...International Legal and Ethical Issues Contemporary Business Law-LAW/421 Dina Centifanti Gledhill May 28, 2012 International trade is important and beneficial to business. However international trade must be guided with a safeguard of interests, specific business contract, defined law, forum of dispute settlement, and understanding of contract clauses. “A working knowledge of international law helps business owners and managers with global interests reduce risk and increase profits” (Melvin, 2011, P. 631). This enlightenment will address the international legal and ethical issues involved in international business transactions and compare such to domestic business operations. Resolving legal disputes Business internationally, enviably creates change in legislation, interest conflict, and rise of ethical dilemmas. When international business arises, business owners, and management must use precaution to avoid ethical, legal, and cultural issues. Business must prepare for the unexpected to ensure success. Often conducting foreign business requires the parties to set standard law, determine how to settle disputes, and define contract clause to determine the correct business decision applicable through contracts. Foreign businesses commonly use contracts for the international sale of goods as standard law. “Contracts for the international sale of goods was created by the U.N. Commission on International Trade Law to establish uniform rules for drafting certain international...
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...for organisations to practice ethical business behaviour to build a strong public image to garner the support of consumers and employees. Although practicing good business ethics has many benefits, it remains as a constant challenge for organisations, as the potential for unethical behaviour is illimitable. In recent years, the cases of corporate misconduct in Singapore have been on the rise. In June 2011, Deputy Prime Minister Teo Chee Hean announced that commercial crimes, including fraud and cheating, rose by 13% as compared to 2010 (Othman, 2012). As most organisations have established codes of ethics to guide their employees regarding their ethical responsibilities, the imperative issue here is how effective is the code of ethics in regard to instilling ethical behaviour. In this essay, we will firstly look at the definition of ethical behaviour and an overview of the ethics program. Next, the effectiveness of the code of ethics and the criteria for it to be effective will be addressed. Lastly, a conclusion will be made to determine if the code of ethics is the most effective method for instilling ethical behaviour. Ethical Behaviour in Organisations Ethics as according to Wood, et al. (2006) can be defined as a behavioural code that explains what is good and right, as opposed to bad and wrong at any given situation. It is essentially a system of moral duty and obligation based on the values of the individual. Business ethics refers to the principles...
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...Ethics Carl Stevens Old Dominion University Abstract Boone and Kurtz (2011) define business ethics as “the standards of conduct and moral values governing actions and decisions in the work environment” (p. 34). This paper discusses how an individual’s value system may clash (both positively and negatively) with the ethical standards dictated by an organization. Our exploration deals with the study of how organizations define ethical behavior and what employees must do to adhere to those standards. On occasion, what an organization may view as ethical behavior does not correspond with an employee’s personal belief system of what is right and wrong. This is especially true when Upper Management openly ignores what a reasonable person would view as unethical. But despite what they think, employees are not immune to unethical conduct and could find it very easy to be swayed into making the wrong decision. (Anderson, Escher, 2010) When these opposing value systems collide during the decision making process, an ethical dilemma occurs, (Hellriegel, Slocum, 2011) We will discover more about this contrast in morality with a case study of Valarie Young, a marketing manager faced with a difficult decision. Personal Values and their Interaction with Organizational Ethics The purpose of an organization’s Code of Ethics is to provide employees with guidelines for making ethical decisions in the conduct of their day to day activity. The code is a set of core values,...
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... The Name of the Class Professor The Name of the University The city and State where it is Located The Date PORTFOLIO OF EVIDENCE Business Ethics is standards of guiding behavior of both an individual and the business. They are principles of acting ethically. When a company or an individual is acting morally, it means that they can make the right choice. Only by making a distinction between what is wrong and what is right (Carroll & Buchholtz, 2003). Business ethics is, therefore, meant to guide controversial issues in a company environment. These issues include corporate social responsibility, discrimination, unlawful practices, corporate governance, bribery or corruption, insider trading and other irresponsible business behaviors. Ethics is at times guided by local frameworks chosen by different companies. These structures act as a way of enhancing their image and public trust, but it is a requirement that values is guided by a duly constituted legal framework (Paliwal, 2006). This paper, therefore, discusses business ethics in an organizational context and also delves into ethical dilemmas, moral leadership, interpersonal skills and teamwork in an enterprise environment. Appendix A- The Ethical Leadership Debate Ethical leadership incorporates two key aspects. The first point refers to the way the leader treats and works with the subordinates in his behavior in public, and also in his actions and statements...
