Ethical Leader: Emerging Markets and Global Business Essay (Critical Writing)

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Global business ethics have become an important topic of heated debate among practitioners as well as scholars. Researchers note that these norms emerged alongside with the development of such global actors as multinational companies (Cullen & Parboteeah 2013). It is also a universally accepted opinion that western multinationals have become the major developers and promoters of ethical conventions that are now used across the globe. Nonetheless, the development of emerging economies is seen as a threat to the dominance of the western doctrine (Michaelson 2010). Many people believe that Asian companies may soon introduce substantial changes to the scope of some norms of global business ethics. To understand whether this can happen, it is necessary to focus on major principles governing the business world. In its turn, a brief analysis of the way multinationals operate can unveil these global principles.

Multinationals (MNC) can be regarded as one of the by-products of globalization. MNCs have paved the way for the development of global business ethics. It has been acknowledged that MNCs spread western values and ethical norms in countries where they operate (Michaelson 2010). Thus, such major players as Coca-Cola, BP, and many others have spread the principles of corporate social responsibility across the globe. Companies try to align their practices with those principles to create a favorable image and become or remain attractive to customers (Cullen & Parboteeah 2013).

These companies also play a central role in promoting ethical conduct when it comes to avoiding corruption. MNCs create specific norms and paradigms local companies often adopt. For instance, Infosys, an Indian software company, was created to be a responsible actor in the Indian market that is characterized by a significant degree of corruption (Cullen & Parboteeah 2013). The organization’s founder was tired of the overwhelming corruption that was a part of any Indian organization’s activities. Therefore, it is possible to note that multinationals set certain standards that have positive effects on the development of markets.

The example of the impact of multinationals shows that global business ethics can preserve its western principles and values. It is possible to assume that organizations are likely to accept the norms and standards that have been developed throughout the decades. If they work, many companies and entrepreneurs will use them as well-established norms are often quite viable.

At the same time, multinationals also have to adjust to the cultural peculiarities of different areas if they want to remain competitive in certain markets. For instance, Walt Disney had to take into account various cultural differences when they started operating in new markets (Banutu-Gomez 2014). The company changed its products, and the way services were delivered to meet the expectations of new customers. Each time they failed to do it, they had significant losses (Banutu-Gomez 2014). Although many researchers stress that MNCs have considerable power to affect various aspects of people’s life (for example, some political decisions could be affected), local governments and communities have often made organizations change their policies and practices. Coca-Cola was banned in some areas of India due to its unsustainable practices (Banutu-Gomez 2014).

Thus, the example of the development of multinationals shows that communities and countries have the power to affect business practices. When considering the domain of global business ethics, it is possible to assume that emerging economies will acquire more and more power to become active actors in the development of ethical norms and conventions. This process has already started, which is seen from the ongoing debate on the matter (Michaelson 2010). Researchers and practitioners discuss the need to make sure that global business ethics involves aspects of all cultures. Of course, a lot has been achieved on a smaller scale as companies manage to change their western (or local) practices to enter new markets.

It is but natural that local values should prevail when there is a conflict of global and local regulations and conventions. If I were asked about the principles that should prevail, I would definitely choose local codes and practices. I believe that cultural beliefs and values should be respected as people have developed them throughout centuries. Every nation has a set of moral codes that is consistent with their understanding of the world.

I also think that leaders are totally responsible for the development of ethical codes and their proper use in organizations. These ethical codes should be universal, but still consistent with the values of the community. Being a leader and trying to create and maintain organizational standards, I would hire people who are ready to share certain values or encourage employees to adopt such ethical and moral principles. I would also launch some training to make sure that employees are aware of the principles and standards and have the necessary skills to follow these principles in a variety of settings.

In conclusion, it is possible to note that global business ethics have been based on western values, but this is changing due to the empowerment of emerging economies. Multinationals tend to follow the principles of corporate social responsibility, which contributes to the development of a proper business environment as corruption is diminished or even eliminated. At the same time, it is clear that some western values can never be successful in other parts of the world, or they are even outdated in developed countries. Emerging economies get the power to add some new principles that are consistent with their cultural peculiarities. This trend is inevitable and quite favorable as diversity should be the governing principle in all aspects of human life.

Reference List

Banutu-Gomez, MB 2014, ‘The role of culture, language, and ethics in global business’, European Scientific Journal, vol. 10 SE, pp. 231-242.

Cullen, JB & Parboteeah, KP 2013, Multinational management, Cengage Learning, Boston.

Michaelson, C 2010, ‘Revisiting the global business ethics question’, Business Ethics Quarterly, vol. 20, no. 2, pp. 237-251.

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