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‘Techno Seript Solutions [ www.technoseript7.com |
UNIT-V
GLOBAL ISSUES
Syllabus: Multinational corporations - Environmental ethics - computer ethics - weapons
development - engineers as managers-consulting engineers-engineers as expert witnesses and
advisors -moral leadership-sample code of Ethics like ASME, ASCE, IEEE, Institution of
Engineers (India), Indian Institute of Materials Management, Institution of electronics and
telecommunication engineers (IETE),India, ete.
MULTINATIONAL CORPORATIONS
A multinational corporation (MNC), also called a transnational corporation (TNC), or
‘multinational enterprise (MNE), is a corporation or an enterprise that manages production or
delivers services in more than one country. It can also bereferred to as an international
corporation, ‘The International Labour Organization (ILO) has defined{citation needed] an
MNC as a corporation that has its management headquarters in one country, known as the
home country, and operates in several other countries, known as host countries.
The Dutch East India Company was the first multinational corporation in the world
and the first company to issue stock, It was also arguably the world's first megacorporation,
possessing quasi-governmental powers, including the ability to wage war, negotiate treaties,
coin money, and establish colonies.
The first modern multinational corporation is generally thought to be the East India
Company. Many corporations have offices, branches or manufacturing plants in different
countries fiom where their original and main headquarters is located,
‘Some multinational corporations are very big, with budgets that exceed some nations' GDPs.
Multinational corporations can have a powerful influence in local economies, and even the
world economy, and play an important role in international relations and globalization
Multinational corporations have played an important role in globalization. Countries and
sometimes subnational regions must compete against one another for the establishment of
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MNC facilities, and the subsequent tax revenue, employment, and economic activity. To
compete, countries and regional political districts sometimes offer incentives to MNCs such
astax breaks, pledges of governmental assistance or improved infrastructure, or lax
environmental and labor standards enforcement. This process of becoming more attractive to
foreign investment can be characterized as.arace tothe bottom, apush towards greater
autonomy for corporate bodies, or both,
‘However, some scholars for instance the Columbia economist Jagdish Bhagwati, have
argued that multinationals are engaged in a ‘race to the top.’ While multinationals certainly
regard a low tax burden or low labor costs as an element of comparative advantage, there is
no evidence to suggest that MNCs deliberately avail themselves of lax environmental
regulation or poor labour standards. As Bhagwati has pointed out, MNC profits are tied to
operational efficiency, which includes a high degree of standardisation. Thus, MNCs are
likely to tailor production processes in all of their operations in conformity to. those
jurisdictions where they operate (which will almost always include one or more of the US,
Japan or EU) that has the most rigorous standards. As for labor costs, while MNCs clearly
pay workers in, e.g. Vietnam, much less than they would in the US (though it is worth noting
that higher American productivity—linked to technology
means that any comparison is
tricky, since in America the same company would probably hire far fewer people and
automate whatever process they performed in Vietnam with manual labour), itis also the case
that they tend to pay a premium of between 10% and 100% on local labor rates.[10] Finally,
depending on the nature of the MNC, investment in any country reflects a desire for a long-
term return, Costs associated with establishing plant, training workers, etc., can be very high;
once established in a jurisdiction, therefore, many MNCs are quite vulnerable to predatory
practices such as, ¢.g., expropriation, sudden contract renegotiation, the arbitrary withdrawal
or compulsory purchase of unnecessary ‘licenses,’ etc. Thus, both the negotiating power of
MNCs and the supposed ‘race to the bottom! may be overstated, while the substantial benefits,
that MNCs bring (tax revenues aside) are often understated
Market withdrawal
Because of their size, multinationals can have a significant impact on government
policy, primarily through the threat of market withdrawal. For example, in an effort to reduce
health care costs, some countries have tried to force pharmaceutical companies to. license
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their patented drugs to local competitors for a very low fee, thereby attificially lowering the
price. When faced with that threat, multinational pharmaceutical firms have simply
withdrawn from the market, which often leads to limited availability of advanced drugs. In
these cases, governments have been forced to back down from their efforts. Similar corporate
and government confrontations have occurred when governments tried to force MNCs to
‘make their intellectual property public in an effort to gain technology for local entrepreneurs.
When companies are faced with the option of losing a core competitive technological
advantage or withdrawing froma national market, they may choose the latter. This
withdrawal often causes governments to change policy. Countries that have been the most
ful in this type of confrontation with multinational corporations are large countries,
such as United States and Brazilfcitation needed], which have viable indigenous market
competitors
Lobbying
Multinational corporate lobbying is directed at a range of business concerns, from
tariff structures to environmental regulations. There is no unified multinational perspective on
any of these issues. Companies that have invested heavily in pollution control mechanisms
may lobby for very tough environmental standards in an effort to force non-compliant
competitors into a weaker position, Corporations lobby tariffs to. restrict competition of
foreign industries. For every tariff'eategory that one multinational wants to have reduced,
there is another multinational that wants the tariff raised, Even within the U.S. auto industry,
the fraction ofa company's imported components will vary, so. some firms favor tighter
import restrictions, while others favor looser ones. Says Ely Oliveira, Manager Director of
the MCT/IR: This is very serious and is very hard and takes a lot of work for the owner.pk.
