Developing International Busienss Ethics and Law

Question: Discuss about the Developing International Busienss Ethics and Law. Answer: Introduction: There is a great dilemma for international organizations when it comes to deciding between economic and cultural results of their activities. Most Non-profit or for-profit international institutions work with only one goal in mind; to ensure financial stability and profitability of their institutions in developing countries (Beamish, 2013). They fail to recognize that there are significant cultural diversities in the states or nations in which they operate.Notably, many international organizations view other ethical issues like corporate social responsibility, employment of the local community, environmental protection and cultural activities promotion as factors that will increase their organizational costs and in turn reduce their efficiency (Hill Wickramasekera, 2013). However, there are multiple other businesses which have managed observing the same ethical theories but have still excelled in their operations. Examples of these organizations are the United Nations and Internatio nal Labour Organization. Business ethics does not necessarily mean that it is a rule for that particular business to operate as directed by any specific legislation but that it is inherently right to do what it can to be morally responsible. Maybe through such actions and internal regulations and through consensus, a law can be born. In my analysis, I will predominantly describe two ethical issues i.e. corruption and corporate social responsibility. Many international organizations work in the developing world either due to the vested interest in their resources like oil, minerals or human resource or as non-profit organizations (Hoffman, Frederick Shwartz, 2014). Either way, these businesses affect the local communities in both positive and negative ways. A good team is one that leaves the city better than it found it. The world over, corruption is a major challenge to many nations. It goes above just developing but also the developed countries. Most of the international businesses have regularly flouted this ethical standard (Jennings, 2014). The question whether one would only tender for an opportunity in a developing country and compete with others or bribe and get the bid remains a significant challenge. Understandably, many developing nations and their leaders live in poverty, and the only way they feel they can get rich faster is through corruption. Unfortunately, an international business gained through bribery may flout even fundamental rules like employment of the locals, environmental pollution and cultural sensitivity when they gain entry into a developing country through corrupt means. This is because the government will always turn away their eyes towards their deals (Bowie, 2017). It is one way of buying out their protection. Some of these businesses like the mining and oil drilling companies end up polluting the environment and abusing cultural practices within the developing countries because of the illegal means by which they gained their tenders. A point to note is that multinational businesses which face such dilemmas of offering bribes before they get a tender may divert to more ethical ways of doing their business. The softer way to entice such opportunities legally would include donations of funds to build that particular developing countrys infrastructure like roads and government buildings (Ferrell Fraedrich, 2015). They could also offer to donate goods and services like free medical facilities, providing business policy experts to the developing country and giving computers to schools. Also, because jobs are mostly the low factor in developing countries, such companies should give job slots to the local community, promote the local sports and cultural activities. All these initiatives build trust and here is no single government in the developing countries, which will not be enticed by such offers. Since there is an existent dilemma for the international business entities in the tendering process, they can evaluate their actions by respecting the cultural values of the country they intend to set their business. They should also observe international human rights codes of conduct and decide whether their engagement is through moral or immoral means (Crane Matten, 2016). Such kind of consciousness and use of conscience will ensure sustainability and growth when that kind of a business sets up its operations in a developing country. Advisable for the developing countries governments, the management of international trade entities should be over sighted. This could include forming a task force that investigates how such businesses obtain tenders, the processes of registration and what the company intends to bring forth to the local population (Jennings, 2014). Through such standardizations, all international businesses shall be regulated before and during their operations in the host developing country. Adverse outcomes of unemployment of the local community, disrespect of their values and environmental pollution shall be curbed. Corporate Social Responsibility Almost all businesses start with the primary vision of making profits. Corporate social responsibilities are viewed by businesses as additional costs and entirely burdensome (Kolk, 2016). However, no business can operate in a vacuum. International companies do not work like some industrial machine but must respect the social duties as well. Corporate Social Responsibility is good ethical practice for businesses. Whenever the concept of CSR is mentioned, people liken it to environmental management responsibility of the business (Martin, 2014). However, it includes broader issues like social, health and administration among others. Because business is not a stand-alone enterprise, its moral obligation towards the community it works in should be observed. Some of the international companies should be applauded for taking social responsibilities very seriously. Good examples of the kind of CSR made by international businesses include the building of local schools and institutions, academic sponsorship to citizens of the developing countries and various vocational training (Jennings, 2014). This kind of activity has helped improve lives of people, institutions and overall, the government. Through the above-mentioned CSR activities, the business ensures the growth of the local community it works within (Martin, 2014). This kind of responsibility, in turn, ensures trust with the local people, the profile of the international entity is built, and its continuity provided. Most developing governments are incapacitated regarding offering such services and should be grateful for objects which support their growth. Also, most developing countries have not ratified internationally accepted laws governing employment, environment management, and human rights. International businesses tend to take advantage of these regulatory incapacities (Moens, 2015). For instance, oil and drilling companies eject dirty waste in water catchment sources and the air. The developing countries do not have the capacity to regulate such activities because of their failure to ratify internationally required legislations. Luckily, there are businesses which have continued working ethically towards ensuring there are clean environments. They have adopted the modern technology of cleaning wastes that they release to the environment. Also, the said organizations have gotten involved in practically clearing the waste in the community they work in and teach the members how to manage their environment. Some international businesses have gone further to promote human rights and encourage good governance. These activities are done through sponsorship of training and workshops especially for elections and respect for human rights (Nica, 2013). The experts of governance, human rights, and economic strategists are also freely lent to the developing government to assist in various departments as a means of CSR. Job creations by the international businesses organizations is also an economic factor that should be considered in their CSR mandates. Because many youths lack jobs, foreign entities like highway road constructors offer manual jobs to the unemployed and unskilled people. This removes the unemployment burden to the host country. On the other hand, there are developing countries citizens who have cried foul of unemployment even when these businesses are present. The Chinese road constructors, for instance, come with their engineers and laborers, a situation that has built mistrust and hostility towards them (Nica, 2013). The international mining organizations also tend to distrust the local communities, and this does not auger well with CSR of the existent international businesses towards the host country citizens. Brazil is a developing country which has very high standards for CSR. Their laws and regulations include a clause for international businesses CSR requirements. As a benchmark, and because CSR may not be a statutory requirement, it is advisable that developing countries formulate legislations ensuring there are CSR for any international companies operating in their respective countries (Weiss, 2014). This may not be a strict requirement but a negotiable need. For instance, a state may agree with the corporation bidding to set up operations in their country that they must take a percentage of staff/job slots for the local people. In the mentioned example of Brazil, therefore, instead of using CSR are a regulatory factor of obtaining a business opportunity in the developing country, the respective states can use it as a competitive tool to winning the tender. Unfortunately, as discussed before, businesses are entities that exist to make profits (Wild Han, 2014). Without enough funds or benefits, CSR may not be possible, and a country may lose foreign income. It is hence, the responsibility of a developing world to determine whom or what they deem suitable to set up a business in their territory. Challenges and Consequences There are quite some challenges to ensuring ethical and lawful activities of the international trade set ups. There are also consequences to the international companies that indulge in unethical business behaviors in the developing countries (Weiss, 2014). The following challenges and consequences either contribute to or rise from unethical business activities. Because most developing countries believe that bribery is acceptable, it can be challenging to enforce any international ethical standards curbing the same. Excellent business opportunities can be prevented from reaching the developing country for instance if there are stiff regulations on the CSR requirements. Obtaining the legal standards of gender equity and employment of disabled people may not work for individual businesses. This is a challenge experienced by real intensive businesses like mining and drilling companies. Women and disabled people may not be able to perform such jobs in as much as their employment are legally required. Job creation chances might not reach the local community if fraudulent means were used to allow a business operate in the developing country. This is because the business entity shall not feel any need to give opportunities to the local people since they already used the money to gain entry into the market. Additionally, the workers rights could be overlooked through cheap labor if governments fail to regulate the employment acts related to international businesses. An unethical behavior will taint the name of an international; organization. If for instance it is realized that corrupt deals were used to obtain a particular e deal, the business in focus may fail to get any future tenders in other countries. Unethical business behaviors may lead to loss of trading partners and clientele for instance if it is confirmed that a particular company does not conform to human rights and environmental management standards, some clients and partners who respect international laws may pull out. Respecting ethical requirements for businesses can, in turn, create advantages to the firms that practice them. Their respect, reputation and stature increase and the international community recognizes them. When the company is ethically compliant, it tends to get more opportunities across nations, and the workforce it obtains is also competitive (Martin, 2014). It could as well be advisable that international awards be issued to businesses practicing ethical and lawful standards so that other may follow suit. Firms that practice ethical and legitimate means of operations create a culture that is so embedded and idealistic for its growth. Unlike those that engage in unfair deals like corruption, even its employees develop trust, confidence and support its growth. Recent studies have indicated that businesses that practice ethical standards tend to be more profitable (Kolk Lenfant, 2013). This could be because of the efforts of its employees, the trust of clients and partners and hence more investments. In conclusion, international business entities have a lot of dilemma in their operations in developing countries. Culture and laws of the respective country play a significant part in either encouraging an ethical business environment or an unethical engagement (Kolk Lenfant, 2013). It is only right that foreign trade entities practice ethical standards because its a moral, profitable and ideal thing to do. References Beamish, P., 2013.Multinational Joint Ventures in Developing Countries (RLE International Business). Routledge. Bowie, N.E., 2017.Business ethics: A Kantian perspective. Cambridge University Press. Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.International business. Pearson Australia. Crane, A. and Matten, D., 2016.Business ethics: Managing corporate citizenship and sustainability in the age of globalization. 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