Describing the ethical issues in international

On the contrary, rational people should consider it unethical not to do so.

Ethical issues in international business ppt

Does that mean that most companies have what they need? Codes of conduct must provide clear direction about ethical behavior when the temptation to behave unethically is strongest. In fact, that conclusion is widely accepted, even by companies such as Texas Instruments and IBM, which are outspoken against bribery. The Code of Conduct has two parts. Notwithstanding, only in the Interamerican Convention Against Corruption, in , and in the OECD Convention, in , did nations assume the commitment to punish bribery of foreign officials. That arrangement allowed Levi Strauss to uphold its principles and provide long-term benefits to its host country. Each type requires its own line of reasoning. The answer is clearly yes. Helping managers develop good ethical judgment requires companies to be clear about their core values and codes of conduct. Exercise moral imagination. Thomas Donaldson is a professor at the Wharton School of the University of Pennsylvania in Philadelphia, where he teaches business ethics. Will your company do business with any customer or supplier? Bribery does more than destroy predictability; it undermines essential social and economic systems. As a result, the senior managers who drafted the statements lose credibility by proclaiming values and not living up to them.

Helping managers develop good ethical judgment requires companies to be clear about their core values and codes of conduct. Some degree of ethical commitment—some sense that everyone will play by the rules—is necessary for a sound economy.

Ethical issues in international trade

Refusing to acquiesce is often tantamount to giving business to unscrupulous companies. General Electric and others have found, however, that a single company usually cannot drive out entrenched corruption. I believe that even routine bribery is intolerable. The Problem with Bribery Bribery is widespread and insidious. To resolve a conflict of relative development, a manager must ask the following question: Would the practice be acceptable at home if my country were in a similar stage of economic development? The U. For some proponents of this view, profit generation itself takes on a moral dimension whereas others see profits as the key to wealth generation — the main way of addressing social issues Davies, , p. The answer is clearly yes. General Electric, for example, has taken a strong stand in India, using the media to make repeated condemnations of bribery in business and government. But even the most explicit set of guidelines cannot always provide answers. People are not instruments, like a machine.

Managers must chart their own courses—as long as they do not violate core human values. Some examples include companies allowing customers to exchange items for products that are not exactly the same, but similar, or allowing customers to return items for warranty even if they do not have the original receipt.

I cannot identify one that it violates.

Ethical issues in international business introduction

Such issues are best not left for spur-of-the-moment decisions. For example, when Carl Kotchian, president of Lockheed in the s, carried suitcases full of cash to Japanese politicians, he went beyond the norms established by Japanese tradition. Employees need and deserve more, and responsible members of the global business community can set examples for others to follow. Individual managers will not be able to wipe out corruption in a host country, no matter how many bribes they turn down. Will your company do business with any customer or supplier? General Electric, for example, has taken a strong stand in India, using the media to make repeated condemnations of bribery in business and government. In the United States, for example, the ethical principle of equal opportunity holds that jobs should go to the applicants with the best qualifications. Should they condemn the Indian companies, refusing to accept them as partners or suppliers until they agree to clean up their act? Consider what has become part of company lore at Motorola. The view that all business practices can be categorized as either ethical or unethical is too simple. Now that the U. Of they can make it difficult to get action from a complaint by taking to long to reply, or having no specific information on how to complain, or to whom. Many Americans find this attitude very strange, but many Europeans find the American approach barbaric.

Exercise moral imagination. Some companies have realized that.

ethical issues in international business pdf

Business partner terms of engagement: Levi Strauss uses these to select business partners that follow workplace standards and practices consistent with its policies and to help identify potential problems. Coca-Cola, for instance, has consistently turned down requests for bribes from Egyptian officials but has managed to gain political support and public trust by sponsoring a project to plant fruit trees.

Describing the ethical issues in international

Some degree of ethical commitment—some sense that everyone will play by the rules—is necessary for a sound economy. Reasonable people have to answer yes if the alternative for Angola is the loss of both the foreign investment and the jobs. How can managers discover the limits of moral free space? Now that the U. Levi Strauss relied on a written code of conduct when figuring out how to deal with the Tan family. Managers in transnational companies routinely confront bribery even though most countries have laws against it. I believe that even routine bribery is intolerable. In Europe and the Far East, the percentages are lower but are increasing rapidly. Workers must not be below 15 years of age or below the compulsory school age. Will your company do business with any customer or supplier?

Transparency International, an organization based in Germany, has been effective in helping coalitions of companies, government officials, and others work to reform bribery-ridden bureaucracies in Russia, Bangladesh, and elsewhere.

Such issues are best not left for spur-of-the-moment decisions.

social responsibility issues in international business
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Ethical issues in international business Essay Example