Multinational corporations such as Wal-mart and McDonald's benefit from government
zoning laws, to create barriers to entry.
Many industries such as General Electric and Boeing lobby the government to receive
subsidies to preserve their monopoly.
Patents
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‘Many multinational corporations hold patents to prevent competitors from arising. For
example, Adidas holds patents on shoe designs, Siemens A.G. holds many patents on
equipment and infrastructure and Microsoft benefits from software patents, ‘The
pharmaceutical companies lobby international agreements to enforce patent laws on others.
Government power
In addition to efforts by multinational corporations to affect governments, there is,
‘much government action intended to affect corporate behavior. The threat of nationalization
(forcing a company to sell its local assets to the government or to other local nationals) or
changes in local business laws and regulations can limit a multinational’s power. Thes
issues
become of increasing importance because of the emergence of MNCs in developing
countries.
Micro-multinationals
Enabled by Internet based communication tools, anew breed of multinational
companies is growing in numbers.(Copeland, Michael V. (2006-06-29). "How startups go
global’. CNN.
http:/imoney. cnn, com/2006/06/28/magazines/business2/startupsgoglobal.biz2/index.htm.
Retrieved 2010-05-13.) These multinationals start operating in different countries from the
very early stages. These companies are being called micro-multinationals. (Varian, Hal R.
(2005-08-25). 1d". ‘The New York 1
http://www.nytimes.com/2005/08/25/business/25scene.html, Retrieved 2010-05:
Technology Levels the Business Playing F
3.) What
differentiates micro-multinationals from the large MNCs is the fact that they are small
businesses. Some of these micro-multinationals, particularly software development
companies, have been hiring employees in multiple countries from the beginning of the
Internet era, But more and more micro-multinationals are actively starting 10 market their
products and services in various countries. Intemet tools like Google, Yahoo, MSN, Ebay and
Amazon make it easier for the micro-multinationals to reach potential customers in other
countries.
Service
ector micro-multinationals, like Facebook, Alibaba ete. started as dispers
virtual businesses with employees, clients and resources located in various countries. Their
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rapid growth is a direct result of being able to use the internet, cheaper telephony and lower
traveling costs to create unique business opportunities.
Low cost SaaS (Software As A Service) suites make it easier for these companies to
operate without a physical office.
Hal Varian, Chief Economist at Google and a professor of information economics at U.C.
Berkeley, said in April 2010, "Immigration today, thanks to the Web, means something very
different than it used to mean. There's no longer a brain drain but brain circulation. People
now doing startups understand what opportunities are available to them around the world and
work to harness it from a distance rather than move people from one place to another."
ENVIRONMENTAL ETHICS
Environmental ethies believes in the ethical relationship between human beings and
the natural environment, Human beings are
part of the society and so are the other living
beings. When we talk about the philosophical principle that guides our life, we often ignore
the fact that even plants and animals are a part of our lives. They are an integral part of the
environment and hence have a right to be considered a part of the human life, On these lines,
it is clear that they should also be associated with our guiding principles as well as our moral
and ethical values.
What is Environmental Ethics?
Weare cutting down forests for making our homes. We are continuing with an
excessive consumption of natural resources. Their excessive use is resulting in their
depletion, risking the life of our future generations. Is this ethical? This is the issue that
Scientists like Rachel Carson and the environmentalists who
environmental ethics takes up.
led philosophers to consider the philosophical aspect of environmental problems, pioneered
in the development of environmental ethics as a branch of environmental philosophy.
The Earth Day celebration of 1970 was also one ofthe factors, which led to the
development of environmental ethics as a separate field of study. This field received impetus
when it was first discussed in the academic journals in North America and Canada, Around
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the same time, this field also emerged in Australia and Norway. Today, environmental ethics,
is one of the major concerns of mankind.
When industrial processes lead to destruction of resources
is it not the industry's
responsibility to restore the depleted resources? Moreover, can a restored environment make
up for the originally natural one? Mining processes hamper the ecology of certain areas; they
‘may result in the disruption of plant and animal life in those areas. Slash and burn techniques,
are used for clearing the land for agriculture.
Most of the human activities lead to environmental pollution. The overly increasing
‘human population is increasing the human demand for resources like food and shelter. As the
population is exceeding the carrying capacity of our planet, natural environments are being,
used for human inhabitation.
