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Globalization, Ethics and Organizational Design

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Globalization definition

Globalization is the interaction among various countries and the relationship between different market systems for economic pursuit and development.

Advantages

The main advantage of globalization is the adoption of products’ standardization, which is central in the realization of global convergence. Therefore, the approach used in determining the international playground for the business people have to consider the product’s standardization. For example, Starbucks Corporation applied the advantages of globalization in expanding its production and distribution of coffee to its customers. The company improved the standard of its products so that they could meet the international requirements.

Disadvantages

Globalization has a lot of disadvantages, including the following. In the domestic market, the manufacturing, transportation, advertising and subsequent sales of the products could have weaknesses, which might compromise the manufacturers’ capability of producing quality products. In addition, the domestic market might be characterized with similar products, challenging the sales and marketing procedures. As well, there could be obstacles to fair competition in the domestic market. Once the local playing ground is not suitable to the manufacturers and business community, the next thing would be inequality and the rise of capitalism. For example, in overcoming the disadvantages, Starbuck Corporation looked beyond the domestic market by diversifying to other nations across Europe, Australia and Middle East. The company also improved transportation by using high speed rail system, aeroplanes, and specialized motor vehicles to make sure that the products reached market in time.

Theories/models

The two main theories of globalization to be considered in this case include global divergence and global convergent. Essentially, the two schools of thought present the reality regarding global market economy. There are various ways in which the two models could be analysed, while considering the weaknesses and strengths of each school of thought. Notably, the strategy used in marketing the product in the world market entirely depends on the brand uniqueness.

Global Convergence

This school of thought postulates that the global business and market trends evolve towards a common bargaining ground. This means the proponents of globalization philosophy argue that the global brands and products are agents of global convergence. For example, with the growth of internationalization at Starbucks Company,the manufacturing of global products or marketing international brands ensured standardization of such products and improvement of its quality.

Global Divergence

Mostly, the concept of global divergence is propagated by the capitalist societies. This school of thought hypothesizes that the global business and market trends evolve in different ways, as the manufacturers improve the quality of their products to create unique bargaining ground. In this scenario, the proponents of globalization philosophy believe that the global brands and products are agents of global divergence. This could result from the unique features, which the manufacturers add to the products so as to serve a particular niche market.

With the growth of internationalization, the manufacturers of global products or the people marketing international brands make sure that besides standardization of the products, the uniqueness of some products is vital for a particular social class. This makes the products meet the distinct consumer desires and increase their global preference. For example, the android market targets the people in a higher social class because the features and cost meet their needs and within their economic reach respectively. Apparently, this enhances capitalism and global divergence.

Ethics  

Key Issues of Organizational Ethics

Private Information being Held on Customers

One of the ethical issues that a company might face is the need to protect the information received from the clients concerning the business ethics and adherence to compliance requirements. Since data were collected from, the customers could threaten personal security, there was need to protect the identity and security of the person disclosing the data. For example, the company treated all information with high degree of confidentiality. Indeed, the management understood that the information might threaten a person’s safety if confidentiality of the data is not assured, thus had to take a deliberate attempt to protect the source.

Intellectual Property

The problem of intellectual property in the company is another ethical dilemma that it has to consider. In Starbucks for example, a person’s expertise, skills and knowledge are treated as intellectual property that the company has to respect and preserve for its stability, growth and development. Notably, such valuable information acquired from the company belongs to it, while the stakeholder transacts businesses with the company. 

Diversity

The other ethicall dilemma was the diversity. For instance, at Starbucks Company, there is interaction among the people from different backgrounds, sexes, religion, colour, social status among other attributes. Indeed, the diversity posed a great challenge to management, who had to assure the stakeholders and potential customers of unilateralism. In fact, it was only through impartiality that the company could achieve sustained growth. Therefore, the management had to find a way of dealing with the dilemmas before they worsen the company operations.

Theories of ethical problems

There are various theories of ethical problems. In this case, the analysis will focus on the following three: utilitarianism, Kantainism and Aristotelianism. These theories interrelate and are used to explain the nature and extent of ethical problems, which a country or organization undergoes. However, it is imperative to understand that each theory addresses a particular economic or social problem. This means that the manner in which each theory offer solutions to the unique problems of a country significantly varies.

Utilitarianism

In this theory, it is believed that the end justifies the means. Therefore, it does not matter where a country or an organization starts, but its end is most important.

Kantianism

The proponents of Kantianism are only concerned with determining what is rational. Since various countries or organizations have different reasons and justifications for engaging in a given activity, the decisions and beliefs of each would have significant variations. In this regard, Starbucks Company can justify its action by considering the overall outcome of all strategies.   

Aristotelianism

This theory is mainly concerned with habit development. Since one’s habit determines subsequent behavior, it is significant to examine habit as early as possible. In case of a company, habit development is a combination of will, desire, reason, and character traits. In Starbucks, both the workers and management expressed the will, desire, reason, and good character traits during the production system. 

Application of One Theory in the Context a Company

Using the theory of utilitarianism and its application at Starbucks Company, the management is fully aware that the end justifies the means. In this regard, the focus is on improving the quality and quantity of its products. The management therefore applies all necessary and possible means to achieve the end. This made the company to be called one of the most ethical organizations in the world.

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