The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness
The article examines the role of business ethics in the economic development of Ukraine. It mentions the links between values, trust and profitability and analyses positions of the country using the results of global competitiveness index. In the opinion of the author, it is imperative to analyze th...
Gespeichert in:
| Datum: | 2010 |
|---|---|
| 1. Verfasser: | |
| Format: | Artikel |
| Sprache: | English |
| Veröffentlicht: |
Інститут економіки промисловості НАН України
2010
|
| Schriftenreihe: | Економічний вісник Донбасу |
| Schlagworte: | |
| Online Zugang: | http://dspace.nbuv.gov.ua/handle/123456789/24021 |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| Назва журналу: | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| Zitieren: | The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness / A.S. Zyuzgina // Економічний вісник Донбасу. — 2010. — № 4(22). — С. 179-184. — Бібліогр.: 11 назв. — англ. |
Institution
Digital Library of Periodicals of National Academy of Sciences of Ukraine| id |
irk-123456789-24021 |
|---|---|
| record_format |
dspace |
| spelling |
irk-123456789-240212013-02-13T03:29:01Z The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness Zyuzgina, A.S. Marketing The article examines the role of business ethics in the economic development of Ukraine. It mentions the links between values, trust and profitability and analyses positions of the country using the results of global competitiveness index. In the opinion of the author, it is imperative to analyze the ethical conduct at such a political and socioeconomic stage of development as Ukraine is today. The article lists ethical standards as the determinants driving productivity and competitiveness, their essence and outlines the prospects for their further development in Ukraine. Key Words: business ethics, global competitiveness, ethical standards, ethical conduct, economic freedom. У статті досліджено роль ділової етики в економічному розвитку країни. Зазначено зв’язок між ціннісними засадами, довірою та прибутком, також проаналізовано позиції України в цій сфері за показником глобального індексу конкурентоспроможності. На думку автора, аналіз етичної поведінки саме на політичному та соціально-економічному рівні розвитку, на якому перебуває Україна, є актуальним. У статті зазначається перелік етичних стандартів, як детермінант, що сприяють підвищенню продуктивності та конкурентоспроможності, а також виділяються перспективи для подальшого розвитку цих факторів в умовах України. Ключові слова: ділова етика, глобальна конкурентоспроможність, етичні стандарти, етична поведінка, економічна свобода. В статье исследовано роль деловой этики в экономическом развитии страны. Определена связь ценностными характеристиками, доверием и прибылью, так же проанализирована позиция Украины в этом аспекте согласно показателю Индекса глобальной конкурентоспособности. По мнению автора, анализ этичного поведения именно на политическом и социально-экономическом уровне развития, на котором находится Украина, является актуальным. В статье указывается перечень этических стандартов, как детерминант, которые благоприятствуют повышению продуктивности и конкурентоспособности, так еж выделяется перспективы для дальнейшего развития этих факторов в условиях Украины. Ключевые слова: деловая этика, глобальная конкуренция, этические стандарты, этичное поведение, экономическая свобода. 2010 Article The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness / A.S. Zyuzgina // Економічний вісник Донбасу. — 2010. — № 4(22). — С. 179-184. — Бібліогр.: 11 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/24021 330.33.17.022.1 en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
| institution |
Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| collection |
DSpace DC |
| language |
English |
| topic |
Marketing Marketing |
| spellingShingle |
Marketing Marketing Zyuzgina, A.S. The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness Економічний вісник Донбасу |
| description |
The article examines the role of business ethics in the economic development of Ukraine. It mentions the links between values, trust and profitability and analyses positions of the country using the results of global competitiveness index. In the opinion of the author, it is imperative to analyze the ethical conduct at such a political and socioeconomic stage of development as Ukraine is today. The article lists ethical standards as the determinants driving productivity and competitiveness, their essence and outlines the prospects for their further development in Ukraine. Key Words: business ethics, global competitiveness, ethical standards, ethical conduct, economic freedom. |
