Global Ethics Discussion

Global Ethics Discussion

Description

SCENARIO

You are the International Acquisition Specialist for your company. Your organization is looking to acquire a competitor that has a presence in China and India. Due to your international experience, the board has asked for you to assess the practices within these countries compared to the United States as it pertains to corporate social responsibility and ethics.

INSTRUCTIONS

  • Write a brief in Microsoft Word (minimum three pages) that analyzes the ethical differences of these countries compared to the United States
  • Address the following:
  • How do ethical practices in both China and India impact organizational decision-making?
  • How do human rights laws differ in China and India compared to the United States?
  • How do the culture and values within these countries differ from the United States?
  • How do economics impact ethics and corporate social responsibility in these countries?
  • What ethical organizational issues within China and India, if any, are involved in this situation?

Operating globally has transformed over the years to include considerations that impact internal and external stakeholders around the world. With the increase in global visibility through technology and social media, organizations, regardless of location, must address and demonstrate international, global, and multicultural ethical practices and beliefs. Because of this, organizations must be cognizant of the importance of ethics and integrity when establishing mutual trust in a multicultural work environment. As globalization integrates international and multicultural components such as economics, politics, ideas, and an individual’s ethical views (Kacowicz & Mitrani, 2016), Cotae (2013) identified three stages of internationalization: early internalization, later internationalization, and excessive internalization. Cotae theorized that stage three is the operational resource saturation point and requires further research. Therefore, to succeed globally means developing a global view while using local knowledge to understand business challenges in markets around the world. Consequently, executives need to understand different business contexts and be able to identify opportunities that lead to better business decisions and increased value for the organization (Kein, Martins, & Martins, 2014).OUTSOURCINGOutsourcing is the practice of hiring an outside firm or individual to perform contracted work as an alternative to paying employees to do it. Many companies use outsourcing for their cost-of-labor advantages.WORKING STANDARDS AND CONDITIONSAn absence of human rights policies can lead to difficulty in imposing work standards and creating acceptable work conditions. Performance and quality standards that are well-defined and expected in the US can be difficult to apply in foreign countries.WORKPLACE DIVERSITY, INCLUSION, AND EQUAL OPPORTUNITYAchieving equal representation in employment based on demographic data is the ethical thing to do and represents the essential American ideal of equal opportunity for all. It is a basic assumption of an egalitarian society that all people have the same opportunity.CHILD LABORChild labor refers to the exploitation of children through any form of work that deprives children of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially or morally harmful. The Fair Labor Standards Act of 1938 stopped child labor in the US, but it is still a challenging human rights and ethical issue when conducting business internationally.HUMAN RIGHTSEnsuring that people from all countries are guaranteed basic human rights in the business landscape is imperative. Many companies today, like Starbucks, are taking steps to make sure the people that are part of their supply chain are paid and treated fairly unlike much of the world’s coffee production.RELIGIONDifferences in religion create differences in how we conduct business. It also creates diversity in people’s ethical views and beliefs. This can be challenging in a work environment. This is one reason why a ‘Code of Ethics’ is vital in a workplace to help align different ethical perspectives and viewpoints.POLITICAL CLIMATEThe unique and constantly changing political environment in all countries has a ripple effect on all trade and all global business entities. Therefore, political climates must be considered in the strategic decisions of international organizations.THE ENVIRONMENTEvery company’s effort, or lack of effort, to help improve our environment and climate crisis have an impact on people’s, organizations, and countries’ desire to interact with the business. Most people recognize the necessity to act on climate change initiatives vehemently and organizations must be part of the change.TRUST AND INTEGRITYTrust and integrity are vital components of doing business internationally. Organizations must trust that other foreign entities will live up to their side of the deal when it comes to environmental issues, human rights requirements, and the business and ethical ramifications of corruption and bribery.SUPERVISORY OVERSIGHTSupervisory oversight is a challenge for all international businesses. It requires that someone, or a group of people, can be trusted (usually remotely) to lead the charge when it comes to upholding all the previously mentioned international business challenges and take the often difficult but necessary steps when companies or countries don’t abide by important ethical standards.In taking a closer look at ethics within organizations, ethics is the goodness that causes transparency in the motives of a leader’s actions, and a morally influential strength that inspires others to behave ethically (Voegtlin, Patzer, & Scherer, 2012). Organizations are faced with the integration of standardization with the need for local adaptation, while also including the ethical and cultural norms of teams across the globe (Eagly & Chin, 2010). The cultural beliefs of internal and external stakeholders affect the behavior and understanding of the organization’s goals, mission, and vision. When demonstrating and communicating ethical practices throughout an organization, Resick, Hanges, Dickson, and Mitchelson (2006) identified six attributes leaders should demonstrate and communicate throughout global, multicultural organizations:Character and Integrity: Integrity is a fundamental aspect of character and will provide a foundation of individual characteristics that will guide a leader’s beliefs, decisions, and actions, which will then be transferred throughout an organization.Ethical Awareness: Leaders demonstrate ethical awareness by having a concern for:the collective good of the group.the impact of both means and ends.the long-term and not just the short-term.the perspectives and interests of multiple stakeholders (p. 347).Community Orientation: Leaders should practice servant leadership and focus on the greater good of the global community.Motivating: Leaders should motivate and inspire individuals to embrace approaches that provide additional emphasis on supporting and helping others.Encouraging and Empowering: Ethical leaders should identify how ethical approaches will benefit the individual by using empowerment strategies that will build an individual’s self-efficacy and emotional intelligence.Managing Ethical Accountability: Organizations and communities should develop approaches to hold leaders and all stakeholders accountable for demonstrating ethical leadership. Through these approaches, because many organizations demonstrate ethical practices when in the public eye and through marketing campaigns, a measurement or metric should be created and tracked that outlines the non-public, non-financial contributions to positive social change.To appropriately balance the needs of corporations, society, and the environment, Doane (2005) stated corporate social responsibility (CSR) must be redefined. In his study, Doane used ethical minnows and multinational mammoths were used to symbolically compare smaller organizations striving to conduct business ethically with large organizations that only do what they can versus what they should do. Redefining CSR requires a transformation in markets through institutional reform, behavior modifications, and revolutions by middle managers and ethical leaders. Doane ultimately offered that ethical behavior will be dependent on pressures beyond self-regulation, including legal parameters and behavior changes. While no theories or frameworks were presented in the article, the author did cite numerous resources, which assisted in substantiating the author’s position. Numerous examples of unethical behavior, whether intended or unintended, were provided; however, some examples of self-regulated ethical behavior by large organizations would have exemplified an appropriate ethical model.Understanding the differences across societies can be useful in the design of the codes of ethics that are sensitive to norms of various countries, but do not violate the norms of ethical conduct (Resick, Hanges, Dickson, & Mitchelson, 2006). An international presence in an organization benefits the global population and leads to a cohesive workforce that embraces cultural differences, understands these differences, and at times may view topics through a different lens. All cultures have the same goal of survival, creating change, and establishing sustainability. However, when the ethical viewpoint differs, multicultural trust may waiver (Resick et al., 2006). To solidify trust among the workforce around the globe, organizations must continue to consider cultural differences and global ethical norms in making operational, tactical, and strategic decisions.

