University Report: Ethical Issues Faced by International Business

This report delves into the ethical dilemmas encountered in international business, particularly concerning the environmental impact of multinational corporations (MNCs) in developing countries. The report examines the negative consequences of business expansion, including violations of environmental sustainability norms due to relaxed regulations. It highlights the importance of environmental protection and the limitations of natural resources. The report provides case studies, such as Nigeria, Japan, Indonesia, Columbia, and Iran, to illustrate the environmental degradation caused by business practices and the role of MNCs. It also offers recommendations, emphasizing the need for companies to adhere to environmental sustainability policies and the importance of government regulations and public awareness. Furthermore, the report discusses the advantages and disadvantages of MNCs in developing countries, considering both economic benefits and potential negative impacts on local businesses and sustainability. The report concludes by emphasizing the importance of balancing economic development with environmental protection for the long-term well-being of developing nations.

Running Head: ETHICAL ISSUES IN INTERNATIONAL BUSINESS
ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Name of the Student:
Name of University:
Author Note:

1ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Table of Contents
Assignment 1...................................................................................................................................2
Question a....................................................................................................................................2
Question b....................................................................................................................................2
Question c....................................................................................................................................3
Question d....................................................................................................................................4
Question e....................................................................................................................................5
Question f.....................................................................................................................................6
Reference.........................................................................................................................................7
Assignment 2...................................................................................................................................8
Question a....................................................................................................................................8
Question b....................................................................................................................................8
Question c....................................................................................................................................8
Question d..................................................................................................................................11
Reference.......................................................................................................................................12
Assignment 3.................................................................................................................................13
Answer to Question 1....................................................................................................................13
Answer to Question 2....................................................................................................................13
Answer to Question 3....................................................................................................................14
Answer to Question 4....................................................................................................................15

2ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Answer to Question 5....................................................................................................................16
Answer to Question 6....................................................................................................................17
Answer to Question 7....................................................................................................................18
Answer to Question 8....................................................................................................................18
References......................................................................................................................................21

3ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Assignment 1
Question a.
As a negative impact of the multinational companies in expanding their business in the
developing countries a number of issues can be seen which are closely related to ethics. In most
of the cases due to lack of business regulations in developing countries the multi-national
countries get the chance to violate environmental sustainability norms.
Question b.
Sustainability in terms of ecological degradation is considered to be very essential in
order to create a better and healthy life for the human beings. In that context, the protection of
environment and ecosystem is highly essential. It can also be argued that it is because of the
Earth that life is existed. The environmental sustainability encompasses all aspects of life from
creating living atmosphere to get a healthy lifestyle. It can also be kept in mind that there is a
limitation of natural resources in the Earth. Most of the environmental degradations are resulted
due to the human malfunctioning and lack of understanding about the importance of preventing
the nature. Issues like global warming or increasing emission of carbon dioxide (CO2) is going to
create an inhospitable environment which is detrimental for existence of life in Earth. In this
regards, the business organisations specially the multi-national companies play a major role in
damaging the environment by its deliberate attempt to earn more profit and business expansion.
In fact, in the developing countries people have dearth of perception about the preservation of
environment. Therefore, it is very easy for the multi-national companies to flourish their business
in the developing countries where regulations are less restraint for their business occupation. In

4ETHICAL ISSUES IN INTERNATIONAL BUSINESS
this regards, the environmental sustainability issue is very pertinent related to the business
orientation of the MNCs in developing world and needs to be analysed.
Question c.
1. In Nigeria, the ecological degradation posed a great threat to the local as well as
global environmental sustainability. According to the scholarly reports it can be
argued that from 1973 to 2008 the country was facing severe challenges while
dealing with the environmental issues. At the same time, the country was enjoying
a drastic increase in the number of international business organisations who were
eager to invest in the crude oil export industry. On the contrary to this, statistics
also revealed that despite of the booming trend in business sector, the
environmental condition became downward gradually. In the same time span of
1973 to 2008 the ecological balance was reduced to 0.3 in compare to the
erstwhile amount of 1.92 in 1964 (Alege & Ogundipe, 2015).
2. In response to this, the role of the global companies in retaining environmental
sustainability is very imperative. Empirical evidences proved that during the
1990s there was a growing trend among the MNCs to produce sustainability
reports which is becoming obsolete nowadays. According to the global report, in
2011, around 95% of the global companies disclosed their sustainability
performance report which symbolizes an alarming fact for the future sustainability
(Barkemeyer et al., 2015).
3. The case study on Japan illustrates that due to the intervention of the private
multi-national vehicle companies in that country, the emission rate of CO2 has