| format |
Article |
| author |
Zyuzgina, A.S. |
| author_facet |
Zyuzgina, A.S. |
| author_sort |
Zyuzgina, A.S. |
| title |
The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness |
| title_short |
The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness |
| title_full |
The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness |
| title_fullStr |
The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness |
| title_full_unstemmed |
The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness |
| title_sort |
current state of providing the ethical standards in the ukrainian business in the context of global competitiveness |
| publisher |
Інститут економіки промисловості НАН України |
| publishDate |
2010 |
| topic_facet |
Marketing |
| url |
http://dspace.nbuv.gov.ua/handle/123456789/24021 |
| citation_txt |
The current state of providing the ethical standards in the Ukrainian business in the context of global competitiveness / A.S. Zyuzgina // Економічний вісник Донбасу. — 2010. — № 4(22). — С. 179-184. — Бібліогр.: 11 назв. — англ. |
| series |
Економічний вісник Донбасу |
| work_keys_str_mv |
AT zyuzginaas thecurrentstateofprovidingtheethicalstandardsintheukrainianbusinessinthecontextofglobalcompetitiveness AT zyuzginaas currentstateofprovidingtheethicalstandardsintheukrainianbusinessinthecontextofglobalcompetitiveness |
| first_indexed |
2025-07-03T03:29:23Z |
| last_indexed |
2025-07-03T03:29:23Z |
| _version_ |
1836594876693610496 |
| fulltext |
179
Економічний вісник Донбасу № 4 (22), 2010
A. S. Zyuzgina
Problem actuality. In the last years, dozens of
ethics centers and programmers devoted to business
ethics, legal ethics, bioethics, medical ethics, engineering
ethics, and computer ethics have sprung up. These
centers are designed to examine the implications of moral
principles and practices in all spheres of human activity
on our lives and that today the role of ethical aspect is
essential.
Rising interest to the ethics in business in
Ukraine is based on several reasons. First, is that
development and the specification of business
stipulate for reaction on society problems, the increase
role of corporate culture, managing the relations with
employees, cooperation with the government, the
impact of the competition on the business conduct
and the way of running business. On the other hand
there is an international community and the tendency
that the EU forms common European policy of
business ethics. The Ukrainian entering to
international business makes it inevitable to assimilate
the principles of this policy. The development of
Ukrainian business and the integration to the global
economic system set up a number of tasks connected
with ethical questions.
These issues were examined with such foreign and
Ukrainian authors as O.C.Ferrell, Craig E.Jonson, George
S. Yip, K. Sanford, G. Ebersole, Jed A. Reay, L. Anam,
T. Barnett, Sydorenko S.V., Pidrobsky U.V., Zabolotny
V.M., Shovkun I.G., Noviskiy V.E., Momot T.V., Glushko
T.P., Gugina T.O. and others. Foreign literature devotes
much attention to the developing business strategies in
connection with ethical aspects. Ukrainian authors have
achieved results in the sphere of approving the importance
of ethical component for business life. But there is still
need to examine firm links between ethical behavior and
profitability. Another side is the importance of estimation
of ethical level of the company or country.
The objective of the article is to estimate the
level of ethics of Ukrainian business, finding indices
and figures that could reflect the current situation and
give relevant information. On the other hand it is also
important to show the short comings of the ethical side
of Ukrainian business.
Starting with Ukrainian business and its ethical
features it is necessary to give the definition of ethics.
Ethics can be viewed from two aspects, normative and
prescriptive.
First, ethics refers to well-based standards of right
and wrong that prescribe what humans ought to do,
usually in terms of rights, obligations, benefits to
society, fairness, and specific virtues. Ethics, for
example, refers to those standards that impose the
reasonable obligations to refrain from rape, stealing,
murder, assault, slander, and fraud. Ethical standards
also include those that enjoy virtues of honesty,
compassion, and loyalty. And, ethical standards include
standards relating to rights, such as the right to live, the
right to freedom from injury, the right to choose, the
right to privacy, and right to freedom of speech and
expression. Such standards are adequate standards of
ethics because they are supported by consistent and
well-founded reasons.
