GLOBALIZATION by wufengmei007


									Ethical Issues in
      We have to choose between a
        global market driven only by
    calculations of short-term profit,
   and one which has a human face.
                       — Kofi Annan
            What is Globalization?
n   a process (or set of processes) which
    embodies a transformation in the
    spatial organization of social
    relations and transactions, expressed
    in transcontinental or interregional
    flows and networks of activity,
    interaction and power.

                   Globalization Brings
                  Four Types of Change
     • a stretching of social, political and economic activities
       across frontiers, regions and continents.

     • intensification of interconnectedness and flows of trade,
       investment, finance, migration, culture, etc.

     • a speeding up of global interactions and processes, the
       diffusion of ideas, goods, information, capital and

     • deepening impact such that the effects of distant events
       can be highly significant elsewhere and specific local
       developments can come to have considerable global

    Globalization, in short, can be
     thought of as the widening,
     intensifying, speeding up, and
     growing impact of world-wide

       Some Big-Ticket Issues
n   Very personal: the meaning of
n   Organizational: who’s in charge, and
    of what? Supply chain ethics?
n   National: do nations matter any
n   Supranational: what does it mean
    that some areas are ‘developing’?
n   Global: systems change? Justice?
n   U.S. – more jobs overall, but many
    industries in decline.
n   A shift in skills and education
    required for higher-paying jobs.
n   Loss of economic viability for many
n   Increasing competition among
    polities for job-providing ventures.
n   In the developing world:

n   The opposite is true … more jobs and
    industry growth, rising wealth, etc….

n   BUT … there are major issues of
    human rights and environmental
    protection at stake.
n   “a shop or factory in which
    employees work for long hours at
    low wages and under unhealthy
            --Merriam-Webster OnLine
           Sweatshop abuses
n   Child labor, sometimes children as young
    as 5 or 6,
n   Piece rates instead of wages, requiring
    long hours to earn an income that does
    not come close to raising the worker out
    of poverty,
n   Mandatory overtime, sometimes 24-hour
n   Dangerous, unhealthy workplaces; no
    protective equipment to guard against
    toxic exposures,
n   Verbal intimidation, harassment, and
n   Forced pregnancy tests and firing of
    pregnant women,
n   Physical and sexual abuse by supervisors,
    managers, and armed guards,
n   No breaks during the work day, even to go
    to the bathroom,
n   Lock-ins to prevent workers from stealing
    or leaving the factory, creating fire
n   Violent ends for those who try to organize
  Global Exchange on Retail and
“Separate forces meet in a shameful mix: A
  footloose industry scours the world for the
  cheapest wages; countries eager for any
  kind of investment auction off their
  workers to the lowest bidder; government
  regulators deliberately look the other way
  when abuses occur in order to keep
  foreign investors happy. It's that
  combination of desperate profit-seeking
  and equally desperate investment pursuit
  which has created the race to the bottom
  that is at the root of the sweatshop
    Addressing Sweatshop Problems

n   Supplier codes of conduct specify how
    supplier relations are to be handled and
    what suppliers must do in order to get and
    keep contracts with the company.

n   Factory monitoring, often by
    independent NGOs, to check for prevailing
    wage rates, underage workers, workplace
    hazards, or human rights violations.
n   Reporting to interested stakeholders is
    often done through annual or biennial
    social reports.

