...Chapter 4 - Ethics in International Business Introduction • Business ethics are the accepted principles of right or wrong governing the conduct of business people • An ethical strategy is a strategy or course of action that does not violate these accepted principles Ethical Issues in International Business • Many of the ethical issues and dilemmas in international business are rooted in the fact that political systems, law, economic development, and culture vary significantly from nation to nation • In the international business setting, the most common ethical issues involve - Employment practices - Human rights - Environmental regulations - Corruption - Moral obligation of multinational corporations Employment Practices • Ethical issues associated with employment practices abroad include - When work conditions in a host nation are clearly inferior to those in a multinational’s home nation, what standards should be applied? - While few would suggest that pay and work conditions should be the same across nations, how much divergence is acceptable? Human Rights • Questions of human rights can arise in international business because basic human rights still are not respected in many nations - Rights that we take for granted in developed nations, such as freedom of association, freedom of speech, freedom of assembly, freedom of movement, and freedom from political repression are by...
Words: 3458 - Pages: 14
...Ethics in International Marketing Table of Content I. Introduction…………………………………………………………………………...3 | II. Meaning of Ethics in International Marketing………………………………………...3 | III. How is Ethics and Consumer Marketing related?.........................................................4 | IV. Expectations in terms of Ethical responsibilities from the Marketing Institutions…...5 | V. Types of Ethical Approaches……………………………………………………….....6 | VI. Ethical Issues in International Marketing……………………………………………..7 | VII. Conclusion………………………………………………………………………….....9 | VIII. Bibliography…………………………………………………………………………..11 | I. Introduction Over the years, importance of ethics in the business world has increased and the world has seen a remarkable increase in the ethical norms and concerns. With the modern day consumers having the luxury to have more than one company to offer similar products, companies are trying to be extremely careful in terms of how their company is portrayed on the ethical standards. New trends and issues arise on a daily basis which may create an important burden to organizations and end consumers. Lawsuits are being filled on companies with respect to unethical behavior. As companies enter global markets, the cultural diversity becomes a very important aspect because each company has to make sure the expansion should not undermine the cultural and ethical values of that country or region of expansion. If this is taken care, than...
Words: 2159 - Pages: 9
...Ethical Decision International businesses have different ethical laws that apply to the employees and the employers. When an unethical situation occurs in a company, it is important to know the ethical standards of that company and also the rights of the employee and the employer. Understanding the rights and ethical standards of an organization helps an employee or the employer make the right choice when an unethical situation arrives. Mary, a recently graduate from college is currently working for an international corporation as an administrative assistant. The corporation is an international manufacturer with business in United States and Europe. Mary has been on the job for four months and recently she has noticed that there is a lot of unethical behavior at her job. Some of the employees are coming to work intoxicated, arriving late on a daily basis, leaving work early and taking long breaks and lunches. The situation is affecting Mary because it is not right for the company and it is affecting her character. Mary is not sure of what to do; therefore she first has to get educated on ethical standards for the company in United States and Europe. The rights for the employees in the United States are very simple and ethical. Both employees and employers have rights and responsibilities that are based on business law. All employees who work in the US and its territories are protected by EEO laws. Employees have the right to expose corruption when discovered. They...
Words: 934 - Pages: 4
...Abstract Advanced Audit & Assurance often creates the question on practice of ethics in professional activities. The purpose of this report is to review Threats to Compliance with the Code of Conduct by Professional Accountants. With the expanding business in the modern world, issues arise on professionalism of Independent and Internal Auditors. Is it whether the Professional Accountants follows the ethical code provided by the International Ethics Standards Board for Accountants in order to provide true and effective financial reports to the internal and external users? Professionals are expected to conduct themselves at a higher level than most others members in the organization. The International Accounting Bodies has emphasized the conceptual...
