Ethical Implications of Businesses in Third World Economies

Ethical Implications of Businesses in Third World Economies Introduction The global industrialization issue is increasingly becoming an internationally contested issue with developed economies possessing great economic power over developing nations. As international business competition intensifies across all economies, the pressure in developed economies seems rigorous with investors opting to venture in the developing countries (Cate, 2009). Advertising We will write a custom case study sample on Ethical Implications of Businesses in Third World Economies specifically for you for only $16.05 $11/page Learn More Small, Medium, and Multinational Corporations have found suitable business environment within the developing nations, thus resulting to socio-economic growth of these nations. As a result, developing economies perceive this idea as a chance to expand economically regardless of the shortcomings. Intensive industrial research undertaken across these nations has exhibited several malpractice issues concerning b usiness implications on the environment. Efforts to protect the environment in developing economics are gradually dwindling with businesses burgeoning in great profits resulting to unanticipated controversies in such countries. Despite several efforts and literature on this menace, much of these unethical behaviors remain unsettled. This study explores â€Å"ethical implications of businesses in third world† regarding environmental pollution. Ethical implications of businesses pollution in third world There has been a nautical change in the world industrial economy paradigm as seen in its ramifications stretching on all aspects of human civilization. With this dramatic transformation largely precipitated by the globalization phenomenon, published literature posits that developed economies remain at stake of these changes (Saee, 2009). The sensation in people around developing nations is that this globalization phenomenon results in the advancement in the economy, but they f orget the implications embedded in the transformation. A number of empirical and theoretical studies have focused on economical plunge and neglected crucial business ethics governing the globalised business environment. According to Cate (2009), research has identified several business malpractices related to environmental concerns. Air pollution, water contamination, and soil pollution have been critical environmental issues affecting countries in developing economies. Coupled with technological innovation, intensified global business capital from multinational corporations and the escalating desperate poverty conditions in developing nations, the environmental menace remains a contentious matter. Air being an essential supportive component to human life, the quality of the atmosphere has continuously deteriorated due to industrial malpractices. Ahuja and Tatsutani (2009) assert, â€Å"Energy use in many developing countries is a significant and immediate cause of high levels of air pollution and other forms of environmental degradation† (p.7). Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The increased globalization aspect has resulted in innovation of powerful energy machineries that provide heavy air pollutants. Research has identified low quality fuel with heavy compounds of lead as the most commonly consumed fuel type in some less fortunate African and Asian countries. Lead forms the highest percent of the conventional air pollutants across the entire world. This situation is non-exceptional in water and soil contamination and commercialization of fossil energy and related technologies intensifying the problem. Ahuja and Tatsutani (2009) postulate, â€Å"the extraction of commercial fuels like coal and oil is often highly damaging to local ecosystems and becomes an immediate cause of land and water pollution† (p.7). Reasons why businesses disregard standards of pollution control The deteriorating environmental quality is gradually influencing the health life of human beings with the quality of life largely affected. Harmonization efforts in the provision of a balanced ecosystem in developing countries have remained the greatest challenge. Despite the massive environmental hazards witnessed in developing economies, provision of possible remedies has remained a challenge towards averting this mayhem. The real meaning of third world refers to countries living in economically disadvantaged zones and hence these regions remain poverty-stricken. Poverty remains an internationally debated issue with the turmoil becoming more apparent in developing economies as compared to developed economies (Cate, 2009). The gradually increasing poverty is threatening the life of the surging population across developing nations especially in Africa and Asia. Coupled with unemployment and economical uncertainties, Multinational Corporations have used these elements as a scapegoat to continue practicing unethical behaviors in developing economies. Therefore, the escalating desperate poverty situations pave chances for corporations to disregard standards of pollution control. Considerable research has concluded that socio-economic and political factors underscore the increased breaching of globalization and liberalization policies and ethics that concern environmental care. Apart from poverty as a socio-economic issue, the political satire in the developing countries has marred efforts undertaken to provide fair ecosystem. Due to poor political practices, which define the broadening margin between the poor and the wealthy in developing countries, Multinational Corporations will continue with their malpractices. Saee (2009) affirms, â€Å"Bribery