n   Image and reputation management
    might seem to be a phony concern when
    you’re talking about human lives at stake,
    but for companies that are really trying to
    do the hard work of supplier monitoring,
    their image and reputation should match
    up with their actual performance.
             CHILD LABOR
n   UDHR Article 26: “Everyone has the
    right to education. Education shall be
    free, at least in the elementary and
    fundamental stages. Elementary
    education shall be compulsory.”
n   ILO estimates 250 million children
    aged 5-14 are working worldwide.
n   Agriculture, domestic service, family
    businesses, services and trade,
    manufacturing, construction.
           Some Examples from
           Human Rights Watch
n   Children working on farms “frequently
    work for long hours in scorching heat, haul
    heavy loads of produce, are exposed to
    toxic pesticides, and suffer high rates of
    injury from sharp knives and other
    dangerous tools.”
n   Children in bonded labor – allegedly
    paying off a family debt, but actually
    surviving in a form of slavery – weave
    rugs and fabrics, sew soccer balls, and
    endure beatings, long hours, lock-ins, little
    food, and no medical care.
n   Children in domestic service care for a
    household’s children, clean, cook, and are
    on call constantly. They are especially
    vulnerable to physical and sexual abuse.
n   In at least a dozen nations, children are
    forced into service as soldiers.
n   Children serve as prostitutes and as
    models and actors for pornography
n   Check out
           FORCED LABOR
n   ILO Convention 29 definition: “all
    work or service which is exacted
    from any person under the menace
    of any penalty and for which the said
    person has not offered himself
    voluntarily,” excluding mandatory
    military service, normal duties of
    citizens, supervised work as part of a
    criminal sentence, or services
    rendered in a serious emergency.
n   ILO estimates 12.3 million worldwide
    in forced labor.
n   Most are privately exploited,
    including 2.3 million in slavery.
n   UC-Berkeley Human Rights Center
    estimates 10,000 slaves in the U.S.
n   Underground economy, organized
    crime, bonded labor, political
n   36.5 million workers worldwide
    infected with HIV/AIDS (ILO data).
n   Health care not widely available.
n   Disease is poorly understood and
    often subject to prejudice.
n   Sufferers can’t afford drugs.
n   Families can’t afford to lose their
    productive workers.
       AngloGold Ashanti Ltd.
n   Global gold-mining
n   Co. estimates 30% of its southern
    African workers are HIV-positive.
n   Established voluntary testing &
    counseling centers.
n   Rolling out drug treatment for
    employees, 934 in 2005.
n   Chronic disease management
    expenses subsidized by the co.
          Other health threats:
n   Malaria          n   Dengue fever
n   Cholera          n   Schistosomiasis
n   Dysentery,           caused by parasitic
n   Malnutrition         flatworms
n   Measles          n   Trypanosomiasis or
                         sleeping sickness
n   Tuberculosis
                     n   Typhoid fever
n   Yellow fever
         Underlying problems:
n   Lack of health care and related
n   Very limited access to vaccines, anti-
    parasitics, and other pharmaceuticals
n   Lack of clean water
n   Global price pressures lead to search
    for lower regulatory standards as
    well as labor costs.
n   This affects worker treatment and
    benefits, human rights, consumer &
    investor protection, environmental
n   Some evidence that companies are
    seeking voluntary regulatory
    standards to level the playing field.
       The BBC’s “Eco Top Ten”
n   Agriculture – use of rural lands and development
    of sustainable farming; pesticide/herbicide use;
    bioengineering and genetically modified
n   Atmosphere – climate change/global warming,
    acid rain, smog, ozone depletion.
n   Biodiversity – “types of biodiversity and the plight
    of endangered species.”
n   Energy – the use of fossil fuels (oil, coal); the
    need to develop alternative energy sources.
n   Forests – deforestation and regrowth; forest
n   Fresh water – changing patterns,
    desalination, declining supplies of fresh
n   Habitat loss – threats to species survival,
    causes, solutions.
n   Industry – the environmental impacts of
    industrial globalization.
n   Marine – life and ecology – threats to the
    seas and the living things therein.
n   Population – growth, pressure, geographic
Financial crashes tend to be immediate
and the consequences are readily seen.
However, environmental disasters tend to
develop over a longer period of time, and
the consequences are not so easy to
discern. Industries are not so eager to
establish international environmental
regulation, and the temptations are great
to find lowest-cost solutions to pesky
developed-world environmental problems.
      Countervailing pressures:
n   Rising consumption and declining
    supply of petroleum
n   Businesses that specialize in
    environmental testing, protection,
n   Labor force effects of environment-
    related health problems
n   Market-leader voluntary standards
n   NGO and stakeholder activism

n   Intellectual property can be defined as the
    products of human creativity.
n   covers works of art, music, writing, or
    invention, ideas, terms and concepts, the
    language that corporations use to identify
    their products and to describe their unique
    technologies and processes, graphic
    images, conceptual frameworks, data
    tables, movies and television programs,
    poetry, software, popular songs.
What’s the big deal?