Words: 3543 - Pages: 15
...What are International Business Ethics? International Business Ethics The importance of international business ethics has been rising steadily along with the growth of international business. Technologies like the Internet have made international business all the more viable, and many companies can only find the desirable growth and profit they seek by expanding into new markets. This means that just as business ethics domestically have grown in importance along with the power and significance of major businesses, so must international business ethics take center stage as a major concern of the modern era. The primary problem of international business ethics lies in the fact that most cultures and nations hold entirely different standards of both law and ethics. In America, business ethics can be employed because, in general, the disagreement between what actions are ethical and what actions are unethical in a single culture will be lesser than the disagreement between two entirely different cultures with different values and cultural practices. As a result, one business might believe it is acting perfectly in accordance with international business ethics, while another would view that first business as acting in a completely unethical fashion. Many businesses adopt the policies of cultural relativism, in which they attempt to take on the business ethics exhibited by the nation in which the business is working a particular deal, as opposed to attempting to carry any...
Words: 1192 - Pages: 5
...Addressing International Legal and Ethical Issues Paper De’Shawn Shinette, Sr. University of Phoenix BUS 415: Business Law James Zaccaria March 16, 2008 Introduction Any solid relationship should begin with a period of introduction, or courtship. The same can be said when a global negotiation venture with a prospective foreign nation business partner has started. The need to know about the culture, background, structure, and goals of the parties involved is important (Negotiation Leadership, 2008). It might be wise to spend the money to hire an experienced consultant, or professional third party to look into the potential partner’s past. In this report two companies (CadMex and Gentura) are attempting a business venture. Before they can move forward a few issues need to be addressed in a memo. Initially an explanation why Gentura might be in breach of contract with CadMex will be given. Next, a discussion of what remedies are available will to be conducted. From there, a recommendation will be made on how the Gentura situation will be handled. An analysis for selecting the proper forum and venue for dispute resolution will be included. Finally, an analysis of the situation from an ethical standpoint will be done in order to support ones recommendation. I. Breach of Contract Breach of a contract between two parties can bring about severe legal issues. Substantial performance occurs when there has been a minor breach of contract (Bereznicki-Korol...
Words: 1622 - Pages: 7
...The Disadvantages of International Business Ethics X Catherine Capozzi Since 2008 Catherine Capozzi has been writing business, finance and economics-related articles from her home in the sunny state of Arizona. She is pursuing a Bachelor of Science in economics from the W.P. Carey School of Business at Arizona State University, which has given her a love of spreadsheets and corporate life. By Catherine Capozzi, eHow Contributor Maintaining business ethics is a worthy goal for all multinational corporations, but not always possible or advantageous. The reality of international business is that upholding these arbitrary obligations comes with severe disadvantages. In many ways, abiding by a self-imposed standard of business ethics impede a company's ability to eke a profit when others are far less likely to abide by similar unenforceable ethical obligations. Other People Are Reading * The Code of Ethics of Auditors * The Advantages and Disadvantages and Pros and Cons of Social Obligation * ------------------------------------------------- * ------------------------------------------------- * ------------------------------------------------- * ------------------------------------------------- Print this article 1. Wage Ethics * Few consumers would profess that 8-year-olds working 16-hour days in a dimly lit factory is ethical. And yet several large multinational corporations disregard these issues in favor of producing a product...
Words: 609 - Pages: 3
...International Marketing Ethics Paper MKT/ 450 International Marketing Ethics Business ethics means acting and performing in a way that is considered morally appropriate. By doing so, it means that corporate decisions have been made with out any wrongdoing to any person or place. However, the world has hundreds of countries with unique cultures that do not share the same guidelines. Riordan Manufacturing is a global plastic company that is owned by Riordan Industries which is a part of the Fortune 1000 enterprise. Riordan Manufacturing is considering marketing its top-selling product to France. The company is faced with three ethical issues that may affect their marketing efforts. Expanding to Europe and specifically France can effect Riordan’s marketing strategy. Riordan Manufacturing has manufacturing plants in Georgia, Michigan, and the most recent expansion is in China. Some ethical issues Riordan Manufacturing can face are China manufacturing and child labor laws, Environmental issues as plastic cause harm to the environment, and finally cultural factors. France is strongly against exploiting children to work. In France it is mandatory for children go to school from the age of six to sixteen. Children cannot be legally employees until after 16. at fourteen during holidays they could apply for light work. It is also prohibited to employ children under the age of eighteen in “preparation, handling,, or sale of written material, posters. Drawings, and other materials...
