Report on Individual Response to Ethical Challenges of International Business

Individual response to ethical challenges of international business

In current days where everyone is using technology in every aspect of life, businesses also become global due to effective use of resources. People are diversifying their business with ethical and traditional practices with innovation in the resources used in the business. Many accountants and other authorities are facing difficulties in their work as they have to face ethical issues at their workplace. Ethical issues could create conflict among the employees, which are not according to the ethical code of business. For the analysis of the ethical issues regarding international business, there must be necessary to get familiar with the issues regarding international business.

As concerned with the challenge related to the ethics of culture it is demonstrated by the research that a 10%-15% expansion since the last decade the two which could be explained with its moral values, just as preparation, arrangement, and motivations, for instance, prize distribution. The corporate initiative seems, by all accounts, to be less effectively occupied with looking into and it is assumed that the moral values related to the business could be a big deficiency in the number of business entities who are working with the moral values and proper obligation regarding morals. This will be considered by the business that it is a better proof among the business corporations and the stakeholders to get the fair position of the business.

Another challenge faced by the international business is accounting ethical, which expressed in different studies that there is approximately 20% increase in issues related to reporting as well as collecting the information. Mostly it is concept of the managers and leaders that it is simple to collect the information by the organization, but it is not as simple as they thought.  

There are ethical issues in business, such as discrimination, gender equality, religion, and many issues which are against the ethics in the business. These issues could affect the business as they are related to the employees. If there is discrimination in treating the employees of same level with different attitudes, it will impact the performance of business. In international business there are many stakeholders such as internal-external stakeholders who impact the business in different ways. For instance if there is discussion about the business of fried chicken, it will be acceptable in Europe and other countries as well as in Pakistan, but it would be protested in India as it is against their ethics and culture to eating chicken and meat. As concerns with the external stakeholders, there may be banks and government. Banks perform key role in the transaction of international business as it helps transact with other countries, but there may also have some ethical issues such as transactions with the countries which are not working according to ethical dilemmas of the business (McNeil & Pedigo., 2001).

Furthermore, there are different models which are used to defines that the business activities are ethical or not in true meanings. The first one is utilitarian model which defines the number of people which are connected with the business and effected by the ethics norms. This is easy way to define the people who are connected with the business but there are also some drawbacks which are related to this model such as how managers will decide about the position of the stakeholders in the company and how it would be beneficial for the stakeholders.

The next model is moral rights model, which is recommended that the fundamental rights which could affect the moral values and ethical decision in the business. This model is helpful for the managers to express the opinion about the alternatives available for the stakeholder. Moreover the third one model is justice model which is used to determine the cost of the benefits which are related to the implication of the ethical decision.

Each model offers an alternate and integral method for deciding if a choice or conduct is moral and every one of the three models ought to be utilized to sift through the morals of a specific game-plan. Moral issues are only occasionally obvious, and the interests of various partners regularly strife so much of the time. It is in this manner for all intents and purposes hard for a leader to utilize these models to discover whether a business activity is moral or exploitative. Thus, numerous morals experts propose a pragmatic guide to decide if administrative conduct is moral. A conduct is likely worthy on moral grounds if a supervisor can answer "yes" to every one of these inquiries.

Instead of increasing the ethical code with different training programs with the most emerging economies. The security of information may be the biggest problem that could increase corruption in the economy. There are different ethical issues which are included in the business while performing international business operations:

·         Working with a different individual, behave unethically.

·         Keep secret on the illegal action performed by someone and conceal the fact.

·         Disclose the confidentiality of business to the public.

There are many other ethical issues that could be performed by the people who are engaged with the business. These are the perspectives which are related to the ethical issues in the business, and sometimes it may cause of overstatement of performance of the business and therefore fraud or misrepresentation could not be found in the books of accounts so this lead to the decision making about the business as which is represented in the books of accounts.

There several members of IFAC, which gives guidelines to the business entities to deal such ethical issues so that the business could be run on proper information, and a decision could be made according to the false representation of the data. With representation of true information it is easy to decide on any project which is beneficial for the business.

The rules may be influenced by the threatened with different circumstances such as self-review, advocacy, and intimations. There should be aware about the understandings so that there could be feasibility in the creation of basic principles of businesses. If these issues are running along the businesses there are more chances to get wrong direction in the business (Valentine & Rittenburg., 2007).

REFERENCES of Individual Response to Ethical Challenges of International Business

McNeil, M., & Pedigo., K. (2001). "Western Australian managers tell their stories: Ethical challenges in international business operations. Journal of Business Ethics,, 30(4), 305-317.

Valentine, S. R., & Rittenburg., T. L. (2007). "The ethical decision making of men and women executives in international business situations.". Journal of Business Ethics, 71(2), 125-134.