Before understanding ethical decision-making, we need to discuss what is meant by decision-making. In our daily life, we used to make a lot of decisions. For example, when we go to a convenience store, we have a variety of choices. We can either buy chicken or fish. Here, whatever decision we have taken is based on personal preferences. The second party or person has nothing to do with our decision. We used to take such a decision which must not prove detrimental to us. Similarly, ethical decision-making states that we should take such decisions which must not jeopardize the interest of others. Meaning thereby it should not be immoral and should not have mala fide intention. There is a difference between law and ethics. Ethics is something which a person should adhere to, make moral judgments. He is supposed to balance the interest. For example, employers are not supposed to pay just minimum support price, which the government legally sets. Ethically, employees deserve higher salaries to sustain a healthy life. However, at the same time, an ethical decision-maker will also consider that he should not cause any loss to his own business. ‘Profit’ of the firm and interest of the employees should be balanced. Unlike law, ethics is not legally enforceable. However, in some cases, they intersect. For example, matters related to the theft of trade secrets such as intellectual property.
Globalization means the removal of trade barriers, free movement of goods, services, and technology among different countries. World trade organization governs trade agreements between states (countries). Had they signed the Free trade agreement (FTA), these countries would have an advantage in terms of minimum tariff and excise duties during export and import of the goods. Sometimes, the countries did not even prefer to impose a tariff on each other. It is highlighted that the commercial relationship of these countries is very good since they have created free trade zone. Furthermore, this agreement also focuses upon environmental goals, labor rights, etc. However, some company still opts for unethical means to make a profit. For example, a most developed nation set up its company in the least developed nations, which is rich in mineral resources. In the name of employment, they tend to exploit the poor laborers of that country. Businesses should refrain from such behavior.
Influence of globalization in decision making
The company should refrain from unethical trade tactics. For example, if customer information such as consumer preferences is saved in a shoe manufacturing company (A). A company named B with a similar organizational work structure of boot production may wish to appoint a hacker to illegally get some confidential secrets of the company (A). The information may be related to research on products or customer’s details etc.
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