ipl-logo

Ethical Issues In International Business

730 Words3 Pages

Introduction Globalization is a fact of Economic Life – Carlos Salinas De Gortari. Globalization is not a new thought. This process of interaction and integration among the companies, people and government of different countries is happening from ages. Technology has been the major driver of globalization. Economic life has been transformed dramatically by the advances in information technology. However, globalization is controversial. The proponents of globalization claim that it gives an opportunity to the poor countries to grow and develop economically. On the other hand, opponents claim that free market has benefitted multinational corporations at expense of the local people, culture and enterprises. The management concepts create a significant …show more content…

Any unfair trading that is committed is treated as criminal offence under EU law. This could be false information, omission of any information or fails in identifying the commercial intent of commercial practice.
Ethical Issues Ethical issues in international business are rooted in the fact that law, development, political system and culture vary from country to country. There are 5 most common ethical issues in international business which are:
Employment Practices – The working condition of each country differs from other country. It may be possible that the laws and regulations are lenient in host nation as compared to home nation.
Environmental regulations – Ethical issues arise when the environmental regulations of host country are stringent to home country. This may result into increased pollution levels thereby attracting the penalties.
Corruption – Corruption is one of the major issues which still continues in the society. Many international businesses have gained economic advantage as they pay to the government officials. But many countries like USA has an Act in place that outlaws the practice of bribe payment to government official for their gain in …show more content…

Job security is low as the companies start letting go if the company runs in trouble.
Japanese employees have trust and acceptance factors of management decisions when it is concerned with application of practices and policies
Americans do not work at high level capacity and do not assist in greater extent.

Managerial Culture The managerial culture of USA can be described as individualistic. The managers are accountable for all the decisions that are taken within their area of responsibility. The managers more likely disregard the subordinate’s opinion as compared to other cultures. Importance of each individual is linked to the power they have. (CDA Media, 2016)
Conclusion
International Business Management is all about thinking globally and acting locally. International business has encouraged the idea of bringing all the countries together. Though there are many challenges from language, culture, technical development and business attitude that are faced by the managers working globally. A company or an individual need to have proper strategy in their mind when managing people from cross cultural

Show More
Related
72 Words | 1 Pages

In her article “Business Ethics 101 in 2013” Kerri Fivecoat-Cambell touches upon the issue of business ethics, stating that today much has changed in business ethics due to many ethical breaches connected with new technology. The author is for a well-formulated code of business ethics, an ethical culture in today’s organizations which can help people handle many problems in their workplaces and diminish many problems connected with breaches of the mentioned code.

Read More
1306 Words | 6 Pages

1. Introduction – ethics – what are they? Ethics (or moral philosophy) is the kind of philosophy that define concept of right or wrong conduct. In practice, ethics try to resolve questions of human morality, by explaining concepts of good and evil. Ethics, culture, morals – are bind together, they are embedded.

Read More
1127 Words | 5 Pages

Introduction Nowadays people can communicate easily. They can share their ideas, their cultures even with people who are not in their countries. They can trade, transporting products around the world in just a few days. This is a big economy where everything related to each other. This is globalization.

Read More
973 Words | 4 Pages

Suhas Christy (1321721) Ethical issues in strategic management Strategic managers face a wide range of ethical issues such as conflict between goals of the enterprise and individual goals, the fundamental rights of individual stakeholders including stockholders, customers, employees, competitors and the general public. Stakeholders of the company have the right to receive accurate and timely information about the money that they have invested into the company. This is the basic right of every stakeholder and it is unethical to violate that right by the company. Those who understand the stakeholder perspective argue that the managers should always behave in an ethical manner by recognizing the fundamental rights of the stakeholders and not

Read More
565 Words | 3 Pages

The two big components of this management is cultural awareness and sensitivity training. Because we are living in a very diverse world where we differ in a wide range of backgrounds, race, culture, religion, sexual orientation, and many more, not everyone can get together. Moreover, a workplace is a place everyone needs to work together as a group, which is why cultural understanding is crucial. We all have our own culture of values and beliefs as well. We should “be curious, ask colleagues about their cultural background” (Heggertveit-Aoudia), understand them and accept that we come from different backgrounds.

