Report on Ethical Issues in International Business

Intro of The Ethical Issues in International Business

As someone who comes from Dubai, I have used to become nearly insensitive to the speedy acceleration of the city since there would always be a new development in every single week. Dubai has turned out to become a well-known country with its ongoing development of the economy. In Dubai, leadership is considered as a core to ethics in business. The reason is due to the people in Dubai believe that leadership has the capability to modify the culture of organization for better or worse. In value, the entire economic activities in Dubai are tolerable in Islamic ethics which aligned with justice and profit-making.

Ethical Issues of The Ethical Issues in International Business

There are many ethical issues in international business that are ingrained within the fact that culture, law, political structure, and economic development are significantly different from one country to another. As a consequence, some activities that might be considered to be a normal business practice in a country might be considered to be unethical business practices in other countries. For this reason, the managers who work in a multinational company have to be specifically sensitive to these variations and able to decide the ethical business activities which suitable in the societies in which the company performs its business, so that there would be no occurrence of potential ethical business issues (Kolk, 2016).

Issue 1 - Employment Practice of The Ethical Issues in International Business

An ethical issue might be associated with employment practices in number of countries. The situations within a host country might be much mediocre to the multinational companies that employed their workers from other countries. Even though there are many suggestions came to advise that both payment and work conditions should be same across the countries, but up till now, there is no clear solution on this matter. For instance, some countries might have been performing 12-hour workdays along with the low payment. But it does not mean that any multinational company could also tolerate and working in the same practice.

In this context, the companies need to respond to the employees as one of its stakeholders. The companies should view these stakeholders and provide the best employment practice for them. By doing this, the companies would encourage the employees’ self-value, which would increase the performance of employees and thus, the productivity of the company itself (Park & Ghauri, 2015).

Employees are the primary stakeholders of any company and their well-being is definitely able to affect the performance of the company. In fact, employees have common or broad concerns regarding their employment practices. For this reason, the management should create proper decisions that would impact these types of concerns by highlighting the employees as their primary stakeholders. Whether the management would decide to provide some benefits and further compensation packages to the employees will also definitely affect the performance of employees. Thus, it is fair to say that the consistency of economic health of the company is of greatest importance to the employees (Rezaee, 2019).

Issue 2 – Environmental Pollution of The Ethical Issues in International Business

An ethical issue might also arise if the environmental regulation in the host country is weaker than the home country. Various countries have strong rules regarding the secretion of pollutants, the use, and waste of toxic materials and many more. On the other hand, some developing countries might not too strict in these matters. For this, the multinational companies need to adjust their business activities with the rules in the country that they are doing the business.

In this term, the multinational companies are responsible to society as one of its stakeholders. The multinational companies need to protect the environment, in order to give protection to the society of the country that they are doing the business activities (Kolk, 2016). Furthermore, every single business activity made by a company will always be measured by society, by the reputation of the company itself. If a company would be able to put the focus in not to create or reducing the environment pollution which derived from its business activities, then society as one of its stakeholders will surely appreciate and make a good image for the company’s reputation as well. This is actually aligned with the context of Corporate Social Responsibility that needed to perform by the company (Žukauskas, Vveinhardt, & Andriukaitienė, 2018).

Issue 3 – Moral Obligations of The Ethical Issues in International Business

Moral obligations refer to the social responsibility that the multinational companies need to perform for the societies that allow these companies to grow and develop. In these modern days, most of the companies already realized the importance to get the customers’ satisfaction. For this reason, the customers as one of the companies’ stakeholders are the people that the companies need to serve. Therefore, the multinational companies should able to deliver what they have promised to the customers, be open and honest regarding the products or services provided (McDonald, 2014).

For instance, the company should provide the best quality of products as they have promised in their advertisement campaign. The reason is due to the customers as one of the stakeholders of the company can make a great influence in the context of the company’s brand, reputation, and thus, will lead the profits for the company as well. For this reason, every single company needs to always make proper decisions regarding the quality of products or services provided for the customers (Mayabi, 2018).

Consequences of Decision to Internal and External Stakeholder

As concerned with the stakeholders, there are customers and suppliers who have been affected by the business working on the international level. Customers want to deal with the products which are not easily accessible for everyone, therefore, they deal with the business which is performing the services globally. International business affects the customers in respect of ethical values as all the countries have differentiation in the ethical values. Globalization also affects the suppliers who are assisting the businesses to make the production. The government performed the role of supplier in international business as they concerned with the tax and subsidies related to international trade. In the last, there are stakeholders like competitors, who keep on eye at the policies of the business you are doing (Morrison, 2015).

Process and logical Planning from Identification to Decision Making

Understanding the issues which are related to the process of how international business would survive on international basis according to the ethical values which are accepted by the people on international level. It is important to signify that the ethical values and culture are different in all countries and on international level it should be taken into consideration that how it could affect the business. The ethical issues are related to the business are easy to know by using the model of recognizing the ethical values and cultural differences of the country (Morrison, 2015).

Conclusion of The Ethical Issues in International Business

The businesses which are expanded at the international level need to understand that there are some ethical issues that needed to be considered in the international business. The ethical issues such as employment practices, environmental regulation, and also moral obligations are only some of the main ethical issues that the companies might have to face. Thus, multinational companies need to adjust and manage their business activities so that there would be no potential ethical issues appear.