...Global Business and Ethics Raquel Padilla MGT 216 March 8, 2010 Professor Scott Bridges Global Business and Ethics “As borders disappear, people and goods are increasingly free to move, creating new challenges to global health” (Pang & Guindon, 2004). “Global interdependence is a compelling dimension of the global business environment, creating demands on international managers to take a positive stance on issues of ethical behavior, social responsibility, economic development in host countries, and environmental protection around the world” (National Multimedia, n.d). Even though many laws and regulations exist today, several large multinational companies still are having unethical behaviors and questionable practices. The purpose of this paper is to (a) describe ethical issues that became evident as a result of globalization; (b) compare ethical perceptions across cultures in regards to the situation; and (c) determine which risk and consequences were associated with the dilemma. The company selected to discuss the above topics is Nestlé. Nestlé’s Ethical Issues Unethical Marketing Practices infant’s formula. In 1977, Nestle became part of a huge ethical scandal; the company was being criticized for using unethical marketing practices putting at risk consumer’s health in order to promote its infant formula in another nation. “Many aid agencies called for the boycott of Nestle products which continued into 80’s, when Nestle decided to adopt...
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...Global Business and Ethics University of Phoenix Organizational Ethics and Social Responsibility MGT216 October 2nd 2010 Global Business and Ethics Business practices vary from one country to another based on the culture of origin. Understanding a country’s culture, society, and hierarchy allows business practices to run more smoothly while preventing unethical circumstances. Training allows expatriate managers to communicate in foreign languages whereas not implementing selective perception or assume that the culture is similar to their own. There are many risks associated with ethics in globalization but what role do ethics play in global business? Conducting business overseas can cause many ethical issues. Some of the possible ethical issues faced while conducting business overseas are corruption, human rights, different work environments, local customs, and cultures. By providing structure, training, and guidance to expatriates aids in preventing these ethical issues. This directional approach allows the expatriates a better understanding of the cultural norms. In addition to a better understanding of the overseas cultures, training allows the managers to have self confidence, adjust to the environment with ease, an increase in performance and relationships with foreign clientele (Trevino & Nelson, 2006). Managers will need to understand the foreign language in which the business task is assigned. According to Trevino and Nelson...
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...Definition: Ethics in Global Business: The system of moral principles and rules that become standards for a group or for professional conduct. Summary: In Emerging Global Business Ethics, Jane Gebhart focuses on a publication called “Supercharging Corporate Performance. This article argues that “corporate ethical practices create an organizational climate capable of motivating the innovative and risk-taking initiatives that are essential to achieving and sustaining corporate excellence”. Focusing on 4 distinct tasks, the author suggests that organizations must be cognizant of issues in their business, managers must design a “strong competitive strategy and operating management”, define procedures and processes that elevate ethical values, and recruit/retain individuals with strong moral character. Discussion: I chose this article to discuss due to the direct relation I see in business personally. If you do not recruit individuals with a strong caliber of moral character, your corporate mission statement (however seemingly standardized and righteous it might seem) will never reach a level where each department upholds a certain level of uniform company values. To have locations dealing internationally, a business must also be aware of any issues internally. The author gives an example of a company being forced to close a plant and lay off employees. Had the corporation discovered faulty operating procedures they would have been better aligned to create a product that would...
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...2010 Benny Van Calster – EMBA 2009-2011 AMS - Take Home Exam – Global Business Law & Ethics [GLOBAL BUSINESS LAW & ETHICS – PROF. DONALD MAYER] Take home exam for course of Global Business law & ethics. Based on teaching notes & B. Nelson book. Q1 of CVD CASE -> State why Karl Mann’s boss has provided advice that was ethically & strategically to be ignored … + Why is digging a shallow trench a poor choice? We have clearly seen in the course that the legal and ethical behavior of an organization and its employees should support the long-term business strategy. It is imperative that ‘sustainable growth’ is the driving force of any organization… and this should be based on the People-Profit-Planet structure we have reviewed in the course. If we look to the advice of Karl Mann’s boss we could analyze it as following: 1. Profit: the decision/advice will support the short-term goal of profits, but not in a foreseeable and sustainable way; the risk which is embedded in his advice (i.e. possible death of people) is too high for the corporation! If something happens with injuries of workers the reputation of the corporation is damaged as such that the long-term profit is at risk… 2. People: this is clearly not the right advice in order to prevent damages and injuries at the people side. He reckons there have been accidents with dead people before, and still advices to go down that route ..; clearly an unethical decision where he –on purpose- risks the life of his workers. This...
