Necessary for entrepreneurship development

1. SUB-TOPIC 5
BUSINESS IN ITS DIVERSE MORAL CONTEXT
 Technological environment
 International environment
 Cultural environment
 Business and environmental issues

2. BUSINESS AND TECHNOLOGY
The growth of technology is one of the most debatable topics
today. Some scientists refer to it as a disaster while some
refer to it as a blessing in the business today.
No doubt that we live in the age of technology where it has
become an important part of our life but it can sometimes act
as a hindrance too if dependency continues to increase.
Before we jump to any conclusion, let’s weigh the pros and
cons of technology.

3. Pros
Improves efficiency for Business
• The best advantage of any technology is that it increases the
efficiency of a business process.
• We can perform more tasks in less time. From shared drives
to emails, communication, coordination, execution and
implementation of a lot of business processes has become swift
and hassle-free, all thanks to technology.

4. Saves time
•A very obvious advantage of technology is that it saves time.
As we are able to complete a task in lesser time, we can utilize
the time saved for other important activities. With the help of
technology a lot of activities such as cooking, cleaning,
working, commuting are accomplished faster.

5. Better communication
In earlier times, communicating with a person belonging to
a different part of the world was difficult. Think about it!
Think back to the time when people had to communicate
using pigeons or letters, something that took days or weeks!
However today the world has come closer and one can
easily connect with a person sitting in another corner of the
world, all thanks to technology.

6. Reduces cybercrime risks
•The biggest benefit of technology is to the cyber world. AI
(artificial intelligence) algorithms are qualified to detect a
change in patterns that are unique from the normal pattern.
•Implementing AI to detect cyber-attack is still at an early
stage, but with advancement in technology, one can expect to
prevent it. Hence the chances of getting a cyber-attack are
reduced.

7. Cons
Besides the advantages discussed above, there are also some
disadvantages of technological advancements:
Extreme dependability
• With each passing day, we are becoming more and more
dependent on technology for almost every task without even
realizing it. A common example of this is using a cab service.
Another example is using GPS to know the directions of any
desired location.
• A lot of people today do not bother learning or memorizing
directions because they depend on Google Maps for it. In a lot of
ways, that’s not a good path we’re going down!

8. Expensive
•Although technology is already a part of many people’s
lives, there are still some people out there who cannot
afford some technologies. Many technologies that are
being used by the organizations are expensive. As a results,
one of technology’s biggest cons is that it can only be used
by those who can afford it.

9. Shortage of jobs
•With technology, the efficiency of a task has increased
tenfold and this is the reason why the technology might be able
to replace humans soon. An increase in technology is going to
ensure that tasks that humans could do earlier can now be
achieved by machines and technology. Thus, creating a
shortage of jobs.
•Nowadays even organizations prefer technology that is
capable of doing tasks more efficiently than humans. Thus,
with the rise of technology humans can be replaced by
algorithms and robots.

10. Privacy vs. security
For example, Full-body airport scanners
Since of such scanners to airports in 2007, many concerns
over traveler privacy have arisen. Individuals are asked to
step inside a rectangular machine that takes an alternate
wavelength image of the person's naked body for the purpose
of detecting metal and non-metal objects being carried under
the clothes of the traveler.

11. Privacy vs. security
This screening technology comes in two forms,
millimeter wave technology (MM-wave technology)
or backscatter X-rays (similar to x-rays used by
dentists). Full-body scanners were introduced into
airports to increase security and improve the quality of
screening for objects such as weapons or explosives due
to an increase of terrorist attacks.

12. International environment
•As business becomes increasingly internationalized and a
global economy developed, ethical issues that affect
business in the international arena have also become of
increasing importance.
•When countries trade with each other and when they are
open for foreign investment and technology, they are also
open to outside influences.

13. International environment
• This internalization of domestic economies around the world is
most directly as a result of decisions private firms make to
engage in international trade and investment.
• MNC’s have become a major force in internationalizing national
economies and creating a global economy. (An
MNC’S(multinational corporation) has been defined as an
enterprise that undertakes foreign direct investment, owns or
controls income generating assets in more than one country,
produces goods or services outside its country of origin, or
engages in international production.

14. International environment
For example in Uganda we have Coca Cola and Pepsi, MTN,
AIRTEL, Spear Motors, Shoprite, Game, Barclays, Standard
chartered bank, Baroda, DsTV, SHELL, TOTAL, CITY
OIL,CAFÉ JAVAS, Umeme, APA, Lion’s assurance,
computer world we have Apple, HP, DEL,
PHONES….,Samsung, nokia, itel, e.t.c

15. International environment
•Now the growth in trade between nations and international
investments means that MNC’s have significant economic
and social impacts on national economies and political
systems. Their activities have become very visible, making
them subject to credit or criticism from many quarters.

