the principles of the compact were implemented. Some argue there is little evidence that the UNGC vision, an economy with human face, can be realized for the poor and developing nations with economic globalization. Many do not agree with the assumption of the Global Compact that globalization in its current form can be made sustainable and equitable, even if accompanied by the implementation of standards for human rights, labour, and the environment because they are well aware that many corporations would like nothing better than to wrap themselves in the flag of UN in order to blue wash their public image. Williams argues that they should respond to any criticism of their practices and discuss corrective action where necessary. As indicated “We expose the reality in a field too often dominated by rhetoric and help protect vulnerable people and communities against abuses”. Second group of critics is not focusing so much on the mission of UNGC but rather on the fact that the initiative is housed in the UN. There were fears that businesses would become too dominant in the organization. Williams responds that the background of this criticism is important because the UN had no close relationship with the private sector and in the 1960s this was amplified as many developing countries moved away from their colonial masters and became independent, As indicated “The UN served as a countervailing power for developing countries who understood multinational companies to be partially responsible for their slow economic and human development”. 3. Write down one question or criticism you have about the Global Compact Are there any financial requirements in becoming a global compact participant? 4. Write a paragraph about whether you agree or disagree with Williams’ conclusion that progress can, and is, being made through the Global Compact. Support your position with a brief argument. I agree with Williams’ conclusion that progress can and is being made through Global compact.This is because global compact leads to the creation of global businesses and job creation all over the world. The purpose of business is to create sustainable value for stakeholders. The UN Global Compact, as of 2014, had over 8,000 signatories from business based in more than 140 countries. These companies employ more than 50 million people representing all industries, all ranges of wealth on the part of home countries and all sizes of companies. To develop consensus on global norms and to achieve the transformation envisioned to an inclusive and sustainable global society, however, it will take many more companies. Today there are over 80,000 multinational companies and to garner a critical mass of these businesses, all working toward a common goal, it will take renewed effort. The UNGC has set a target of 20,000 companies by 2020 to have the critical mass to advance significantly the sustainable vision. At the same time, there will be great effort applied to ensure that signatories actually advance the sustainable vision through their strategic plans and projects. This will be a qualitative effort as well as a qualitative one. Also there is a need to have a central organization which can be a forum to gain consensus on the norms and values for sustainable development in the global economy and that the UNGC is the best organization for this important role. The Global Compact offers a forum under the umbrella of the United nations—with its visibility, global reach, universality, neutrality and convening power—where some of the best members of civil society—non-governmental organizations, academic and public policy institutions, individual companies, business associations and labor representatives—can come together to discuss the changing role of business and the moral norms needed for a more just global economy. Reference Text: Oliver Williams. “The United Nations Global Compact: What Did It Promise?” Journal of Business Ethics 122 (2014), 241-251 (D2L) Read More