Critical Perspectives on International Business Ethics

Question: Discuss about the Critical Perspectives on International Business Ethics. Answer: Introduction Business ethics refer to an applied form of ethics, which identify the ethical principles and ethical problems. It arises in the business environment. It can be applied to all business conduct aspects and also relevant to the individual conduct and whole organization. On the other hand, phronetic planning research is the phenomena, which is based on contemporary interpretation of planning. However, coltan is a mineral, which is black and tar like mineral (Ayres 2012). The good or bad effect of coltan on human being is discussed in the assignment. Coltan is used in mobile phones, laptops, pagers and computers as it has high electric capacitors. Congo is the possessor of coltan. It is notable that 80% coltan is gained from Congo (Bleischwitz, Dittrich and Pierdicca 2012). During refining the coltan, it transforms into heat resistant powder, which can hold huge electric charge. However, it has bad effects also due to its conflict. After the transformation of coltan, it is sold to big multinational companies to make electronic gadgets (Arimatsu, Louise, and Hemi Mistry 2012). The discussion focuses on the coltan fact of conflict minerals, which includes various factors. The discussion is about the situation of multinational corporations, who use coltan in business in light of new business ethics. It is based on the phronetic inquiry and implies on the informed action, which forms intellectual virtues. Phronesis helps to think about the considered business ethics. The study helps to keep phonetic actions and perspectives. Analytic analysis of conflict of Coltan The discussion analyses analytically the situation of the multinational companies, which are using coltan to make electronic gadgets and also help to understand the business ethics. For the last decades, many people died due to the brutal conflict of coltan. The people of Afghanistan, Zimbabwe, Colombia and Democratic Republic of Congo are mainly affected. It is necessary to know the good and bad effects of using coltan in the electronic devices. However, the multinational companies like Nokia, IBM, Motorola, Alcatel, Compaq, Dell, Sony, Hewlett Packard and Ericsson use coltan in their products in very large amount, which may be harmful for the customers. According to Hark et al. (2012), the conflict may be of various types like geographical conflict, armed conflict, human rights violation and industrial conflict. However, there are exogenous and endogenous efforts to combat the conflict minerals. Priority of particular 80% coltan of the world are used in the mobile phones, game consoles, computer chips and wireless devices that come from Congo. The eastern area of Congo is known as conltan belt (Jennings 2014). From this area, the coltan is achieved more. However, in last decades, conflict of coltan was the cause of many peoples death. Mainly, the people who collect the coltan from the mine, are in risk zone. Coltan is a very powerful mineral that has huge capacity to hold energy and electrons. For this reason, it is very precious material and the cause of war (flyvbjerg.plan.aau.dk 2017). However, the refined coltan is used in the production of electronic goods. During the refining process, many people has died due to conflict. Approximately 5.4 million people died due to the conflict of coltan. According to Bleischwitz, Dittrich and Pierdicca (2012), this incident of death comes in the view of people due to huge use of coltan in electronic gadgets. The poor people, who have to refine the coltan, are the loser as it is very risky. On the other hand, multinational corporations are the gainer as they are gaining money by using coltan in their products. One negative point of mining in DRC is the bad environmental impact (Conflict Minerals | Global Witness | Global Witness". 2017). This impact involves deforestation limitation, contamination of water and degradation of land. The government of Congo unregulated the deforestation in Eastern Congo. However, there is no such regulation for the land degradation. Coltan develops the energy power of electronic devices, which benefits the customers also. Jennings (2014) argued that as coltan holds high energy, long time use of devices that are made of coltan, can harm the users also. Another gainer is the people who are involved in the transport of coltan. People, who supply refined coltan to the multinational organizations, are making lots of money. At the time of war, militaries were also interested in refining coltan. Democratic Republic of Congo is the main place of coltan mining. Ayres (2012) mentioned that it is impossible for the customers to know that the product, they are using, are made of coltan. However, with the coltan, Congo is the source of wolframite and cassiterite also. The people who are involved in the refinng process of coltan, do not know about the other minerals. According to Maystadt, De Luca, Sekeris and Ulimwengu (2014), the dignitaries, war inventor and commanders are also enlisted in the gainer list. The main