Tuesday, May 5, 2020
Business Ethical Issues in International Business-Free Samples
Question: What Is The Difference Business Ethical Issues In International Business-Free Samples? Answer: Introduction Business Ethical issues have been talked about ever since the ancient days. An ethical issue, therefore, represents aspects of individual human activities as well as behaviors depicted towards people living around a particular business environment. These people living in these business environments always evaluates behaviors, whether good or bad and this forms part of the relationship between them and the entire society surrounding it. Hence ethical issues are defined in the form of a mental process that is always developed in enabling someone to give difference on ways some things have been done and how they ought to be done in the best way. This will enhance the behavioral change due to the education on the right way of doing things. Today's consumers have a kind of particular taste where they prefer those organizations that have this kind of upright habit that they will always feel secure in the products that they consume from this organization to be of decent quality(Cheeseman, 2016). The media on the other end is also working day and night in putting into light organizations that are known to have a kind of office malpractices in the form of corruption or producing products that do not meet the desire and demands of the buyers. It is therefore important for the government to allow responsible media freedom as the media is very resourceful in giving the public the desire of choice through public awareness(George, 1999). According to Stan wick, "Business Ethics is the study of business situations, activities and decisions where issues of right and wrong are addressed (Stan wick, 2009, p.5)." Ethics, therefore, sets standards in deciding what is good and what is wrong. Ethical issues become an action of concern when an individual does an act that could either be harmful or beneficial to others. Law can, therefore, be codified where values and standards are drafted into a legal aspect and enforceable in courts of law. Such law includes aspects like payment of premiums by corporate companies and attaining various licenses for operating some particular business(Kline, 2010). Ethical Issues in the International Business Ethical issues in the international markets always originate mostly due to the differences in the political systems and laws operating in these nations as they tend to vary significantly from one state to the other. What is usually considered as an ethical practice in a particular state may be seen to be unethical in another country. Managers operating in foreign countries should, therefore, be vigilant in ensuring that they do not go against the ethical practices of the country they are operating their business(Sullivan, 2003.). The major issues relating to ethical behaviors includes; corruption, employment activities, environmental pollution, human rights and moral obligations in these multinational companies. We will, therefore, discuss each of this in detail. Corruption Corruption has continued to be a major burden in every community. Even today corruption is still reported to be high in most countries both developing and developed countries. Governmental organizations are known to be the highest corrupt institutions swindling all the taxpayers' money and giving nothing totally in return. The international business should, therefore, work in a different way in ensuring that their systems are not affected by corruption. However, others have gained a lot in engaging themselves in corrupt deals with government officials to operate their businesses in these markets(Megone Robinson, 2003). A major case example was that of Carl Ketchikan who gave out 12.5 million as a bribe to government officials to be allowed to get an order for the TriStar jet. When the US noticed this act, Carl was charged with bribery and tax violation(Conklin, 2006). These payments could most probably not be wrong in Japan but were unacceptable in U.S. These officials who violated the law were charged for committing a criminal offense, and one of them ended up committing suicide. In 1997 the Lock head case lead to the formation of the "Foreign Corrupt Practice Act, 1997". This act went against the act of paying foreign officials money to gain business. A lot of theories were discussed in the advantages and the disadvantages of this Act and how they could be ignored in ensuring that projects have to be initiated in these countries where officials would ask for payment or speed money to enable a foreign firm to be established in a foreign company. While this sometimes may be seen to be bad, it could also be good if the project is going to be beneficial to the people regarding job creation and facilitating the growth of a country(Snoeyenbos, et al., 1992.). A study was conducted stating the connection between economic growth and corruption. The results were however that corruption impacted so negatively towards the growth rate of a country. Corruption in allowing enterprises to operate led to the reduction of earned profits hence lowering the rate of investment in a country. There is situation where ethical dilemma may arise in this case where corruption is bad, and it may bring harm to the country, but payment in the form of speed money sometimes could be beneficial to the country as it helps in reducing barriers in investing in a country hence creating jobs for its citizens(Sharp, 2006). Environmental pollution Many developed countries have developed regulations governing pollution on the emission of toxic chemicals into its environment and the dumping of waste materials. Ethical issues, therefore, come up when one person from another country is supposed to behave in connection to environmental pollution in foreign lands in that they have to come up with ethical issues governing pollution in these new environments(Bowie, 2013). Developing nations are mostly not strict on these regulations compared to the developed countries hence resulting in cases of reported pollution by multinational companies. A major example is the case of Nigeria where a foreign oil company, this is the 1992 report by environmental activists(Cavusgil, et al., 2015). Most multinational companies, therefore, prefer developing their companies in this developed countries as there are no costly controls on pollution as compared to these developed countries and they are therefore free to pollute the environment and endangering the lives of its people. A major challenge, therefore, is of the local authority in deciding between allowing pollution and gaining an economic advantage? What is the ethical stand between these two issues? The best solution to all this issue, therefore, is ensuring that pollution is minimized. The environment is very vital, polluting one part of the atmosphere pollutes the entire and polluting the oceans from one end pollutes the entire ocean. The ocean and atmosphere are viewed as for the benefit of the global common. When pollution takes place it, therefore, becomes a "tragedy of the common." The