Ethical Issues With International Business

Knowledge of other cultures is one of the keys to being successful in business dealings. This paper reports on real experiences in cross-cultural business interactions from three different perspectives. I interviewed three successful businessmen, one who worked with Iranians, one with Chinese, and one with Indians. I interviewed them independently, and my questions covered four different elements: cultural behavior in business negotiations, management as symbol of high power distance in the companies, knowledge of high context or low context culture, and finally knowledge of each of culture to have better business negotiation in future.

Satterlee (2014) states that a “difficulty often faced by the global business manager is with customs, which can vary greatly from one country to another (p. 11). However, acknowledging and understanding the culture before engaging in the global business process substantiates the difference between success and failure. Also, “one of the greatest challenges of working in this environment is doing so without sacrificing corporate or personal integrity” (Satterlee, 2014, p. 11). For example, “What is seen as an ethical decision in China may not be seen as such in Canada” due to global ethical standards (Robbins & Judge, 2009, p. 161). As a result, a Canadian would be in a dilemma working in China which commonly practices bribery in business transactions (Robbins & Judge, 2009, p.

Negotiation is viewed differently across various cultures. While many Americans view the process of negotiation as competitive, the Asian community is more likely to view negotiation as a means of information sharing (Lewicki, Barry, & Saunders, 2010). I have found that many Americans generally view the negotiation process as being a distributive process and can be assertive when it comes to negotiation. Some cultures view negotiation as either distributive or integrative. There are several different managerial perspectives in how culture can influence negotiation.

The purpose of this paper is to define common nomenclatures for international business (definitions), identify the impact of cultural diversities on international business ethics (problems), provide diverse cultural examples from China, India, Figi, Japan and Indonesia (case studies), and suggest recommendations to improve ethical

We are living in a period were trade is becoming more global by the day. Taxes and economic barriers seem to be like symptoms - from a disease - that fade away, as time goes by. The ability of fast communication between people and places has boosted many companies to expand in other countries. Yet, cultural and linguistic differentiations are the most sustainable features companies need to take under consideration, in a strategic planning of setting up abroad. A firm needs to become progressively more aware of the foreign cultures when aiming in a successful future in an international business environment. Attitudes towards work and material possessions, entrepreneurship, willingness to accept risk, politics, religion, customs, the role of

Most of the companies in the word have the need to negotiate to obtain the resources they require to produce, transport or sell their services or products. Negotiation is a process that requires two or more parts involve that need something that only the counterpart can offer. Is in that moment when the negotiation begins, so the parties can find a solution that will satisfy the needs they have. In this process, the parties may assume they have different interest that can go against their best interests, based on the impression or stereotype they have of the counterpart. This mistrust may increase when the parties are from different cultures or have different backgrounds, since negotiations are not only between companies from the same country, but also with companies from different countries. An example of this is the negotiations between international companies from American and Asian countries, a situation that is increasing a cause of the globalization. An even though this cultures know that negotiations is a significant component in business, there are differences in how this process is approached by American and Asian cultures.

The work of setting a positive ethical climate starts at the top of the organization as positive ethical attitudes filter down to employees. Ferrell et al. (2015) states, “the more employees perceive an organization’s ethical culture to be the less likely they are to make unethical decisions” (p.134). Business ethics is not only about knowing what is right and wrong, or doing the right thing, ethics involves acting with responsibility, being objective when making decisions, putting honesty in all relationships, and maintaining employees’ fairness. According to Hughes, Ginnet, and Curpy (2012), “conflict over values can arise even when an organization has clearly published values because leaders and employees have divergent perceptions of whether the leader’s behavior embodies important corporate values” (p.177). Unfortunately, GM’s ethical organizational culture has been seriously disconnected from the policies stated in their company. In the past GM’s culture has favored cover-up over openness and legal contemplation over customer safety. The values embedded in GM’s organization were not put into practice. Product defects were concealed from top management as well as the public, not only hurting General Motor’s reputation as a quality customer driven culture, but also the owners of GM vehicles who were injured or died. A culture of secrecy seemed ingrained at General Motors, which can be blamed on former CEO leaders, the organizations structure, and organizational

In doing business so many times an organization must think globally. This might be done to increase sales and/or profits or to lower labor costs. In either case problems can occur due to ethical and cultural barriers in global expansion. In this paper I will attempt to show some of what a global organization and a cultural issue that affects their interactions outside the United States by identifying and comparing some of these cultural differences.

Overview of Environmental, Health and Safety Laws in Singapore. (n.d.) Corporate Learning and Consultancy. Retrieved on September 26, 2010 from http://www.psb-academy.edu.sg/clc/detail/159/0/Overview-of-Environmental-Health-and-Safety-Laws-in-Singapore/

In this essay, I will discuss three sections of business among many which hold ethical issues. Those sections are advertising, product liability, and leadership ethics. Within the three sections, I will identify and briefly discuss three specific ethical issues. I will then choose one ethical issue and go into the detail about how ABC Widgets Inc. will implement a policy on how to avoid the ethical issue.

Cultural negotiations are business negotiations with different cultural conditions. Under the background of economic globalization and international economic integration, the business ties between countries are becoming more and more closely. In order to avoid cultural conflicts, it is important to understand the different cultures of different countries.

There are five things that can be done by the international business and its managers to ensure that ethical issues are calculated into the organization's business decisions. Those five are as follows: (1) hiring and promotion is accomplished within a framework of personal ethics; (2) the organizational culture is constructed with value placed on behavior that is ethical; (3) the organization ensure that leaders not only speak of ethical behavior but follow through in their actions as well; (4) decision-making processes in the organization make the requirement that the ethical aspect of business decisions are considered; and (5) moral courage is developed. (Ethics in International Business, nd)

An effective business negotiation is very significant in achieving a successful business relationship. As the businesses expand globally, so do the conflicts between the interacting parties. These conflicts only get amplified if the interacting parties are from different cultural background. An individual 's cultural background plays a big role in his perception, which affects his judgment, motivation and behavior at the bargaining table. The perception of an individual is the manifestation of the deeper held values and beliefs he has grown up with. In short, culture affects the whole negotiating process. A better

When cultural becomes a complication in the workplace, the best negotiation strategy is for the people within the company to collaborate. Everyone must take the time to recognize that we are all different and that we all have different perspectives. By collaborating everyone gives up something to come to a common ground. Realizing that different countries negotiate various ways will be beneficial to all companies. In most most culture, there will always be a collaborator, an accommodator, a competitor, a avoider and a compromiser. The tradition in China is reading the Art of War and following it as a negotiation tool throughout life. China prefers to handle negotiations during lunch

Michael R. Quinlan is the chairman and chief executive officer of McDonald’s Corp. He advises organizations when they decide to go international to “do it their way, not your way” (Advice for Companies Going Global, 1991, p. 244). I do agree with his motto because international practices, laws, and politics vary from country to country. Multinational enterprises normally delegate certain areas to the foreign subsidiaries because of difference in economic, political, and legal systems (Dowling, Festing, & Engle Sr, International Human Resource Management, 2013, p. 243). If an organization tries to impose its policies in another country and that country does not agree or they feel offended in any way, it could be the end of their international venture in that area. There are some places that will immediately shut a business down with no warning, resulting in a potential financial disaster. When an organization makes the decision to go international, they must not only look into details such as the economy, but also the culture and political stance. In some countries