From a starting point of applied ethics, the book introduces a common set of normative terms and analytical tools for examining and discussing real case scenarios. The continued globalization of business increases the relevance of this textbook and its unique focus on specifically international ethical challenges faced by business, where governments and civil society groups play an active role. While most business ethics texts continue to focus heavily on ethical theory, this textbook condenses ethical theory into applied decision-making concepts, emphasizing practical applications to real world dilemmas.
Anyone with an interest in the ethical implications of international business, or the business implications of corporate responsibility in the global market, will find this book a thought-provoking yet balanced analysis.
Clearly written, this has become the textbook of choice in this increasingly important field. Search all titles. Search all titles Search all collections. Japanese companies finally began to alter this ethical perception and lay off workers without being perceived as unethical. Global corporations are increasingly trying to market their products based not only on the desirability of the goods but also on their social and environmental merits.
Companies whose practices are considered unethical may find their global performance impacted when people boycott their products. Most corporations understand this risk. For example, the pharmaceutical industry is involved in a number of issues that have medical ethicists squirming. No matter what choice the companies make about cloning, they are sure to offend a great many consumers. At the same time, pharmaceutical companies must decide whether to forfeit profits and give away free drugs or cheaper medicines to impoverished African nations.
Pharmaceutical companies that do donate medicines often promote this practice in their corporate marketing campaigns in hopes that consumers see the companies in a favorable light. Tobacco companies are similarly embroiled in a long-term ethical debate. Yet in many countries, smoking is not only acceptable but can even confer social status. Should tobacco companies be held responsible for knowingly marketing harmful products to younger audiences in other countries?
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- Ethical Considerations in International Business.
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Corruption often results from patronage. Our modern understanding of business ethics notes that following culturally accepted norms is not always the ethical choice. Does that behavior become unethical, and is the person engaged in the behavior unethical? In some cultures, there may be conflicts with global business practices, such as in the area of gift giving, which has evolved into bribery—a form of corruption.
Paying bribes is relatively common in many countries, and bribes often take the form of grease payments , which are small inducements intended to expedite decisions and transactions. In India and Mexico, for example, a grease payment may help get your phones installed faster—at home or at work. Transparency International tracks illicit behavior, such as bribery and embezzlement, in the public sector in countries by surveying international business executives.
New Zealand, Denmark, Singapore, and Sweden have the lowest levels of corruption, while the highest levels of corruption are seen in most African nations, Russia, Myanmar, and Afghanistan. Even the most respected of global companies has found itself on the wrong side of the ethics issue and the law. In , after years of investigation, Siemens agreed to pay more than 1.
Ethics for International Business: Decision Making in a Global Political Economy
Each year Transparency International analyzes trends in global corruption. The following is an excerpt from their Global Corruption Barometer report. One in four people report paying bribes in the last year. These are the findings of the Global Corruption Barometer. The Barometer captures the experiences and views of more than 91, people in 86 countries and territories, making it the only world-wide public opinion survey on corruption.
International Business Ethics
Views on corruption were most negative in Western Europe and North America, where 73 per cent and 67 per cent of people respectively thought corruption had increased over the last three years. In the past 12 months one in four people reported paying a bribe to one of nine institutions and services, from health to education to tax authorities.
The police are cited as being the most frequent recipient of bribes, according to those surveyed. About 30 per cent of those who had contact with the police reported having paid a bribe. More than 20 countries have reported significant increases in petty bribery since More than one in two people in Sub-Saharan Africa reported paying a bribe—more than anywhere else in the world.
Poorer people are twice as likely to pay bribes for basic services, such as education, than wealthier people. A third of all people under the age of 30 reported paying a bribe in the past 12 months, compared to less than one in five people aged 51 years and over. Most worrying is the fact that bribes to the police have almost doubled since , and more people report paying bribes to the judiciary and for registry and permit services than five years ago.
Sadly, few people trust their governments or politicians. It makes people lose faith. Gift giving in the global business world is used to establish or pay respects to a relationship. Bribery, on the other hand, is more commonly considered the practice in which an individual would benefit with little or no benefit to the company. Bribery, usually in the form of a cash payment, has reached such high proportions in some countries that even locals express disgust with the corruption and its impact on daily life for businesses and consumers.
