Modern economic activities are global. Businesses are multinational or looking into expanding globally. There are some businesses that are localized but these businesses are not in isolation with the international community. These businesses do get impacted by what happens in another country thousands of miles away. Many of the ethical issues in global trade are the direct result of varied political, legal economic growth and culture around the world. In parts of the world business practices would also vary. What would be normal in one region of the world or a country could easily be considered unethical or even illegal. In this paper, I will attempt to discuss what should be the norm for international business and optimal resolution for ethical dilemmas that all multinational organizations should adhere to as part of its normal conduct of business. Furthermore, I will discuss how to resolve the dilemma around fair wages paid to its employees, keeping the organization sensitive to various international cultures it operates in and to not let any local corruption and bribery shadow the good efforts and image of the organization. Many times the working conditions of a host nation are clearly inferior to those in multinational’s home nation. Multinational operations frequently raise a question on which standards should be applied – host or home nations? Additional questions also arise on what causes managers to behave unethically and what managers can do to incorporate ethical considerations into their decision making. Literature Review Absolutism versus Relativism The absolutist position is that business ought to be conducted in the same way the world over with no double standards. When in Rome, do as you would a... ... middle of paper ... ...or the betterment of humanity and environment. It is expected to provide charity and benevolence to the community in which it operates. Historically, a few multinationals have abused its power for private gain. Take for example the East India Company of the British. It had warships, a standing army and thus a defacto ruler of India. Some countries will hire protection from rebels when doing business in a hostile country. This protection will come in the form of providing not only money but also weaponry. Power itself is neutral but how it is used is relevant. It could be used positively for social welfare or for private gains at any cost. What to do in Rome Multinational should not adopt double standards. Morally relevant differences Conditions in developed countries would expectedly be different from developing or underdeveloped nations.
Following the globalization, many companies in developed countries move factories to developing nations. As a multinational company, there is at least one facility in one country other than its home country. Those companies have offices and factories in different countries and usually have a centralized head office in their home country. Advocates of multinationals say they create jobs and wealth. And multinationals can improve technology in developing countries, which are in need of this. On the other hand, critics say multinational companies often barely pay employees enough to live on in developing countries, and it is unethical to pay cheap wages.
There has been major controversy with multinational corporations employing foreign workers at very low wages for punishing hours. Working in excruciating conditions in underdeveloped countries only to manufacture export goods for Western consumers is usually the only option for foreign workers attempting to support themselves and or their family. In this essay, I will argue that any multinational corporation that is operating in a developing country must pay their employee’s not only a living wage but also provide them with safe working conditions. Exploiting foreign workers wages and having them operate in poor conditions will shine a negative light on these multinational corporations, which will damage their reputation. Multinational corporations can be viewed as ethically and morally just in some instances by adding a few more cents to the employee’s wage to obtain a living wage and further, providing the workers with a safe and healthy work environment.
They are saying that when in Rome, you shouldn’t do exactly as the Romans do. These companies pick and choose the sort of practices that they will engage in and what practices they won’t stand for. For example, in the bribery case, companies following this sort of thinking may decide that since this is an everyday practice of the country and it’s the only way for them to successfully do business in that country that they will partake in that practice. After all, bribery isn’t as morally comprehensible as something like child labor practices. When it comes to those types of practices in which are in themselves clearly more morally wrong, a company may decide that they will not stand for that practice even if it costs them money in the long run. That’s because there are some ethical values that are just not negotiable. Examples of those values that might be considered objective moral values might be the right to have economic advancement. For example, if you go to a country which has unfair wages then the ethical thing to do would be to give your employees a fair wage. A fair wage in this case might not be the same amount you pay employees back in your home country. Instead, a fair wage would be a livable wage. Another objective moral value would be the golden rule. Both of these values are based on core human values which demand that
Power allows people to do anything they want. They can use it in different ways, they can tell people to obey them, they can use it to hurt someone they hate, and even rob. They can also use it in a positive way, they can help people and do a lot of good things with it.
