Read the scenario below and answer ALL questions in this section. In 2022, GlobalTech, a multinational company, expanded its operations into a developing country with different cultural norms around labor practices. While GlobalTech's corporate ethics emphasised fair wages, safe working conditions, and environmental sustainability, local business practices often included lower wages, minimal safety protocols, and lax environmental regulations. The CEO, Jane Harris, who strongly believed in ethical universalism, faced pressure from the local management team to adapt to the region's practices to reduce operational costs and gain competitive advantage. As the company compromised on wages and environmental standards, it sparked internal conflicts among employees, with some advocating for adherence to the company's global ethical policies while others argued for alignment with local practices under the guise of ethical relativism. Soon after, news broke out about poor working conditions and environmental violations, leading to public outrage, protests, and legal penalties. This not only tarnished GlobalTech's reputation but also led to a drop in employee morale, loss of consumer trust, and a significant financial loss due to lawsuits and decreased sales, demonstrating the visible, internal, and intangible costs of ethical failures. Harris was left grappling with the tension between personal and corporate ethical values while trying to navigate the conflicting expectations in a diverse cultural landscape. Question 1 (15 Marks) Discuss how personal ethical values, such as those held by Jane Harris, and corporate ethical values can influence business decisions at GlobalTech. Provide examples from the scenario where conflicts between personal and corporate ethics versus local business practices arise.

Principles of Management

OER 2019th Edition

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax

Chapter5: Ethics, Corporate Responsibility, And Sustainability

Section5.7: Ethics Around The Globe

Problem 1CC: What ways can and do some MNEs demonstrate social responsibility in foreign countries?

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Related questions

Question

-Provides a clear definition of personal and corporate ethical values and their relevance to business decision-making.
- Discusses how Jane Harris's belief in ethical universalism influences her decision- making. Examples from the scenario are well integrated.

- Explains the role of corporate ethics at GlobalTech, particularly around sustainability, fair wages, and safe workingconditions. Discusses how these values shape business policies and practices.

- Summarises the influence of personal and corporate values on decision-making and how ethical conflicts may affect a multinational business like GlobalTech.

- The discussion is logically structured, with clear argumentation and a coherent flow of ideas.