Secondly, ethics refers to the study and
development of personal ethical standards, as well as
community ethics, in terms of behavior, feelings, laws,
and social habits and norms which can deviate from
more universal ethical standards. So it is necessary to
constantly examine one’s standards to ensure that they
are reasonable and well-founded. Ethics also means,
the continuous effort of studying our own moral beliefs
and conduct, and striving to ensure that we, and our
community and the institutions we help to shape, live
up to standards that are reasonable and solidly-based
for the progress of human beings. Business ethics is an
integral part of responsible business conduct. It provides
a basis for business decisions and conduct.
Typically, business ethics presumes that decisions
will conform to standards articulated in law and
regulations; internal policy and procedures; a set of
core values determined by owners and managers,
including honesty, integrity, respect, and fairness; and
commercial principles such as profitability, customer
satisfaction, product quality, health, safety, and
efficiency. Business ethics issues range from practical,
immediate ones, such as an enterprise’s duty to be
honest with its employees and customers, to broader
social and philosophical questions.
Ethics is based on the responsibility (as free moral
УДК 330.33.17.022.1
A. S. Zyuzgina,
State University of informatics and artificial intelligence,
Donetsk, Ukraine
THE CURRENT STATE OF PROVIDING THE ETHICAL STANDARDS
IN THE UKRAINIAN BUSINESS IN THE CONTEXT OF GLOBAL COMPETITIVENESS
180
Економічний вісник Донбасу № 4 (22), 2010
A. S. Zyuzgina
agents, individuals, organizations, and societies are
responsible for the actions that they take) and
accountability (individuals, organizations, and society
should be held accountable to others for the
consequences of their actions). In most countries there
is a system of laws which codifies the most significant
ethical standards and provides a mechanism for
holding organizations, and even governments
accountable.
Thus, Ukraine needs to understand the role of
ethical conduct especially in the context of European
integration.
The analysis of studies and publications shows
that Ukrainian business is on the right way of running
ethical business. Despite the low level of indicators
that reveal the countries ethical positions there is a
trend to increase the role of business ethics and
improve the moral basis of Ukrainian business. In
acknowledgment of this is the fact that a number of
Ukrainian companies join The Global Compact, most
of the companies that operate on international market
have the codes of conduct and provide the
transparency of running business. But there is still a
lot of misconduct and high level of corruption [1].
To estimate the ethical level is a complicated
problem, but it could be made through the analysis of
indicators which is indirectly connected with business
ethics and could reflect the basic trends.
It is interesting to estimate Ukraine’s ethical position
through the Global competitiveness index (GCI).
According to Global competitiveness report Ukraine’s
performance for the past year reflects the daunting
challenges the country has faced during the global
economic crisis. The country drops by seven positions
to 89th. A particularly severe weakening of its already
poor macroeconomic stability contributed to this slide,
as has a more negative assessment across many of the
areas measured by the GCI.
The country nevertheless maintains the
characteristics that made up its competitive strength in
the past years. A well-educated population, flexible and
efficient labor markets, and a large market size continue
to set a good basis for the country’s future growth
performance.
The new government announced an ambitious
reform agenda that, according to the GCI, should
address as a priority the country’s weak institutional
framework (134th place) and the highly inefficient
markets for goods and services (129th place), which
stifles competition and prevents entrepreneurship from
flourishing. In this context, the country’s recent
accession to the World Trade Organization (WTO)
should contribute to intensifying competition in the
country, through reducing both trade barriers and
domestic obstacles such as ineffective anti-monopoly
policies (126th position).
Priority should also be given to fostering the
development of the financial sector (119th position), the
major weaknesses of which exacerbated the effects of
the crisis on Ukraine. Both financial market efficiency
and trustworthiness have continued, down to ranks 123rd
and 115th, respectively.