Read More
1807 Words | 8 Pages

By considering these distinctions, managers can enhance their capacity to work while directing worldwide organizations. Intercultural training for managers can help supervisors and employees explore the difficulties of tasks established in cultural differences by helping them build their intercultural ability. This is fundamental for global victory. This will bring about effective budgetary business attempts, enhanced corporate picture, and long terms connections with global partners. Thus, it is vital for global supervisors to perceive the degree to which they and their representatives are obliged by a culture so they can go past their own particular confinements brought on by culture-bound points of

Read More
1664 Words | 7 Pages

However, the cultural environment (communications, religions, values and ideologies, education, social structure) has special importance in multinational business. Table II gives an overview of the complexity of the cultural environment in multinational business. “Culture is an integrated phenomenon and by recognizing and accommodating taboos, rituals, attitudes toward time, social stratification, kinship systems and many other components, modern managers will pave the way toward greater harmony and achievement in the country in which an multinational business operates” (Sherman et al., 1995). Different cultural environments require different managerial behaviours. Strategies, structures and technologies that are appropriate in one cultural setting may lead to failure in another.

Read More
927 Words | 4 Pages

Diverse time zones, languages, cultural standards, and business values, the global business indeed remains responsible for keeping the world’s industry intact (Van et al., 2011). Then again, for global managers, it’s difficult to satisfy all the parties (countries, senior management, representatives of staff and other organization's bodies and so on) engaged in the business due to the factors, such as constrained resources, such as financial issues, inadequate staffing, trust, unexpected legal issues and so

Read More
1105 Words | 5 Pages

I. INTRODUCTION a. BACKGROUND: Globalization is a process of interaction and integration among the people, companies, and governments of different countries, a procedure compelled by international trade and investment, and supported by information technology. Furthermore, this process has an effect on various other systems such as on the environment, culture, political systems, economic development and prosperity and lastly, on human physical well-being in societies around the world. “Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion” (York, 2016). Technology has been another primary driver of globalization,

Read More
1262 Words | 6 Pages

Introduction The key ethical issues that were presented in this case study were quality control, lack of customer care, responsiveness, and harming the customer. The Johnson and Johnson case may have been seen as a turning point due to many things the company did right. However, there were many ethical issues in this case which will be explored more throughout this paper.

Read More
1813 Words | 8 Pages

Loyalty to the company is an important aspect for Japanese people, while Americans tend to job hop wherever there is more money or potential to make more money. In relation to Alex Kerr’s experience, he discusses the norms of educational society in Japan, of which can adhere to the business culture as well. He states, “the Japanese educational system aims to produce a high average level of achievement for all, rather than excellence for a few… Being average and boring here is the very essence of society, the factor which keeps the wheels of all those social systems turning so smoothly” (96). Companies in Japan believe education is not

Read More
802 Words | 4 Pages

Globalization is the method by which business, corporations, individuals start to operate on an international scale. Globalization has empowered monetary advancement, social and political impact. Though globalization is advantageous to the individuals who have worldwide systems while others are barred. The counter globalization development surveys the importance of globalization.

Read More
833 Words | 4 Pages

In the past few years, Multinational Corporation has become the most important character in globalization topic. Multinational corporation means an organization that owns sale their goods or service to more than single countries are rising at this age, moreover, these corporations almost come from developed countries (Allen Sens, 2012). In 20 to 21 centuries, considerably multinational corporations have chosen developing countries like China or India for continuous their business. However, is it bring economic benefit to developing country or make that worse? The aim of this essay is to examine some arguments for and against of multinational corporations in developing country

Read More
1006 Words | 5 Pages

Globalization is a process of linking the world through many aspects, from the economic to the culture, the political. in different nations. This process uses to describe the changes in society and in the world economy, by creating a linkage and increasing exchange between individuals, organizations or nations in cultural perspective, economics on global scale (Globalization 101, n.d.). A process of creating many opportunities but also causes many challenges for all the nations in the world, particularly for developing countries. There are so many advantages that globalization brings to developing countries like free trade, technology transfer and reducing unemployment.

Read More
920 Words | 4 Pages

When it comes to the concept of "business ethics", it is often assumed that there is an abstract element or unreal. These business people do not understand this concept and do not fully understand the role of ethical in business. Meanwhile, business ethics has a great role for the development of enterprises. In fact, economists have demonstrated that corporate profits associated with ethics, and increase the level of profits tied to increase level of ethics. So businesses do not understand the role of business ethics, no sense of building ethical business in the enterprise, the enterprise will be very difficult to go to the highest success.

Read More

More about Ethical Issues In International Business

Related Topics

Open Document