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...society. The integrity of the accounting profession and the credibility of financial information provided by businesses have been undermined by scandals. Accounting and business education should pay more attention to the ethical to prevent accounting scandals. And they should not be focused on the teaching of accounting techniques. Neoliberal ideology is a political movement beginning in the 1960s that blends traditional liberal concerns for social justice with an emphasis on economic growth. And it is similar to globalization. Globalization includes three elements that are difficult decreasing, quick response to alterations, and multilateral trade liberalization. And accounting professional contains individual professional judgment and professional self-regulation. Globalisation brings many benefits but also a number of problems, for instance, low price labour used by multinationals that Increasing wages for highly-skilled workers and reducing wages for less-skilled workers obviously leads to greater inequality. Neoliberalism has also been unable to address growing levels of global inequality. In order to better focus on ethical education, accountants should consider ethical issues in various directions. And they should understand the requirements of students’ future employer, and how to guide students into a true ethical notion. Introduction With the development of society in the...
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...TMG 610 Global Trends in Technology Case #8: Royal Dutch / Shell: Ethical Issues, Human Rights and Resource Extraction Case Study Report Ozel Kirkland 29 March 2014 I. Introduction – In General Terms What is this case is about? Why is it relevant to TMG 610? Whether the extractive industries like it or not, the nature of their involvement with host nations is a precarious balance between competing interests (Dicken, 2010), and firms are either obligated to conduct themselves responsibly when dealing with developing nations like Nigeria, or mitigate the negative effects of their choices after the fact, like Royal Dutch / Shell was compelled to. Unfortunately, some extraction companies have a reputation for embracing their short-term self-interests, exploiting developing countries rich with oil like Nigeria, instead of acting ethically. Many of the extractive resources of the world are found in poorer, or developing countries. The question is how can these resources be exploited without foreign assistance. In the earlier part of the twentieth century, many of these extractive industries originated from colonial powers that had expanded into these countries and invested in these companies. This expansion was singularly intended to expand the grip for these foreign countries over mineral resources, used to support their home country and the growing manufacturing and infrastructure growth in those home nations. However the relationships between these host...
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...five leading soft drinks. The company operates the largest distribution system in the world, which enables it to serve customers and businesses in more than two hundred countries. The Coca-Cola Company estimates that about 85 percent of its sales come from outside the United States (Ferrell). Former CEO Roberto Goizueta once said “Coca-Cola used to be an American company with a large international business. Now we are a large international company with a sizable American business” (Ferrell). According to Ferrell, Coca-Cola is the most-recognized trademark and brand name in the world today with a trademark value estimated to be about $25 billion. Coca-Cola’s vision for sustainable growth is fostered by being a great place to work where people are inspired to be the best they can be, by bringing the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs, by being a responsible global citizen that makes a difference, and maximizing return to share owners while being mindful of their overall responsibilities (Ferrell). While Coca-Cola’s vision statement may sound ethical, they have had several unethical issues come about in the past decade. According to Ferrell, in the early 2000’s Coca-Cola was involved in racial discrimination, misrepresenting market tests and manipulating earnings, and disrupting long-term contractual arrangements with distributors (Ferrell). Ferrell goes on to state that in June 1999 the Coca-Cola Company encountered a contamination...
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...Mr. Con Fused RE: The Plumpy Nut Controversy DATE: October 5th 2013 INTRODUCTION It is a well known fact that Nutriset, the French based company which manufactures Plumpy’ Nut, plays a very crucial role in ensuring that children are sufficiently nourished as it has facilities in various countries in the world; for instance, Kenya, Malawi and even Niger, to mention but a few (Mills, 2006). UNICEF is also known to be one International Children’s Organization which purchases about 90% of Nutriset’s production capacity in order to further aid in the facilitation of proper child nutrition (Shaw, 2010). The fact that Nutriset’s production capacity is nowhere near the capacity needed in order to ensure the adequate combating of the ever increasing global epidemic of children malnutrition, it plays a very integral role in partnering up with and also facilitating projects in Africa. This would not be achievable however, if the United States is able to beat Nutriset’s patent (Jhingran, 2001). FACTS SUMMARY Nutriset is at the moment facing immense ethical dilemmas, for instance, if the US beats their patent, it will mean that many people in the respective countries in which Nurtiset carries out its projects will have to lose their employment. In this case, if Nutriset loses its patent rights, many children who were benefiting from the various projects which were being undertaken in their respective countries will have to literally go back to the drawing board as the problem of malnutrition...