‘Thus human beings are disturbing the balance in the nature, The harm we, as human
beings, are caus
gto the nature, is
coming back to us b resulting in a polluted environment.
‘The depletion of natural resources is endangering our future generations. The imbalance in
nature that we have caused is going to disrupt our life as well. But environmental ethics
brings about the fact that all the life forms on arth have a right to live. By destroying the
nature, we are depriving these life forms of their right to live. We are going against the true
ethical and moral values by disturbing the balance in nature. We are being unethical in
treating the plant and animal life forms, which coexist in society.
Human beings have certain duties towards their fellow beings, On similar lines, we
have a set of duties towards our environment, Environmental ethics says that we should base
our behavior on a set of
thical values that guide our approach towards the other living beings
in nature.
Environmental ethics is about including the rights ofnon-human animals in our
ethical and moral values. Even ifthe human race is considered the primary concern of
society, animals and plants are in no way less important. They have a right to get their fair
share of existence.
We, the human beings, along with the other forms of life make up our society. We all
are a part of the food chain and thus closely associated with each other. We, together form
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our environment, The conservation of natural resources is not only the need of the day but
also our prime duty.
COMPUTER ETHICS.
Ethics is a set of moral principles that govern the behavior of a group or individual
‘Therefore, computer ethics is set of moral principles that regulate the use of computers. Some
common issues of computer ethics include intellectual property rights (such as copyrighted
electronic content), privacy concerns, and how computers
affect society.
For example, while it is easy to duplicate copyrighted electronic (or digital) content,
computer ethics would suggest that it is wrong to do so without the author's approval. And
while it may be possible to access someone's personal information on a computer system,
computer ethies would advise that such an action is unethical.
As technology advances, computers continue to have a greater impact on society.
‘Therefore, computer ethies promotes the discussion of how much influence computers should
have in areas such as artificial intelligence and human communication. As the world of
computers evolves, computer ethics continues to create ethical standards that address new
issues raised by new technologi
WEAPONS DEVELOPMENT
A weapon is an instrument used for the purpose of causing harm or damage to people,
animals or structures. Weapons are used in hunting, attack, self-defense, or defense in combat
and range from simple implements like clubs and spears to complicated modern machines
such as intercontinental ballistic missiles. One who possesses or carries a weapon is said to be
armed,
In abroader context weapons include anything used to gain an advantage over an
adversary or to place them at a disadvantage, Examples include the use of sieges, tactics, and
psychological weapons which reduce the morale of an enemy
Classification
By user
= what person or unit uses the weapon :
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Personal weapons (or small arms) - designed to be used by a single person.
Hunting weapon - primarily for hunting game animals for food or sport
Infantry support weapons - larger than personal weapons, requiring two or more to
operate correctly.
Fortification weapons - mounted in a permanent installation, or used primarily within
a fortification.
Mountain weapons - for use by mountain forces or those operating in difficult terrain,
Vehicle weapons - to be mounted on any type of military vehicle.
Railway weapons - designed to be mounted on railway cars, including armored trains.
Aircraft weapon
ried on and used by some type of aircraft, helicopter, or other
aerial vehicle,
Naval weapons - mounted on ships and submarines,
Space weapons - are designed to be used in or launched from space.
By faction
- the construction of the weapon and principle of operation
Antimatter weapons (theoretical) would combine matter and antimatterto cause a
powerful explosion.
Archery weapons operate by using a tensioned string to launch a projectile.
Artillery are capable of launching heavy projectiles over long distances.
Biological weapons spread biological agents, causing disease or infection,
Chemical weapons, poisoning and causing reactions.
Energy weapons rely on concentrating forms of energy to attack, such as lasers or
sonic attack
Explosive weapons use a physical explosion to create blast concussion or spread
shrapnel
Firearms use @ chemical charge to launch projectiles.
Improvised weapons are common objects, reused as weapons.
Incendiary weapons cause damage by fire.
‘Non-lethal weapons are designed to subdue without killing,
Magnetic weapons use magnetic fields to propel projectiles, or to focus particle
beams.
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‘Melee weapons operate as physical extensions of the user's body and directly impact,
their target
Missiles are rockets which are guided to their target after launch, (Also a general term
for projectile weapons).
Nuclear weapons use radioactive materials to create nuclear fission and/or nuclear
fusion detonations
Primitive weapons make little or no use of technological or industrial elements.
Ranged weapons (unlike Mélée weapons), target a distant object or person,
Rockets use chemical propellant to accelerate a projectile
Suicide weapons exploit the willingness of their operator to not survive the attack
Trojan weapons appear on face value to be gifts, though the intent is to in some way
to harm the recipient.