5ETHICAL ISSUES IN INTERNATIONAL BUSINESS
been escalated into a rapid pace which perturbs the condition of the environment
in Japan (Debnath, 2015).
4. As a whole, in the South-East region of Asia is suffering with a great deal of
pollution. According to the report, it can be estimated that the massive amount of
emission of CO2 the Indonesian region is accounted 0.049 gigatonnes per year
(Lee et al. 2016).
5. In Columbia, water pollution is considered to pose a grave danger for
sustainability. In this country, approximately 36% of the waste has dropped into
the rivers by the multi-national companies who were active in that region (Mol,
2016).
6. In fact, the Iranian states are also suffering with air pollution. In fact, Zabol, an
Iranian city is considered to be the most polluted city around the world and
19,600 premature deaths were attributed in 2013 due to air pollution. In most of
the cases, the private organisations are seemed to be responsible for this (Zhang,
Mol & He, 2016).
Question d.
There are at least two possible recommendations for solving the rapidly increasing habit
of environmental deterioration. In this regards the two assumptions are:
1. The private companies should follow the policy of environmental sustainability in actual
sense. It is often presumed that the companies officially follow sustainability policy but
in practice there is no such policy that the companies are followed. In this context, the
government must have strict regulations which will enforce the multi-national
organisations to maintain environmental sustainability in business practice.

6ETHICAL ISSUES IN INTERNATIONAL BUSINESS
2. In addition to this, the second recommendation is related to the perception of people
about ecological sustainability. It can be asserted that there must be a global
understanding about the significance of preservation of environment. In fact, it is
necessary to teach the authorities of global companies about the nature and their attitude
towards ecology. Therefore, it has to be the company initiative to build a consensus about
the importance of environment.
Question e.
While discussing the role of Multi-national companies in developing world there are
some advantages and disadvantages of the MNCs in developing countries. Based on the
utilitarian theory, it can be argued that everything has a good and bad impact and in this case the
advantages and disadvantages can be identified as
Positive
1. MNCs are able to generate more investment in the developing countries which will
facilitate economic and social development for the countries.
2. The MNCs are considered to be associated with technological superiorities. Hence,
investing in the developing countries can also bring technological exchange which is
beneficial for the countries.
3. MNCs create job opportunities for the local population which in result help to minimize
the issue of unemployment in developing countries.
Negative
1. Due to enormous financial power and influence the MNCs can manipulate the business
industry and the government of developing countries.

7ETHICAL ISSUES IN INTERNATIONAL BUSINESS
2. It is not beneficial for the local small and medium enterprises to compete with business
giants. Henceforth, because of enormous pressure from the market the SMEs will lose
their permanence in the local market.
3. Sustainability is a key concern for the government in order to deal with the MNCs.
Sustainability in terms of economic, social and environmental aspects are often violated
due to lack of government regulations.
Question f.
It can be concluded that the positive impacts of MNCs in developing world can be
regarded beneficial for the countries in terms of economy and this economic benefits will lead
towards the prosperity. Nevertheless, the punitive measures such as lack of environmental
sustainability, practised by the MNCs show that it is more fatal for the country than creating
development which can shatter the future of a developing country.

8ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Reference
Alege, P. O., & Ogundipe, A. A. (2015). Environmental quality and economic growth in Nigeria:
A fractional cointegration analysis. International Journal of Development and
Sustainability, 2(2).
Barkemeyer, R., Stringer, L. C., Hollins, J. A., & Josephi, F. (2015). Corporate reporting on
solutions to wicked problems: Sustainable land management in the mining sector. Environmental
science & policy, 48, 196-209.
Debnath, S. C. (2015). Environmental regulations become restriction or a cause for innovation–a
case study of Toyota Prius and Nissan Leaf. Procedia-Social and Behavioral Sciences, 195, 324-
333.
Lee, J. S. H., Jaafar, Z., Tan, A. K. J., Carrasco, L. R., Ewing, J. J., Bickford, D. P., ... & Koh, L.
P. (2016). Toward clearer skies: challenges in regulating transboundary haze in Southeast
Asia. Environmental Science & Policy, 55, 87-95.
Mol, A. P. (2016). The environmental nation state in decline. Environmental Politics, 25(1), 48-
68.
Zhang, L., Mol, A. P., & He, G. (2016). Transparency and information disclosure in China's
environmental governance. Current Opinion in Environmental Sustainability, 18, 17-24.

9ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Assignment 2
Question a.
1. Improve brand image and competitive advantage for the company.
2. Reduce waste and make a healthy environment for living.
3. Making progress for the developing countries in future run.
Question b.
1. The improvement in brand image helps the multinational country to make benefits in a
rapid pace. Besides this, it will also facilitate a competitive advantage in the market.
2. A number of health issues can be resulted due to increase in waste. In fact, most of the
companies pollute the environment through their waste materials. In response to this, the
reduction of waste is not only creating profit for the organisation but also drives people to
live a healthy life.
3. In the present scenario most of the countries are looking for sustainable products and in
response to this many big companies start manufacturing green items. Therefore, the
policy of sustainability taken by the government also encourages the companies to invest
in that country which indirectly helps the country to get benefitted and prosper in
economy. Besides this, the country can set an example for the rest of the world to follow
the model of sustainability and in return the company earn respect and reputation which
is considered to be a moral backbone of the country.

10ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Question c.
According to Kant, imperative is identified as a binding commitment aligned with a
number of commands and formula of that command is defined as imperative (Kant, 2017). In his
words, Kant argued that there is no need of imperative for a good will because the person
comprised of good will subsequently possesses moral law. Henceforth, there are two types of
imperatives categorical and hypothetical. The hypothetical imperative deals with the practical
measures to resolve an issue. This is some kind of theoretical implication of a thought which is
yet to imply in reality. On the contrary, the categorical imperative inculcates a real depiction of
the solution framework (Mill, 2016). According to Kant, only the categorical implication is
considered to be moral in nature. It can also be argued that the categorical imperatives are
established on the sacrificial ethics which helps to sort out the problems. It is also important that
false promises are identified as contradictory morality.
i. The ethical question circles around the issue of environmental sustainability in
developing countries. The business orientation of the multinational companies in
developing world is growing day by day and also has a series of positive impacts.
Nevertheless, the cynical consequences are far too long to shade the way of optimism
regarding the intervention of MNCs in developing world. In response to that the specific
rule in determining the ethical decision is direct and closely related to the ethical issue of
the subject. In this context, the specific rule of the subject deals with the understanding
about the role of multinational companies in damaging environmental sustainability of
developing countries (Bowen & Prescott, 2015).
ii. There is a general approach to acknowledge the overall scenario of environmental
sustainability. In respect to that the general rule does not possess any direct relation with

11ETHICAL ISSUES IN INTERNATIONAL BUSINESS
the issue. Rather it puts more emphasis on the overall perception of the specific problem.
Therefore, it can be asserted that in this context the overall approach is lingered with the
general issue of environmental sustainability. It can be argued that there are a number of
factors that can pose obstacles in the process of environmental sustainability in a
developing country. The role of multinational companies in this matter are seemed to be
just a part but there are other factors which are also play significant role in damaging the
environmental balance.
iii. It can be argued that the issue is very simple and straightforward. It is related to the issue
of environmental sustainability in developing countries. In the context of this general
rule, the ethical question has a close affinity with the given issue and it is considered to
be a part of the general outline. Therefore, there is no contradiction regarding the general
rule of the issue. However, it delivers a direct reflection of the illustration.
iv. The Kantian rule of categorical imperative is essentially relied upon the pragmatic
approach of the issue. It can be argued that the general issue is based on the general
concept of the given ethical issue so it cannot be taken as an example of categorical
imperative. As it is familiar that without any categorical imperative it is impossible to
draw a moral implication. The general rule only ventilates an overall idea and the Kantian
ethics requires a specific issue to analyse. Hence, it can be claimed that the general rule
violates the fundamental principle of Kant’s practical imperative.
v. The general rule delivers a clear understanding of the possible factors of damaging
environmental sustainability. However, there is very little information about the role of
MNCs in creating challenges to the environmental sustainability in developing countries.
Therefore, it can be ascribed that the general rule poses an obstacle in understanding the