A successful organization must be transparent in demonstrating its moral values to internal and external stakeholders, as well as the global population. Although many individuals and organizations strive to promote ethical and moral practices, we continue to experience employees acting on the values and morals of their leaders focused primarily on profitability. With case studies such as Enron, Worldcom, and Lehman Brothers, researched and discussed in business ethics courses around the world due to the negative global impact, even with the introduction of federal regulations such as the Sarbanes-Oxley Act of 2002, unethical and immoral practices continue to occur in small and medium organizations. In today’s complex environment, conventional wisdom is continually challenged. In one example, Owen (2009) outlined an executive’s pay increased from 24 to 275 times the pay of the average worker in slightly more than 40 years. While the conventional objective of an organizational leader is to generate profits for shareholders, board members should review the moral and economic mission and vision of the organization to redistribute executive salaries and bonuses to initiatives such as corporate social responsibility.MORAL ImpactsThe MORAL Impacts of CSR on an organizationCSR involves going beyond the law’s requirements in protecting the environment and contributing to social welfare. It is widely accepted as an obligation of modern business. Those who support Corporate Social Responsibility believe that companies should pursue a deeper purpose beyond simply maximizing profits.ECONOMIC ImpactsThe ECONOMIC Impacts of CSR on an organizationCSR has a bad rap for “costing” organizations money. However, today the expectation of consumers and investors requires that a business be socially responsible or they could lose business. CSR can reduce costs as well as waste. So, it’s not just about doing the right thing. It also offers direct business benefits.Ethical concerns affect how global firms are involved in efforts to improve the wellbeing of other people in various environments where they operate. This implies that they need to do more by appreciating the dignity of other people they serve in various locations. As a result, Kelly (2001) explained how internal and external stakeholders can break away from the chains of the corporation, remembering that the corporation exists because consumers allow them to do so. Because internal and external stakeholders create the parameters under which organizations must exist. To promote corporate social responsibility, stakeholders should drive to a new economic democracy by:Enlightenment: Stakeholders and employees should have equal input of executives’ short- and long-term decisions.Global Equality: Organizations must focus on diversity and inclusion in decision-making activities.Public Good: Corporations have the responsibility to contribute to positive social change for internal and external stakeholders.Justice: The main objective of stakeholders is to eliminate the social injustice and environmental destructiveness of the social and economic systems that organizations contribute to and create.Additionally, Chafkin (2011) proposed an approach to positively impact several different demographic groups in countries such as the United States. By using Norway as an example, imagine if the United States changed the taxation structure where personal income taxes are taxed as heavily as healthcare, education through graduate school, and Social Security. Although initial perceptions would view this approach as socialism, also referred to as the Nordic model or Nordic socialism, when asked if individuals of Norway feel burdened paying high taxes, most indicate that the benefits far outweigh the cost.Due to economic, political, and cultural differences across geographical regions in which an organization operates; organizations must be creative, innovative, and cognizant of internal and external perceptions and adoptions when establishing company-wide processes, procedures, and initiatives. With the cross-functional requirement of these engagements, a distribution of decision-making is required. Because global leaders influence the thinking, attitudes, and behaviors of a global community, this influence could enable its members to work together synergistically toward a common vision and goal (Lisak & Erez, 2015).To understand the economic and moral impacts of operational, tactical, and strategic decisions, organizations should practice shared decision-making approaches. Shared decision-making enables team members to express their different experiences and opinions in a decision-making process, thus allowing different leadership behaviors to be exhibited in a single global team. The importance of individuals and leaders sharing decisions in an organization is to improve team effectiveness, for when individuals and leaders share responsibility in an organization, it affects the success of shared decision-making within an organization. By establishing a shared decision-making model, all cultures, visions, morals, and voices will be represented, resulting in a collaborative, inclusive work environment.

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Global Ethics Discussion
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