Influence of Ethics in Business

Keywords: righteous moralist, naive immoralist


The reason for this newspaper is showing how ethics influences international business. In today's business with the growing competition, there's been a growth of unethical behaviour by professionals, employees or even shareholders. In which to stay a business and maintain long term profitability it is important to keep up high ethical expectations. It really is good to indicate that even if it means reducing profitability, the company expect employees to follow the ethical coverage. Without a proper ethical program or laws and regulations, the company may find itself in illegal treatment or lawsuit.

Today globalisation has occurred almost across the world and it presents new opportunities to create extra value added which are worthy of exploration. It can help to exploit the country's competitive advantage and it develops economies of size. Businesses enter foreign marketplaces by exporting, importing, international making, franchising, licensing.

Only lately, many large organisations considered business ethics in conditions of administrative conformity with legal standards and adherence to internal regulations. However today, ethics have become a very important issue. Many organisations now realize that they must comply with the business ethical policies to be able to succeed. International business ethics demand increased accountability towards administration, regulations, people and environment.

Chapter two discusses on honest issues and philosophical approaches to ethics

Chapter three put focus on the dialogue and analysis of international business ethics

Chapter four provide final result and recommendation



In Wikipedia, the term international business refers to all commercial deals that is cross border deals of goods and services and resources which can be done between different countries.

In fact the next terms are commonly found in international business: multinational, Transnational, globalisation, multi domestic, worldwide and the global software industry.

Many large businesses operate in various markets. A few examples are McDonald, Standard Motors, Sony, Shell, Samsung, Toyota, Nike etc. While an company operate internationally, its survival is determined by lots of factors such as legal, political, economic, language, environmental, culture, forex, labour, local climate education.


Business ethics is defined as the behaviour that a business adheres to in its daily dealings with the earth. Different business adopts diverse ethics which can be suitable for the business. The unethical behaviour of a company can lead to an awful reputation. Just how a business conduct itself show the moral behavior. Every business should take up good business ethics. Many global businesses have even been fined worthwhile hundreds of thousands for breaking moral business laws and regulations. Today when a business breaks anti-trust, honest or environmental laws and regulations, it may eventually ends up being fined. And to secure business image, it is becoming important to determine a good moral policy in any business. The engagement of honest issues like the Employment Practices Man Rights, Environment regulations are very common. Many large organisations such as Boeing, BP, Tesco, Shell etc have their own ethical guidelines which give assistance in respect of good behaviour at work, business ethics issues and beliefs.

Ethics provide the trust necessary for efficient ventures and the glue that retains business mutually.


The financial development, regulation, culture, political systems are different in all around the world. What seems to be unaccepted in developed countries may be accepted in third world countries. Inside a multinational business platform, the foundation and characteristics of ethical issues and dilemmas are discussed below.


Today all international organisations place fundamental standards to protect human protection under the law. Company code is designed to give the employee's safeguard because employees will be the most vital asset of the organisation. Charles W L Hill asserts that human rights still aren't respected by giving the truth of human protection under the law in South Africa. The globe has changed much with the global market which it brings complex challenges for the cover of human rights. Corresponding to Amnesty International research, companies can jeopardise the individuals rights of people and neighborhoods by their businesses.


Developed and growing countries are confronted with environmental pollution. Due to insufficient environmental regulations honest issues may occur with the higher level of pollution. In developed countries many environmental laws such as dumping of poisonous chemicals, emission of contaminants etc are in place whereby in producing countries these laws are lacking. A lot of money is invested to save the earth from environmental air pollution. Today many businesses encourage green investment.

2. 3. 3 Job PRACTICES

It is important to set out proper standards of code of carry out in the number country where business is carried out. The working condition, income, pressured labour or child labour will be the moral issues associated with career practices. The reason is the task condition may be very poor in different countries. The Nike example evidently illustrates that bad work practices were completed in poor nation where children were working employees were getting low pay and failing to protect employees.


In this new period as well, corruption plays a essential role in international business. In this context Foreign Corrupt Routines Act prohibits US companies to try to obtain contracts by offering inappropriate payments, products to foreign officers. It is against the law for any member of the company to affect any foreign official to provide any repayments or gifts in exchange of something available. It really is good to indicate that what is regarded as gift in one country may be bribe in another.


