GLOBAL CHALLENGES IN BUSINESS ETHICS

What is ethics?
The field of ethics (or moral philosophy) involves systematizing, defending, and recommending concepts of
right and wrong behavior.

As companies plan their long-term expansion into a foreign

environment, they must tackle serious moral and ethical challenges
and decision-making in order to make their expansion a success.

Most common ethical issues in international business

include working standards and conditions, workplace
diversity and equal opportunity, child labor, trust and integrity,
human rights, religion, the political arena, the environment,
bribery and corruption.
• Labour
Companies in developed economies began to relocate production facilities and contracting in emerging countries to
cut labor costs.

• Human Rights
An absence of human rights policies can lead to difficulty in
imposing work standards and creating acceptable work conditions.

• Environment
The progress in technology has allowed humans to impact
the environment in a huge way. The overuse of natural resources causes great harm to the environment.
• Corruption
Bribery in foreign operations may be seen as a necessity by some
companies to succeed in countries with corrupt governments.

• Language
Businesses must often rely on translators when communicating with
foreign contacts.

• Cultural Diversity
Corporations functioning in different parts of the world have to respect the culture and community in their host
country.
 SUGGESTIONS TO OVERCOME ETHICAL CHALLENGES
• Utilitarianism
An ethical doctrine based on value of usefulness to all concerned
thereby yielding the highest level of happiness.

• Personal Virtue
The practice of evolving individual character to a point of
effectiveness by reinforcing one’s values with the culture of a
community, firm, group or association.

• Integrated Corporate Ethical Framework

Development of a framework that for an organization by mixing
values and principles of immediate operating communities,
professional bodies and global benchmarks.