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1 Scholarly Activity Christina M. Jones Columbia Southern University PHI 6301: Business Ethics Todd Hughes September 19, 2023

2 INTRODUCTION When a business expands internationally, there are a multitude of factors that need to be considered. Companies need to fully understand the territories they are entering prior to entering these markets. A company that has solely operated in one country under a specific sense of culture and norms, may not be ethically functional in a country with differing normal and worldviews. The sense of Corporate Social Responsibility that exists in one place may not be inclusive in another. There are several factors to consider such as climate change, global environments issues, labor standards, cultural values, and diversity. CLIMATE CHANGE AND GLOBAL ENVIRONMENT ISSUES The issue of climate change is one that is faced globally. Climate change is a global threat that impacts the environment, humans, animal species, water sources and other resources (Abbass et al., 2022). The expansion of businesses brings a new challenge to climate change because there are additional facilities being built in places they would not otherwise exist. This can create issues such as depletion or contamination of native natural resources. When businesses expand globally, they can also have an impact on native business. These new businesses can pull consumers from native businesses, as well as cause labor shortages in native businesses to employ the newly existent international business. Apple is a company that has experienced exponential growth in international markets. Apple has a strategic global strategy to reduce their impact in global areas (Tien, 2019). In their global expansion, Apple’s only local resource has been their required energy source (Tien, 2019). Recently, Apple has made a series of pledges to sustainability and preservation of resources. In their 2022 Environmental Progress Report, Apple addresses a series of improvements that they are pledging to make, as well as some that are already in progress, in order to become more

3 efficient and sustainable ( Environmental Progress Report – Apple 2022). The biggest revelation that this report addresses is the pledge to reduce carbon usage by seventy-five percent by the year 2030 ( Environmental Progress Report – Apple 2022). Apple’s commitment to sustainability follows core ethical principles in that severe environmental sacrifices should not be made in the name of business profit (DesJardins, 2020). DIFFERING GLOBAL LABOR STANDARDS A common concern for businesses who are becoming multinational is the fine line between the ethical principles of the native country of the business or the ethical principles of the country they are entering (DesJardins, 2020). This question of ethical relativism is one that each country encroaching global territories will need to answer to. Apple operates in many countries across the world. Due to their global reach, they have a team of advisors across the globe who act as consultants to create a global Code of Conduct ( Apple Supplier Code of Conduct 2022). These advisors use the United Nations’ International Bill of Human Rights, as well as the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work ( Apple Supplier Code of Conduct 2022). This extensive document is a fully rounded guide that encompasses all aspects of human rights in the workplace ( Apple Supplier Code of Conduct 2022). Apple has also pledged that it will not use suppliers in any country that do not abide by this code of conduct ( Apple Supplier Code of Conduct 2022). WORKING IN COUNTRIES WITH KNOWN HUMAN RIGHTS ISSUES While each country has their own set of guiding principles and sense of Corporate Social Responsibility, a company’s duty to their employees should follow them no matter where they go. If a company in America has a set of basic ethical principles that it honors their employees with, that same level of respect should be honored in host countries. Fair wages, fair treatment,

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4 and fair working conditions are all non-negotiable topics for a company. If a company affords rights to employees in one country and not another, there is no trust to be had with the company. The 2020 Corporate Human Rights Benchmark by the World Benchmarking Alliance gives a detailed review of companies with serious allegations ( Corporate Human Rights Benchmark 2020 Company Scoresheet 2021). This scoresheet lists major companies with at least one serious allegation; HP, SONY, Amazon, Microsoft, Adidas, GAP, Unilever, and PepsiCo are all companies with these allegations ( Corporate Human Rights Benchmark 2020 Company Scoresheet 2021). Included in the aforementioned list was Amazon, a well-known online retailer known for quick warehouse to front door delivery. Amazon, one who had recently adopted the United Nations Guiding Principles on Business and Human Rights and the International Labour Organization in March of 2022, was found to be severely out of compliance in in violation of several human rights guidelines ( Amazon Accused of Violating International Standards on Freedom 2022). These violations by Amazon were both happening before and after the company enacted the Guiding Principles ( Amazon Accused of Violating International Standards on Freedom 2022). After this issue came to light, several senior leaders at Amazon were terminated and a corporate restructure took place vowing to find a resolve to these issues ( Amazon Accused of Violating International Standards on Freedom 2022). RESPECTING CULTURAL DIVERSITY AND HOST COUNTRY VALUES, NORMS, AND CUSTOMS It is important to note that while each country has its own approach to culture, diversity, norms and customs, there are still things that exist such as human decency and basic human rights. This urges the comparison of ethical relativism in which there is no way to inherently know if a different culture hold different values, to cultural relativism the existence of differing