12ETHICAL ISSUES IN INTERNATIONAL BUSINESS
given issue but in some manner follow its fundamental purpose (de Lazari-Radek &
Singer, 2017).
vi. The act of adverse impact of multinational companies in preserving environmental
sustainability in the developing countries follows the Kantian ethical system to set up a
moral justification behind the process of solving the issue. The ethical framework of Kant
recommends a specific issue to address and the given issue properly fit the requirements.
Therefore it can be stated that the act is ethical and based on pragmatic framework to
prevent the nature from destruction.
Question d.
In a conclusion, it can be stated that the argument is strictly focused on the adverse
impact of MNCs in developing countries sustainability and affects the environment specially.
However, it is important to understand the utilitarian impacts of the issue and keep in mind about
both the advantages and disadvantages of the ethical issue. It is also imperative for the issue to be
based on the moral implication on the basis of Kantian ethics. Therefore, it can be asserted the
issue is very acute and pragmatic in the present case scenario and needs to be resolved as soon as
possible.

13ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Reference
Kant, I. (2017). Kant: The metaphysics of morals. Cambridge University Press.
Mill, J. S. (2016). Utilitarianism. In Seven Masterpieces of Philosophy (pp. 337-383). Routledge.
Bowen, S. A., & Prescott, P. (2015). Kant’s contribution to the ethics of communication. Ethical
Space: The International Journal of Communication Ethics, 12, 38-44.
de Lazari-Radek, K., & Singer, P. (2017). Utilitarianism: A Very Short Introduction. Oxford
University Press.

14ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Assignment 3
Answer to Question 1
The sustainability issue of the global significance is OVERPOPULATIONwherein it is
caused due to number of factors that does not cause any good to the human lives and it has
depleted natural resources and degradation of the environment as well.
Answer to Question 2
The main environmental elements of the Overpopulation are as follows:
Degradation of Soil is one of the overpopulation where the growth in the population has
increased the demand for the production of food. The exploitation of the land can make
huge loss to the different kind of nutrients along with susceptible to erosion as well
(Peacock, 2017)
Loss of biodiversity is the other issue that has been caused due to overpopulation wherein
it has been that there is extinction of species and this has caused to the overpopulation of
the individuals in the society. The biodiversity has created huge impact on coral reefs and
there is huge connection between unsustainable population growth of individuals along
with decline in diversity
The increased population has created and led to destruction of the different habitats by
creating huge pressure on inhabitants for limited resources as well. the animals are killed
for the getting food and this has negatively impacted the environment as well

15ETHICAL ISSUES IN INTERNATIONAL BUSINESS
The rapid increase in the population of the individuals has led to urbanization that has
adversely affected the environment in a negative manner. due to the pressure on
population, it can be seen that the natural kind of resources has been depleted and this has
depleted the population pressure as well.
Answer to Question 3
There are different kind of social elements of the overpopulation wherein it can be seen
that when overpopulation occurs, there are shortage of housing, shortage of different kind of
supplies and materials and this can create huge issues in the environment as well. The increase in
the population in the entire society can create huge issues and pressure on the medical system as
there will be lack of skilled workers due to the ageing population in the entire economy.
Furthermore, it can be seen that there can be other different effects on the education
system in the entire society that will lead to different kind of diseases and pollution in the entire
environment as well. It can be seen in different reports in the newspaper that there has been
increased poverty among the individuals. The cost of living along with child care costs in the
society will increase as well.
The other social kind of impacts of the overpopulation on the environment is that this can
cause huge mental or physical kind of damage to the different individuals in the society. The
poverty has been the main social cause in the entire society that has created huge pressure on the
environment and this has affected the life of individuals as well. The different kind of reduction
in the efficiency of the entire labour force has affected the economy growth and this has created
huge pressure on the total population as well(Hanna, 2016).

16ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Answer to Question 4
There are different kind of economic elements of the overpopulation wherein it can be
seen that there is shortage of food, resources, minerals along with fuels. The economic concern
includes that education is the major challenge related to overpopulation as it is a concern for the
parents to educate too many children in the society. It has been seen that the classrooms are
becoming overcrowded and there is reduction in the funds that is available with teachers and
schools as well.
Furthermore, it has been seen that the economic factors are essential in nature as this can
create huge kind of negative impact on the society along with the individuals as well. It has been
seen that the overpopulation reduces the capital formation rate and this can require more
investment and this will be reducing the capacity of the individuals to save as well. These kinds
of issues create serious imbalance between the requirements and availability of the investment
funds in an effectual manner. The increase in the population in the entire society can create huge
problems of the unemployment as this will reduce the number of the education centres along
with jobs in the entire country.
Furthermore, it was seen that rapid kind of growth population has created unemployment
in the entire society. These are the different economic kind of problems that has caused food
problems in the society that can lead to huge issues for the government to handle such population
and this will create huge issues in the entire environment as well. the scarcity of the food has
created economic issues and these are treated as the e3conomic elements of the overpopulation
as well(Hanna, 2016).

17ETHICAL ISSUES IN INTERNATIONAL BUSINESS
It has been seen that there is inadequate supply of food and this has led to economic kind
of undernourishment of the individuals that will lower their productivity as well. Furthermore, it
has been seen that the overpopulation has reduced the production capability of the different
workers and the deficiency in the amount of food will compel to import different kind of food
grains that can put unnecessary kind of strain on the foreign exchange of different kind of
resources.
Answer to Question 5
There are different kind of ethical issues and problems that is strongly related to the
overpopulation sustainability issue in the entire society. It has been seen that in response to the
different kind of problems that is caused due to overpopulation, the developing nations have
contributed more to the overpopulation. The rate of the fertility is higher in numbers in the
different kind of developing nations and this is unethical in nature as well. There are different
ethical implications wherein it has been seen that there is scarcity of the essential resources and
there are individuals in the society who is starving in the society and this is increasing the war
and different kind of crimes in the society as well(Mátyás, Neagu& Vajda, 2015).
There have been different issues of the personal freedom that is against the good of the
society and this can create huge issues ethically in the fields of increasing crime in the different
fields wherein the social values are disrupted and it is affecting the rights of the humans as well.
It has been seen that there are different kind of other ethical issues that include that there has
increase in the number of crimes that has affected the livelihood of the individuals in a negative
manner(Jennett et al., 2016). The crime is increasing at a huge rate wherein it is seen that the

18ETHICAL ISSUES IN INTERNATIONAL BUSINESS
crimes has increased to a huge extent wherein the individuals are not able to cope with such
damages that is taking place in the entire society as well.
On the other hand, there are different kind of wars in the entire society wherein this has
created huge pressure on the entire society. It can be seen that there has been scarcity of available
resources and this is creating different kind of wars among the individuals as well. It is seen that
the war is increasing in the entire world as the individuals in the society are losing their patience
and this is creating huge pressure on the entire environment as well.
Answer to Question 6
The two ethical issues that has been discussed in the last section are crime and war that
has been increased to a huge extent in the entire society. The two ethical theories that can be
adopted with the help of which the same kind of issues can be sorted are Kant’s ethical theory
along with Utilitarianism theory of ethics as well.
With the help of the Kant’s ethical theory, it can be seen that it is one of the deontological
theory wherein the wrongness and rightness of the different kind of activities do not depend on
the different kind of consequences. Furthermore, it has been seen that the rule of Utilitarianism is
wherein it conforms to rule that will lead to the good wherein the rightness or wrongness of the
individuals’ actions is the actual function of the entire correctness of the instance.
Furthermore, it has been seen that there are different kind of issues that are unethical in
nature and this is taking place in the entire society as well. The Utilitarianism theory is basically
the normative kind of ethics wherein proper ascertainment are required to be provided to