The practice of using connections to advance business interests exists in just about every country in the world. However, the extent and manner in which it is institutionalized differs from culture to culture. In Western countries, connections are viewed informally and sometimes even with a negative connotation. In the United States and other similar countries, professionals prefer to imply that they have achieved success on their own merits and without any connections.
Gift giving is not routine in the United States except during the winter holidays, and even then gift giving involves a modest expression. Businesses operating in the United States send modest gifts or cards to their customers to thank them for business loyalty in the previous year. In contrast, Asian, Latin American, and Middle Eastern cultures are quick to value connections and relationships and view them quite positively.
Connections are considered essential for success. In Asia, gift giving is so ingrained in the culture, particularly in Japan and China, that it is formalized and structured. For example, gift giving in Japan was for centuries an established practice in society and is still taken seriously. There are specific guidelines for gift giving depending on the identity of the giver or recipient, the length of the business relationship, and the number of gifts exchanged.
The Japanese may give gifts out of a sense of obligation and duty as well as to convey feelings such as gratitude and regret. Therefore, much care is given to the appropriateness of the gift as well as to its aesthetic beauty. Gift giving has always been widespread in Japan. These are must-give occasions for Japanese businesses. Oseibo gifts are presented in the first half of December as a token of gratitude for earlier favors and loyalty.
This is a good opportunity to thank clients for their business. Ochugen usually occurs in mid-July in Tokyo and mid-August in some other regions. Originally an occasion to provide consolation to the families of those who had died in the first half of the year, ochugen falls two weeks before obon , a holiday honoring the dead. Businesses operating in Japan at these times routinely exchange oseibo and ochugen gifts. While a professional is not obligated to participate, it clearly earns goodwill.
There is an established price level that one should pay for each corporate level. Despite these guidelines, gift giving in Japan has occasionally crossed over into bribery. This level of corruption became more apparent in the s as transparency in global business gained media attention. Asians tend to take a very different view of accountability than most Westerners. This has become an accepted managerial practice in an effort to preserve the honor of the company.
While Japanese CEOs may not step down as quickly as in the past, the notion of honor remains an important business characteristic. Long an established form of relationship development in all business conducted in Asia, the Arab world, and Africa, gift giving was clearly tipping into outright bribery. In the past two decades, many countries have placed limits on the types and value of gifts while simultaneously banning bribery in any form. In the United States, companies must adhere to the Foreign Corrupt Practices Act, a federal law that specifically bans any form of bribery.
His OLI paradigm, in particular, remains as the predominant theoretical contribution to study international business topics. Hymer and Dunning are considered founders of international business as a specialist field of study. The conduct of international operations depends on a company's objectives and the means with which they carry them out.
The operations affect and are affected by the physical and societal factors and the competitive environment.
https://volvlighfite.tk All firms that want to go international have one goal in common; the desire to increase their respective economic values when engaging in international trade transactions. To accomplish this goal, each firm must develop its individual strategy and approach to maximize value , lower costs, and increase profits.
A firm's value creation is the difference between V the value of the product being sold and C the cost of production per each product sold. Value creation can be categorized as: primary activities research and development , production, marketing and sales, customer service and as support activities information systems, logistics, human resources.
However, the success of firms that extend internationally depends on the goods or services sold and on the firm's core competencies Skills within the firm that competitors cannot easily match or imitate. For a firm to be successful, the firm's strategy must be consistent with the environment in which the firm operates. Therefore, the firm needs to change its organizational structure to reflect changes in the setting in which they are operating and the strategy they are pursuing. Once a firm decides to enter a foreign market, it must decide on a mode of entry. There are six different modes to enter a foreign market, and each mode has pros and cons that are associated with it.
The firm must decide which mode is most appropriately aligned with the company's goals and objectives. The six different modes of entry are exporting,  turnkey projects , licensing , franchising , establishing joint ventures with a host-country firm, or setting up a new wholly owned subsidiary in the host country. The first entry mode is exporting.
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