- Published: December 14, 2021
- Updated: December 14, 2021
- University / College: Swinburne University of Technology
- Level: Undergraduate
- Language: English
- Downloads: 16
Ethical issues in business DB Ethics define social behaviors in a community that have been practiced and accepted over time. This paper explores ethical issues in international business.
Definition of ethics identifies its roots from cultural practices of a group of people. Behaviors that are consistent with a culture are for example considered ethical in the culture while those sets of behavior that contradicts cultural orientations are perceived to be unethical in the given society. Culture therefore affects ethical standards by setting the rules for defining morality and establishing ethical standards. In Chinese culture for example, business transactions are based on developed friendly relationships. Monetary exchange is therefore acceptable as signs of appreciation and is treated as an ethical behavior. American culture however, does not recognize friendship in business. As a result, practices such as personal contacts towards monetary appreciations in transactions are considered corrupt and are unethical. A practice may therefore be ethical in one community but unethical in another community because of the involved cultural differences that establish ground for ethical considerations (Ambler, Witzel & Xi, 2009).
Taking part in corruption in an international transaction may therefore be ethical or unethical, depending on a person’s culture. An individual whose culture considers corruption ethical will therefore assume its morality in an international business transaction while a party whose culture considers corruption unethical will assume a corrupt activity in an international business transaction to be immoral. Corruption in international business may also be legal or illegal. This is because of difference in domestic laws that may allow for or prohibit corruption (Czinkota, Ronkainen & Moffett, 2008).
References
Ambler, T., Witzel, M. and Xi, C. (2009). Doing business in China. New York, NY: Routledge.
Czinkota, M., Ronkainen, I. and Moffett, M. (2008). Fundamentals of international business. New York, NY: Wessex Publishing.