reason of war was the greed of the powerful people to achieve more profit. Not only the adult people of Congo but also the children participate in the refining process. Matthysen and Andrs Zaragoza Montejano (2013) suggested that consumers should use the electronic devices very carefully to avoid the conflict, which is fatal. Mining of coltan needs large amount of water therefore the location of mining is mainly situated near the water sources, which causes contamination of water. Coltan mining depletes the resources of water and the environment, which exploiting necessary natural elements (Delawala 2012). Planning of the research The multinational companies, which are using coltan in their products, should know the harmful effects of coltan. Conflict of coltan can affect the business of the multinational companies. However, the companies are making very much profit by using coltan and have various advantages in the global market ("In Focus: Congo's Bloody Coltan". 2017). Customers like devices of high speed and this is the main reason of using coltan in mobile phones, laptops and computers. However, the use of coltan can conflict with the business of the multinational organizations. The multinational corporations should maintain the customer loyalty to maintain the business ethics. However, the multinational corporations are deeply involved in the conflict and explosion of coltan in DCR and Congo. Foreign forces and rebels mined coltan and sell it to the multinational companies. However, Carpenter (2012) opined that multinational corporations are not directly guilty for the exploitation rather the companies a re the server engine of the conflict in Congo. By using the coltan in devices, the companies are breaking the ethics of business. The companies should not use such materials for gaining profit. Moreover, taking or giving money to the foreign government for the development and wellbeing of company is unauthentic. The multinational companies should maintain the loyalty of employees to make the management strong. The market of coltan is growing faster as the multinational companies are using this. Coltan of Congo is of high quality and the main source of tantalum in the international market ("In Focus: Congo's Bloody Coltan". 2017). It is necessary to research that the use of coltan in mobile phones, laptops and computers are safe or not and how much safe they are for the consumers. However, Maystadt, De Luca, Sekeris and Ulimwengu (2014) mentioned that it is unethical to use coltan in those devices. Many people died due to burst of mobile phones and laptops. Therefore devices, which are made up of coltan, are not safe. Negative con sequence of mining of minerals like coltan, has the negative surrounding impact. The negative impact involves but is not limited for deforesting, land degradation, water contamination and pollution. Some corporations work globally to combat the conflict of coltan in DRC and the repercussions. However, the developed countries conflict between themselves to obtain coltan ("Conflict Minerals | Global Witness | Global Witness". 2017). Efforts of combat have very much importance at local level, which cannot be exaggerated. Global pressure and intervention help to raise awareness and work to stop the usage of conflict minerals. However, if the local initiatives do not follow the awareness then the global efforts provide insufficient and shorter gain of their goals. Human rights are conflicted due to the exploitation of coltan mining. The rebels force the women and children to work in the mining of coltan ("What We Do | War Child". 2017). They harass the population by torturing, forced evi ction and raping. Desired development of Coltan To develop the situation and mortality, the multinational companies and the powerful administration should avoid the usage of coltan (Hoffman 2017). The multinational corporations should have the responsibilities to maintain the supply chain and operation system with precious and rare material like coltan. The multinational corporations can avoid the use of coltan and find other minerals to use in devices so that the harm can be avoided. In Congo, coltan is mined on daily basis. People in Congo, who are appointed for the mining are facing various health injuries and face death. Due to brutal civil war of Congo raised the demand of coltan. Forum, James (2017) opined that in Congo, use of children in mining is fatal. The children are forced to work in the difficult areas and perform difficult works because of poor financial status ("What We Do | War Child". 