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ARTICLE REVIEW Ethics in International Business, Among the steps taken to…
ARTICLE REVIEW
Ethics in International Business
DEFINITION OF ETHICS
:fountain_pen:Obligation and acceptance of responsibility for how one’s actions would impact on other people
:fountain_pen:Ethical principles devised mainly from the fundamental beliefs and value systems developed within a culture, such as religious beliefs, traditions, importance of the family structure, national identity and cohesion.
:fountain_pen:The discipline dealing with what is good and bad and right and wrong or with moral duty and obligation (Webster’s New International Dictionary, 1976).
BUSINESS ETHICS
:fountain_pen:Defined as the application of moral and ethical judgment in a business setting.
:fountain_pen:The ethical dilemma is that the success of a business strategy is often measured by the extent to which it has met the company’s declaration of objectives.
:fountain_pen:A company’s goals are often expressed in terms of meeting specific financial targets and less frequently in terms of their relationships with those with whom the business interacts, likw the ‘public’, its internal and external stakeholders.
ISSUES RELATED TO ETHICS IN BUSINESS
3. Counterfeiting
Counterfeiting, or the production of counterfeit goods, which is the result of intellectual property theft is an area of ethical concern in business
Counterfeiting effect:
Stealing jobs and proceeds from legitimate producers
Flooding the market with cheap counterfeit goods
Potential health hazards for customers
Deprive the artist of royalties
Manufacturers of luxury brands use chips and barcodes in their products so that genuine items can be more easily identified
In China, attempts have been made to introduce stricter laws to prevent counterfeiting
Several EU countries have introduced laws targeting consumers who knowingly buy counterfeit products
2. Whistle-blowing
A person who ‘‘ sounds the alarm in the organization in which he or she works, intends to highlight neglect or abuse that threatens the public interest ’’ (Drummond and Bain, 1994)
Disclosure of what is believed to be misconduct by members of the organization that could cause harm to customers, clients or employees
A potential conflict of interest has occurred between loyalty and confidentiality to the company and ethical standards of conduct
Should be firm and principled because they are likely to receive some form of retaliation:
Outright dismissal
Restrictions on promotion
Isolated
Physical threats to themselves or their families
1. Bribery and Corruption
An immoral and sometimes truly criminal act that can cause harm to the economy, public life and individuals, and, if accepted, can encourage organized crime
For half of the people, a bribe is recognized as a gift to others and is considered acceptable as an important part of a normal business relationship
Corruption can include:
Price-fixing
Provision is delayed by excessive bureaucracy; and
Facilitating government services that companies are entitled to receive but whose
Payments because of extortion, blackmail and protection;
Attempts to secure government or other contracts by bribery
Affect
As a result of attention to bribery and corruption, many companies have designed their own codes of ethics
4. Inappropriate
advertising,
marketing and representation
An ethical dilemma arises between business goals and the possibility of manipulation of customers ’ability to choose
Examples of inappropriate advertising and representation:
Exaggerated and unfounded claims for the product
Inappropriate descriptions of gender, race and age
Raises unrealistic expectations
The Advertising Standards Authority is an observer body aims to tighten the rules, because ethical concerns are not just the law but the spirit of the law and the way it involves customers
5. Transparency in accounting
Authorities and shareholders are demanded to be more transparent in accounting procedures in large businesses
Issue of 'creative accounting' arises:
Blatant fraud
Flatter corporate performance in the short term at the expense of shareholders
CORPORATE SOSIAL RESPONSIBILITY
:pencil2:
HBOS in 2007
Corporate Responsibility approach focuses on best service to a wide range of key stakeholder interests comprising shareholders, customers, colleagues and the community and progress is measured by Key Performance Indicators year on year.
The driving force behind CSR implementation :
Need to build reputation and trust among customers;
Shareholder activism
Influence of stress groups
Concern for the environment
Ethical investment development
Increase the demand for transparency and accountability
Demographic changes
Legislation
INTRODUCTION
Article entitled
Ethics in International Business
by
Brian J. Hurn
is concerned with the study of the importance of ethics in an international context in business courses. The paper begins with the proposed learning outcomes. It also presents detailed examples related to the topics discussed, the increasing importance of corporate social responsibility (CSR), relevant ethical issues in the business world as well as the need for strong overall corporate governance. This paper as a whole emphasizes the importance of strong governance, which is fundamental to success in fostering ethical practices in international business.
CONCLUSION
In conclusion, after reviewing the article carefully, the author is very good at discussing about ethics in international business which covers various aspects of touch. Furthermore, at each point of the discussion highlighted, the researcher presents very detailed examples that make it easier for the reader to understand what is to be conveyed.
SUGGESTION FOR FUTURE
Continued development of a culture of good governance, both nationally and internationally
If good and ethical standards in business are to be adopted in a climate of intense global competition, the entire company must have the full and tangible support of top management
Increasing commitment can be done in the following ways:
Provide a specific ethics program that explains the company's business ethics
Provide ongoing induction and awareness programs
Selection procedures that take into account the ethical principles of the candidate
Development of ethics policy statements published internally and externally communicated to customers, shareholders and other stakeholders
Publication of a code of ethics
Appointment of the company's ethics ombudsman as a point of reference for all employees
Establish an ethics committee within the company to advise on ethical standards and ensure company practices are under review
Attempts to balance individual privacy against email abuse and company confidential matters
REFERENCE
Brian J. Hurn, (2008),"Ethics in international business", Industrial and Commercial Training, Vol. 40 Iss 7 pp. 347 - 354
Among the steps taken to combat counterfeiting:
NURUL AYU NAJWA BINTI CHE MAN (D20181082755)