GEN 006: ETHICS

Module # 20

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Lesson title: Ethical Challenges of Globalization Materials:

SAS
Learning Targets:
References:
At the end of the module, students will be able to: -Leaño, R. D., Jr., & Gubia-on, A. B. (2018). Ethics
1. Distinguish the ethical implications of globalization by for College Students. Mindshapers Co., Inc.
examining real-world dilemmas -Ethical Culture Society of Bergen County NJ.
2. Examine strategies for ethical global business (n.d.). -Ethical dilemmas of globalization. Ethical
practices by analyzing and proposing solutions that Focus. Retrieved May 17, 2024, from
prioritize social responsibility, sustainability, and https://ethicalfocus.org/ethical-dilemmas-of-globaliz
ation/
stakeholder well-being.

A. CONNECT
Activity #1: Brainstorming Session (15 mins)
Instructions:
1. Group yourself to 5 members each per group and list down ways in which you believe globalization
affects individuals, communities, and societies.
2. Categorized your answer such as economic, social, cultural, and environmental impacts. Write down
your responses on the space provided below:

Economic Impacts Social Impacts Cultural Impacts Environmental

Impacts

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 GEN 006: ETHICS
Module # 20

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

B. COACH
B.1. Content Notes (30 mins)
Topic: Ethical Challenges of Globalization
Reading Strategy: Summarizing and Generalization
In this lesson, you are going to read to learn about the “Ethical Challenges of Globalization”. To help us
understand more about the topic, we will incorporate the reading strategy that we have learned from our
previous topics, summarizing and generalization.

Ethical Issues in Globalization

The expansion of the global economy is a significant aspect of globalization, influencing development in
various ways. While its growth is an undeniable reality, it also raises several normative and ethical concerns:

1. Fairness in Trade: The reduction of protectionism, which includes measures like tariffs and import
quotas, is often seen as unfair unless applied evenly across all nations.
2. Power Imbalances: The lack of strong trade unions in some countries can lead to exploitation by
multinational corporations.
3. Wealth Disparity: There remains a vast gap between the rich and poor. About 2.5 billion people, or
40% of the world's population, live on less than $2 a day and receive only 5% of global income.
4. Marginalization and Environmental Impact: Economic globalization can marginalize the poor,
damage the environment, and harm cultural traditions.
5. Increased Inequality: Globalization can make poverty worse and make the gap between rich and
poor people even bigger.
6. Global Problems: Issues such as pollution, resource shortages, global warming, the spread of
diseases, Internet fraud, and terrorism are often by-products of global economic expansion.
7. Poverty and Aid: Many still die from poverty-related causes. Aid and a fair trading system are vital to
help poor countries progress economically.
8. Income Gaps: A recent UN study by the ILO highlights that while global trade increases wealth, its
benefits are unevenly distributed, raising ethical questions about fair wealth distribution.
9. Basic Needs: Many people lack adequate nutrition, literacy, and sanitation. Child mortality and life
expectancy disparities are stark between rich and poor countries.
10. WTO Issues: The World Trade Organization often overlooks labor rights and environmental
concerns, lacking democratic accountability.
11. Labor Market Impact: International trade and technological changes decrease demand for unskilled,
semi-skilled, and traditionally skilled workers.
12. Brain Drain: Talented individuals from developing countries often migrate to developed nations,
depleting their home countries of skilled professionals.
13. Natural Resources: The global demand exceeds the ecological capacity, leading to deforestation
and other environmental crises that affect global oxygen levels.

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 GEN 006: ETHICS
Module # 20

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Solutions to Ethical Problems of Globalization

1. Shared Responsibility: Countries must share responsibility for managing globalization's risks.
Wealthier nations should assist poorer ones in fostering economic growth.
2. Coordinated Action: Addressing global poverty and malnutrition requires coordinated international
efforts.
3. Pandemic Support: Supporting countries during outbreaks and protecting those at risk is crucial.
4. Global Cooperation: Tackling widespread issues like climate change or financial crises necessitates
international cooperation.
5. Long-Term Strategies: Addressing threats like terrorism, health crises, financial instability, climate
change, and inequality requires sustained political will.

