Please enable JavaScript.
Coggle requires JavaScript to display documents.
Reading 24: Globalisation - ethical issues - Coggle Diagram
Reading 24: Globalisation - ethical issues
ETHICAL ISSUES IN A GLOBAL MARKETING CONTEXT
the exporting of consumerism and increase in cultural homogenisation
the targeting of marketing at lower-income consumers in developing countries
differing standards of consumer protection
geographical segregation of business operations
DIFFERING STANDARDS OF CONSUMER PROTECTION
some companies take advantage of differences in the legal regulations to market their offerings where there are fewer constraints on their activities
there may also be less consumer protection from socially objectionable advertising where standards bodies are self-regulatory and lack resources compared with the powerful industry lobbies (Karnani, 2007).
EXPORTING CONSUMERISM AND INCREASING CULTURAL HOMOGENISATION
it involves exporting not only goods and services to other parts of the world, but the transmission of the values embedded in them and therefore encourages the spread of consumerism. Countries such as China have seen great changes in consumption
doubts have been raised about the impact of consumerism on wellbeing
globalisation has led to cultural homogenisation at the expense of local cultures
squeezed out local providers
increasing affluence and decreasing prices have stimulated consumption of goods such as clothing
concern about consumerism and the overconsumption of disposal goods is captured in the notion of ‘the throwaway society’
of increasing concern is the issue of e-waste, which touches on not just issues of consumption but also differing standards of protection
we might argue that everyone should have equal access to a good standard of living, it has been argued that the world would not be able to support the burden of everyone consuming to the level that the majority enjoy in developed countries (Durning, 1992) and that the developed countries consume more than their share (Buchholz, 1998)
it has also been argued that ‘living with less’ is better for our wellbeing as well as the planet
TARGETING LOWER-INCOME CONSUMERS IN DEVELOPING COUNTRIES
ethical issues are also raised when lower-income consumers in developing countries are targeted by marketing
marketing products beyond the reach of low-income consumers
perpetuates dissatisfaction
low-income consumers might be exploited
it should be recognised that exclusion from targeting can also increase the gap between the affluent and the poor with respect to vital issues such as health
low-income consumers do not have the same choices as affluent consumers
they may also not have the same level of education or access to information
‘by stimulating commerce and development at the bottom of the economic pyramid, MNCs could radically improve the lives of billions of people and help bring into being a more stable, less dangerous world’
‘corporate “poor washing” (i.e. purporting to act responsibly with respect to the poor), through which an agenda for boosting profits is packaged as a poverty antidote’
GEOGRAPHICAL SEGREGATION OF BUSINESS OPERATIONS
it is not easy to ascertain the ethical credentials of products and services
some large MNCs have taken advantage of national boundaries on government control to reduce the tax they pay without violating the laws in different countries
one of the effects of global business is that it separates geographically some of the causes and effects of the scope of a business’ operations