Ethics in International Business

842 WordsFeb 2, 20183 Pages
Ethics is an incredibly important aspect of domestic business. Companies and their employees need to be mindful of their decisions and actions, and how they affect others. But when business is taken to the international and global level, being conscious of ethics becomes absolutely vital. In order to be successful long-term, ethical practices must be followed, as well as having a level of social responsibility. Companies or individuals who do not have a laid-out, defined set of values may find themselves compromising and taking unethical shortcuts to a profit. Unethical business practices can seem like the easy way to reach goals, if looked at with only short-term perception. But when values are compromised, it often leads to disaster in the long run. Richard Rudden, managing partner as Target Rock Advisors in New York, is quoted saying, “Ethics and integrity are at the core of sustainable long term success, without them, no strategy can work and, as Enron has demonstrated, enterprises will fail. That’s despite having some of the ‘smartest’ guys in the room” (Silverstein, 2013). The United States has stricter laws governing business practices considered unethical. For example, the Foreign Corrupt Practices Act (FCPA) prohibits payment of bribes to foreign government officials by US companies (Griffin & Pustay, 2013). Other first world countries, such as the United Kingdom, also have laws governing business practices. These laws serve as guidelines making it easier for
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