seems to be more extensive in developing nations†¦there is a prevalence of bribery in most Asian, African, and Middle Eastern nations regardless of its legal ity† (p.50). Advertising We will write a custom case study sample on Ethical Implications of Businesses in Third World Economies specifically for you for only $16.05 $11/page Learn More Apart from the natural living phenomenon that may explain the distinction between developed and developing nations, political contribution contributes most of the socio-economical challenges. International business tycoons are mostly the owners of Multinational Corporations with great affluence that propels political realms through corruption across developing economies. Economic progress and development Economists have associated the degree of environmental pollution with economic advancement. The statement, â€Å"the higher the pollution, the higher the economic development† is a sticky notion embedded in human beings with its ramification remaining unclear. Across the world, the issue of industrialization has received mixed reactions with some industrial scie ntists supporting the transformation as environmentalist counter. Despite the fact that advancement in industrial operations has resulted to greater socio-economic growth, pollution should not be the price of progress in front of global watch. Ahuja and Tatsutani (2009) postulate, â€Å"whether governments are chiefly concerned with economic growth, environmental protection or energy security, it is clear that a continuation of current energy trends will have many undesirable consequences at best† (p.15). Industrial growth is persistently leading to dangerous era where environment will become the greatest hazard to human health. In normal circumstances, the usual justification for industrialization across the world is that it helps the needy and thus environmental malpractices continuously becoming a dispute. Through negligence and poor leadership, the increase in environmental degradation is becoming a challenge in developing economies. Pollution controls and environmental protection Controversially, the truth remains that for developing countries to remain economically stable, industrial growth must be acceptable as industrialization and economic augmentation are inseparable. However, industrial growth is gradually proving more harmful and helpful in the sense that several uncertainties including social and environmental hazards are projecting from the globalised phenomenon. Unfortunately, businesses in the developing world have become more profit-oriented than how human civilization requires (Cate, 2009). Conventionally, any developing country strives to stabilize economically and reduce overreliance of support from developed economies. However, this move should not be a propelling factor to disregard standards of pollution control, as human health and safe environment are non-compensated matters. Despite the fact that industrial development and economic growth are concurrent issues that nothing can separate them, industries must not deter environ mental control. Through conducive environment, industries are capable of handling their functions effectively and safely. The environment is only safe if the air, soil, and water are secure.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Human moral right over environmental issues Environmental concerns and human life are interdependent issues. Human beings will remain healthy only under a conducive and secure atmosphere and the opposite is true. Inauspicious environment leads to several human uncertainties including altering with underlying health issues that form basics of human existence. Since environment forms the basis of human existence with essentials of life being water, air, and land (soil), poisoning these components might be detrimental. Based on such human factors, human beings have a moral right to a livable environment regardless of their home country. Saee (2009) postulates, â€Å"the society allows organizations to operate within certain parameters and the business is expected to operate in a manner consistent with the societal interest† (p.53). Environmental uncertainties have always affiliated with differences in the moral philosophies that undermine values and normal systems of various c ultures. Philosophers perceive morals as principles used by human to make decisions and thus environmental protection must be a priority within people. Role of developed economies in environmental issues in third world Since the historical point of view, industrialization phenomenon has been streaming from developed economies and gradually penetrating to the developed economies in an unprecedented manner. Developed countries â€Å"are overwhelmingly responsible for current levels of heat-trapping gases in the atmosphere, numerous analyses conclude that the myriad burdens of global warming are likely to fall disproportionately on developing countries† (Ahuja Tatsutani, 2009, p.7). The nature of industrial growth from one nation to another has remained a unique with its consequences remaining unequally distributed across developed and developing economies. Normally, both developed and developing economies benefit from the industrialization growth, but repercussions have becom e stronger in the less fortunate nations. Sizable power has existed in the first world countries with their business moguls interested in venturing in developing nations. International business tycoons have been behind the existing industrial competition across the globe with the majority of them originating from developed economies. However, it seems abnormal to condemn industrial development, as the need for economic growth remains