The globalization process has introduced new patterns in the world’s economy. By attracting more companies, it provides new ethical frameworks and moral responsibilities for legal entities to follow. So far, business institutions failed to regard safety and security of environment and society and prioritize their duties and responsibilities in front of people.
Instead, their primary objective was to meet their personal interests and increase their revenues at any price. However, personal objectives had a serious impact on the surrounding world. Working under intolerable conditions, people receive extremely low salaries.
Failure to experience guilt and reluctance to conform to social norms led to the diagnosing the pathology of business institutions. Nowadays, international perspective of business does not admit development of corporation who act beyond accepted social standards. Respecting moral within the organization should also influence the overall image of the corporation.
In the movie Corporation (Achbar & Simpson 2003), the focus is first made on defining the essence and function of a corporation. At the beginning, this notion is defined as a unity should serve public good and trust. Corporation, therefore, is like a family in which its members should support each other. However, corporation respect rights and responsibilities for the people employed into the business, but not for the ones outside it.
So, as an institution, business community is a monster that removes outside boundaries and acts regardless the existing environmental laws and legal regulations. However, considering corporation as a set of individuals, ethical and moral choices are present. Each person employed into corporation has moral and social values.
The bottom line of all incorporate communities lies in gaining a competitive advantage over one another. In the pursuit of money, business entities are ready to violate the norms and pollute the environment having no responsibility and awareness of the consequences these actions have for the world society.
Corporate power prevails over people’s inner awareness of the necessity to conform to moral and ethical frameworks (Achbar & Simpson 2003). The point is that this business community cannot fit in the societal values because their business goals do not correspond to the global objectives.
To gain power, one should neglect the welfare of each individual, but focus on personal stability and welfare. The presented discrepancy, therefore, is inevitable because it is impossible to adhere to accepted ethical principle and follow self-interest simultaneously.
The essence of is globalization lies in developing new patterns of business development. Specifically, the globalized communities make shift from a legal entity formation based on an institution supported by the government and affecting public function to commercial institutions that should take responsibilities for the legal and moral rights of a person.
Hence, the corporations should not have similar rights as physical persons because of much larger impact they have on the ecological and social situation in the world. Hence, each international company should create a three-dimensional vision of their business activities and employ ethical and legal principle that each individuals adheres to.
In conclusion, the previous experience and history of corporation development provides underpinning for total restructure of the business world who should work for the social and ecological welfare. Human freedom and equality should be of paramount important for business entities.
As a result, the global ethical framework focuses primarily on improving the total image of carrying out business. Hence, self-interest, empathy and solidarity should be put into the world context to predict advantages and advantages of business venture for the entire world.
Achbar, M., & Simpson, B. (2003). Corporation, Canada: Big Picture Media.