Global Business and Ethics
Global Dimensions in Business
September 14, 2011
Professor John Dorsey
This term paper discuss “Global Business and Ethics” that relates to the material covered in the text. Globalization is important to a company because it provides them with the opportunity to reach a much larger consumer base and to generate greater earnings. In order to globalize successfully, companies conduct research continually about the countries it intends to do business in. With the increase of business globalization, management is constantly involved in international environments with ethical challenges. I will discuss ethical conduct and how difficult it is to manage when a different language and culture is the target. Having customers and employees from different cultures is a challenge. Management will be under a great deal of stress and stakeholders will enormously increase. The purpose of this paper is to (a) describe ethical issues that become evident as a result of globalization; (b) compare ethical perceptions across cultures in regards to the situation; and (c) determine which risk and consequences are associated with the globalization business and ethics. The key stakeholders will include foreign governments with different regulations, policies and laws. The text states, “Economic and governmental forces are among the most significant uncontrollable forces for managers. To keep abreast of the latest developments and also to plan for the future, firms for many years have been assessing and forecasting economic conditions at the national and international levels.” (Ball, McCulloch, Geringer, Minor, McNett) Many economists have suggested that the main responsibility of a corporation is to make a profit. Milton Friedman, the famous economist, argued that there is "one and only one social responsibility of business--to use its resources and engage in activities designed to increase its profits" (Doing well). Friedman is suggesting that if societies want corporations to put anything ahead of profits, then their government should regulate business accordingly (Doing well, 2000). Others, such as ethics advisor David Mesick, argue that rapid technological development makes clear ethical standards problematic. Countering both attitudes, Berenbeim argues that without "commonly accepted ethical principles, the emerging global economy will lack the respect for diversity and human dignity that's essential for its stability and growth" (Reed). In a speech given in 2002, Berenbeim placed ethics at the heart of business concerns, even over such concerns as sustainable development and environmental responsibility. An examination of international business ethical issues demonstrates that this is a complex topic, but looking after ethical concerns ultimately serves the goal voiced by Friedman, that is, being ethical equates with being profitable and, thereby, fulfills business's obligations to its shareholders. (Doing well) International Business Ethical Practices
As corporations expand globally, new developments and concerns arise daily that might generate problem to organizations. The need for international business ethical practices within organizations has become critical in day-to-day operations and in avoiding legal issues. With public scandals and misleading practices companies have affected the public’s views and opinions of many organizations. (Doing well) Having a code of conduct guidelines would help corporations follow ethical standards. When ethical norms are in conflict, owning different cultural practices, ethical norms guides businesses conduct in other nations and cultures (Doing well). There are a few methods that a corporation can employ to improve ethical behaviors from management and employees. It is the job of the corporation through management to communicate proper ethical understanding in the organization by offering training courses of ethics and reward...
Cited: Ball, McCulloch, Geringer, Minor, McNett. International Business. McGraw-Hill Irwin. 2008. Print.
Berenbeim, R. Globalization drives ethics, New Zealand Management. (2000). Print.
http://www.economist.com/node/304119 (Doing well)
Reed, R. New directions: biz must adjust its compass. Crain 's Chicago Business. . (1999). Print.
Talbert, R. Do ethics matter/ Industrial Paint & Powder. (2003). Print.
Zuckerman, M.B. Policing the corporate suites. U.S. News & World Report (January 19, 2004).Print
Vogl, F. Taking corruption out of the global business levels the field for US companies. World Trade. (2004). Print.
Trimmer, A. Whistle blowing: what it is and what it might mean for incorporated legal practices. Australasian Business Intelligence. (March 8, 2004). Print.
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