Words: 720 - Pages: 3
...Importance of Ethics in International Business Executive Summary Ethics in the business world is important and global. Ethics indicate what is right and what is wrong in business branches and also lead employees and stakeholders with moral values. Due to the globalization of markets and production processes, business people have to deal with ethical issues in cross-cultural settings at an increasing number. The purpose of this paper is to explain the importance of international business, emphasise the ethics of a business and the significance of ethics in terms of expanding internationally. Ultimately, creating and maintaining acceptable organizational ethics will become beneficial in international business. Why do businesses expand internationally? Expanding a business to an international level has a huge upside. In a broader sense, without international trade, countries could only consume what they produce domestically, making it harder for every single country. An international business opens new opportunities such as new markets and more jobs. Today, developing countries represent about 80% of global population. Uncertainty and legal applications are sometimes great sources of concerns in international business operations (Hewhorn, 2008). Therefore, an international business has to take into consideration and become aware of the countries in which operating in. Today, companies are affected by global events and competition whether the corporation is enormous or...
Words: 1541 - Pages: 7
...Cultural Issues and Ethics in International Business Introduction The expansive and unstoppable process of globalization has forced employers to form their ability to trade and negotiate with the outside world. However, it is important not only they are immersed in this subject, your staff, or one who is qualified to do so, you should also have access to the most significant aspects of foreign trade, logistics, and the impact. Companies are not limited to conduct private and government operations locally, but also with other countries. Precisely what we call international business is the relationship between an organization and its external world (Maddox, 1993). This type of activity also involves foreign trade and international, which includes transactions such as exports, imports, investments, or financing that are performed worldwide. Among the success factors that can be mentioned in the international business operations are competitiveness, financial support between the parties and logistics. This aspect is very important because when the actors involved are from different countries or regions, the business success is more complicated. In analyzing the economy, we must review the dimension that transcends the borders of a country, i.e. which addresses the problems international economic purposes (Maddox, 1993). The importance of international relations in trading, politics or culture has reached a global level, a deeper meaning that one cannot speak only about...
Words: 1481 - Pages: 6
...towards a global society, and companies begin to transition themselves into multinational and global organizations, the question of which rules and regulations should the company follow is likely to precipitate. I feel such is the case with China. I believe prior to answering the question of foreign nation compliance, one should examine the reasons why an organization has entered into that foreign market. The primary objective is typically profits, a secondary could be expansion, an initiative to become a globally known brand and gain international market share. Once the fundamental question of “why” is answered, the remaining issues, such as foreign government policies, can be addressed as well. So should a company comply or defy? Proponents of both sides of the fence are up in arms and ready to debate their stance. Proponents argue loss of market share if a company decides to leave a potentially new market, especially an international market. And proponents of defying the compliance terms are citing moral and ethical beliefs which make it wrong to comply with a communist government (http://hbswk.hbs.edu/item/5246.html). So who is the victim and who is the winner? I think that both sides are equally at loss as well as gain. If a company decides to leave due to compliance issues, chances are their competitor will step in and dominate that market. It is often difficult for a company to enter into the market as a secondary and gain market share. Foreign investments...
Words: 327 - Pages: 2
...Ethic Analysis According to all the effects and changes that have been taken during the interaction between cultures, it is very difficult to agree with other people who are from another country and have different way of thinking. It is important to be informed about the culture that we are interacting and everything that involves it since at the time of making decisions, it is necessary to take into account the effect that may have these differences. In this analysis I´m going to compare and discuss the differences between the ethics from one country with another, which are the United States and Mexico, and how they can affect the way they make their business. Starting with the United States, the government had decide to established corporations who engage the audits in each of the companies in the country to have more control in their regulations and to be sure that they are fulfilling all the laws and regulations that were previously set. With these regulations it has been a reduction of frauds that has being done, and also illegal operations between companies from another countries. These had been set also because corruptions has becoming more and more strongly to the country, so the government wants to have a total control. On the other hand it is Mexico, in several of their companies and general business, there have been problems because of the high levels of corruption, but the difference from US is that in Mexico the government is the one that is involve along...
