BUSINESS ETHICS IN A GLOBAL ECONOMY

ContentsIntroduction Cross cultural ethical issues Cross religion ethical issues Cross racial ethical issues Conclusion

INTRODUCTION

International Business Ethics Business ethics emerged as a field in the 1970s but international business ethics did not emerge until the late 1990s. Many new practical issues arose out of the international context of business. Theoretical issues such as cultural relativity of ethical values receive more emphasis in this field.

Contd.

Country differences give rise to some interesting ethical issues. Some of them are discussed below.Whether they should do business in totalitarian countries that violates the human rights of their citizens (e.g: China)

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v Whe the rfirmssho uldinve stinc o untrie swhe re the go ve rnme ntre pre sse sitsc itize nsinpo litic aland/o r e c o no mic fre e do m.

v Whetheraninternationalfirmshouldadopthighlevelsof worldwideregulationsorfocusonlyonmeetinglocal regulations.

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CROSS CULTURAL ETHICAL ISSUES

What is Culture? Culture is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living. The fundamental building blocks of culture are values and norms.

VALUES: Values are abstract ideas about what a society believes to be good, right, and desirable.

Values include attitudes towards concepts like Freedom, Honesty and Loyalty Responsibility Personal relations

NORMS: Norms are social rules and guidelines that prescribe the appropriate behavior in particular situations. Norms can be divided into folkways and mores.

Folkways are the routine conventions of everyday life, but generally have little moral significance.

Mores are more serious standards of behavior, the breaking of which may be very inappropriate or even illegal.

Social Structure The social structure of a country can be described along two major dimensions: individualism vs. group.

Individual: A focus on the individual and individual achievement is common in many Western societies.

The group: In sharp contrast to the Western emphasis on the individual, in many Asian societies the group is the primary unit of social organization.

Language:

The language of a society allows it to communicate. Helps describe how different people see the world. In countries with more than one language, one also finds often more than one culture.

CROSS-RELIGIONAL ETHICAL ISSUES

Religion can be defined as a system of shared beliefs and rituals that are concerned with the realm of the sacred. Religion influences behavior and shapes culture. Four of the major religions of the world are discussed below on ethical concepts.:

Christianity is the largest religion and is common throughout Europe, the Americas, and other countries settled by Europeans.

Islam: With 750 million followers this is the second largest of the worlds major religions.

Contd. Hinduism: Approximately 500 million followers making it the worlds oldest major religion. Buddhism: There are around 250 million Buddhists, most of who are found in Central and Southeast Asia, China, Korea and Japan.

Cross-racial ethical issues

Thecategorizationofhumansintopopulations orgroups. Visual traits such asskin colour,cranialorfacial featuresand hair texture. Pre-conceived notion about a country or an ethnicity. Create more universal awareness of racial equality and the need for racial unity.

Seven Moral Guidelines for MNCs Inflict no intentional or direct harm. Produce more good than bad for the host. country Contribute to host countrys development. Respect the human rights of their employees. Pay their fair share of taxes. Respect local cultural beliefs that do not violate moral norms. Cooperate with the government to develop and enforce background institutions.

conclusion

Attention to business ethics has substantially improved . Maintaining a strong ethical culture is essential . A business that lacks ethical principles is bound to fail sooner or later.

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