GLOBALIZATIONOF BUSINESS 2
Many businesses have ventured into the international platform. Theexploration is subjected to the increased opportunities, improvedtechnology, and better relations between various countries in theworld. Globalization has led to the development of enterpriserelationships among different states to assist in the growth anddevelopment of the nations. A Canadian firm has partnered with thePeople’s Liberation Army (PLA) of China that has establishedvarious business networks. The paper seeks to identify whether as theCEO of the Canadian-Chinese joint venture, any ethical concerns arearising from the partnership with the PLA. It shall also determine ifthe association may be affected if a clash between pro-democracydemonstrators and the PLA turned bloody. It shall conclude byidentifying if there is a difference between the ethical issues ofpartnering with the Chinese military and exporting to China.
The establishment of the joint venture between the Canadian companyand the PLA is a significant partnership that promotes businessgrowth. However, as the CEO, some ethical concerns need to behighlighted. One of the issues regards decision-making. As a businessconglomerate, the process of making choices should be based on factsgathered, an evaluation of alternative actions, selecting thedecision, implementing and evaluating it. Besides, the procedureshould focus on the upholding the rights of its employees andcustomers as well as promote fair practices. However, the PLA isknown to conduct its business by focusing on generating profits andapplying their special privileges to achieve their organization’sinterests (Rothlin & Haghirian, 2013). As a joint firm, it shallbe unfair to pursue personal interests and applying favors in theenterprise practices. Another ethical issue is about governance. ThePLA is used to conduct its affair in areas that have unclear laws andwith little political connection making them highly influential.Therefore, the partnership with a Canadian firm would be a newbusiness environment for the military where they are likely to becontrolling and eventually undermine the association.
If a clash between pro-democracy demonstrators and the PLA turnsbloody, it might affect the business relations with the Chinesemilitary partner in various ways. One of the effects of the clashesis that the partner might develop new goals that affect the earlierstrategies set. The PLA may be uncertain of the outcome of thedisputes or when it is likely to end, which might trigger to changetheir focus. The clashes can also result in the lack of support inthe running of the joint venture from the Chinese militaryparticularly in decision-making as they spend more time on thedemonstrations. In severe circumstances, the business relations mightbe dissolved by giving notice to the PLA partner (Duodu, 2015). Thesituation may arise when the Canadian firm realizes it might sufferdrastic losses from the conflicts, or the business has no future.
Partnering with the PLA may develop distinct ethical issues from whenthe Canadian company is exporting commodities to China. Unlike thegovernance and decision-making problem, the firm is likely toencounter other moral challenges such as compliance. The Chinesegovernment has developed strict regulations that require importingcompanies to observe (Duodu, 2015). However, since the PLA hasgovernment relations, it might undermine the ability of the jointventure to comply fully with the set standards which results inlow-quality products finding its way into the Chinese market. Suchcompliance issues may render the Canadian firm to engage in unethicalpractices that are contrary to its business conduct policies. On theother hand, the ethical issues may be similar when concentrating onthe fundamental issues of developing a business relation that isintegrity and trust. Partnering with Chinese military and exportingproducts to China both entail a high level of commitment and engagingin honest business practices.
Duodu, C. (2015). Chinese lessons: Past, present and future. (Coverstory). New African, (548), 26-28.
Rothlin, S., & Haghirian, P. (2013). Dimensions of teachingbusiness ethics in Asia. Berlin: Springer.