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...and focus on international business, the positive effect of globalization is much more apparent as well as the challenges it presents to countries with different ethical cultures. While most would assume that people in another land speaking a different language, following a different religion, and eating different food would more than likely perceive and behave differently from than our own; the truth is that even though these differences may be perceived, very little is done to actually understand them appropriately unless it is deemed necessary. However, what is quickly becoming equally apparent, for international businesses and corporations to deal successfully with a foreign contractor, business, or even government; the proper measures must be taken to understand the differences in ethical perception and to work to accommodate those differences. Failure to do so leave many of these companies and businesses vulnerable for international ethical dilemmas that are quickly brought to global attention by international media sources; where the wide-spread use of the Internet and digital communication have helped companies grow internationally, now any unaddressed unethical practice or issue from businesses can be heard and commented on around the world. Cultural difference begins with the ethical variations of perspectives or business ethics of each individual international company. Language is a huge barrier when it comes to international or inter-cultural business dealings, but...
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...Ethics Case Study - Student Gets a Better Job Offer Step 1: Recognize: Define the ethical problem from all perspectives. • The student did not tell company B after accepting to work there that he already accepted to work company A. • The student did not notify career services office about any of this. Step 2: Clarify the Facts • The student agreed to work for company A at the beginning, because he did not hear from company B (yet). • The student later was accepted to work for company B; since this was his first choice he accepted that offer as well. • The student went back on his words and declined company A after already accepting it. • Career services office only found out about this after the student had reneged upon the job offer. Step 3: Create Alternatives • The student will not be permitted to work in company A or B. • The student will go work for company A, as he approved that offer first. • The student will work for company B, but will never be allowed to use career services again. • The student will be kicked out of school. Step 4: Evaluate Alternatives (short/long term effects) • Short term: student will not have a job Long term: the student might not be able to find another job that year but will learn an important lesson for life. • Short term: student will work for company A and be disappointed since he is not fulfilling his true ability. Long term: student will realize that what he did was the ethically correct choice. • Short term:...
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...Research and prepare a discussion that addresses the ethical dilemmas that face multinational companies. Pay particular attention to the problem of different standards for business practice. Cite your sources using proper APA style. Respond to at least two of your classmates' postings. Multinational companies face ethical dilemmas magnified by the international context. Multinational companies operate across many countries; each country has its own culture and laws, and their own diverse social norms and ethical practices. In order to move into new markets and increase their profits they operate in multiple host countries. The laws, rules and regulations that govern how business is conducted set by the governments of these host countries are very different from those set by the home country of such multinational companies. Multinational companies find themselves confused by these laws, rules and customs of the host nation in which they conduct business. Should they do as the locals do or should they conform to the different and even conflicting cultural and ethical guidelines of their home countries? What could be viewed as ethically right in the home country may be absolutely considered wrong in the host country, and vice versa. In this sense, what constitutes an ethical act depends on where the multinational company is operating. A society’s culture is a good indication of what type of business behavior is considered right or wrong. Charles Mitchell...
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...Ethics in International Business Chapter Outline OPENING CASE: Wal-Mart’s Chinese Suppliers INTRODUCTION ETHICAL ISSUES IN INTERNATIONAL BUSINESS Employment Practices Management Focus: Making Apple’s iPod Human Rights Environmental Pollution Management Focus: Unocal in Myanmar Corruption Moral Obligations Management Focus: News Corporation in China ETHICAL DILEMMAS THE ROOTS OF UNETHICAL BEHAVIOR Personal Ethics Decision Making Processes Organizational Culture Unrealistic Performance Expectations Leadership Management Focus: Pfizer’s Drug Testing Strategy in Nigeria PHILOSOPHICAL APPROACHES TO ETHICS Straw Men Utilitarian and Kantian Ethics Rights Theories Justice Theories FOCUS ON MANAGERIAL IMPLICATIONS Hiring and Promotion Organization Culture and Leadership Decision-Making Processes Ethics Officers Moral Courage Summary of Decision-Making Steps SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Google in China Learning Objectives 1. Be familiar with the ethical issues faced by international businesses. 2. Recognize an ethical dilemma. 3. Discuss the causes of unethical behavior by managers. 4. Be familiar with the different philosophical approaches to ethics. 5. Know what managers can to do to incorporate ethical considerations...