As defined in the text, power is a fundamental concept in conflict theory. If only it were that easy to define or label power in conflict as "good" or "bad". Simply stated, in and of itself, it is both. Similar to "beauty being in the eyes of the beholder," Power is much the same way — it is in the hands of the beholder. The English word power comes from the Latin posse — “to be able”. Dictionary.com defines power as “a person or thing that possesses or exercises authority or influence.” Power has a number of meanings and means something slightly different to everyone, but essentially is gives us the ability to do something. It can enable us to have the capacity to affect change when faced with conflict. So in reality when we use our power
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
In conclusion, companies that seek to integrate into global markets usually encounter several problems because of the effect of globalization on business practices. The challenges originating from such integration is attributed to the differences in cultures in various societies across the globe. As evident in Google’s dilemma in China, there is no single set of universal ethics that are applicable to all settings and societies across the globe. Companies such as Google need to develop varying ethical standards that are relevant and appropriate to various nations and cultures in the world. This would enable the companies that are integrating into global markets to avoid ethical issues while maintaining effective business practices.
Multinational enterprises date back to the era of merchant-adventurers, when the Dutch East India Company and the Massachusetts Bay Company traversed the world to extract resources and agricultural products from colonies (Gilpin 278-79). While contemporary multinational corporations (MNCs) do not command the armies and territories their colonial counterparts did, they are nevertheless highly influential actors in today’s increasingly globalized world.
The development of a country depends generally on the work and values of its society. The image of a country can be severely damaged by certain actions and behavior of their citizens, like bribery. When a country is known as a corrupt nation, not only will the facade of the country be affected, but also the economy. Establishing measures to eradicate corruption are urgently necessary. Corruption has been around since the begging of time, but currently is more common in business, more specifically, international business. Although some organizations have been formed, and conventions have been signed in order to end it, corruption is still one of the mayor problems around the world. An ethical view might bring more insight to why bribery and corruption is not a moral act and why more severe measures should be taken into consideration.
From a managing ethics viewpoint, managers should remain these arguments in governments. At the same time as it is frequently not a good initiative to break laws to perform business, it is from time to time completed, and there are occasionally methods to circulate the laws of one nation or another. Managers who attempt to scamper an ethical business must be capable to choose for themselves whether they desire to perform business with exacting individuals as well as governments. Their ethical options should not be prohibited by some administration that takes away their alternative to operate ethically.
Understanding that the needs of one country differs from what you countries consist of addressing and taking a look at organizations who are MCNs, such as Walt Disney, their goal is to purse prospective consumers around the world and meet their wants in order to gain a profit. In addition, they need to implement the right decision making tools to send their employees overseas and a strategy as to how they will market their products ethically and legally in that particular country. According to the article, “Values in Tension: Ethics Away from Home, ” the author talks about how companies can work through ethical barriers without breaking laws within their own country. The article goes on to say that when we are dealing with countries that have a different set of standards of ethical behavior and various ways of handling unethical behaviors. It is important to understand how to operate within that countries ethics and being knowledgeable of the attitudes towards ethics. Therefore, it would not be considered a wise act to allow the other countries ethics to take precedence nor the host country, we have to remember that in some countries are focused on the consensus rather than the code of ethics. The article also, provides key information as far as balancing and provide three guiding principle within its “Balancing the Extremes: Three Guiding Principles,”
Kidder, R, M., (2010), Center for corporate Ethics, Institute for Global Ethics, retrieved on August 08,2010 from www.globalethics.org/ reserve reading from ethics news line
The first challenge that confronts managers of multinational corporations is related to the host-country issues. Both the international corporations and the countries that host their overseas operation should mutually share opportunities from any business relationship. Multinational en...
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.
Globalization can not only affect a company opening an office in another country but it can affect a small local business as well. As the internet brings the world closer together it becomes far more likely that a business that opened with no intention of selling internationally will have customers form different parts of the world asking for their product. For instance a steel company located in Pennsylvania may suddenly find orders coming in from South American factories. How the steel plant chooses to handle this new international customer could mean ...