Ethical Dilemmas in International Business

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,