There are many determinants driving productivity
and competitiveness. The competitiveness is an impact
of many different components, each measuring a
different aspect of it. These components are grouped
into 12 pillars of economic competitiveness:
1. First pillar: Institutions
2. Second pillar: Infrastructure
3. Third pillar: Macroeconomic environment
4. Fourth pillar: Health and primary education
5. Fifth pillar: Higher education and training
6. Sixth pillar: Goods market efficiency
7. Seventh pillar: Labor market efficiency
8. Eighth pillar: Financial market development
9. Ninth pillar: Technological readiness
10. Tenth pillar: Market size
11. Eleventh pillar: Business sophistication
12. Twelfth pillar: Innovation
Obviously, this index can reflect the ethical side in
the context of first pillar. According to the Global
competitiveness report the Institutions as a pillar of
competitiveness includes ethics (Figure 1).
This pillar has a considerable influence on GCI,
its share is approximately 25%. So the conclusion is
that ethics today could be regarded as the factor of
competitiveness. If we refer to the GCI 2010-2011, the
Ukrainian position is 89, in comparison with 87 in 2009.
Let’s compare Ukrainian positions with other countries
(table 1)
Let’s examine in details the position of Ukraine
according to the GCI and define the role of ethics in the
process of improving the competitiveness. At first
consider the problems for doing business in Ukraine.
Figure 2 shows the questionnaire including list of 15
factors, respondents were asked to select the five most
problematic ones for doing business in their country and
to rank them between 1 (most problematic) and 5. The
bars in the figure show the responses weighted according
to their rankings (Figure 2).
According to this data the conclusion is that most
of the problematic factors for doing business in Ukraine
today correspond to the ethical aspects. Another figure
that could reflect the level of ethical aspects of Ukrainian
economy is included in table 2. It can evaluate indicators
of GCI through detailed analyzing.
181
Економічний вісник Донбасу № 4 (22), 2010
A. S. Zyuzgina
Fig. 1. The Institutions system as a competitiveness factor [4]
Table 1
The Ukrainian Global Competitiveness Index 2010—2011 in compare with other counties [9]
# Country/Economy Rank
1 Switzerland 1
2 United States 4
3 Finland 7
4 China 27
5 Poland 39
6 Russian Federation 63
7 Romania 67
8 Croatia 77
9 Ukraine 89
10 Honduras 91
11 Chad 139
Fig. 2. The most problematic factors for doing business in Ukraine [9]
182
Економічний вісник Донбасу № 4 (22), 2010
A. S. Zyuzgina
The conclusion is that today Ukraine is on low
position almost in every indicator, but it has some positive
trend. These analyzing arises a questions: where is the
links between ethics and economics and other one is:
why does Ukraine in need of providing ethical standards
and conduct?
An essential for any business enterprise on the way
to a market economy is to improve its own business
performance. For all business enterprises, this is the first
step toward making profits and contributing to economic
progress. To prove this let’s consider the link between
values in general, trust in particular, and profitability. The
link is based on an increase in creativity, support of
management decisions, knowledge sharing, and pride,
among other factors (Fig. 3).
A business ethics program provides a toolkit of
leadership and management practices to aid any
enterprise — large or small — in the responsible pursuit
of its envisioned future. It helps owners and managers
ensure that their employees and agents comply with
applicable laws and regulations. It also helps them
minimize risk to the enterprise, improve the enterprise’s
reputation, and bring value to stakeholders by adapting
emerging global standards of responsible business
conduct and best practices.
Another indicator that reflects the ethical
transformation of the country is The Index of
Economic Freedom. Economic freedom has far-
reaching positive impacts on various aspects of human
development. Economic freedom correlates with
poverty reduction, a variety of desirable social
indicators, democratic government, and environmental
sustainability.
Today, to the opinion of Wall Street Journal research,
the Ukraine’s overall score of economic freedom is lower
than the world average. It is 46.4, making its economy
ranking 162nd freest in 2010 Index. Its score is 2.4 points
lower than last year (Fig. 4).
