Abstract
This paper is largely a theoretical exposition of ethical challenges that stifle the participation of smallbusinesses in the global value chains with particular reference to businesses in developing countries. Smallbusinessclusters in developing economies, remain locked in low-quality products and low-income markets.With little innovation, small business lack capacity to produce goods that can attract foreign demand. Yet,small enterprises must provide productive employment for an increasing number of job-seekers in thesecountries. Innovation growth in small enterprises is normally limited to apprenticeship process and as such,results in a dead-end to progress of indigenous technology. To promote creation and growth of small business,efforts are required to put the small business clusters in a global value chain as this enhances possibilities ofnew market avenues and as well as benching market indigenous innovative efforts to international standards.Exposure of small business to global market also encourages networks formations which are conduits of skillsfor quality improvement and valuation of products from the sector. However, the quest for improving theparticipation and market share of small business is faced with challenges that stem from the way the process ofglobalization has taken place over time. To overcome these globalization challenges, policy makers mustcontend with ethical issues that require to be addressed through consultative efforts at international arena.
Highlights
While there are many definitions of globalization, one may take note of the words of Held et al (1999)which suggest that the concept of globalization implies, first and foremost, a stretching of social, political and economic activities across frontiers such that events, decisions and activities in one region of the world can come to have significance for individuals and communities in distant regions of the globe (p.15)
Ethical issues are emerging in relation to how globalization affects the operations of small businesses within economics, social relations, politics, media and technology contexts (Stephens 2011, Lyons 2005)
Ethical behavior in a globalization process relates to fairness in interpersonal and intergroup interactions that maximizes the gains for all participants
Summary
While there are many definitions of globalization, one may take note of the words of Held et al (1999). One cornerstone of the globalization process is market liberalization which emphasizes removal of all tariff and non tariff barriers to product and resources mobility, including elimination of all impediments to competitive practices in economic activities (Cornia, 1999). Those who advocate for liberalization argue that on the supply-side, small businesses will benefit through better access to efficient technologies and cheaper raw materials. Even if globalization allows wider product choices to consumers in LDCs, small businesses may be driven out of market by big foreign Another fundamental ingredient of globalization is privatization of public corporations. Governments of LDCs should question the rationale for, and the approach they take in, privatization
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