...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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...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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...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 an individual or group—focuses on conduct.” (p. 13). Business ethics vary in different parts of the world. Several countries...
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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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...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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...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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...Purchasing Ethics and how it Changes the Global Marketplace Assignment 3.4 Mike Wooddell ERAU LGMT 536 – Purchasing for Logistics and Supply Chain Management June 17, 2015 Abstract As organizations increase their global footprint, the need for reliable, ethical, and sustainable suppliers also increases. Understanding this need, more businesses are engaging suppliers that are the most cost effective and not necessarily the most ethical. This brings me to the research of purchasing ethics. Specifically how do ethics change the landscape of today’s global market? This paper will look at several factors that include the cross cultural understanding of ethics, the personal and professional responsibility, and several ethical challenges such as environmental responsibility and human rights and the impact it has on the global market. Key Words: business ethics, global market, cultural factors, professional responsibility, ethical challenges I. WHAT IS ETHICS – DEFINITION AND UNDERSTANDING Clearly define what ethics mean in the global market and the domestic market and how it is interpreted in each. II. CULTURAL FACTORS IN GLOBAL MARKETS Identify how cultural factors such as religion, sexual orientation, and accepted standard practices influence or hinder international and domestic business. III. PERSONAL AND PROFESSIONAL RESPONSIBILITY TO BUSINESSES Identify the responsibility and moral obligation when ethical dilemmas occur, your personal...
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...Practice of the International Business Ethics Gabriela Dubcová* ABSTRACT The ethics triangle: national law, culture and political economic system. Key factors of current ethics issues in an international environment. The most visible changes in environment dimensions. Principles of international business ethics. Current ethics challenges in international environment. Common issues of the international business ethics. Comparison of ethical standards in different cultures. Accelerating development of globalization and assimilation between Europe and the USA. Differences between Europe, the United States and Asia in the business ethics perspective. Development processes of global business ethics. Levels of global business ethic level. Principle of normative guidelines for business conduct of multinational corporations. Current functioning of institution engaged in the international business ethics. Key words: The ethics triangle; Current ethics issues; International business ethics; Ethical standards; Global business ethics; Institution engaged in the International Business Ethics. JEL classification: K2, M1 Introduction The present economic situation in the globalized world generates very efficient processes in international companies with large profits for managers but with a relevant risk in economic and noneconomic ambit to eliminate any negative impacts of the crisis from one country to another. In this case, it is necessary to enact and apply ethics principles in international...
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...Managing ethically with global stakeholders: A present and future challenge Archie B. Carroll In the early 2000s, the era of corporate fraud and corruption defined by the ethical wrongdoing of Enron, WorldCom, Tyco, Arthur Andersen, and HealthSouth captured the world’s attention as never before. It soon became clear, however, that the U. S. had not cornered the market on questionable ethics. The Dutch firm Ahold and Italy’s Parmalat quickly shared center stage with scandals of their own. Domestic business ethics will continue to be a top priority. But global business ethics will demand cutting-edge thinking and practice as companies strive to expand their products, services, sales, and operations throughout the world. Regardless of what is happening in individual countries, whether at home or abroad, the primary venue for ethical debates in the future will more and more be the world stage. The primary venue for ethical debates in the future will more and more be the world stage. Globalization characterizes the international setting of business transactions in which U. S. and world multinational corporations (MNCs) will increasingly participate over the next several decades. Despite setbacks such as the attacks upon the World Trade Center in 2001 and the antiglobalization backlash that continues to be seen at major international meetings of the World Trade Organization, International Monetary Fund, and global summits such as the G8 summits, the global economy is irresistible...
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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 Values in a Global Setting Daniel Reeves CMGT/530 May 30, 2011 LYDIA BELL Ethics and Values in a Global Setting As more businesses broaden their reach by exploring the global market. Leaders should realize the importance of personal values when hiring candidates to represent their organization. This is done by Identifying individuals personal values. According to Heathfield (2007) article, Secrets of Leadership Success, “Values provide the basis for judgments about what is important for the organization to succeed in its core business.” Organizations can complete this by implementing a value system assessment of personal during the hiring process as well as throughout their employment. This way they can compare and monitor all changes over time. The next step is to align the values and ethics of individuals with the values and mission of the organization. This step is important because no one should be forced to represent something or someone they don’t believe in. Likewise no company should have to hire someone who does not believe in or support the values and mission of there organization. There has to be a common ground. Once this is reached organizations can take there values and mission and explore the global market. As we enter the global market, we see how are personal ethics and values are used differently. We know as individuals are personal ethics and values are a set of established rules that govern how we live. This is the same mindset of individuals...
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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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...Business Ethics Across Cultures Article Review XMGT/216 March 5, 2012 Leat Kodua BUSINESS ETHICS ACROSS CULTURES ARTICLE REVIEW Business Ethics Across Cultures This paper will focus on the two articles that I chose to discuss, ‘Business Ethics in Australia and New Zealand1’ and ‘Business Ethics in Japan.” This paper will provide a brief summary of both articles and try to explain some of the primary ethical perspectives of the countries. In the contents of this paper there will also be a discussion on how the articles contribute to understanding global ethical perspectives and will briefly describe the similarities and differences of the business ethics in these two countries and the United States. Although the first article is titled ‘Business Ethics in Australia and New Zealand’ I will discuss only Australia as New Zealand is considered a separate country. Australia This article discusses the effects of the scandals of the 80’s and extending into the 90’s on Australia and New Zealand as both countries have always claimed to be open, fair and honest societies and the scandals that erupted during the 80’s and 90’s shocked the people of Australia exposing the corruption and dereliction of duty that existed where they felt none did. These scandals brought to light the need for ethical codes within the private and government businesses within Australia, however chief executives and senior government officials still are finding it difficult to accept...
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...Cox Macroethics. Personal Responsibility in an Age of Global Problems Review Assignment Make a summary of the author’s main contentions This study starts with the point of view that classic ethics are failing when they are confronted with many global problems. Compared to other periods of time, the world is able to connect nowadays. Because of the possibilities of the media, nearly ever person has qualitatively and quantitatively choices. The author emphasizes that we don’t choose to be global citizens; she claims that the world’s people are global citizens. People would choose the way of living with the media. The human nature is the basis for the philosophical morality. The concept of virtue, which was defined by Aristotle and other philosophers is basing on the philosophical morality. They underline that people fulfill their potential by using their intellect and will. „Excellent“ would not be given by nature, people have to put afford in work to achieve this status. Besides, other philosophers characterized mortality apart from particular human talents and functions. For examples Kant refers to rationality or Hume choose rationality as criterion. Other authors also claim natural right as the source of ethics. In all of these described concepts, ethics are based on essential human experience and our notions of ethical goodness are intrinsically bound up with our self-definition. At the macro level, ethics deduce from the essential nature like social beings. Through...
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