Ethical Issues in Globalization:Analyzing the Cobalt – Nazaki “deal” through the Ethical Lens By : Miguel Vemba

On Globalization

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“ the process by which experience of everyday life, marked by diffusion of commodities and ideas, can foster standardization of cultural expressions around the world” _ (Britannica Online)

What happens when standardization is hampered by mutually exclusive values?

The Ethical Dilemma

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Cobalt's shares soared 37 percent after the company said it found hydrocarbons in the Cameia-1 well.

Cobalt acquires a 40 percent

stake in Block 21 in

partnership with state-owned

Sonangol and local companies

Nazaki Oil and Alper Oil.

Angola officials, who

brokered the deal, held hidden

oil stakes

The Ethical Issue

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Cobalt interests “might not have

complied with US anti-corruption

laws”

Nazaki interests “ respected all

Angolan legislation applicable to such

activities, not having committed any

crime of abuse of power and/or

trafficking of influence to obtain illicit

shareholder advantages”

What should Cobalt do?

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Baird’s Model: Ethical Lens

 

Kant – Rights/duties focus  

An ethical action is doing one’s  duty and following ethical   standards of action

Results LensUtilitarianism (teleology)

Mill – Goals/ends focus

An ethical action is one where the act creates the greatest good for the greatest number

Character focus – MacIntyre

An ethical action is one that is consistent with a good character

Systems focus – Rawls

An ethical action is one that will sustain integrity-building environments

Rights and Responsibility

Results

Relationship

Reputation

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[ ] The Bottom Line…

Cobalt practices undermine the “Foreign Corrupt

Practices act of 1977”, which aim to restore public

confidence in the integrity of the American business

system.

However, it is in full compliance with the Angolan Rule of

Law “…In the global atmosphere we all strive for standardization…the

problem is in determining whose standards to adhere to...”_M.Vemba