Business Ethics

Common Business Ethics Violation

1. Ethics violation to Customer
2. Ethics violation to Competitor
3. Ethics violation to Creditor (Bank or non Bank)
4. Ethics violation to Supplier
5. Ethics violation to community
6. Ethics violation to government
7. Ethics violation to employee
8. Business Ethics violation in International (global) Environment
 Ethics in Global Environment

Company faces the specific regulation when entering the

global market / international market.
The main objective of company to enter the global market is to
expand the market and increase the market share.

The issues when company entering the global market are :

1. Import tax
2. Non tariff barrier, such as : Standard of Quality,
3. International Regulation, such as : Anti Dumping
 Import Tax (Import Duties)

Import tax or import tariffs (also known as import duties) in the

Local Government generally refer to the taxes and fees charged by
Local Government’s custom when importers bring goods into the
country. They are assessed by government employees with Local
Customs at the port of entry, and are paid by the importer of record.
The impact of import tax is increasing the price of goods.

Local Market International Market

Cost = 10, Profit = 1
Additional cost : Cost > 10 , Profit = 1
Price = 11
Import tax and Price > 11
shipping cost
 Dumping
Dumping is when a country's businesses lower the sales price of
their exports to gain unfair market share (implemented unfair price
in international market). They drop the product's price below in
international market what it would sell for at home. They may even
push the price below the actual cost to produce. They raise the price
once they've destroyed the competition.

Fair Price or Normal Price : Price in international market > Price in local market

Local Market International Market

Cost = 10, Profit = 1
Additional cost : Cost > 10 , Profit = 1
Price = 11
Import tax and Price > 11
shipping cost
 Non Tariff Barrier (NTB)

The strategy to protect the local player is to make the competitor

(foreign player) become less competitive. The instrument used are :
Tariff Barrier and Non Tariff Barrier.
Tariff Barrier actually is adding up some cost to foreign player so
that the total product cost of foreign player is higher than local
player. For some extent it could not be implemented.

Non Tariff Barrier is the strategy to prevent the foreign player

entering or dominating the local market. The instrument used is
implementing some regulation to foreign player, such as : Quota,
Specific Standard of quality, Certification, Government
procurement policy, etc.
 Discussion
Untuk menghindari pelanggaran etika bisnis di lingkungan
internasional, maka hal penting yang perlu dilakukan oleh
pelaku bisnis ketika memasuki pasar internasional adalah
mempelajari aturan aturan yang berlaku di “pasar”. Peraturan
pasar internasional dibuat berdasarkan kesepakatan bersama
beberapa negara ataupun ditetapkan oleh suatu negara
(prerogative pemerintah setempat). Tujuan utama dibentuknya
aturan di “pasar” adalah untuk melindungi pelaku bisnis dalam
negeri ataupun menjamin keadilan pasar (fairness or fair
market).