Assignment on “Impacts of globalization on the practices of business ethics

in Bangladesh”

Submitted To

Dr. Md. Anowar Hossain Bhuiyan

Submitted By

Showkatul Islam

2022900

Legal & Ethical Issues in Business

MBA 515, Sec 01

Date of Submission:23 July 2020

 Impacts of globalization on the practices of business ethics in Bangladesh
Globalization has become one of the most important catchphrases of modern hours. At first, it may seem
comparatively uncomplicated to recognize unethical behavior. When the topic of business ethics is raised,
most people directly focus on dishonesty and bribery. While this is a critical result of unethical behavior, the
concept of business ethics and global business ethics is much broader. It impacts human resources, social
responsibility, and the environment. The areas of business impacted by global perceptions of ethical, moral,
and socially responsible behavior include the following:
➢ Cultural Issue
➢ Legal Issue
➢ Accountability Issue
As Bangladesh is an economy in change, the evolutionary method of transforming its business ethical values,
norms and moralities has greatly hampered its organizational culture and development. Business corporations
are not yet fully executing international standards or codes of ethics, though, Islamic motivation significantly
can contribute to the organizational ethics in Bangladesh. In current days, business ethics is a burning issue.
A low level of ethics in the business sector is a part of wider socio-economic and political problems faced by
many countries often escapes in legal and business regulation contribute to the corruptions that can disarray
business operations. As the globalization process is in progression, the world begins to resemble a global
village, so business ethics has become an international issue. Ethics has a great impact on the brands and
reputations as well as on customer trust and investor confidence. Hence, the concepts of transparency, good
governance, and political reformation have come to the cultural spotlight of Bangladeshi elites. But there is
very little research that has examined ethical issues in the newly emerging economy of Bangladesh. The study
of ethical issues in Bangladesh is important to understand the views on ethics and ethical management
practices. Thus, the prime focus of this study is to surface the ethical practices and programs among the
organizations is desperately felt.
Cultural Issue
In 21st century organizations are not restricted to a limit, as a piece of it, enterprises will participate in abroad
markets, and organizations are confronting new and differing issues, now and again which strife with morals.
Moral values that were taken for granted in the home market may get questioned as soon as corporations enter
foreign markets .
For example, mentalities to racial and sexual orientation decent variety in America, Europe and others
created nations are very not the same as South Asian nations like Bangladesh. In Bangladesh often females
are least tent to find a new line of work which is outside of the city or distant from their home. Various nations
have various sorts of racial .
Local culture: In most of the countries in the world which have weekends on Saturday and Sunday but in
Bangladesh it is on Friday and Saturday.
Again, in Europe and America, women can wear whatever they want, and but in the case of Bangladesh
scenario is quite different because of their moral value. They wear sari or seluar camis.
Child Labor: Europeans do not support child labor and they do consider it as strictly unethical, however, in
Bangladesh child labor is common, with 5 million of kids ages between 5 to 16 in workforce.

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Moral Values: 92% People in Bangladesh is Muslims they will not use soap which is made with some sort of
fat which is not considered as halal in Islam
Legal Issue
The control of a government is restricted to a specific limit, for example, China laws are just authoritative on
China region, USA laws on USA region, etc. So at whatever point an organization begins to direct their
business outside of its nation's limit and begins to create merchandise and enterprises in created or rising
economies nations, for this situation, it is difficult to tie all the activity of a business in a customary law system,
that is the explanation, business morals in globalization is getting progressively significant with the goal that
it can cover those issues which isn't secured by laws.
For example, In Bangladesh private sector can produce electricity, but they do not have permission to
transmission and distribution. It is a problem issue for them.
Accountability Issue
In ethics and governance, accountability is answerability, blameworthiness, liability, and the expectation of
account-giving. Accountability cannot exist without proper accounting practices. in other words, an absence
of accounting means an absence of accountability.
Globalization gives the entrance to some big organizations to work their business in different nations and these
massive worldwide organizations supported by cash and force. They own the broad communications that
impact the way we think, our way of life, give data and furthermore incredible origin of amusement. Through
their activity in a host nation they flexibly worldwide items at sensible value, they pay rates to representatives
who work in organization or industrial facility in a host nation, and they pay VAT and Taxes that adds to our
economy.
Example: Multinational company Nestle their Annual turnover is €91 billion same thing happened in this case
as well. Maggi noddle’s is not good for human body though they have been selling it in most of the South
Asian countries even in Bangladesh. Government can control their operation as Bangladesh total budget is
less than Nestle.
And another MNC is Reckitt Benckiser had started their journey in Bangladesh in 1961, today their total
Turnover is $50.0 billion whereas total budget of Bangladesh in 2019 was $62 billion, which almost equal to
Reckitt Benckiser’s total revenue. Since 1990 Bangladesh government was trying to enlist this company in
Dhaka Stock Exchange so that public can benefited from it. Unfortunately, they were unable to make them
enlisted in DSE, due to, lack of control in Reckitt Benckiser since they are one of giant MNCs.
There are some other ethical impact of globalization .Globalization provides potential for greater profitability,
but also greater risk . Lack of regulation of global financial markets. Leading to additional financial risks and
instability. Corporation outsource production to developing countries to reduce cost in global marketplace.
Global products provide social benefit to consumer across the globe but sometime also face cultural
imperialism.

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