According to the Wall Street Journal and The
Heritage Foundation research the main problems lie in
the field of:
Table 2
The detailed rank of Global competitiveness index of Ukraine in the aspect of Institution pillar [9]
# Indicator Rank of the country from 139
1 Property rights 135
2 Intellectual property protection 113
3 Diversion of public funds 129
4 Public trust of politicians 122
5 Irregular payments and bribes 127
6 Judicial independence 134
7 Favoritism in decisions of government officials 127
8 Wastefulness of government spending 131
9 Burden of government regulation 125
10 Efficiency of legal framework in settling disputes 138
11 Efficiency of legal framework in challenging regulations 138
12 Transparency of government policymaking 114
13 Business costs of terrorism 58
14 Business costs of crime and violence 65
15 Organized crime 116
16 Reliability of police services 122
17 Ethical behav ior o f firms 130
18 Strength of auditing and reporting standards. 128
19 Efficacy of corporate boards 90
20 Protection of minority shareholders’ interests 138
21 Strength of investor protection 93
Fig. 3. Links between Values, Trust and Profitability [4]
183
Економічний вісник Донбасу № 4 (22), 2010
A. S. Zyuzgina
— creating an entrepreneurial environment and
eradicating corruption;
— progress in privatization and attracting foreign
investment has been slow;
— bureaucratic hurdles make many commercial
operations and business formation challenging;
— the judicial system lacks independence and
capacity;
— Legal procedures are commonly subject to
corruption.
As it shown the lowest position Ukraine has in
components of Investment freedom and freedom from
corruption. Both components directly connected with
the ethical behavior of companies and government
according. To the opinion of global community,
corruption is one of the most problematic factors of
economic development for today. According to the
Economic Freedom index research corruption pervades
all levels of Ukrainian society and government and all
spheres of economic activity and is a major obstacle to
foreign investment. Low public-sector salaries fuel
corruption in local administrative bodies such as the
highway in Police and tax administration, as well as in
the education system [5].
It goes without saying that today all elements
economics are based on the policy of ethical behavior
and it should be supported by the on state regulation as
well as support from international organizations, individual
investors, and large companies.
Among the prospects of continuous studies in this
area are outlining the strategy for the Ukrainian
companies of adapting to the conditions of global
competition in the aspect of business ethics and getting
the economic effect through providing the ethical
principles of doing business.
Global community expects cultural and managerial
change in firms that will create the basis for sustainable
development. Ethical practices might be a way of
committing businesses to contribute to sustainable
economic development, since being a part of sustainable
development efforts is the most influential reason for all
companies.
References
1. Заболотний В. М. Ціннісні засади глобальної
ділової етики / В. М. Заболотний // Культура і
сучасність. — 2009. — №2 [Електронний ресурс]. —
Режим доступу : http://www.nbuv.gov.ua/portal/
S o c _ G u m / K i s / 2 0 0 9 _ 2 / i n d e x . h t m .
2. Підборський Ю. В. Культура та етика підприєм-
ництва і підприємницької діяльності / Ю. В. Підборський
// Економічний вісник університету ДПУ. — 2009. —
№13. 3. Пилипенко Г. Морально-етичні норми як
фактор формування національної моделі регулювання
економіки / Г. Пилипенко, Е. Прушківська //
Інституціональний вектор економічного розвитку. —
№1. — С. 12 — 17. 4. Business Ethics: a manual for
managing a responsible business enterprise in emerging
market economies / U.S. Department of Commerce,
International Trade Administration, 2004. — 355 p.
