Meeting the Ethical
Challenges of Leadership in a Global Society
One may also observe in one’s
travels to distant countries the feelings of recognition and affiliation that
link every human being to every other human being.
—Ancient Greek philosopher Aristotle
Human beings draw close to one
another by their common nature, but habits and customs keep them apart.
—Confucian saying
What’s Ahead
In this chapter, we examine the
moral complexities posed by cultural differences. Ethical global leaders
acknowledge the dark side of globalization and recognize the difficulty of
making moral choices in cross-cultural settings. To master these challenges,
they understand the relationship between cultural values and ethical decisions,
address attitudinal obstacles, seek moral common ground, and develop strategies
for solving ethical dilemmas in cross-cultural settings.
The Dark Side of Globalization
Globalization may be the most
important trend of the twenty-first century. We now live in a global economy
shaped by multinational corporations, international travel, the Internet,
immigration, and satellite communication systems. Greater cultural diversity is
one product of globalization. Not only is there more contact between countries,
there is greater cultural diversity within nations. For example, nonwhites
account for most of the population growth in the United States, and nineteen of
the nation’s twenty-five largest counties have majority minority populations.
By 2044, whites will be in the minority. In other industrialized nations, many
new workers are immigrants. Italy and Germany will need hundreds of thousands
of new immigrants each year to maintain their working-age populations to 2050.1
Supporters of globalization point to
its benefits. Free trade produces new wealth by opening up international
markets, they argue. At the same time, the costs of goods and services drop.
The greater flow of information and people puts pressure on repressive
governments to reform.2
Critics of globalization paint a
much bleaker picture. They note that global capitalism encourages greed rather
than concern for others. Ethical and spiritual values have been overshadowed by
the profit motive. Local cultural traditions and the environment are being
destroyed in the name of economic growth. The gap between the rich and the poor
keeps growing.3
Debate over whether the benefits of
globalization outweigh its costs is not likely to end anytime soon. This much
is clear, however: As leaders, we need to give serious consideration to the
dark side of the global society in order to help prevent ethical abuse. With
that in mind, let’s take a closer look at how leaders cast the shadows outlined
in Chapter 1 in a global environment.
The Global Shadow of Power
In the modern world, a leader’s
power is no longer limited by national boundaries. Increasing interdependence
brought about by the integration of markets, communication systems, computers,
and financial institutions means that the actions of one leader or nation can
have a dramatic impact on the rest of the world. Take the Chinese financial
crisis, for instance. When China’s leaders revised the nation’s financial
projections downward and devalued its currency in 2015, stock markets around
the world suffered significant declines, resulting in $5 trillion in losses.4
Ethical leadership in the
multinational context must take into account the potential far-ranging
consequences of every choice. Shadows fall when leaders forget this fact. For
example, the U.S. government refused for decades to increase mileage
requirements for trucks and automobiles, which contributed to global warming.
Saudi Arabia’s unwillingness to ban terrorist groups contributed to the World
Trade Center and Bali bombings. Apple, Intel, and other electronics
manufacturers were accused of funding mass rape, murder, and slave labor in the
Congo through their purchase of “conflict minerals” mined in the region. Now
they must disclose whether they use Congolese titanium, tantalum, tungsten, and
gold in their products.5
Concentration of power is a
by-product of globalization that increases the likelihood of abuse. The United
States is a case in point. Critics accuse the world’s only superpower of
throwing its political and military weight around. Corporations also wield
great influence in the global marketplace. Multinational companies have more
economic clout than many nations. According to one estimate, 44 of the world’s
100 largest economies are corporations.6
The Global Shadow of Privilege
As noted earlier, globalization
appears to be increasing, not decreasing, the gap between the haves and the
have-nots both within and between nations. Oxfam reports that the richest 1% of
the world’s population owns almost half of the world’s wealth; the 85 richest
people in the world own as much as the bottom half (3.5 billion people). Seven
out of ten people live in nations where economic inequality has increased over
the past thirty years.7 The only good news is that there has been a decline in
the number of people in absolute poverty (those earning less than $1.25 a day),
largely because of China’s economic growth.8 So far, leaders of wealthy nations
have been more interested in promoting the sale of their goods than in opening
up their markets to poorer countries. Privileged nations also consume more,
which leads to environmental damage in the form of logging, oil drilling,
and mineral extraction. This damage has a disproportionate impact on the disadvantaged.
Whereas the wealthy can move to cleaner areas, the poor cannot. Instead, poor
citizens must deal with the loss of hunting and fishing grounds, clean air, and
safe water.
First World Problems and
related books and websites humorously highlight the differences between the
haves and the have-nots by describing some of the issues faced by those living
in the developed world. While those in so-called third world nations have to
worry about malnutrition, poverty, disease, and lack of medical care, “First
Worlders” are concerned about “problems” such as these:9
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