Words: 282 - Pages: 2
...International Business Ethics Christy Camen BUSN310-1103B-01 IP 5 American InterContinental University International Business Ethics The first country that I chose was Malaysia. The countries environmental regulation level is balanced as of right now. The policies are being continued in the five-yearly National Development Plans (Maidin, 2005). It takes a lot for a country to develop policies and legislative measures for regulating the environment. In Malaysia they have set goals that will balance socio-economic development and maintain sound environmental conditions (Maidin, 2005). I think that the country’s environmental regulation is sufficient. If you think about it every country has room for improvement on the level of environmental regulation. Malaysia has come a long way from where they were a few years ago. They have gotten better at conserving energy and preserving their land. There have been three major legislative acts that have been passed regarding the working hours and wages in Malaysia. The acts are the Employment Act of 1955; Trade Unions Act of 1959, and the Industrial Relations Act of 1967 (Murray, n.d.). In Malaysia their work hours must not exceed eight hours a day, or 48 hours a week (Murray, n.d.). They get paid overtime which is 1.5 times the regular hourly wage for a normal working day, twice the normal wage on rest days and three times the regular hourly wage on public holidays (Murray, n.d.). Their working hours and wages are almost...
Words: 749 - Pages: 3
...International Business Ethics Antoinette R. Hillary AIU Online April 25, 2011 International Business Ethics The business that I work for has been considering possibly locating some of the firm’s facilities in Thailand and Malaysia two countries in East Asia. I have been asked by the chief executives officer (CEO) to do some research of what has been happening concerning environmental regulation and laws in regards to wages and hours in both Thailand and Malaysia. The CEO has also asked me to prepare a report concerning these two matters, which is as follows: Environmental regulation level in Thailand In Thailand economically over the last thirty years has been associated with the growth of accelerated industrialization, urbanization, and agricultural production and fishing. This increase in growth has depended greatly on Thailand’s natural resources which are both plentiful and diverse and has deteriorated the country’s land, water quality, accounted for the loss of natural habitats and has produced increased levels of the air, water and pollution. (World Bank Group, 2011). To help correct some of these problems the Government and people of Thailand has begun new ways to improve the water and air quality, reforest their degraded lands, adopt technologies that are energy efficient and has invested in reduction pollution programs. In addition, the Government has also made the decision to terminate leaded gasoline which has decreased environmental levels of lead. Thailand...
Words: 965 - Pages: 4
...Unit 5-International Business Ethics Miranda Misercola American InterContinental University November 7, 2015 Abstract The purpose of this paper is to analyze two different acquisitions or mergers to demonstrate how such business transactions can cause legal barriers to entry market. Possible ethical dilemmas that are present within the relations between the companies will also be discussed. Furthermore, the drawbacks consumers have to face when two companies merge will be addressed as well. Introduction An investigation into a pharmaceutical company’s supposed intentions to curtail generic competition regarding an antidepressant drug, which is the company’s best brand name seller, has brought about a few questions as to why the company would do this to consumers. Prescription medication is expensive enough without pharmaceutical companies hindering the market entry of its generic counterparts. Generic medication gives consumers a choice to spend more or to spend less for their health care, and in the long-run gives them a choice for a more cost-effective livelihood. Without the options of choosing a cheaper form of medication, consumers are being taken advantage of. This leaves no room for choice and thwarts fair market competition. With a 22% increase of profits in comparison to the previous year, it is quite obvious that this brand- name manufacturer and generic companies have disobeyed federal antitrust laws. Therefore the Federal Trade...
Words: 2007 - Pages: 9
