Business and Ethical practices/Issues in International Business and the role of Multinational enterprises (MNEs) Introduction to Business and Ethics
The ethical-related issues have represented the foundation of different religions and life styles. Ethics can be found in all aspects of human activity as the individuals have been preoccupied with the quality of their behavior towards the people around. Even if they do not purposefully intend to improve their relations with the others, people always evaluate their behavior from the point of view of their correctness. Nowadays, consumers and pressure groups appear to be increasingly demanding firms to seek out more ethical and ecologically sound ways of doing business. The media also constantly seems to be keeping the spotlight on corporate abuses and malpractices. Even firms themselves appear to be increasingly recognizing that being ethical (or at the very least being seen to be ethical) may actually be good for business. Business Ethics
Business ethics is the study of business situations, activities and decisions where issues of right and wrong are addressed (Stanwick and Stanwick, 2009, p. 5). Business ethics covers the whole spectrum of interactions between firms, individuals, society and the state. Some specialists consider that business ethics begins where the law ends. Business ethics is primarily concerned with those issues not covered by the law, or where there is no definite consensus on whether something is right or wrong. From a managerial perspective, the ethical problems manifested in the arena of international business represent real ethical dilemmas for the contemporary managers as they generate, at least on a short term, a conflict between the organizational economic performance (evaluated by measuring the turnover, the costs and the profits) and its social performance (evaluated by measuring the ethical responsibilities to the people outside or inside the organization) (Hosmer, 1987, p.3). Competition in international business is such that ethics can appear to be a handicap, if not downright irrelevant. Many business people consider that business has only two choices: to behave unethically or fail, and they argue that the survival of the company should not be jeopardized in order to fulfill an ethical obligation when their competitors are not behaving ethically. International business ethics is a particularly complex issue as ethical standards are different depending on where you are. Corporate governance, bribery, corruption, working conditions and targeted marketing are all issues that require organizations to establish an ethical standpoint from which they can work on. There is an increasing emphasis on the corporate responsibility of large organizations from developed nations and the way they operate in third world countries. Many nations now impose their ethical standards on developing countries even though they themselves have been guilty of arguably unethical practices in the past. For example, the poor working conditions suffered in the third world were commonplace during the industrialization of many western economies.
Introduction to international Business
In the world economy today, we see a shift away from self-contained national economies with high barriers to cross-border trade and investment and a move toward a more integrated global economic system with lower barriers to trade and investment. The globalization of markets and the globalization of production has resulted to the trend towards a more integrated global economic system. The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace. In many markets today, the tastes and preferences of consumers in different nations are converging upon some global norm . Examples of this trend include Coca Cola, Starbucks, Sony PlayStation, and McDonald’s hamburgers The globalization of production...
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