Ethical Challenges for Businesses in a Globalized World

Business ethics, encompassing ethical principles and moral issues within business practices, is crucial in
today's interconnected world. Ethical business conduct builds credibility with the public and employees, aids
in better decision-making, aligns with long-term profitability, and fills gaps where legal measures fall short.

1. Credibility with the Public: Ethically and socially responsible companies are respected and trusted,
attracting support for their products and investments.
2. Credibility with Employees: Genuine organizational ethics create shared goals, values, and a
unified language among employees.
3. Better Decision Making: An ethical approach ensures decisions consider economic, social, and
ethical impacts, benefiting the public, employees, and the company’s long-term goals.
4. Ethics and Profits: Companies driven by ethical conduct often achieve long-term success despite
short-term financial losses.
5. Ethics Beyond Law: Ethical practices can preemptively address societal harms that laws may not
yet regulate, like pollution and worker health.
6. Influence on Stakeholders: Ethical business practices drive higher performance among all
stakeholders, supported by the globalized environment.

In today's world, characterized by significant environmental changes, business ethics offer crucial
solutions to global challenges. Ethical leadership is vital for the sustainability and success of organizations.
As globalization intensifies, business ethics profoundly influence stakeholders, including shareholders,
employees, customers, suppliers, competitors, governments, and civil society. Thus, organizations must
prioritize ethical issues in all functional areas to navigate the complexities of the international business
landscape effectively.

Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0
International License.
 GEN 006: ETHICS
Module # 20

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Now that you have the notes, start to summarize and generalize the topic on the space provided below.

Good Job!

Strategy Review:

Questions Answers

What was the text all about?

What reading comprehension strategy did we use?

What are the two steps in the strategy?

B.2. Skill Building Activity

Scenario Cards (30 mins)
1. Let’s divide the class into small groups (6-8 people per group).
2. You will be given scenario cards each assigned with ethical challenges to evaluate.

Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0
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 GEN 006: ETHICS
Module # 20

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Example Scenarios:
A. “Fair Trade Dilemma” - A small-scale coffee farmer in a developing country struggles to compete
in the global market dominated by large multinational coffee corporations. Despite producing
high-quality coffee beans, the farmer receives only a fraction of the final retail price, which barely
covers production costs. Meanwhile, multinational corporations profit significantly from branding
their products as "fair trade" without ensuring fair compensation for the farmers.
B. “Environmental Conundrum” - A multinational manufacturing company expands its operations to
a developing country with weaker environmental regulations. The company's production processes
result in significant air and water pollution, adversely affecting the health of local communities and
ecosystems. Despite protests and outcry from environmental activists, the company continues its
operations, citing economic benefits and job creation in the host country.
C. “Worker Exploitation in Supply Chains” - A global fashion retailer sources its clothing products
from factories in multiple countries, including some with known labor rights violations. Reports
emerge of factory workers enduring long hours, unsafe working conditions, and wages below the
poverty line. Despite public outrage and calls for reform, the retailer maintains its business
relationships with these factories, prioritizing cost-efficiency and fast fashion trends over ethical
labor practices.
3. Read the scenario silently and then think about its ethical implication and the possible strategies that
you may apply to deal with the scenarios.
4. On a separate sheet of paper, discuss the three scenario/s, write about it and how you will propose
solutions that will prioritize social responsibility, sustainability, and stakeholder well-being.

