Ethical Dilemmas in International Business

This report discusses the ethical dilemmas that arise in international business due to cultural differences, environmental factors, and political issues. It explores how these dilemmas impact businesses, nation states, and civil society. The report emphasizes the importance of business ethics in addressing these dilemmas and ensuring fair and ethical practices.

Q: Ethical dilemmas are common in international business, please elaborate on this
statements with examples.
Report Structure
1. Executive summary
2. Introduction (Overview of what ethical dilemmas are in INB *globally - what are
ethics?)
In his seminal works titled: The critique of pure reason (1998), Immanuel Kant refers to ethics
and morality in terms of the ‘categorical imperative’, which he sees as an objective/universal
principal underpinned by rationality and reason. To refine Kant’s view, the end never justifies the
means, and that irrespective of one’s personal inclinations, one should act within the world in a
way that doesn’t contradict the morally rational requirements of everyone else (killing is never
ok); treat others as you would expect them to treat you (principle of universalizability/golden
rule) (Stanford Encyclopedia of Philosophy, 2016). To delve deeper, John Stuart Mill’ (1879)
takes a utilitarian approach, and reasons that ethics should be measured on the end result
irrespective of the means, based on universal happiness and pleasure (killing is ok as long as it
produces a favourable outcome for society). Therefore, it is clear to see that inquiry into ethics is
complex, and that the application and understanding of ethics constantly evolves just as the
concerns and problems with and from society evolve. Business ethics is concerned with how
economic agents act within the world according to principles that guide morally right behaviour
(Lewis, 1985). When referring to ethics within the realm of international business, there are
three prominent factors within the literature, namely, culture, environment and politics in which
ethical dilemmas persist, and impact business, nation states and civil society. Ethical dilemmas
are considered to be moral predicaments which face choice agents within society (Braunack-
Mayer, 2001), and often occurs within the realm of business as a result of the conflict between
corporate profit/shareholder wealth and net social benefit (Enderle, 1999).
3. Culture
Communication: In case of international business the transactions take place across the
nations. These nations differ in their culture, beliefs, practices and language at most of the
times. Communication becomes a problem here as misunderstandings are created due to
difference in language and lack of comprehension (Enderle, 1999. On the other hand, culture
impacts the behavioral pattern of people and in new nations they might be unacceptable. This
aggravates the communication problem. A flexible mind, accepting nature and tolerance is
needed to be successful in international business.
There were many traditional business ideas and values which were considered in the earlier
days for doing any business. However with the trend of globalization many traditional values are
being overlooked. There are a lot of pressures for running high profit business in the
international market. These pressures from multiple angles are leading the entrepreneurs and
businessmen to get unethical or compromise with the surrounding biased practices (Lewis,

1985). Cultural differences are also leading to difference in opinion regarding production and
promotion plans.
When a business enters a new market the cultural differences can be a hindrance to flourish.
Similarly common culture can also be disliked by the clients. The same culture people can get
bored or stagnant in their thoughts. Many businesses are not eco-friendly and for easy profit
they are adversely affecting their environment through their business activities. This is unethical
in any form of business.
4. Environment
The environment in which a business takes place affects the success of the business. The
global labour laws and other trade regulations are applicable in case of international business. If
the business operates in a disturbed political environment the outcome of the business will not
be good. The performance of the business is always affected by the environment in which it
operates. The global economic ups and downs, recessions and depressions, etc. all affect the
business as these are a part of the economic environment. There are many corrupt practices
taking place across the globe which are leading the world to become an unfair place. The
businesses which are taking place in such corrupt environment are also sacrificing and
compromising with some of their ethics (Eicher, 2012). The labourers are being exploited by
making them work more for less money. There are moral dilemmas which the stakeholders at
multinationals face but most of the times the values are bypassed. In certain instances even the
government tends to be corrupt as it formulates regulations which adversely affect the
businesses and fills the government treasury. The corrupt practices are actually making the rich
nations richer and the poor nations are still struggling in the race. Thus the main aim of
international business should be to attain a corruption free environment so that the need to be
unfair and compromise with business ethics does not arise (Lewis, 1985).
5. Conclusion
The ethics become very important in case of international business. The managers have varied
perception and in international business as there are people coming from different cultural
backgrounds, different religion, etc. they tend to differ in ideals and values. Therefore the ethics
become very important here to decide and fix the code of conduct. The globalization issues,
national values, cross-cultural problems, etc. all can be address if there are proper business
ethics. In case of international business the ethics act like a common guiding law. Irrespective of
the differences noticed in international platform, the ethics do not change. No matter whether
the business is taking place in Germany or Singapore, within a Muslim culture or a Christian
community, the ethics hold same for all. The need is for fair contracts and these are driven by
ethics. In many instances it is seen that the businesses can make easy profit by following some
unfair path. The business ethics will resolve these moral dilemmas and ensure that the deals
are right and fair.

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