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...Global Business Ethics-Nike’s Sweatshops Ann T. Dale MGT/216 Global Business Ethics-Nike’s Sweatshops Nike is a worldwide sports name in wear and equipment. So, why is Nike’s ethics in question? Has greed and publicity become their motto at any costs? Nike spends multimillion dollars a year hiring well-known athletes to advertise their products yet cannot seem to stay out of the media’s eye of their contracting or subcontracting techniques of their products to be built in third world countries. In 1996, Nike has been charged by critics with engaging in a variety of unethical employment practices in countries that exercise little or no control over the conditions of labor or whose governments are corrupt and can be bought off (De George, 2006, chap. 20). In dealing with business issues, a company needs to be aware (what are the issues), articulate (justify and express decisions), and application (reach a decision, train and explain ethics to employees). Ethical behavior has to start at the top of a company and work its way down. Here we will compare ethical perceptions across cultures about the ethical situation, discuss the ethical issues that became evident due to globalization, and discuss the risks and consequences associated with the Nike ethical dilemma. Compare Ethical Perceptions Across Cultures About the Ethical Situation Trevino and Nelson (2007) defines business best stating the “definition of ethics—the principles, norms, and standards of conduct governing...
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...Introduction Globalization involves companies that not only operate in a variety of countries but that divide their activities in different countries, producing one part of a product here, another part there, assembling them elsewhere, marketing them throughout the world and controlling and coordinating all these activities from a home base. Globalization also involves the growing importance of international organizations, especially the World Trade Organization. Nike, Inc. is a company that has come to symbolize both the benefits and the risks inherent in globalization regarding the various difficulties and complexities companies face as they seek to balance both company performance and good corporate citizenship in today’s global world. Ethical Issues Resulting From Globalization The athletic footwear industry experienced an explosive growth in the last two decades with Nike, Inc. (1972) as one of the largest company dominating the market. The company, once called “Blue Ribbon Sports, has evolved from being an importer and distributor of Japanese specialty running shoes to becoming the world leader in the design, distribution and marketing of athletic footware.” (Info.Nike) Knight, one of the original founders of Nike, Inc. realized that while lower-cost, high-quality Japanese producers were beginning to take over in the United States, most leading footwear companies were still manufacturing their own shoes in higher-cost countries like the United States and Germany...
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...like to run my own business , I want to be in charge, set my own hours and days that I want to work. Not to mention the fact that I think I will make more money and be on the road to financial freedom. I have five children to support with no help so that also is a reason for me to at least try to open a business for our future , if I’m successful I can turn it into a family business. Also I think this would be good for my children. I would like to open a housekeeping and janitorial business. I think I will open my own business, it’s just a matter of time and funding. I have a plan to apply for a business loan, as soon as I get my credit score a little higher to make sure I get the loan approved for maximum funding. Once funding is approved I would start off by creating an online website, making business cards and flyers. My website would give information about my business and clients would be able to book appointments online as well. I will be advertising my business not only online, flyers, business cards but also by word of mouth. I would start off home based until clientele picks up and once I’m ready for expanding I will rent an office. That will happen once I hire some employees. I would start off with one van, purchase all my equipment and supplies. I would need at least two vacuum cleaners, mops, brooms, dusters, buckets, towels, dust pans, a van and all my cleaning supplies. My overhead is not that expensive, once I build clientele I think my business will be very successful...
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...Environmental Factors MKT / 421 February 1 2011 Environmental Factors The following information will discuss environmental factors McDonald’s global business face when dealing with other countries. McDonald’s global business must know how to deal with different cultures, laws, ethical situations, etc. that can cause threat and consequences for the business. The following will compare ethical perceptions across cultures concerning different situations. Businesses operate differently in other countries and McDonald’s must adapt to the cultural to do business. For a global business to be successful is a challenge and possible risk. The influence of global economic interdependence and the effect of trade practices and agreements Legal realism in diverse countries led to key choices that entail marketing. These consist of the capability to make particular claims, the capability to sell products in particular ways, the variety of business practices that take place, and a variety of aspects. These aspects should be understood and well thought-out when creating marketing plans. Other aspects that influence marketing compose of social accountability and environmental factors. In various cultures these issues are vital and other cultures it is not a concern. McDonald’s should follow legal conditions in countries that influence social and environmental practices, and still meet the expectations of locals on these matters. If not McDonald’s could...