C. CHECK
C.1. Check for Understanding (10 mins)
Instructions: Encircle the correct answer to the following questions.
1. Which of the following is a major ethical concern associated with globalization?
a) Increased demand for luxury goods b) Fairness in trade
c) Expansion of local businesses d) Reduction in international travel
2. The exploitation by multinational corporations is often linked to which issue in globalization?
a) Wealth disparity b) Power imbalances
c) Increased environmental regulations d) Technological advancements
3. What percentage of the world's population lives on less than $2 a day?
a) 20% b) 30% c) 40% d) 50%
4. What is a by-product of global economic expansion that contributes to global problems?
a) Reduced pollution b) Increased cultural exchange
c) Spread of diseases d) Enhanced local traditions
5. According to the UN study by the ILO, what is a major issue with the distribution of wealth from
global trade?
a) Wealth is evenly distributed b) Only developed countries benefit
c) Benefits are unevenly distributed d) There is no significant increase in wealth

Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0
International License.
 GEN 006: ETHICS
Module # 20

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

6. Why do many still die from poverty-related causes despite the global economic growth?
a) Lack of international travel b) Insufficient aid and fair trading systems
c) Overproduction of food d) Excessive military spending
7. The phenomenon where skilled professionals migrate from developing to developed nations is
known as:
a) Brain drain b) Workforce depletion c) Talent surge d) Employment shift
8. What role does the World Trade Organization (WTO) often overlook in its operations?
a) Trade negotiations b) Labor rights and environmental concerns
c) Economic growth measurement d) Technological advancements
9. Which of the following is essential for addressing global issues like climate change and
financial crises?
a) Individual national policies b) Global cooperation
c) Local business incentives d) Increased tariffs and import quotas
10. Why are ethical business practices crucial in a globalized world?
a) They ensure short-term profits
b) They help navigate international business complexities
c) They reduce the need for legal regulations
d) They encourage competition among businesses

D. CONCLUDE
D.1. Summary
Globalization means the world becoming more connected through trade and business. But it also brings
up important moral questions. People argue about whether trade rules, like taxes on imports, are fair for
everyone. In some places, big companies might take advantage of workers because there aren't strong unions
to protect them. This makes it hard for everyone to share the money made from business. Many people around
the world are still very poor, while a few have most of the money. Globalization can also make some groups of
people feel left out, harm the environment, and even make some cultures disappear. There are big problems
like pollution and terrorism that get worse as businesses grow globally. Fixing these issues means countries
working together and planning for the long term. Businesses also need to act ethically, which means doing the
right thing even when it's not required by law. This helps them earn trust from the public and their workers.
Ultimately, being ethical in business is really important as the world becomes more connected. It helps
businesses make better decisions and builds trust with everyone involved. So, as the world gets smaller
because of globalization, being ethical is key to solving big problems and making sure everyone benefits.

Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0
International License.
 GEN 006: ETHICS
Module # 20

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

D.2. Thinking about Learning (5 mins)

Think About Your Learning. Take a few minutes to reflect on the quality of your work and effort. Use
the KWL Chart to indicate the following about our topic for today:

K – What I know, W – What I want to know, and L – What I have learned

D.3. Glossary of Terms

● Brain Drain - when smart and educated people leave their own country to find better jobs or living
conditions in another place.
● Credibility - being trusted and reliable because you always do what you say and act honestly.
● Ecological Capacity - how much nature can give us without getting hurt or damaged, like how much
food and clean water it can provide.
● Exploitation - when someone uses someone else unfairly or selfishly to get something for themselves,
like making money.
● Globalization - when people, businesses, and governments from different countries work together and
share things like trade, money, and technology.
● Import Quotas - rules that say how much of something can be brought into a country from other places
during a certain time, like a month or a year.
● Marginalization - making certain groups of people feel like they are not important or part of the bigger
group, like they're left out or not listened to.
● Protectionism - when a country tries to keep its own businesses safe by putting taxes or rules on
things from other countries.
● Stakeholders - people, groups, or businesses who have an interest or connection to a company or
organization, like employees, customers, or people who own shares.
● Tariffs - taxes that are added to things that are brought into a country from other places, usually to
protect businesses in that country or raise money for the government.

Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0
International License.