19ETHICAL ISSUES IN INTERNATIONAL BUSINESS
individuals wherein this is seen that the individuals who are educated have fewer babies and it
will help in creating higher quality of the life of the individuals as well(Ott, 2017).
Answer to Question 7
There are different kind of threats for business wherein this will include there will be
huge rate of competition in the entire society. There will be huge rate of unemployment in the
society that can create huge issues in the lives of the individuals. The threats will include that
there will be unemployment in different fields of business such as the educated individuals will
not be getting the right kind of jobs in the world and this can lead to different issues as well.
Furthermore, it can be seen that the rate of competition in different fields will be increasing
wherein in schools and colleges along with in different workplaces, there are different kind of
issues that can lead to different kind of difficulties for individuals(Farraji et al., 2016).
On the other hand, there are different opportunities that include the variation in the
products and services in the market(Osuafor& Samuel, 2015). This will help the consumers in
choosing from variety of products and services as well and the product variation can help in
increasing the labour force in the entire society as well. It is seen that there are different kind of
job opportunities for the individuals wherein this will help the individuals in solving the different
issues and solve them effectively as well.
Answer to Question 8
The main sustainable issue in the entire world is the overpopulation that is creating huge
threats and trouble in the entire world. It has been seen that there are different kind of threats that

20ETHICAL ISSUES IN INTERNATIONAL BUSINESS
are affecting the livelihood of the individuals and this can create negative impact on lives of the
individuals as well.
With the help of the technological advancements, the individuals have to be educated and
they should be made aware about the different kind of programs and measures that has to be
adopted by them as to reduce the issues in an effectual manner. proper empowerment of the
women in the society is required as this will help in creating huge positivity in the society.
Secondly, proper financial support has to be provided to the ones whoa re needy as this
will help them in managing the overpopulation issues by the way of family planning. With the
implementation of the technological advancements, this will help them in educating the women
in different rural areas wherein the education has to be made entertaining and with the help of the
government incentives as well.
Lastly, the one child legislation has to be initiated by the government and other institutes
as this will help the families in planning the birth of the child. Proper and effective measures is
required to be taken by the families with the help of different kind of initiatives organized by
different government firms and legislations as this will help them in managing the entire family
in an effectual manner. Proper measures have to be taken that will help in addressing the family
planning issues by way of educating individuals and making them aware about the issues in an
effectual manner as well.
Therefore, it can be concluded that overpopulation is one of the sustainable issues in the
entire world that has to be solved effectively with the help of different kind of initiatives by the
government. Proper ascertainment is required to be made wherein the government incentives
along with training of the employees is essential to reduce the overpopulation issues.

21ETHICAL ISSUES IN INTERNATIONAL BUSINESS

22ETHICAL ISSUES IN INTERNATIONAL BUSINESS
References
Farraji, H., Zaman, N. Q., Vakili, M., &Faraji, H. (2016). Overpopulation and Sustainable Waste
Management. International Journal of Sustainable Economies Management
(IJSEM), 5(3), 13-36.
Hanna, P. (2016). Human Cattle: Prison Overpopulation and the Political Economy of Mass
Incarceration. Themis: Research Journal of Justice Studies and Forensic Science, 4(1), 3.
Jennett, A. L., Jennett, N. M., Hopping, J., & Yates, D. (2016). Evidence for seasonal
reproduction in UK domestic cats. Journal of feline medicine and surgery, 18(10), 804-
808.
Mátyás, L., Neagu, E., & Vajda, A. (2015). Effects of periodic increase of prey population in a
predator-prey model. Environmental Engineering & Management Journal
(EEMJ), 14(4).
Osuafor, A. M., & Samuel, N. N. (2015). Using role play to teach overpopulation to Basic
Science students: A way forward for environmental sustainability. AFRREV STECH: An
International Journal of Science and Technology, 4(1), 172-184.
Ott, J. (2017). Less Happiness in Cities, but Why and so What? One More Reason to Stop
Overpopulation.
Peacock, S. H. (2017). The Effect of Ecosystem Consciousness on Overpopulation Awareness–A
Case Study(Doctoral dissertation, Saybrook University).