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...Ethics and Integrity in Multinational Companies Silvia Delia OLARU Spiru Haret University, Bucharest, Romania E-mail:olarudelia@yahoo.com Phone: + 40213169793 Elena GURGU Spiru Haret University, Bucharest, Romania E-mail:elenagurgu@yahoo.com Phone: + 40213169785/88 – ext.151 Abstract The good news for multinationals is that globalization is creating more universal standards of business conduct, and these are becoming more rigorous. As more companies adopt these standards, it becomes increasingly important for every multinational to establish companywide core values, standards of behavior, and relevant policies in tune with the rest of the world's ethics and compliance environment. The benefits of an ethical culture outweigh the costs. Globally ethical companies will be those that maintain a strong reputation in all their markets, experience increased employee commitment and loyalty, garner advantages in attracting and retaining customers, and generate superior levels of performance and success. Keywords: globally ethical companies, business conduct, ethical culture, professional standards, corporate code of conduct Introduction Companies operating in foreign countries find that understanding and complying with variant laws, managing employees far from headquarters, serving customers and relating to suppliers and partners in multiple jurisdictions can introduce significant challenges to developing shared corporate values and realizing a truly global culture. Multinational...
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...Section 1: Introducing business ethics. Key idea: Globalization, defined as deterritorialization of economic activities, can be seen as a key context for business ethics. The effect of this is that the more business become global, the more it has to cope with regions and countries where ethical values are vastly different, p. 17, 19, 24, learning outcome 1, 2. Question 1: In which of the following areas is it not evident that deterritorialization is particularly relevant to business ethics? 1. Legal issues 2. Cultural issues 3. Personal issues 4. Accountability issues Question 2: Globalization can be seen to affect all stakeholders of the corporation. Mention four of these, explain how they are affected and provide an example. * Shareholders: globalization provides potential for both profitability and greater risks. * Consumers: global products provide social benefits to consumers, but could also meet protests. * Government and regulation: globalization weakens governments and increase corporate responsibility. * Employees: globalization provides job through outsourcing of the production, but can also raise potential for exploitation of employees through bad working conditions. * Civil society: global business activity brings the company in direct interaction with local communities, thereby raising the possibility for erosion of traditional community life. * Suppliers and competitors: Suppliers in developing countries face regulation...
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...Honestly I can say that BSAD 460 or the business ethics for leader’s course was very insightful. On the 6 week journey I learned a lot of information that I otherwise would have gone on without acquiring. It was nice to be able to relate real life situations along with the material, it made it that much more intriguing to learn. Simply being able to relate situations to real life really helps you be able to grasp the knowledge. With that said the most significant points I have learned are; why being ethical is important, the eight steps to ethical decision making, emotions in ethical decision making, conducting ethical communication and global business ethics and practices. Most of us think of ethics and then we tend to think feelings and emotions. This is not the case; ethics is more of a moral code. However, a lot of decisions that we do make are based off of the way we are feeling emotionally about something. So with that said we end up either following good ethics or going against the code. Ethics is important it almost defines us as people, the way we act or how we handle situations these are all factors that make up our character as a person. Even with a code not all of us will agree to all ethic codes, therefore we may not always follow them. Business ethics is extremely important. If employees do not follow the code they can be fired and if they are not doing honest work for the company it can jeopardize the business as well. “For a business to achieve long-term profits, customer...