Indeed organisations have the mandatory power to control their resources plus they can as well move their businesses in one destination to another. If power is used positively to increase communal welfare then it is said to be moral. However organisations today make it their communal responsibility to help the sponsor country and increase their communal welfare giving them something back again For instance, BP, an petrol company make cultural investments in the place where they do business.


2. 4. 1 STRAW MEN

According to business ethics scholars, the straw men approaches does not provide appropriate guidelines for the moral decision making process. You can find four approaches under the straw men philosophy which are talked about below.


In the Friedman Doctrine, Milton Friedman argues that any business sociable responsibility is to increase its revenue as far as the organisation remains within regulations. He contributes that businesses should not undertake any public expenditure.


Cultural Relativism feels that ethics is the 'representation of any culture' where a business must operate in line with the ethics of the culture. For example, if slavery is accepted in a culture, the business enterprise has to adopt that culture if operating in that place.


According to Righteous Moralist, the house country expectations of ethics are far better to follow in international countries.


According to Naive Immoralist, if a company does not abide by the moral norms in a host country then your other organization should follow the same route.


Utilitarian approaches to ethics assert that 'moral worth of procedures or actions depends upon their outcomes'. According to this approach some repercussions are good and some are damaging. It highlights the point that it is important to weigh the price of business action and its own social benefits. However the action should be pursued only once the power outweighs the price.

In Kantian Ethics, a person is treated as a finish but not as a means to the ends of others. Regarding to this viewpoint, low salary, poor work conditions, sweatshops are illegal of ethics.

2. 4. 3 Protection under the law THEORIES

Rights Theories that have been developed in the 20th century argues that every individual has important rights and privilege. Indeed these human protection under the law transcend culture and countrywide boundaries. Based on the Rights Theorists, a minimum level of morally acceptable behaviour should be adopted and they dispute that firms ought not take part in any business where individuals privileges are violated.

The US Common Declaration of Human being Rights provides basics of human rights that everyone should follow.


The process of Justice Theory state governments that 'just distribution' of economic of goods and services should be achieved. The 'just circulation' is known as to be reasonable and equitable. It is good to point out that different justice ideas conflict with each other. Among the justice theorists, John Rawls illustrates that there should be 'equal circulation of goods and services except when an unequal distribution works to everyone's gain. '


Managers are confronted with real ethical dilemmas. To offer ethically with occupation conditions, human protection under the law, corruption, environmental air pollution and the correct use of vitality is not necessarily easy. Ethical dilemmas occur whenever a manager will come in a predicament where it is not ethically appropriate.


There are several reasons that make a supervisor unethical. Personal ethics, organisation culture, unrealistic performance goals, command, decision-making processes are all the roots of unethical behaviour. Conflicts of Interests can affect employee's objectives concerning the duties and tasks directly or indirectly.


Large international companies have the moral responsibility to consider corruption, human protection under the law, environmental air pollution, working conditions in their business decisions. Along with these there are many things that global businesses must take into consideration for an effective follow up of honest issues in virtually any business decisions.

First of most an organisation must employ the service of and promote a worker who has a strong personal ethics. Furthermore it's important to build a business culture where proper honest behaviour is completely implemented. Additionally not only the organization leaders have to encourage moral behavior in the organisation nonetheless they need to do something upon it. Consequently the managers need to develop moral courage of the employees in order they will come frontward to bring to the attention of any breach of the guidelines of ethics. Ethics advisors can give guidance in respect of good behaviour in the workplace and business ethics issues and prices.


There are several factors which are essential to being ethical in any business. First of all a solid ethics programs can reduce potential costly fines. Employees are expected to comply with national, international, local regulations. Secondly a strong ethics can help to improve brand image and reputation. The organisation has the ability to attract investment finance. Moreover, it can help to decrease vulnerability to misconduct since they provide necessary training to make honest decision. Lastly it make a difference positively employee's dedication to work and boost customer commitment.



Why is it important to own business ethics in company? Today lots of evidences show that unethical corporate practices lead to diminish success of organisations with lawsuits. Since real human privileges and environmental conservation are incredibly much recognised, the scandals of unethical methods can tarnish public belief of multinational. For instance Boeing Company has established a very good platform of business ethics to assure a powerful program to avoid and find violations of regulation. The Boeing company code of conduct put much emphasis on expected behaviours for all Boeing employees also many large organisations have their own honest policy that contain to be adopted.

