MODULE 4: Ethics in International Business
Cards (33)
- It is the study and practice of business policies and practices concerning potentially controversial subjects, including corporate governance, insider trading, bribery, discrimination, and corporate social responsibility in a global context.
- They are the accepted principles of right or wrong governing the conduct of business people.
- It is a strategy, or course of action, that does not violate these accepted principles.
- They arise when individuals or organizations face challenging moral decisions while conducting business in different cultural contexts.
- These dilemmas result from differences in cultural norms, values, and expectations.
- ETHICAL ISSUES IN INTERNATIONAL BUSINESS:
- They involve adhering to labor laws, promoting safety and fairness in the workplace, and respecting the rights and well-being of employees while operating within the country's unique cultural and legal context.
- EXAMPLES OF EMPLOYMENT PRACTICES
- They involve respecting local laws, promoting sustainability, ensuring transparency, and actively working to minimize the negative environmental impacts of business activities.
- EXAMPLES OF ENVIRONMENTAL REGULATIONS
- They refer to the abuse of entrusted power, authority, or position for personal gain, advantage, or profit, often involving dishonest or illegal activities.
- EXAMPLES OF CORRUPTION:
- They refer to the moral principles and responsibilities that multinational companies, governments, and organizations have in ensuring that the rights and dignity of individuals are respected and protected throughout the global business activities.
- EXAMPLES OF HUMAN RIGHTS
- This refers to their ethical and moral obligations to act in ways that benefit society and contribute positively to the communities and environments in which they operate, both domestically and internationally.
- EXAMPLES OF SOCIAL RESPONSIBILITY OF MULTINATIONAL COMPANIES:
- Managerial behavior is influenced by:
- Managers may behave unethically if their personal ethics are not aligned with the ethical standards expected by the organization.
- The way decisions are made within an organization caninfluence managerial behavior. If decision-making processes lack transparency, accountability, or ethical guidelines, managers may make choices that prioritize short-term gains over long-term ethical considerations.
- It sets the tone for ethical behavior within a company. A culture that prioritizes profit at any cost or tolerates unethical conduct can encourage managers to engage in unethical behavior.
- An organization greatly influences managerial behavior at the top levels. If senior leaders demonstrate unethical conduct or place undue pressure on managers to achieve unrealistic goals, it can create an environment where unethical behavior is more likely to occur.
- It can lead to unethical behavior as managers may feel compelled to meet targets or quotas at any cost. This pressure to perform can lead to shortcuts, manipulation of data, or other unethical actions.
- IMPORTANCE OF ETHICS IN INTERNATIONAL BUSINESS:
- Ethical behavior builds a positive reputation for a company, both locally and internationally.
- It ensures compliance with international and local laws and regulations, preventing legal issues.
- Ethical practices help identify and mitigate risks related to legal, financial, and reputational matters.
- Companies that operate ethically are more likely to be welcomed into new markets and enjoy smoother market entry.
- Ethical businesses attract customers who value responsible and sustainable practices.
- Ethical conduct pleases stakeholders such as employees,investors, and communities, fostering positive relationships and long-term support.
- An ethical workplace cultivates higher employee morale, leading to increased productivity and lower turnover rates.
- Ethical practices drive innovation, as companies seekenvironmentally sustainable and socially responsible solutions to global challenges.
- Ethical businesses are more likely to achieve long-termsuccess and sustainability.
- Ethical international business contributes to global well-being by promoting fair trade, environmental responsibility, and respect for human rights.