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...XMGT/216 Business Ethics Across Cultures In this paper, I will be reviewing the business ethics found in two countries, each from a different continent. The two countries I have chosen are China and Mexico. The articles I have located for this research are both drawn from the University Library, the first one being Business Ethics and Social Responsibility in Contemporary China, by St. Clair and Norris, the second being Introduction to Central America and Mexico: Efforts and obstacles in creating ethical organizations and an ethical economy, by Collins and Whitaker. I will be reviewing China first, followed by Mexico. Chinese Business Ethics In their article, St. Clair and Norris examine the source of Chinese business ethics from multiple angles. Socially, culturally, and politically, the business atmosphere is quite different in China than it is here in the US. There is, really, no formal culture or system of business ethics for the general, private business sector (St Clair & Norris, 2011). Since its induction into the World Trade Order in 2001, China has modified its business regulations quite significantly to ensure that its businesses operate within the WTO guidelines. However, transition and reform aside, centralized decision making, internal bargaining, and bureaucratic red tape still seem to be the norm, despite the decentralization of many industries and the growth of consumerism. This turn towards progressive business ethics could be due to the recent scandals...
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...Code of Ethics Teresa Sieck ETH/ 316 July 2, 2012 Ed McCullough Code of Ethics A code of ethics is a collection of principles practiced and followed by management of businesses and corporations around the world (Spiro, 2010). A businesses code of ethics works with a company’s mission statement and policies of conduct that gives employees, partners, venders, and outsiders an understanding of what the company stands for and believes in (Boylan, 2009). It should address the differences or variations in both company’s industry and its broader goals for social responsibility (How to create a company code of ethics, 2012). It should be strong enough to serve as a guide for employees with questions to resolve issues on their own if needed (Trevino & Nelson, 2007). Wal-Mart is one of the largest corporations in the United States. As one of the largest corporations the company has a social responsibility to their employees, customers, and the community. The code of ethics works with and around these principals. Wal-Mart has three basic principles, 1) respect for the individual, 2) service to the customer, and 3) striving for excellence (What is Wal-Mart’s Code of ethics, 2011). The following is an example of what a code of ethics could be and what values a business may have. Vision Statement: People are assets not possessions; employees, customers, and communities should be treated with fairness, respect, honesty and integrity. The corporation’s global vision is to...
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...Global Peter Drucker Challenge Essay Contest Social Responsibility and Managerial Ethics A Focus on MNCs Prepared by: Kidus G.Mehalu Addis Ababa, Ethiopia August 2011 Social Responsibility and Ethics of MNCs The 2nd Peter Drucker’s Challenge Social Responsibility and Managerial Ethics -A Focus on MNCs . 1.1 Introductory Remarks Managers today are usually quite sensitive to issues of social responsibility and ethical behavior because of pressures from the public, interest groups, legal and governmental concerns, and media coverage. It is less clear where to draw the line between socially responsible behavior and the corporation’s other concerns, or between the conflicting expectations of ethical behavior among different countries. This essay on social responsibility and ethics set externally to international managers and thus in a sense outside their realm of control, is the expectation of appropriate behavior. This behavior is measured both in terms of social responsibility of the organization as such, as well as ethical behavior of individual managers. In addition to these expectations there is an onus on organizations and managers alike to manage the relationship with the host country. Having noted this, I shall now move on to the main issues this essay has set out to address in the following manner: 1.2 Global Interdependence Global interdependence is a compelling dimension of the global business environment, creating demands on international managers to take...
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...Business Ethics Across Cultures Globalization has not only moved nations nearer together, but has also generated a single moral perception for nations conducting business together. Management teams are discovering that there are great moral challenges waiting to be found out by the enhanced progress to a global scale. If ethics are an issue inside a country, one can visualize the difficulties that arise when the quantity of people involved grows up to an international scale, cultures are different, and the language is alien. In this report we are going to consider two articles which deal with the moral perceptions of China and India, how these articles add to understanding international ethics, and how China’s and India’s business ethics contrast to that of the United States. Santa Clara University printed an article penned by Stephen Rothlin called Business Ethics in the Chinese Context” that thrashed out some of the growth China achieved in 2006 and 2007 in business ethics. Stephen Rothlin works as the general secretary of the Center for International Business Ethics in Beijing. In January 2008, Rothlin modernized the Markkula Center for Applied Ethics Business and Organizational Ethics Partnership with the growth he had seen since his last trip in 2006. Rothlin thrashed out six types including; conditions for moral companies, community role, ecological sustainability, anti-corruption action, and customer privileges. In each of the six types he discussed both developments...
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