Social and ethical issues in global business

The Impact on the Environment Impact on the environment is another ethical issue faced by American businesses in the international arena.

Examples of ethical issues in international marketing

For some cultures, the evolution of international business and culture sometimes creates a conflict, such as what is seen in gift-giving practices or views on women in the workplace. Working Conditions and Standards While outsourcing production work may result in lower labor costs, it brings social and ethical issue for management to face. Texaco was accused of making irreversible damage to the Ecuador rainforest because of the use of low standards in the s and s. Just as people look to history to understand political, technical, and social changes, so too do they look for changes in thinking and philosophy. However, the extent and manner in which it is institutionalized differs from culture to culture. What will happen if a new party takes over? For some proponents of this view, profit generation itself takes on a moral dimension whereas others see profits as the key to wealth generation — the main way of addressing social issues Davies, , p. You may also be interested in the following: ethical issues in international business How to cite this page Choose cite format:. If you hire workers there, you face the issue of what pay levels and working conditions are acceptable. References 4. Companies are expected to produce goods and services on a global scale and to sell them globally for a profit. So, does the US corporation take advantage of the more lax environmental requirements and not spend the money needed to meet US standards? Businesses, business schools, and governments are increasingly making efforts to deter firms and professionals from making and taking bribes. The areas of business impacted by global perceptions of ethical, moral, and socially responsible behavior include the following: Ethics and management Corporate social responsibility Ethics and Management Practices Ethics impacts various aspects of management and operations, including human resources, marketing, research and development, and even the corporate mission. 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.

Second, they have the responsibility of following the law in countries where they operate. This trend is accentuated by high-profile examples of breaches of accepted standards of ethical behavior.

Even when there are formal rules or laws against discrimination, they may not be enforced, as normal practice may allow people and companies to act in accordance with local cultural and social practices. Virtue ethics has faced two kinds of criticism. Kant offers different formulations of the categorical imperative [ 60 ].

ethical issues in international business ppt

No matter what choice the companies make about cloning, they are sure to offend a great many consumers. The practice of using connections to advance business interests exists in just about every country in the world. Culture impacts how local values influence global business ethics.

Ethical and social issues in international marketing pdf

Fair trade started in in the Max Havelaar Foundation in the Netherlands. Traditional values can be lost to the homogenizing trends introduced by globally integrated production processes and product promotion. Some argue that Kantian ethics is too speculative, demanding and unrealistic to apply in organizational contexts. They agreed not to respect the discriminatory labor laws of apartheid and to put pressure on the South African government for their abolition. This is a good opportunity to thank clients for their business. The downside to OSHA is that it cost money to meet and comply with these government rules and regulations. Making a moral decision requires answering a number of highly speculative questions about expected outcomes. For example, US tobacco executives had to decide how to market tobacco in Egypt, where the minimum legal age to buy cigarettes is First, it is not always easy to determine who are the stakeholders affected by a decision, which makes it difficult to measure the balance between benefits and damages. That's considered as greedy. Workers must not be below 15 years of age or below the compulsory school age. Often lacking business recognition in the marketplace, these smaller and midsize companies have to rely on their corporate representatives to create the professional image and bond with their in-country counterparts. Since finally the Turkish authorities would not allow it for fear that workers would get cancer, the ship was towed to the Russian port of Sevastopol, where asbestos were removed for even less, thanks to even lower standards in worker safety. Other actions are less clear, such as discrimination based on age, race, gender, or ethnicity.

Other dilemmas involve differences in worker safety standards. Enforcement of Ethical Guidelines and Standards The concept of culture impacting the perception of ethics is one that many businesspeople debate.

The Enlightenment, as it is commonly called, promoted a set of values in which reason, not religion, was advocated as the primary source for legitimacy and authority. Arguments against the Child Labor Deterrence Act, which sought to prohibit the importation of products made from child labor into the United States, were also made on utilitarian grounds.

Asians tend to take a very different view of accountability than most Westerners.

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Ethical Issues in International business