In what way does globalization affect business ethics?

Globalization significantly impacts business ethics by introducing a variety of cultural norms and ethical standards from different countries and regions into the business environment. As businesses operate in a global marketplace, they encounter diverse perspectives on what is considered ethical behavior, which can vary widely based on cultural, social, and economic factors. This diversity complicates the decision-making process for companies, as they must navigate these varying ethical frameworks while maintaining their values and meeting the expectations of stakeholders across different cultures.

This complexity can lead to challenges, such as determining the appropriate ethical practices in international dealings and understanding local customs that may not align with the company's home culture. Companies may need to adapt their strategies to align with local values, which could conflict with their established ethical guidelines. Thus, understanding and integrating various cultural norms into business ethics is crucial for effective global operations.