5. Corruption Perceptions Index 2009 [Електронний
ресурс]. — Режим доступу : http://
Fig. 4. The estimation of components of economic freedom in Ukraine [6]
184
Економічний вісник Донбасу № 4 (22), 2010
A. S. Zyuzgina
www.transparency.org/policy_research/surveys_indices/
cpi/2009/cpi_2009_table. 6. Highlights of the 2010 Index
of economic freedom Terry Miller, Kim R. Holmes //
The wall street journal [Електронний ресурс]. — Ре-
жим доступу : http://www.heritage.org/index. 7. John
D. Sullivan. The Moral Compass of Companies: Business
Ethics and Corporate Governance as Anti-Corruption
Tools // Global Corporate Governance Forum Focus 7
[Електронний ресурс]. — Режим доступу: http://
www.ifc.org/ifcext/cgf.nsf/Content/Focus_Notes.
8. Tengku Mohd T. Sembok. Ethics Of Information
Communication Technology (Ict) // Materials of Regional
Meeting on Ethics of Science and Technology [Елект-
ронний ресурс]. — Режим доступу : http://
www.emeraldinsight.com. 9. The Global Competitiveness
Index 2010—2011: Looking Beyond the Global Economic
Crisis [Електронний ресурс]. — Режим доступу : http:/
/www.weforum.org/documents/GCR10/index.html.
10. Gorge S. Yip. Total global strategy: managing for
worldwide competitive advantage / Business school edition.
— 1995. — 261 p. 11. O. C. Ferrel, John Fraedrich.
Business ethics: ethical decision making and cases / 3d
edition // Houghton Mifflin Company, 1997. — 356 p.
Zyuzgina A. S. The current state of providing
the ethical standards in the Ukrainian business in
the context of global competitiveness
The article examines the role of business ethics in
the economic development of Ukraine. It mentions the
links between values, trust and profitability and analyses
positions of the country using the results of global
competitiveness index. In the opinion of the author, it is
imperative to analyze the ethical conduct at such a political
and socioeconomic stage of development as Ukraine is
today. The article lists ethical standards as the
determinants driving productivity and competitiveness,
their essence and outlines the prospects for their further
development in Ukraine.
Key Words: business ethics, global competitiveness,
ethical standards, ethical conduct, economic freedom.
Зюзгина А. С. Сучасний стан впроваджен-
ня етичних стандартів ведення бізнесу в Ук-
раїні в контексті глобальної конкурентоспро-
можності
У статті досліджено роль ділової етики в еконо-
мічному розвитку країни. Зазначено зв’язок між
ціннісними засадами, довірою та прибутком, також про-
аналізовано позиції України в цій сфері за показником
глобального індексу конкурентоспроможності. На
думку автора, аналіз етичної поведінки саме на полі-
тичному та соціально-економічному рівні розвитку, на
якому перебуває Україна, є актуальним. У статті зазна-
чається перелік етичних стандартів, як детермінант, що
сприяють підвищенню продуктивності та конкуренто-
спроможності, а також виділяються перспективи для
подальшого розвитку цих факторів в умовах України.
Ключові слова: ділова етика, глобальна конку-
рентоспроможність, етичні стандарти, етична поведін-
ка, економічна свобода.
Зюзгина А. С. Современное состояние внедре-
ния этических стандартов ведения бизнеса в Украи-
не в контексте глобальной конкурентоспособности
В статье исследовано роль деловой этики в эко-
номическом развитии страны. Определена связь цен-
ностными характеристиками, доверием и прибылью,
так же проанализирована позиция Украины в этом
аспекте согласно показателю Индекса глобальной кон-
курентоспособности. По мнению автора, анализ этич-
ного поведения именно на политическом и социаль-
но-экономическом уровне развития, на котором нахо-
дится Украина, является актуальным. В статье указы-
вается перечень этических стандартов, как детерми-
нант, которые благоприятствуют повышению продук-
тивности и конкурентоспособности, так еж выделяет-
ся перспективы для дальнейшего развития этих фак-
торов в условиях Украины.
Ключевые слова: деловая этика, глобальная кон-
куренция, этические стандарты, этичное поведение,
экономическая свобода.
Received by the editors: 08.10.2010
and final form in 01.12.2010
|