16. On the one hand MNC’s are welcomed because of;
 New technologies, capital, and talents flow in many directions
due to the global economy created.
 Today a new wave of mergers, acquisitions and strategic
alliances have been created and all these are tapping new
markets across the boards of the original country.
 There are profits earned due to the expanded market beyond the
borders by both countries including the host country.
 New jobs created and of course new markets.
 Relaxation in the trade barriers

17. International environment
• Yet on the other hand countries view the MNC’s as a threat to their
national sovereignty and autonomy.
• Expansion beyond the boundaries is much more than a step across the
geographical line of a country. Its is also a step toward new and different
social, educational, political and economic environments where
different values and cultures mean that there are different ways of
conducting business in various countries, these differences cause
problems for managers of multinational corporations.

18. International environment
• NOTE: These conflicts are often resolved through regulatory
measures shaping the conduct of multinational enterprises.
Regulations are often adopted to deal with these differences and
managers of MNC’s have to pay attention to these measures as they do
to regulation in their own countries

19. International environment
• Question what if the regulations in your country are fairer than the
host country
• Take an example of the regulations of china as a country, South
Africans lately are killing foreign Africans because of unemployment,
some of the Africans have become house helps with their passports
confiscated (human trafficking, sex shows). Who controls that???

20. International environment
• Another issue would be that many countries most especially the third
world countries find it difficult to control the activities of MNC’s within
their territories, why because MNC’s have the flexibility to move
capital ,goods, personnel and technology across national boundaries.
This allows them to play off one country against the other to get the best
deal for themselves this in the end affects the level of social and
economic development of some countries.
• Way forward; There has been an increasing interest in developing
some form of international regulation to control the activities of MNC’s
and give host governments some control over their activities.

21. MNC’s are accused of creating numerous
externalities like;
 The benefits of foreign investments are poorly or unfairly
distributed between the MNC and the host country.
 These same companies preempt (block, prevent) the
development of indigenous economic base by squeezing out
local entrepreneurs
 They employ inappropriate capital intensive technology
adding to host country unemployment

22. More costs of the (MNC’s) international environment
 They alter consumer tastes in the host country, thus undermining
the culture of the country.
 Over exploitation of resources for example in Uganda we have
fish farms, mining of minerals.
 Foreign investors subvert host-country political processes by co-
opting the local elites, using their influence to keep host
governments in line and structuring the international system to
respond to their needs.
In conclusion, MNC’s are hard to live with, and yet impossible to
live without

23. Cultural environment
• The organizational culture is considered to be one determinant
of the extent to which people behave ethically in an organization.
Giberson defines organizational culture as “a collective
phenomenon (observable fact) emerging from members’ beliefs
and social interactions, containing shared values, mutual
understandings, patterns of beliefs, and behaviors that tie
individuals in an organization together over time” .

24. Cultural environment
• The beliefs and assumptions that are considered valid or effective are
passed down through the organization and taught to new members as the
way they should perceive, feel and act in the organization.

25. Cultural environment
The cultural environment in other words,
 Guides how things are done in an organization and indicates
what should be important to the employees.
 It helps explain what happens in organizations since the
behaviors within the company should be consistent.
 As a result, the culture and corporate values help to create a
sense of identity and enhance social stability (community
stability).

26. Managing organizational culture to improve ethics in
organizations.
•
• Creating a unitary corporate culture around core ethical values.
• With organizational values and norms being shared by all
members of the organization (not just the leaders), believing in the
norms and following them, regardless of the departmental
divisions. This approach argues that management can and should
manage the organizational culture actively.

27. How?
•In the first place, the organization must determine the
commonly-held moral beliefs and values of the members
of the organization and codify them. The end result is the
corporate strategy, mission and, most importantly the code
of ethics. The code of ethics should be posted in prominent
places to serve as a constant reminder about the values the
organization has adopted.

28. How?
• The code is effective only if it is linked to its
communication (including external stakeholders) and is
enforced within the organization. One way it can be
communicated is through ethics training. Although it may
seem redundant to review the code of ethics, there might
be ideological differences between the leaders of the
organization and other employees.

29. How?
•Training and reviewing the organization’s belief systems
will help create a more unified organizational culture.
Furthermore, providing ethical training to employees
indirectly communicates that ethical behavior is valued
and needs to be considered in decision-making .

30. Cultural environment
• An organization’s culture is further reinforced through
organizational enforcement mechanisms. In this case,
it means hiring and promoting ethical people.
Collecting like-minded employees should strengthen
the unitary culture and promote ethics more. The next
aspect of these mechanisms is an ethics program.

31. Cultural environment
• These programs can be designed in two different ways:
a values-based approach which is encouraged by
(rewards and encourages ethical behavior) and a
compliance-based approach (detects, prevents and
punishes breaches of rules).

32. Cultural environment
• Its important to note that, business owners need to study and
understand the culture of locality(ies) in which they transact
businesses. This is because different localities have different cultural
aspects that require maximum attention for successful business
operations. These cultural aspects include;
• Attitudes (the learned tendency to respond in a consistent way)
• Beliefs; what individuals holds to be true about the locality.
• Values; what individuals take to be more important in the lives
• Religious practices; have a an impact on the global business
environment i.e. the lent period.
• Language and communication i.e. official languages.

33. NB:
It’s your assignment to research on Business and
environmental issues