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Importance of international ethics in business
Importance of international ethics in business
Importance of international ethics in business
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Business ethics can be defined as ethical or unethical behaviors by employees in the context of their jobs (Ebert, R., & Griffin, R. 2011). Business ethics explains why people make the decisions that they do concerning their job. An individual’s opinion on what is ethical or unethical behavior usually differs depending on their beliefs or social norms, otherwise known as culture. Culture, which is just the beliefs and behaviors of a particular group, is extremely important to business ethics (Storti, C. 2011). Culture helps define different business ethics not only internationally but in any organization. I chose this topic because I am fascinated by Sociology, and enjoy delving into the reason why people do the things they do. Business ethics …show more content…
In business usually people make decisions based on what they believe is moral. For example, some people might believe it is ethical to commit fraudulent accounting information to benefit a company, but most people would disagree. Interpretations of what is moral depends on one’s culture, making it that what is ethical to one group will not be considered so by someone living in a different culture. This can make drawing the line between what is ethical and unethical in business difficult. Business etiquette, standards, and practices differ between different firms and even countries. One approach to the same situation may significantly differ from another company, and especially in other countries depending on the top managements culture. Approaches to draw this line have been made to further the success and development of …show more content…
Western culture norms concerning business differ from other countries. Organizations that work internationally must be trained and aware of these differences in business ethics. Without proper awareness or training, the company can damage ties internationally. For example, China and the U.S. differ drastically in business practices. The cause of this is because of their differing cultures. In order for their business to work efficiently both Chinese and American workers must find the right balance between the two cultures. For instance, Chinese cultures suggest harmony in everything including business. Sudden change is seen as dangerous to them whereas Americans are use to the hustle and bustle of everyday business techniques. Another differences in business ethics between China and the U.S. include: relationships, touch, subtleness and many more differences. Americans believe their friendships are bounded by legal contracts in business thus making them superficial while the Chinese view business relationships as a life-long commitment. While the Chinese refrain from touching or physical contact, Americans use handshakes or eye contact to show appreciation or fondness. This could be seen as uncomfortable or insulting to the Chinese business cultures (Pitta, D., Fung, H., & Isberg, S. (999). Western culture and Chinese culture differ dramatically along with other cultures that do
This paper is an analysis of the ethical business decision matrix developed by The George S. May Company (May), a management-consulting firm. The paper will also compare how these guidelines were used by John D. Beckett (Beckett) in his company and how the author’s firm, PricewaterhouseCoopers, LLC (PwC), uses them. The guidelines are meant to be used by employees. These guidelines are specifically a measure of moral and ethical principles tied to business ethics in acceptability of right and wrong behaviour in the workplace.
The importance of having a code of ethics is to define acceptable behaviors and promote higher standards of practice within a company. The code should provide a benchmark for...
An integrative model for understanding and managing ethical behavior in business organizations. Journal of Business Ethics, 9(3), 233-242. Doi: 10.1007/BF00382649
Ethics in business is a highly important concept, as it can affect a company’s profits, salaries paid to employees and CEOs, and public opinion, among many other aspects of a business. Ethics can be enforced by company policies and guidelines, set a precedent when a company is faced with an important decision, and are also evolving thanks to new technology and situations that arise due to technology usage. Businesses have a duty to maintain their ethical responsibilities and also to help their employees enforce these responsibilities in and out of the workplace. However, ethics and the foundation for them are not always black and white. There are many different ethical theories, however Utilitarianism, Kant’s Deontological ethics, and Virtue ethics are three of the most well known theories in existence. Each theory is distinct in that it has a different quality used to determine ethicality and allows for a person to choose which system of ethics works best with both the situation and his or her personal ethical preferences.
(Mallor, Barnes, Bowers, & Langvardt, 2010) Business ethics is when ethical behavior is applied in a business environment, or by a business. There are many situations that can arise in which a person is experiencing an ethical dilemma. They have to choose between standing by their own personal ethical standards or complying with their companies ethical standards. In some instances, some have to choose whether to serve their own personal interests, or the interests of the company.
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).
To provide an example of a breach of ethical conduct in the workplace, we may remember the case of a financial manager in a corporation that decided not to pay overtime to some employees. After a deep outside investigation, the company was summoned with thousands of dollars to remedy the payment that was supposed to be paid to all employees who worked more than forty hours per week. Again, it is needed more than just a booklet stating that the company adheres to the code of business ethics. It is needed serious managers that can run the company with the most seriousness as possible. Consequently, any written codes of business ethics, regardless of how well it has been crafted, need people that adhere to its internal content with a serious desire to do the right thing.
Ethical cultures in large business organizations in Brazil, Russia, India, and China. Journal of Business Ethics, 105, 415-428.
The culture of business ethics is in part revealed in the critical thinking stage. As I mention earlier, the mission of an organization is not an equation without the vision. Cultural principles of business ethics are simple, scholars relate the ethical conduct displayed by an organization, corporate social responsibility. For example, in 1982, Johnson & Johnson’s Tylenol medication commanded 35 percent of the U. S. over the counter analgesic market (Baker, 2015). When Tylenol discovered there was a global catastrophe, in the breach of their medication they recalled the batch prior and after, plus issued an immediate statement on the process, until the finding facts, subsequently, not putting the product on the shelves until everything was resolved (Baker, 2015). Tammy A S. Kohl (2012) wrote about a recent study performed by the Institute of Business Ethics found that companies displaying a clear commitment to ethical conduct consistently outperform companies that do not display ethical conduct (Kohl,
Treviño, L. K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right Fourth ed., Retrieved on July 30, 2010 from www.ecampus.phoenix.edu
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
In the business world there are many fundamental aspects and situations that can lead to several issues. In order to find an optimal and professional solution, business decision makers need to apply moral and ethical standards. And it is at that moment in which business ethics perform its role. Business ethics, which is in charge of examine how companies and individuals should act in business situations, is very essential in order to reach a common agreement and to work within the laws of business and solve an arisen dilemma. Working of the hand of ethical business companies, employees, investors, directors, and even individual officers can be beneficiated and obtain most favorable outcomes.
Business Ethics are much more than the buzz word stories on late night news. The Corporate Social Responsibility of a company goes well beyond that. “Business Ethics are moral guidelines for the conduct of business based on notions of what is right, wrong and fair.” (Bellow, 2012). Individual backgrounds play a huge role in person by person code of conduct can vary from employee to employer. To help solve some grey areas in what is ethically correct, companies now make a code of conduct that is over everyone in the company. This code of responsibility helps employees have better understanding of what is required of each and every one of them. “Corporate Social Responsibility is a business philosophy which stresses the need for
Ethics is the responsibility of each individual person, but starts with the CEO and the Board of Directors, setting the right tone at the top and moves down through the organization, including setting the tone in the middle. A company’s culture and ethic standards start at the top, not from the bottom. Employees will almost always behave in the manner that they think management expects them, and it is foolish for management to pretend otherwise (Scudder). One of the CEO’s most important jobs is to create, foster, and communicate the culture of the organization. Wrongdoings or improper behavior rarely occurs in a void, leaders typically know when someone is compromising the company
Ethics is the study of right or wrong and the morality of the choices that individuals make. That basicly means the set of morals or responsibility that a person, group, or field have. Ethics can also be classified as code of morals. In business there are ethics that portray to business. These are called business ethics, business ethics just happen to be the application of ethics, morals, into the business field. Some examples of business ethics are obeying all rules and regulations even when nobody 's looking, which is pretty self explanatory, you shouldn’t be breaking rules. Even if it is as simple as washing your hands after you use the restroom or straight up lying to your customers, they are the ones making you money so if they find out