International Business Ethics

Analysis:

Business ethics has remained a core and hot domain of academia, businesses and governments. Any business firm operating in premises of territory of any country has some limitations, requirements by the government and other regulating authorities to be fulfilled. These regulations are of different types some deal with taxation, corporate social responsibility and ethics. Regulations related to business ethics are of key importance to business entity as strong ethical values lead Company’s name towards a strong brand name in the market. And company can get good expert, competent, killed and professional human resource in the form of valuable asset. Moreover, healthy ethics and values retain employees and have positive impacts on productivity of organization (Schwartz, 2013).

For the last few decades business arena has changed widely. Companies are going international. Expansion of business activities have different scenarios, by moving international companies get a chance to grab large customer base, extended product line and higher profits. These are the good points of expansion but other problems also come with the expansion of business especially across the borders. When a company tries to expand its operational activities to another country it goes with a different culture, ethics and values, thus its strategies are formulated according to the requirements of parent country. With diversification in human resource middle level managers and higher level managers are facing problems in making appropriate ethical decision making. But it is the essence of maintaining value of justice in organisation. According to (Choy, 2007) this change in demographics of human resource and interaction of employees with different values has caused a substantial change in management practices.

Culture and other values have a strong influence on ethical decision making as suggested by (Mcdonald, 2009). Therefore, higher management should set some basic set of values that are universal values like honesty, fairness, achievement and concern for others. It is on part of management to set these sets of ethics in working place by briefing new employees at the time of orientation. Core ethical values should be mentioned in books and documents of company. Proper training seminars and conferences should be conducted for employees of all levels in order to make repetition of importance of adopting and performing work place activities in light of these values as they create harmony, peace within work place. And also these ethical values are of equal importance in every culture.

Social learning theory presented by (Bandura, 1971) suggests that personality and action of individuals are greatly influenced by their external factors and behaviors of other people. People working in an organisation observe and perceive form the actions, deeds and values of their colleagues and especially from the higher management.