5 values in and of itself (DesJardins, 2020). The LEGO Group is an excellent example of evaluating global cultures to ensure that they are respecting different views ( Critical Evaluation of Effects of Globalization on Lego Company 2022). LEGO has made commitments to global diversity and has a variety of cultural advisors on staff to ensure their compliance with local customs ( Critical Evaluation of Effects of Globalization on Lego Company 2022). Not only does LEGO aim to operate within cultural norms, they also try to curate products to respect those norms ( Critical Evaluation of Effects of Globalization on Lego Company 2022). As a leading toy maker, this commitment to honoring culture, diversity, and global customs makes them more desirable and respected. CONCLUSION Each of the aforementioned issues are important topics for businesses to consider. These considerations should ideally take place prior to global expansion, but it is not too late for business to reevaluate and restructure if they are not meeting these standards. It is important for companies to thoroughly research, whether that be through onboarding advisors or surveying natives. In addition to moral and ethical guidelines, companies also need to ensure they are acknowledging the proper environmental considerations when deciding to expand. A thorough business plan should be in place to ensure that local and natural resources in the country they are developing in are not severely harmed or depleted. As noted in the Amazon case, businesses who violate these guiding principles are more focused on the profit as opposed to the greater good. Companies who violated basic human rights lose the faith of their employees and potentially their consumers. Mass media has seen many instances where companies have been written off by consumers due to their poor choices that violate basic human rights. While these non-compliant companies are cutting corners to save a

6 dime, they are at risk for losing far more money as a result of the consequences. Likewise, businesses who do not properly consider local resources risk damage to that environment, leading to a loss in business and potentially consumer distrust.

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7 References Abbass, K., Qasim, M. Z., Song, H., Murshed, M., Mahmood, H., & Younis, I. (2022). A Review of the Global Climate Change Impacts, Adaptation, and Sustainable Mitigation Measures. Environmental Science and Pollution Research , 29 (28), 42539–42559. https://doi.org/10.1007/s11356-022-19718-6 Amazon Accused of Violating International Standards on Freedom . Business & Human Rights Resource Centre. (2022, June 7). https://www.business-humanrights.org/en/latest-news/usa-amazon-accused-of-violating- international-standards-on-freedom-of-association-amid-alleged-anti-union-campaigns/ Apple Supplier Code of Conduct. (2022a, January 1). https://www.apple.com/supplier- responsibility/pdf/Apple-Supplier-Code-of-Conduct-and-Supplier-Responsibility- Standards.pdf Corporate Human Rights Benchmark 2020 Company Scoresheet . World Benchmarking Alliance. (2021). https://assets.worldbenchmarkingalliance.org/app/uploads/2020/11/PepsiCo- CHRB-scorecard-2020.pdf Critical Evaluation of Effects of Globalization on Lego Company . Edubirdie. (2022, August 12). https://edubirdie.com/examples/critical-evaluation-of-effects-of-globalization-on-lego- company/

8 Environmental Progress Report - Apple. (2022b). https://www.apple.com/euro/environment/pdf/a/generic/Apple_Environmental_Progress_R eport_2020.pdf Jayachandran, S. (2021). Social Norms as a Barrier to Women’s Employment in Developing Countries. IMF Economic Review , 69 (3), 576–595. https://doi.org/10.1057/s41308-021- 00140-w Jorgenson, D. W., & Weitzman, M. L. (2023). Apple Inc. (NASDAQ: AAPL) . AC Investment Research Journal v.220. https://www.ademcetinkaya.com/2023/05/apple-inc-nasdaq- aapl.html

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