I.

Ethical issues in the global economy

A. Multinational corporations.
 Multinational corporations (MNCs) are publicly traded companies that operate
on a global scale without significant ties to any specific nation or region. They
represent the highest level of international business commitment and focus on
global opportunities through a global strategy.
 Multinational corporations (MNCs) face various ethical issues:
o Labor practices: MNCs are criticized for exploiting cheap labor in host
countries, widening the wealth gap between rich and poor nations.
o Supply chain management:MNCs must ensure ethical and
environmentally responsible practices throughout their supply chains,
including fair working conditions and avoiding labor and environmental
violations.
o Corporate social responsibility:MNCs face pressure to engage in
socially responsible practices, including environmental protection,
sustainability in business operations, and supporting local communities.
B. Discrimination
 Definition: Discrimination is defined as the act of distinguishing differences
between things or treating someone as inferior based on their race, sex,
national origin, age, or other characteristics.
 Anti-discrimination laws: The laws in the United States and Europe prohibit
businesses from discriminating based on gender, race, religion, or disability in
hiring, firing, and promotions. However, discrimination remains a persistent
issue worldwide.
 Example: The United States: Apple fined for discrimination in hiring: Apple Inc has
agreed to pay $25 million to settle a complaint by the U.S. Department of Justice (DOJ)
regarding preferential treatment of immigrant workers over U.S. citizens. Apple violated
laws prohibiting discrimination based on citizenship by not advertising and requiring
paper applications for eligible positions under the federal program. Foreign labor costs
are often cheaper, and immigrants are less likely to seek other job opportunities. Apple
has agreed to pay civil penalties and provide compensation to affected workers, along
with adjusting its hiring processes and training employees on anti-discrimination laws.
(https://www.vietnamplus.vn/my-apple-nhan-an-phat-vi-phan-biet-doi-xu-trong-tuyen-
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 Benefits of Ending Discrimination:
o Reducing employee turnover: A fair and non-discriminatory work
environment helps reduce employee turnover, maintaining a talented
and experienced workforce vital for business development.
o Enhancing trust and commitment from employees: A fair and non-
discriminatory work environment enhances trust and commitment from
employees, creating a positive work environment, fostering unity, and
increasing productivity.
o Reducing recruitment and training costs: A fair and non-discriminatory
work environment helps reduce recruitment and training costs by
leveraging the existing workforce.
 Impact of Discrimination Practices on Businesses and Society:
o Loss of opportunity to create a diverse workforce: The loss of
opportunity to create a diverse workforce negatively impacts the
development and performance of a business. A diverse workforce
 brings advantages in terms of creativity and adaptability, enabling the
business to leverage all available resources.
o Decreased labor productivity: Labor productivity can decrease due to a
lack of engagement and commitment from employees. Discriminated
workers may lose motivation and fail to reach their full potential.
o Loss of unity and motivation for growth within the organization: Inequity
in task allocation and creative opportunities can lead to a lack of
enthusiasm and unity within the organization.
 Ways Companies Can Address Discrimination Issues:
o Develop a company policy on discrimination
o Communicate the policy internally and externally
o Determine benchmarks for activities in which discrimination can arise
o Determine indicators of possible noncompliance
o Establish methods for identifying noncompliance
o Develop a plan and implement the plan
 A. Price discrimination
 Definition: Price discrimination is the practice of offering different pricing for different units of
the same product. To implement a price discrimination policy, a prerequisite is having market
