A global business is a type of business organization that has its outlets in many countries. In the other hand, a multinational business has investments in many other countries which operate as separate entities. The most noticeable aspect in global business is the way the business uses similar images and brand names for similar products in all of their markets. For multinational business, there is liberty in designing and adapting their products and services to a tune that fits their individual markets the decision making is decentralized.
In contrast, a global business has one corporate office which acts as the operational head office where coordination of all business operations takes place. In addition, this kind of business puts a lot of emphasis on volume of its sales, efficiency of operations as well as management of operational costs (Hoffman, et al, 2004). The two types of business tries to focus their solutions on the two logical dilemmas of treating customers in different markets as if they are the same or as different sets which requires different attentions.
The most complex thing about ethics when doing any business is the fact that ethics are controlled by social beliefs and values. It has been a challenge for these two businesses to meet the ethical aspect of being honest, truthful and always presenting a fair play in their business operations. In addition, the need to standardize products and services on one hand and adapting them to the market needs on the other fails to justify the supremacy of one business over the other (kline, 2005). Incorporation of ethical standards gives an opportunity to focus on universal ethical dilemmas.
However, this does not over-rule the presence of differences in culture that exists between different markets. Businesses that has employed global approach such as Microsoft, Sony and LG has acknowledged the need place their unique products in almost all parts of the world so as to compete favorably with other businesses. They have developed identical products for all markets. This concept of standardization of product has been supported by the ideology that basic human needs are the same throughout the world (Toulan, Arnold, 2001).
These companies enjoy the benefits of large scale that result from the large-scale production of commodities employing similar production methods. Centralized decision making in terms of research and development helps in saving time as regards to designing the manufacture of new products (Jain, 2003). It offers a wider field of learning for the overall business as it is possible to monitor the performance of a product in different markets. Support of multinational approach is based on the fact that divergence in ways of life and environmental factors may have a significant influence in the consumer trends of people in different countries.
This brings about the issue of the uniqueness in our cultures. What might be ethical in one society might be completely unethical in another society. Some global business have been accused of unethical behaviors such as selling of goods that have been banned in one market in another, lack of provision of adequate information about a product such as side effects and sale of unsafe products (David, Craig, 2005). In summary, global businesses are adapted to a global competition. In the other hand, multinational businesses are designed to compete in a local or national market.
Increased easiness access to markets by many companies have made many businesses turn to global business in order to benefit from universal brand marketing. However, this has faced a lot of criticism from opponents of globalization. However, legal limitations can also lead businesses to multi localize its operations in a bid to meet this part. The strive by each kind of business to assert itself in the market jeopardizes their conformity to ethics as perceived by the society. Reference David, L. & Craig, F. (2005).
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