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...Emerging Business Ethics Issues Chapter Objectives • To define ethical issues in the context of organizational ethics • To examine ethical issues as they relate to the basic values of honesty, fairness, and integrity • To delineate abusive and intimidating behavior, lying, conflicts of interest, bribery, corporate intelligence, discrimination, sexual harassment, environmental issues, fraud, insider trading, intellectual property rights, and privacy as business ethics issues • To examine the challenge of determining an ethical issue in business Chapter Outline • Recognizing an Ethical Issue • Ethical Issues and Dilemmas in Business • The Challenge of Determining an Ethical Issue in Business Recognizing an Ethical Issue • An ethical issue is a situation or a problem that requires thought, discussion, or investigation to make a decision • Failure to do so puts corporations at great risk Honesty • Honesty: Truthfulness or trustworthiness • Dishonesty: A lack of integrity, incomplete disclosure, or an unwillingness to tell the truth Fairness and Integrity • Fairness: The quality of being just, equitable, and impartial – Equality – Reciprocity – Optimization • Integrity: One of the most important terms regarding virtue. It means uncompromising adherence to ethical values Ethical Issues and Dilemmas in Business • An ethical issue is a problem or opportunity that requires an individual or group to choose among actions that are evaluated as ethical or unethical...
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...Assignment #1 – “How Personal Can Ethics Get?” Introduction Valerie Young is an immigrant worker currently employed at Wisson, an international cosmetic and fragrance company based in Chicago. While making copies in the copy room Valerie came across her boss personal stationary which showed that he was receiving kickback. In this paper I will: 1. Discuss how personal differences and preference can impact organizational ethics. 2. Discuss how organizational policies and procedures can impact ethics. 3. Discuss the ethical dilemmas that Valerie is facing. 4. Recommend what Valerie should do. Provide a detailed explanation. Discuss how personal differences and preference can impact organizational ethics. Personal differences and preference can impact organization’s ethics in many ways because each employee brings their own personal belief, values and preference which will have an impact on an organization’s ethics. And according to Hellriegel & Slocum, 2011, p.34, “ ethics refers to the study of moral values, principles, and rules, including the determination of standards of conduct and obligations for individuals and organizations”. Valerie Young and her boss Lionel Waters are prime example of how their personal differences and preference had an impact on their organizational ethics. Valerie on one hand found that her boss was receiving kickback for recommending companies which is against their company's policy but she decided to keep...
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...Tyco International: Ethical Dilemma, Yes or No Tabitha Taylor Financial Accounting Aaron Pennington- Professor Introduction By definition, ethics is a term that refers to a code or moral system that provides criteria for evaluating what a person or organization deems is right or wrong. It is a code of conduct in which people govern their lives and the perimeter of standards that guides and hold their existent together. Basically, ethics is just persons, who make up the business world, doing the right thing. Dr. Michael Walsh, a Consultant for Edmund Rice Business Ethics Initiative suggests that ethics is “concerned with the kind of people we are. This could be called the “ethics of being”. It is also concerned with the things we do or fail to do. This could be called the “ethics of doing”. This short statement has the latter as it focus – what we do, and how we decide what we ought or ought not to do” (Walsh, 2003). Ethical decision-making and living applies to organizations as well, organism; living, breathing, and growing entities. Businesses establish values, ethical codes of conduct that must be or should be adhered to by all the employees of a said organization. However, the catastrophes of live can make ethical behavior wavier. The predicament that faces most corporations today is economical tribulation and budget constraints. The demands for products cause the supply to fall below the projected profit margin that an organization has forecasted...
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