phenomenon was first described in the 16th century by Gareth Hardin as he described a situation where a large open are was given to all to grace their cattle both for the poor and the rich. The final results were very devastating as it led to overgrazing hence destruction of the commons(James, 2012). Moral Obligations Due to their financial ability and their ability to establish themselves in foreign markets, Multinational corporations have a big responsibility in ensuring that they maintain social responsibility in these countries that they operate their business(George, 1993). This is by ensuring that they support community activities. Philosophers argue in that with this kind of power pastored to the multinational companies; they have to give back to the society in return towards their ability to grow and prosper. A successful business has the reasons to appreciate their nobles oblige and give something back in return for their success. Noble Oblige means honoring the chance you have been given(Francis Murfey, 2016). However, most multinational companies have come up to enhance their private gains at the expense of the lives of its community. The famous case of British East India Company established in the year 1600, because of its power it ended up dominating the entire Indian continent. Employment Issues The major concern in operating in the foreign market will most usually be standards set in ensuring that the foreign industries can utilize the available local skills and talents rather than import their labor. Worker protection should also be put into consideration and making sure that the environment they are working in is favorable to the. There should also be a direct relationship between the kind of work they do and the pay they receive. The maximum working time should also be set and ensuring that people are not overworked(George, 2014). Human Rights Apart from Pollution, employment equality, and social responsibility. Issues of human rights could also come up in the international business. Rights are in many forms, but the major rights will include: freedom of speech, association, assembly, movement and also freedom of political representation. All this are rights that are not supposed to be denied to any single individual in a free country governed by law. During the colonial period in South Africa, the blacks were never given a chance to rule over the white. The blacks were therefore placed in the lower positions and could not go into their managerial positions. Some occupations were therefore also set to for the blacks and could not be done by the whites. This continued until 1980's when the people started questioning this act. This was therefore unethical and against human rights in treating citizens unequally and assigning they work that is it defined as slavery. In Nigeria, the foreign oil producing companies were so uneth ical and practiced a kind of dictatorship on its citizens wherein 1990, MPF about 80 people were killed in a bloody battle between protesting people and these international companies. Some much more human rights violation cases have been reported in these developing countries, and hence this has been evaluated as going against the human rights(Parboteeah, 2013). Ethical dilemmas What is seen as being unethical in one country may not be viewed in the same way in other countries? The international companies have an obligation in ensuring that human rights of its citizens are taken care of, job equality, protecting the environment against pollution and promoting social responsibility in their business surroundings. In the U.S death penalty is allowed while in other nations this is against human dignity. Managers must at times also confront some dilemma issues. You imagine of a 12-year-old girl who is an orphan who has been given a job to work on a company's floor. However, the child is a minor and these results in the violation of the company's ethical code, and the company is charged with child labor. The child is relieved of his duty, and he is unable to get another job and result in engaging herself in prostitution to fend for her family in taking care of her 6-year-old brother. Within the next two years, the girl was reported dead of AIDS, and a big dilemma arises on how this issue could have been handled better without destroying the life of this minor and at the same time not going against the countries' ethical practice(George, 2015). Conclusion Multinational companies are therefore required to ensure that they practice ethical issues in the markets that they operate. They must be aware of the different laws and practices that are available in different countries. Most countries vary by the kind of human rights laws, pollution laws, corruption laws hence the need to take note and work towards the interest of the nation's citizens(Kline, 2010). A case such as bribery and treatments of workers are very critical in most parts of the developed countries and should also be implemented when investing in the foreign country. These multinational companies should also be responsible for enhancing social responsibility and contributing toward the growth of the nation by not avoiding tax. They should also make sure that they do not interfere with public policies, elections or government operations abroad. With all these put into consideration then a better business environment will be establ. References Bowie, N. E., 2013. Ethical Theory and Business. Boston: Pearson Education. Cavusgil, T. et al., 2015. International business: the new realities. Frenchs Forest, N.S.W.: Pearson Australia, 2015. Cheeseman, H. R., 2016. Business law: legal environment, online commerce, business ethics, and international issues. Boston: Pearson. Conklin, D. W., 2006. Case In the environment of business. Thousand Oaks: Sage Publication. Francis, R. D. Murfey, G., 2016. Global Business Ethics; responsible decision in an international context. London: Kogan Page. George, R. T. D., 1993. Competing With Integrity in International Business. New York: Oxford University Press. George, R. T. D., 1999. Competing with integrity in international business. New York: Oxford University Press. George, R. T. D., 2014. Business ethics. Harlow: Pearson. George, R. T. D., 2015. Competing with integrity in international business. New York: Oxford University. Jamec, 2012. International corporate legal responsibility. Alphen Aan den Rijn: Wolters Kluwer Law bus. Kline, J. M., 2010. Ethics for International business: decision making in a global political economy. New York: Routledge. Kline, J. M., 2010. Ethics for International business: Decision making in a global political economy. New York: Routledge. Megone, C. Robinson, S., 2003. Case Histories in Business Ethics. London: Routledge. Parboteeah, K. P., 2013. Bussiness Ethics. Hoboken: Taylor and Francis. Sharp, D. J., 2006. Cases in business ethics. Thousand Oaks: Sage Publication. Snoeyenbos, M., Almeder, R. F. Humber, J. M., 1992. Business Ethics. Buffalo, N.Y.: Prometheus Books. Sullivan, R., 2003. Business and human rights: dilemmas and solutions. Sheffield: Greenlea
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