February 12, 2013
Individuals who are engaged in international business transactions have reported a cultural component to ethics. You are working on opening a branch of a food distribution operation in a foreign country, and a local official suggests that a little cash would help your company get started. Research international business and ethical standards, and answer the following questions: Q 1. In what ways can culture affect ethical standards and shape business behavior? A. In a way that some countries ethics are much stricter than our good ole USA ethics. In turn I could also state the opposite of our ethics can be tighter than some laxed areas (Chron, 2013). All in all it depends on the area and beliefs that were instilled into the community. Here are three ways to ensure one to stick to their ethics when in foreign areas. Keep the unique ethical climate of each market in mind when crafting your code of ethics to ensure that it is relevant to the international arena. Follow local customs and traditions at your discretion. Decide on a case-by-case basis which local customs to follow and which to avoid when it comes to victimless issues. Use your code of ethics when dealing with humanitarian and environmental issues, such as child labor or deforestation, and use your discretion in issues such as bribery or wage considerations. You may, for example, decide to offer cash gifts to government officials in a country where there is no other reasonable way to gain a foothold in the market, but you may decide not to enter a country if raw materials must be gained through suppliers who use indentured labor Apply your standards equally in all markets, and among all subsidiaries. Stick to your standards, whatever they are. If you have a policy of following your home country's ethical standards around the world, be prepared to turn down opportunities in markets with unfavorable ethical climates. Respond courteously and...