a priority for many. Developed economies have had a great impact on the industrial growth and overall economic influence to developing nations (Cate, 2009). Therefore, much of the blame pertaining to environmental pollution in developing counties lays in developed economies that have triggered industrial growth and ignored environmental control remedies as well neglecting business ethics. Proposed plan for uniform global pollution control The environmental pollution menace remains more of an international issue than just regional or continental matter. Despite the repercussions of industrialization being more effective on developed economies due to social and economic matters, a more aggressive approach is necessary to handle this mayhem equally. Based on the assessment of the prevailing condition, there is a need for businesses to collaborate with the environment by applying concepts of business ethics, business ecology, and environmental ethics. Business ethics are non-mandatory system of certain standards of behaviors that businesses must follow. In a bid to help in averting this mind-nabbing environmental matter, all profit-based organization must form business code of conduct across the world to guide them through the right business protocols. Saee (2009) asserts, â€Å"The need for a comprehensive, cohesive, and universal code of conduct for entrepreneurs and organizations doing business internationally is paramount† (p.56). Firms should also work in accordance with their self-designed values, which must follow eth ical standards and engage in business accords with nations. However, the above discussion does not cover the proposed uniform global pollution control plan. For this study to help avert this situation, a universal plan is essential. The plan entails developing a strong international industrial research that targets on informing business organizations to understand, embrace, and employ business standards based on business ethics, business ecology, and environmental ethics. The plan will involve welcoming global research through a designed site that will acquire information on issues pertaining environmental pollution and remedies that will help to improve the existing condition across the globe. The research will emphasize on alternative ideas on the remedies that will ensure the environment with industries remain conserved, especially embracing the great technology. For people to reduce reliance on fossil fuels, â€Å"greater awareness on the increased efficiency, de-carbonizatio n, greater fuel diversity and lower pollutant emissions is essential† (Ahuja Tatsutani, 2009, p.15). Green technology has been the most appropriate means of replacing the energy sector with assurance of greater efficacy. Means of enforcing the proposed plan Renewable energy technologies including wind energy, solar, and biomass have greatly assisted in reducing the global consumption of petroleum-based fuels. This plan will welcome an extensive international research on biological fuels and petroleum-based fuels through designed site that will allow researchers to provide their research findings for validation. After proper validation of the compiled reports, the researcher will design an international site where people will acquire information regarding global environmental pollution and protection strategies. For instance, Ahuja and Tatsutani propose (2009), â€Å"improving vehicle performance by improved efficiency and emissions controls and promoting sustainable, low-ca rbon biofuels as an alternative to petroleum-based fuels† (p.10) as two important ways of averting environmental conservation. The newly developed site will have prerequisites that all industries must play a role. The researcher will liaise with international organs dealing with industrial ethics. This site will become a mandate for all industries globally where they can obtain environmental knowledge. Conclusion The world of globalization and industrialization is gradually receiving an international challenge concerning environmental conservation matters. Controversially, for developing countries to remain economically stable, industrial growth must be acceptable as industrialization and economic augmentation are inseparable (Cate, 2009). Published literature notes that developed economies remain at stake of these changes. Research has identified low quality fuel with large quantities of lead as the most commonly consumed fuel type in some less fortunate African and Asian c ountries. Harmonization efforts in the provision of a balanced ecosystem in developing countries have however remained the greatest challenge. Despite the massive environmental hazards witnessed in developing economies, provision of possible remedies has remained a challenge towards averting this mayhem (Cate, 2009). The gradually increasing poverty is threatening the life of the surging population across developing nations especially in Africa and Asia. Coupled with unemployment, political influence, and economical uncertainties, Multinational Corporations have used this element as a scapegoat to continue practicing unethical behaviors in developing economies. Nevertheless, the situation can be rescued by following the few recommendations stipulated in this paper coupled with other appropriate measures. Reference List Ahuja, D., Tatsutani, M. (2009). Sustainable energy for developing countries. Journal of S.A.P.I.EN.S, 2(1), 1-16. Cate, R. (2009). The impact of international trad e on less developed countries. Business Intelligence Journal, 2(1), 113-137. Saee, J. (2009). Ethical challenges confronting entrepreneurs within contemporary global economy: In search of anew world ethics. Journal of Management Systems, 21(1), 49-59.