power, which means having the ability to set prices in the market. Investors can increase
profits by treating different customers differently through product pricing. This results in a
transfer of surplus from consumers to business profits.
 In international business, pricing products sold in different countries is an important ethical
issue. However, when a company applies different pricing for different customer groups, it
may be accused of price discrimination.
 Here are Some allegations related to price discrimination:
 Price Discrimination: When a company prices differently for different customer
groups, it can be accused of price discrimination. This can be seen as unfair
and unethical as it creates disparities among customers based on nationality
or purchasing power.
 Price Disparity: Price disparity refers to the practice of charging different prices
for the same product in different markets. This can lead to certain customer
groups paying more for the same product, causing unfairness and ethical
concerns.
 Unethical Exploitation and Price Gouging: Exploitation occurs when
companies take advantage of specific situations, such as natural disasters or
limited supply, to significantly increase prices for their products. This
exploitative behavior is considered unethical as it takes advantage of
vulnerable consumers during times of hardship.
 Dumping: This is the situation when companies sell products in foreign
markets at prices lower than the export cost or market value. This harms the
local industry and creates unfair competition. Dumping is considered unethical
as it can distort the economy and have negative impacts on local businesses
 The impacts of price discrimination:
o Impacts on consumers:
 Creation of unfairness: Price discrimination creates unfairness
when customers have to pay higher prices for the same product
compared to others.
 Impact on purchasing power: Price discrimination affects the
affordability and accessibility of products for consumers and can
result in difficulties or unreasonable prices for them.
o Impacts on competition:
 Creation of unfair competition: Price discrimination creates unfair
competition when companies apply preferential pricing to a
certain customer group, creating an unfair competitive
advantage over rivals.
 Market disruption: Price discrimination disrupts the market when
the price of the same product varies across different locations,
creating an unstable and unpredictable market environment.
o Impacts on market dynamics:
 Creation of barriers for businesses: Price discrimination can
create barriers for businesses as some may struggle to compete
due to non-competitive pricing, while others can increase their
profits by implementing price differentiation.
B. Bribery and Harmful products.
 In many cultures, bribery, also known as "facilitation payments," is considered
an accepted business practice. International businesses should be aware that
bribery is an ethical issue, and this practice is more prevalent in some
countries than in others. However, bribery is becoming more costly worldwide
due to increased transparency in business, leading to crackdowns by
government agencies.
 The harmful effects of bribery on businesses include:
o Increased business costs: Bribery necessitates accounting for the costs
associated with bribes, leading to higher overall business expenses.
Choosing the "bribery" approach will result in escalating costs over
time.
o Weakening of competitiveness and sustainable development:
Businesses must allocate resources to bribery, which undermines their
competitiveness and ability to achieve sustainable growth.
o Damage to business reputation: Businesses face reputational damage
when exposed or implicated in bribery incidents during their operations.
o Reduced business opportunities: Bribery diminishes business
opportunities, especially when entering new markets, participating in
bidding processes, raising capital for expansion, or engaging in joint
ventures or partnerships, as potential partners become aware of the
involvement in bribery.
o Loss of opportunities for foreign business cooperation: Diminished
prospects for cooperation with foreign businesses, particularly
multinational companies, virtually becoming non-existent.

