In a global economy, markets are open to all nations to participate freely. However, with the wave of globalization, there is a wave of inequality around the world due to the utilitarianism and utility maximization among nations (De Woot 2). Business ethics have been compromised for selfish gains across the globe causing injustice to most of the developing nations. The solidarity principle focuses on relationships where people do not compromise the rights of others as an end means for their selfish gains (De Woot 2). People regard each other as friends and share interests, ideas, resources equally. There are many benefits for businesses in this kind of relationships. Good business ethics are built on foundations that serve a common good to all and respect human dignity (De Woot 3). Goods and services produced in this set up meet the needs of all groups of people irrespective of their economic status (De Woot 3). There is respect for employees’ dignity, and also, resources are employed wisely for sustainable development.
With capitalism as the order of the day, businesses seek fast profits at the least cost. The quality of products is compromised, workers are not paid well and are also exploited, health and safety rules are inexistent, child labor is uncontrolled and human dignity is reduced. Currently, individuals are as isolatable and have no prior relationship or obligations toward one another (De Woot 5).
Corporate capitalism promotes privatization of ownership contrary to the principle of solidarity that seeks to subvert the privatization of the ethical life(O'Brien 14). In a competitive business environment whose aim is to maximize profit, solidarity seeks to maximize hope and inspire trust by eradicating division, hatred, dominance, and competition(O'Brien 14). For a sustainable future in business, businesses will have to formulate more cooperative strategies and structures that not only focus on profits but for the common welfare of humanity (O'Brien 14).
Solidarity poses a challenge to producers to produce high-quality products at lower costs. For a market to operate on solidarity principles, market players must all share common values of equity, truth and love (O'Brien 15). Unfortunately, individuals will not always behave themselves, and some producers overlook ethics in meeting these standards for them to remain in business. According to one psychologist, Detlef Fletchenhauer, the solidarity and pro-social behavior necessary for smooth economic transactions are reliant on subjective interpretations and situational perceptions (O'Brien 16). One’s capacity to behave in solidarity with others is determined to a large extent by one’s definition of the situation (O'Brien 16). Under certain circumstances, subjective perceptions can lead to anti-social and anti-market behavior. For this reason, some degree of fundamental solidarity and cooperation is required for markets to function properly(O'Brien 16). The competition that is self-centered and arrogant, that focus on destroying other market players who play by the rules, undermines markets, and its effects are evident in the latest global financial crisis (De Woot 7). Moreover, most of the people suffering in the world are as a result of greediness and unjust competition in the upper-class citizens (de Woot). The greedy prioritize wealth and material things over the basic human needs of the poor and marginal groups around the world (De Woot 7).
Many businesses have started to focus on sustainability programs focusing on other aspects that go beyond profit maximization. These aspects include the environmental and social impact of all creation for a sustainable business environment (Marshall 1). These strategies help to promote solidarity in a capitalist system that has experienced failures as a result of moral decay in business operations. Also, business leaders are promoting solidarity through a focus on stakeholder value (Marshall 1). This kind of focus incorporates all aspects of an economy, ecological and social settings in a business environment as opposed to monetary gains (Marshall 1). This approach is concerned with the conservation of resources for a better future for all. There is a need for democracy in the current economy to cater for regions that have lagged behind due to injustices caused by the dominant players in the business and political world . The market is only a mechanism that naturally lacks the moral sense to determine what is fair, just or good (Marshall 1).It is the obligation of all business people to direct the market morally for the common good of all stakeholders. This effort requires a change in ethics and societal values in addition to laws and policies that govern sustainable development (Marshall 1).
An example of a movement that addresses this issue is the Social and Solidarity Economy (SSE) encompassing networks, organizations, and enterprises that are different in nature but have common organizational structures, development objectives forms and values (De Woot 9). SSE proactively mobilizes and redistributes resources equally to the disadvantage Rather than assuming that the benefits of growth will trickle down (De Woot 10). While profitability is a feature of many types of SSE enterprise, profits tend to be reinvested locally and for social purposes (De Woot 10). And in areas such as ecotourism and fair trade, they are often compatible with the preservation and reconstruction of natural capital. Currently, the SSE movement is underdeveloped limiting its application globally (De Woot 10).
Works Cited
De Woot, Philippe. "The Challenges of Economic Globalisation: Business, Competition, and Society." Symphony A. Emerging Issues in Management 2 (2002): n. pag. Web.
Marshall, Katherine. "Fes Forum, Day Two: Are Solidarity And Harmony Possible Through The World Of Finance?" Berkleycenter.georgetown.edu. N.p., 2013. Web. 13 Apr. 2016.
O'Brien, Thomas W. "The Challenge of Solidarity in a Competitive Business Environment". Journal of Religion and Business Ethics 2.1 (2011): 1-23. Web. 13 Apr. 2016.