2017). The family members forced them to drop study and join with them for money. The powerful foreign authorities supply huge amo unt of money to the local rebels and therefore the accidents happen. The livelihoods of many families depend on the mining of coltan. Usanov et al. (2013) suggested that coltan can be used in good works instead of making electronic devices such as in health and social care. Coltan can be used in making pacemaker and airbag protection material in cars. However, the foreign authorities sell the coltan to the electronic device making companies only to make high power electronic devices. Mining of coltan destroys the environmental properties, which are the main conflict in business ethics. According to Delawala (2012), business ethis has relation with the wellbeing of environment. Mining of coltan pollutes the environment by producing mercury. Mercury can affect the human being and the population. However, the extract of coltan mining does not contaminate soil directly and therefore the effects of coltan on the crops are less. Various nations engaged in conflict to achieve coltan to be the leading nation in the electronic device market. The main reason of the war was not the coltan but the desire of being first nation ("Conflict Minerals | Global Witness | Global Witness". 2017). Rational decision making to reduce risk of coltan use While analysing the rational for use of coltan in business, the rational decision making in business will be decided by the following questions: Where are we heading with the planning and use of Coltan? Who gains and who loses from the production of Coltan? Whether the development is desirable and what needs to be done about it? (Flyvbjerg 2014) On analysis of the conflicts arising with use of Coltan by multinational companies, it is necessary to carry out risk-benefit analysis and save the public from the future adverse effect in place of thinking of short-term profits in business. This is important because maintaining ethics and morality in business is also a part of corporate social responsibility (Weiss 2014). Coltan has been increasingly used in mobile phones and as 80% of Coltan is being produced in Congo, the region is going through a civil war. The conflicts arising from Coltan business is mainly occurring due to increase in corruption and child labour in mining industry. The UN reports states that Rwanda is also making profit by selling Coltan although there is no Coltan mine in Rwanda (Ayres 2014). Due to this quest for money from the selling Coltan, business and large corporation is expanding their business but the ultimate losers are the families and villagers in Coltan mining areas. Over millions of people have died due to the Coltan conflict and families have been massacred. Considering this impact on lives of people, business ethics demands review of power and values to changes the current trend in production and supplies of Coltan. Business ethics is needed for the creation of moral standards and practices in business environment. In case of Coltan production, it has been found that the money generated from the sale of new weapons has further lead to expenditure in weapons which has created a vicious circle of human losses due to Coltan production. Apart from affect on lives of people and families, the mining of Coltan has lead to loss of National Park and wild life. So far the greed for political power and wealth has only lead to increase in Coltan production and no action has been taken to protect the environment and lives of people (Hoffman 2017). The business of Coltan has made Congo a place of conflict, brutality and exploitation. The mishandling of immense revenues generated from exploitation of natural resources has devastated millions of lives. As part of business ethics, it is necessary to evaluate measures that can prevent corruption and conflict due to Coltan mining. Attention of government and NGOs is required to prevent to control coltan trade and business (Bleischwitz, Dittrich and Pierdicca 2012). Business entities have the role in being accountable to protect loss of natural resource and human lives due to its business. Apart from this, strict mining legislation is required by government to regulate mining practices and conditions at Congo (Forum 2017). This approach of business ethics can help to eliminate terror and corruption due to Coltan trade. Conclusion From the above discussion it can be concluded that coltan is harmful for health. It is mainly found in Congo and Africa. coltan business has made conflict with the brutality and exploitation. The immense mishandling revenues generated from the natural resources exploitation. Coltan exploitation is the cause of death of many people. Government has paid attention to save the natural resources. The NGOs also are trying to develop the wellbeing of the people who lives near the coltan mining area. During mining of coltan, mercury is produced. Mercury affects the nervous system and health of the people mainly the children. The children cannot tolerate the harmful toxicity of mining and as a result deaths happen. Different nations are conflicting to achieve the coltan as it is very precious and harmful. The dealers of coltan are the main gainer and the management of multinational companies who are using coltan in their products are also gainer. The mobile phones, computer, laptops and other electronic devices are the main thing, in which coltan is used. Except using coltan in electronic devices, it is better to use the coltan in the health and social care to make the medical devices. The women and children are joining in the work of mining due to poverty, which should be avoided. 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