 Issues of harmful products:

o Regulatory disparities: Companies exploit regulatory differences
between countries to sell harmful products in countries where they are
allowed but prohibited in others. This violates ethics as profit is
prioritized over consumer health.
o Disproportionate impact on developing countries: Harmful products
and hazardous waste are exported to developing countries, causing
unfair and negative impacts. This violates ethics concerning the health
and environment of these nations.
o Demand for safety and quality: Consumers are increasingly
concerned about food safety, genetically modified products, and
contamination in the food supply chain. They demand transparency and
disclosure of the origin and quality of products. This places ethical
demands on companies to ensure the safety and quality of products for
all consumers.
o Efforts to address the issue: Companies are making efforts to
address the issue of harmful products by promoting environmentally-
friendly products, developing green technologies, and building
sustainable supply chains. They also engage in social activities and
collaborate with non-governmental organizations and industries to
develop ethical solutions and protect the environment.
A. Environment and pollution control
 In environmental philosophy, environmental ethics is a branch that establishes
the practical philosophy of "reconstructing fundamental arguments that can be
made to protect natural entities and sustainably utilize natural resources."
 Environmental ethics influences a range of fields including:
o Environmental law: Environmental ethics shapes the development
and implementation of laws and regulations aimed at protecting the
environment and natural resources.
o Environmental sociology: Environmental ethics informs the
understanding of the social dimensions of environmental issues,
including the relationships between human societies and the
environment.
o Ecological theology: Environmental ethics intersects with theological
perspectives, exploring the moral and spiritual dimensions of human
interactions with the natural world.
o Ecological economics: Environmental ethics guides the principles and
practices of sustainable economic systems, emphasizing the
responsible use of resources and the consideration of environmental
impacts in economic decision-making.
o Ecology: Environmental ethics provides a moral framework for the
study of ecosystems, biodiversity conservation, and the understanding
of human impacts on natural systems.
o Environmental geography: Environmental ethics informs the study of
the relationships between humans and their physical surroundings,
examining how ethical considerations shape human interactions with
the environment.
 The current environmental issues that the world is facing include:
o Global warming
o Global climate change
o Deforestation, pollution, and resource depletion
o Biodiversity loss : is a serious issue where animal and plant species
are becoming extinct or experiencing significant population declines.
This leads to the loss of ecosystem functions, reduces the resilience of
ecological systems, and disrupts natural balance.
 The responsibilities of businesses regarding environmental ethics
include:
o Compliance with environmental laws and regulations: Businesses
need to comply with relevant environmental laws and regulations. This
ensures that their business activities do not cause harm to the
environment and adhere to environmental protection standards.
o Environmental incident response: In the event of an environmental
incident, businesses should have appropriate and prompt responses to
minimize negative impacts and mitigate environmental consequences.
o Monitoring and implementing management measures to minimize
negative environmental impacts:Businesses should monitor and
implement management measures to minimize negative impacts on the
environment. This may include using clean technologies, optimizing
resource utilization, and practicing sustainable waste management.
 o Compensation for damages: Businesses are required to compensate
for environmental damages caused by their activities, as stipulated by
relevant laws and regulations.
o Fulfillment of environmental protection fees: Businesses are
responsible for fulfilling their obligations to pay environmental protection
fees as required by applicable laws and regulations.
=> In business operations, companies need to focus on the green economy and circular
economy. This is an irreversible trend and becomes a necessary factor that we all must
adhere to. Companies that are unwilling and unprepared to embrace this trend will be
eliminated. Therefore, fulfilling the corporate social responsibility towards the environment
needs to be carried out resolutely, comprehensively, and with a focus to ensure a green,
clean, beautiful, and sustainable environment in the future.
B. Telecommunication issues and Intellectual property

 The easy access to information through satellites, email, and the Internet
creates ethical issues related to privacy rights.
 Ethical issues related to information include:
1. Information access: Easy access to information can lead to abuse and
infringement of privacy rights. It is essential to ensure proper access to
information and respect the privacy rights of users.
2. Unethical information exploitation: Misuse and improper use of
personal information, infringing upon privacy rights. Compliance with
regulations for protecting personal information and refraining from
unauthorized use of information is necessary.
3. Misrepresentation: Ethical concerns regarding the creation of false
information to deceive others or take advantage of misplaced trust,
violating intellectual property rights and causing harm to businesses
and consumers.
4. Ethical issues in short-selling securities: Exploiting insider information
or misleading information for unlawful gains.
5. Ethical monopolies: Creating and maintaining unnecessary
monopolies that hinder competition and limit consumer benefits.

 Intellectual property is a term used to refer to the creations of the human mind
and intellect. Intellectual property is protected by laws and policies, including: :
o Patents: Legal documents granting exclusivity to the inventor, excluding
others from using or selling the invention for a certain period of time.
o Copyright: Protection for literary, scientific, and artistic works that have
been published or unpublished..
 Intellectual property includes: ideas, inventions, artistic works, literary works,
diagrams, symbols, designs, trademarks, and other intangible assets created
through creativity, research, and labor.
=>Protecting intellectual property rights is an important factor in promoting creativity
and economic development. Copyright infringement and intellectual property rights
violations pose significant challenges for businesses, such as copying works or using
technology without permission. Therefore, respecting intellectual property rights is
necessary to encourage creativity and foster global economic development.