Climate change is a essential environmental issue. Nowadays any businesses that ruin the environment are challenged by the NGO's, advertising or government. Protecting the environment and finding new resources of energy are the big problems for a corporation given that they do not bring easy alternatives. In this framework Boeing Company were able to achieve carbon neutral growth and retaining net emissions constant. In addition it has change the airplane co2 emissions decrease by 70 percent and the sound area by 90 percent.

However recently, in the case of China the Ministry of Environment has released that the air pollution is worsening following the amelioration of monetary growth. Moreover air pollution of coastal waters also was recognized. Being the world's speediest growing market it is advised that its carbon dioxide emissions will continue to increase. This situation is unethical, since in the long run the fitness of the citizen can be afflicted.

According to John V Mitchell (1999), business rules of ethics are rooted in countrywide and cultural principles which then can maintain conflict at international level. Every country has its own culture, values, customs and traditions that are followed by own ethical beliefs and principles. Within this context it is difficult to get one international moral code of do to be accepted and followed by all countries. Child labour in poor countries is culturally accepted. But how far is it moral for a multinational to encourage child labour.

Is it possible for multinationals to follow ethically its code of carry out, it is difficult to state. Nike was accused of not monitoring its subcontractors and not providing training on code of conduct. Deal, discrimination, overtime, salary, pay, working condition, child labour were all the issues including Nike. The Nike case has indeed given lessons to the global market to be able to minimise ethical issues. Nevertheless, lately Nike makes the news headlines for not paying $2. 2 million in severance to Honduran Garment staff. The question of moral obligation arises again.

Another question may arise about the duty of a multinational in a country where human rights aren't well known. Still there are countries where liberty of speech, flexibility of association, liberty of assembly and flexibility from politics repression aren't respected.

According to Charles Mitchell (2003) corruption make a difference global market. It manages a country's development in several ways. It reduces development, decreases overseas investment, have negative effect on the loan and help funds. In fact corruption brings high return to the corrupt but it can have no gain to the people. The United States condemn business products however many nations accept business products as a good gesture since it tightens method of trading.

Marketing should aim at providing accurate information to its customers. Marketing and protection tactics should be moral. Inappropriate marketing can tarnish the image of the business. The example is Nestle who used wrong advertisement and conclude killing infants in poor countries.

General Contract on Tariffs and Trade (GATT), World Trade Organisation (WTO), International Monetary Fund(IMF), World Bank are those global corporations that manage and control the global marketplace. In addition they organise treaties to govern the multinational system.



Developing an organisational and global honest culture is not easy. The great things about business ethics is the fact it plays a part in employee commitment, entrepreneur loyalty, client satisfaction and profits. It is of paramount importance never to change rigid principles however if required maintain a adaptable moral principles so as to provide a powerful ethical construction. Today ethics is a must in an company since it brings knowing of organisational goal and shows the correct way of action. A good ethical behaviour provides a healthy and nice environment of doing business. If an organisation encourages moral principles in its business then clients' support and attention provides competitive gain. Thus it could be figured globalisation influences the globe market and gain unprecedented electric power. At international level the complexity of business ethics is not easy to take on since our values, cultures change from each other.


1. Ethical values should be communicated better to employees. An ethics programs can reduce potential costly fines from wrongful, fraudulent and unlawful activities. Employees are expected to adhere to nationwide, international, local laws

2. Depending on the host country, there must be a proper communication channel that work best for the business

3. A global company must establish an environment that encourage moral behaviour

4. Since employees's behavior has an essential impact on the success of the organisation, it is important to improve ethical climate of a multinational. The company has the capacity to attract investment capital by enhancing brand image and reputation

5. Work out, awareness of rules of ethics, reward systems is highly recommended. The ethics programs can help reduce vulnerability training to make ethical decision

6. Global market should value human rights no matter where their functions are.

7. Corruption should be tackled and eradicated.

8. Multinationals should be motivated to work in collaboration with the federal government of the coordinator country, NGO's, local people.

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