Ethics to learn About society How to behave

1. Chapter 8

2. In this chapter we will:
 Draw out and explain the phenomenon of
globalization
 Examine ethics in a global context, with a particular
emphasis on human rights
 Examine and analyse the global corporate social
responsibility of a major engineeringcompany
 Examine related issues such as the importance of
working with NGOs and having a strategy for working
across different cultures

3. Globalization
 Globalization refers to a multidimensional set of social
processes that create, multiply, stretch and intensify
worldwide social interdependencies and exchanges
while at the same time fostering in people a growing
awareness of deepening connections between the local
and the distant.

4. Globalization benefits
 globalization involves freeing and integrating markets
across the world.
 globalization is now inevitable.
 globalization benefits everyone, leading to greater
efficiency, an increase in jobs and the equalizing of
incomes between countries
 global development of shared values

5. Globalization disadvantages
 The global market is of itself inequitable and needs
political control
 The global market is in fact dominated by the MNCs
that are concerned primarily with their profits.
 This raises major questions about respect for the
sovereignty of nations.
 Globalization does not respect the uniqueness of the
different global cultures.

6. The principles of the UN Global
Compact
 Human rights
 Principle 1 Businesses should support and respect the
protection of internationally
 proclaimed human rights.
 Principle 2 Businesses should make sure that they are
not complicit in human
 rights abuses.

7.  Labour standards
 Principle 3 Businesses should uphold the freedom of
association and the effective recognition of the right to
collective bargaining.
 Principle 4 The elimination of all forms of forced and
compulsory labour.
 Principle 5 The effective abolition of child labour.
 Principle 6 The elimination of discrimination in
respect of employment and occupation.

8.  Environment
 Principle 7 Businesses should support a precautionary
approach to environmental challenges.
 Principle 8 Businesses should undertake initiatives to
promote greater environmental responsibility.
 Principle 9 Businesses should encourage the
development and diffusion of environmentally friendly
technologies

9. Global ethics
 Human rights
 Child labour

10. The following considerations guide our
dealings with stakeholders:
 Investors : We will ensure full compliance with
relevant laws and rules. We are committed to good
corporate governance, transparency and fair dealing.
 Employees : We aim to attract and retain the services
of the most appropriately skilled individuals.

11.  Communities : We aim to promote strong
relationships with, and enhance the capacities of, the
communities of which we are a part. We will seek
regular engagement about issues which may affect
them.
 Customers and business partners :We seek
mutually beneficial long-term relationships with our
customers, business partners, contractors and
suppliers based on fair and ethical practices

12.  Governmental bodies : We respect the laws of host
countries whilst seeking to observe, within our
operations, the universal standards promulgated by
leading intergovernmental organisations.
 Non-governmental organisations :We aim for
constructive relations with relevant non-governmental
organisations.

13. Working with NGOs
 NGOs have proliferated in the last decades
 They are not fully accountable.
 They hold a brief that speaks for the oppressed and it
is not clear what the democratic basis of this is.
 Their stance on justice is often around black and
white, single issues.

14. Case 8.1
Brent Spar
 The Brent Spar was an offshore storage facility owned by Shell and based in the North Sea. In 1992,
this huge facility, with six large storage tanks beneath the water, was due to be decommissioned.
Because of its size, Shell argued against the usual practice of taking a structure into shore to have it
broken up on land. Sinking in deep water, they argued, was in this case the cheapest way of dealing
with the problem, and also, some claimed, the best environmentally. In discussing it with the
government, agreement was reached with a date in 1995 established for the sinking of the facility.
Shell had not consulted Greenpeace in this process. On the 30 April 1995 Greenpeace occupied the
Brent Spar, accompanied by German and UK journalists. Greenpeace reported that they had not been
consulted and that the Spar was a ‘toxic time bomb’, with oil residues and radioactive waste that could
seriously damage the marine environment. Dismantling would have to be on shore. In the subsequent
battle, Greenpeace managed the publicity such that when the Spar began to be towed off to the
deeper sea it appeared that there was a battle of integrity between profit-hungry MNCs and the NGO
that represented the environment. The result was that Shell backed down under the pressure of
intense publicity. It was only later that the Greenpeace action and the data that they based it on were
questioned. Shell argued that there was only 53 tonnes of toxic sludge or oil on the Spar. Greenpeace
argued that there was over 145 000 tonnes of toxic rubbish and over 100 tonnes of toxic sludge. An
independent study later noted that there was between 74 and 100 tonnes of oil on board the Spar, and
that the greater part of this could be removed easily. The subsequent expert testimony that sinking
the Spar in deep water was the least bad environmental
 option led Greenpeace to offer a public apology

15. Dealing with different cultures
 Religion
 Cultures

16. Case 8.2
 You are in charge of an overseas office of a UK engineering
company. In the United Kingdom the company operates a
strict policy of not accepting bribes. However, in the
environment in which you work bribery is commonplace
and accepted. Part of a major project is being delayed by
equipment held by local customs officers, who are waiting
for their usual ‘payment’ to release it. What would your
policy be for this? Suppose that on seeking advice from
your UK office you are told to use your own initiative to
expedite the situation. However, if you decide to make the
payments you are told to ‘hide’ them in the accounts
submitted for the UK company audit. How would you feel
about this advice and what action would you take? What
ethical principle would you base that action on?

17. Conclusions
 NGOs that demand transparency.
 Media that regularly monitors business practice.
 Global organizations that are looking to develop
broader ethical perspectives.
 Different cultures and religions that if not respected
can cause major problems.
 Governments that may have very different and varied
agendas.
 Major environmental issues shared across the globe.