By target
- the type of target the weapon is designed to attack
Anti-aircraft weapons target missiles and aerial vehicles in flight.
Anti-fortification weapons are designed to target enemy installations.
Anti-personnel weapons are designed to attack people, either individually or in
numbers,
Anticradiation weapons target sources of electronic radiation, particularly radar
emitters,
Anti-satellite weapons target orbiting satellites.
Anti-ship weapons target ships and vessels on water.
Anti-submarine weapons target submarines and other underwater targets,
Anti-tank weapons are designed to defeat armored targets.
‘Area denial weapons target territory, making it unsafe or unsuitable for enemy use or
travel.
‘Hunting weapons are civilian weapons used to hunt animals
Infantry support weapons are designed to attack various threats to infantry units
CONSULTING ENGINEERS
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Consultants are individuals who typically work for themselves but may also be associated with a
consulting firm, They, for a fee, gives advice or provides a service in afield of specialized
knowledge or training. Most consultants carry their own life and health insurance, pay their own
taxes, most have their own tools and equipment, The consultant can work alone or with the client's
staff,
Consultants can play a multi-faceted role. They can, for example function as advisors, fixers,
bosses, generalists, stabilizers, listeners, advisors, specialists,
alysts, managers or quasi-
employees. The actual work that consultants perform for one company to another may vary greatly,
i.e. tax account to office decoration. However, the typical underlying reasons that a consultant is
hired are universal. A problem exists and the owner or manager of the company has decided to seek
the help of an expert
Bringing in an expert can save time, effort and money. It has been estimated that approximately 3/4
ofall companies call upon consultants at one time or another. Many companies claim that they
receive a higher return for their invested dollars by using consultants for specific tasks
Most companies have experienced the problem of needing short-term technical expertise. Perhaps
the company's existing staff is already working to capacity. In many cases, the engineering skills
required for a project can be satisfied with a full time employee. When they can not fully justify
bringing someone on board fulltime, their answer isto hire consultant. By doing so, the
businessman solves his immediate problem without permanently increasing his payroll and payroll
taxes.
Consultants can be hired when the company may not have anyone on staff capable of solving the
specific problem. At such times, a costly learning curve on the part ofthe engineering staffis
associated with the project. One example is using a consultant as a viable alternative during the
development stages of new products. Hiring a consultant with experience in a given area can then
cut days, weeks or even months offa project schedule. In addition, he can help the staff avoid
mistakes they may otherwise make, When the project reaches a certain point, the permanent staff
can then take over.
Consultants can deal directly with owners and upper management. In this role, consultants can
provide an objective third-party view point. Critical objectives can then be identified and advise
given in confidence.
Consultants are a viable alternative in assisting in feasibility studies or in proposal preparation.
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Perhaps the manager cannot justify shifting the duties of existing stafl members.
Another time that consultants become useful is when a company is just starting a business. The
development of the company's new product can be begun by the consultant while a full time
permanent technical staff member is being hired.
Finding the right consultant can be difficult. Managers can rely on referrals from their friends or
hire the consultant who happens to call atthe right time. Once the decisions is made to hire a
consultant, the need is immediate and one may not have the time to shop for a consultant. As a part
of planning ahead, it is wise to meet various consultants on an informal basis before the need to
hire one arise
then when the time comes, you will know exactly who to call for you have already
established an informal relationship
ETHICS IN ASCE
‘To preserve the high ethical standards of the civil engineering profession, the Society's ethies
program includes:
The Society maintains a Code of Ethies.
inforcement
The Society enforces the Code by investigating potential violations of the Code and
taking disciplinary action if warranted.
1) Education
The Society endeavors to educate its members and the public on ethics issues,
IEEE code of Ethies
1. to accept responsibility in making decisions consistent with the safety, health and
welfare of the public, and to disclose promptly factors that might endanger the public
or the environment;
2. to avoid real or perceived conflicts of interest whenever possible, and to disclose
them to affected parties when they do exist;
3. to be honest and realistic in stating claims or estimates based on available data;
4, to reject bribery in all its forms;
0%
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5. to improve the understanding of technology, its appropriate application, and potential
consequences;
6. to maintain and improve our technical competence and to undertake technological
tasks for others only if qualified by training or experience, or after full disclosure of
pertinent limitations;
7. to seek, accept, and offer honest criticism of technical work, to acknowledge and
correct errors, and to credit properly the contributions of others;
8. to treat fairly all persons regardless of such factors as race, religion, gender,
disability, age, or national origin;
9. to avoid injuring others, their property, reputation, or employment by false or
malicious action;
10, to assist colleagues and co-workers in their professional development and to support
them in following this code of ethics
Ethics in Indian Institute of Materials and Management
