Leadership Ethics Like many companies in the United States (US), Devise Products Unlimited (DPU) has decided to utilize a Third World Country manufacturing facility (TWCMF) to produce parts for its products in order to remain competitive in the marketplace. However, this TWCMF is abusing its employees by forcing them to work seven days a week, 10-hour shifts, and for minimal pay. As these inhumane working conditions are contrary to acceptable business practices in the US and contrary to our culture, continuing to do business with the TWCMF could severely hinder DPU's financial success and damage its reputation as an ethical business. However, failure to continue business with the TWCMF, the largest employer in the area, would likely result …show more content…
DPU is facing a cultural (the way things are done within a group), and an ethical (the moral principles of right and wrong) issue that if handled poorly could have lasting negative repercussions. According to Linssen (2010), a company's reputation is irreplaceable and should be protected. In contrast, however, White (2014) notes, that even when companies are caught and penalized for unethical behavior, the tendency to continue this behavior persists. White attributes this to the gradual erosion of moral decision making within a company to the point it becomes the cultural norm. Cultural and ethical issues are not uncommon as our world becomes more globalized; therefore, it is important to have an understanding of the cultural values of the countries one is doing business with and then determine what changes can be made to produce mutually beneficial results while adhering to …show more content…
There are many cultural and ethical differences between countries and it is important for mutual trust and respect that no organization try to strong-arm another into their way of thinking or take a position that their culture is more valuable than the other. According to Pitta, Fung, and Isberg (1999), it is vital for success to have a basic understanding of the culture and the expectations within cultures as they affect all business transactions. Failing to understand and consider the cultural differences will likely result in failure. Supplier Code of Conduct Second, DPU should develop a Supplier Code of Conduct that provides clear and measureable expectations of its suppliers' business requirements, acceptable behavior and performance, and actionable consequences for violations. According to Thompson (2014), a supplier code of conduct can integrate the principles from a company’s own code into its supply chain relationships. This will help ensure that all parties involved understand the terms of doing business with DPU. It will also provide the boundaries in which decisions are made and evaluated to produce ethical conclusions. Renegotiate with the
It is no longer feasible that a corporation can successfully move through the global marketplace without learning to recognize the cultural norms of each country. It falls to the executives and managers to implement these changes and to ensure that their companies are working to move towards a more inclusive, and ultimately, more profitable way of doing business that appreciates and respects all cultures and work
Ethics are the product of a society’s culture so it is natural there will be different responses to similar ethical scenarios. Beekum, Stedam, and Yamamura (2003) suggest these differing conclusions will lead to conflict where one side perceives the outcome is ethical whereas the other does not. Another possible outcome is that one side may not even see a decision even being morally significant. Global organizations have the additional challenge when operating within a multi-national environment of recognizing cultural differences while maintaining a core moral and ethical foundation.
Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.
It is crucial for today's business personnel to understand the impact of cross cultural differences on business, trade and internal company organization. The success or failure of a company, venture, merger or acquisition is essentially in the hands of people. If these people are not cross culturally aware then misunderstandings, offence and a breakdown in communication can occur.
Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place
individuals in high management and all those working in the organization. All individuals have their own interpretation of what the rules are and the ethical climate of the organization. This is further explained by the Stages of Moral Development as described in Chapter 2 of the text. For example, an individual in the obedience and punishment orientation will perceive things differently than an individual in the social contract
Supervisors and officials within a company or organization need to settle on choices that have moral ramifications. Furthermore, those choices affect their organizations, organization shareholders, and the various partners at hand. Leading business in an ethical and efficient way keeps business on the rise and everyone that has to do with the organization in accordance with the organizational goals (Corey, Corey, Corey & Callahan, 2014). It is critical to comprehend what ethical obligations are able to live up to the organization's desires and model fitting conduct for others without discriminating others or conflicting with any other
Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum
Conducting ethical business in the United States can be seen as clear cut to us. Although we are a diverse nation, as U.S. citizens, most gain experience in the professional environment where ethics is explained thoroughly enough that one is able to determine what is ethical and what is unethical. When it comes to ethics in the international arena, Thomas Donaldson explained how that structure almost does not exist since ethical culture, practices and the social norm is different in each country. In the article, Donaldson debunked previous theories like cultural relativism and ethical imperialism while coming up with a guideline that can help companies proceed in understanding cultural difference while still being ethical. (Donaldson, 1996, pp. 48-52) As I read through the article, it made me remember past events that had cultural dilemma while helping me find new ways to help my ethical decision making skills.
Using appropriate theories critically analyse the role of culture in International Business. Support your answer by quoting relevant examples from the case study.
Sometimes cultural difference between countries can cause a negative impact when conducting free market businesses. According to the textual evidence, economic advancement and globalization may be important factors in society change. The culture of societies may also change as they become richer because economic progress affects a number of other factors, which in turn influence culture.
In doing business so many times an organization must think globally. This might be done to increase sales and/or profits or to lower labor costs. In either case problems can occur due to ethical and cultural barriers in global expansion. In this paper I will attempt to show some of what a global organization and a cultural issue that affects their interactions outside the United States by identifying and comparing some of these cultural differences.
The importance of culture should never be underestimated. It is an important factor and it can even become to a core competency of high value. One reason for that is because competitors can not replicate a culture. It is a unique feature of a company and can become an important factor of the company’s success.
As mentioned earlier, the inter relationship of culture and ethics can be clearly seen with regards to the approach of enhancing ethical behaviour works by reinforcing adherence to a predetermined and clearly –defined bottom line which tells the employees of J&J how to act. J&J management also argue that the source of their business success is their organizational culture, which despite their multinational operations, guarantees ethical
Substandard working conditions in the less developed world are usually described as terrible places where employees are subjected to both mental and physical abuse, near impossible quotas, long hours, extremely low wages, and unsafe working conditions compared to western standards. All of this within an uninhabitable environment that corporations knowingly force the world’s impoverished people to submit to. Through pure ignorance, complete disregard, or lack of moral direction, many corporations have taken the concept of