 U.S. Dept. of State: “safeguarding
 these property rights fosters
 economic growth, provides incentives
 for technological innovation, and
 attracts investment that will create
 new jobs and opportunities.”
“Intellectually or artistically gifted people
have the right to prevent the unauthorized
use or sale of their creations, just the
same as owners of physical property, such
as cars, buildings, and stores. Yet,
compared to makers of chairs,
refrigerators, and other tangible goods,
people whose work is essentially
intangible face more difficulties in earning
a living if their claim to their creations is
not respected. Artists, authors, inventors,
and others unable to rely on locks and
fences to protect their work turn to IP
rights to keep others from harvesting the
fruits of their labor.” (U.S. Dept. of State)
       Types of IP Protections
n   Copyrights grant the owner the
    right to benefit economically from
    the copyrighted work. Protections
    include the sale, reproduction, and
    public presentation of such works.
    Copyrights generally cover literary,
    artistic, and musical works, and also
    include maps, video productions, and
n   Patents protect the economic rights
    of inventors while releasing the
    technical details of the invention to
    the public. This form of IP is crucial
    both for serving the needs of
    inventors and for encouraging
    technological progress; one invention
    may spin off many others, but this
    will not happen unless the details of
    the first invention are known.
n   Trademarks protect the names, symbols,
    or other unique identifiers of specific
    products, processes, or services.
    Products’ brand names have trademark
    protection, as do symbols (like McDonald
    Corporation’s famous clown, Ronald, or its
    Golden Arches logo) and
    marketing/advertising phrases (staying
    with McDonalds: “I’m lovin’ it”).
n   Trade secrets offer somewhat less
    stringent protections for
    economically valuable processes,
    formulas, technologies, ingredients,
    etc., that are not readily subject to
    any of the other IP protections.
    Companies have more responsibility
    for guarding their own trade secrets,
    but theft of such secrets can be
    prosecuted as a crime.
n   Transparency International (Ti)
    defines corruption as “the misuse of
    entrusted power for private gain.”
n   TI’s annual “Global Corruption
    “In the past 12 months, have you or anyone in your
    household paid a bribe in any form?” (Yes answers)

n   Albania, 66%          n   Switzerland, Finland,
n   Morocco, 60%              Singapore, Sweden, 1%
n   Cameroon, 57%         n   USA, United Kingdom,
n   Congo, 40%                Turkey, South Korea,
                              Austria, Taiwan, France,
n   Nigeria, 39%              Germany, Iceland, the
n   Mexico, 28%               Netherlands, Portugal,
n   Ukraine, 23%              Spain, Denmark, 2%
n   Kenya, Peru,          n   Canada, 3%
    Venezuela, 22%        n   Israel, 4%
    Possible consequences of corruption:

n   Democratic elections
n   Government contracting
n   Victims of fraud
n   Overpayment
n   Lack of accountability
n   Supporting the incompetent
n   Government legitimacy
n   Business predictability and economic
              Bribes (Noonan)
n   Are not expressions of love or fondness, as gifts
n   Are not simple expressions of thanks to low-level
    employees for a job well done, as tips are.
n   Are intended to make the bribee do what the
    briber wants, generally in conflict with what the
    bribee should do.
n   Create more pressure to perform, the larger they
n   Are accompanied by lies and deceit.
n   Are necessarily secret; are damaging and
    shameful to the bribee if they become known.
n   Public knowledge of the payment prevents the
    bribee from meeting the briber’s expectations.
“We must ensure that the global
market is embedded in broadly
shared values and practices that
reflect global social needs, and that
all the world's people share the
benefits of globalization.”
            -- Kofi Annan

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