Ethical Decision Making In Intercultural Proficiency, Essay Example

In international business, there are many factors that influence the way we do business. There is the consideration of fundamental ethical differences and cultural clashes that account for the potential of miscommunication. It requires individuals to adapt to the variations in efforts to enhance intercultural proficiency in the retail management. The purpose of this paper is to address the issues of doing business abroad, antibribery laws, whose ethics to follow, and ethical decision making across borders. Ethical decision-making mandates that cultural variances be taken into consideration in efforts to ensure that all business interaction occur with the moral integrity of all parties involved.

Doing Business Abroad

Doing business abroad requires ethical considerations along with maintaining personal social responsibilities. Individuals have a moral obligation that include being accountable and acting responsibly to not only the stakeholders of the organization but to other employees and external consumers. It is important to organizations to remain transparent in complying with relevant regulations and laws. Ethical codes provide support for such obligations. In addition, cultural variations are important considerations when participating in international business. Certain customs and regulations dictate the actions and it is vital to understand these customs in efforts to build a strong business relationship. It also prevents individuals from offending potential business partners due to a lack of cultural understandings.

Antibribery Laws

Local laws vary drastically based on international destinations. The regulations of what is considered to be a bribe or kickbacks differ from country to country. Offering compensation in exchange for business may be acceptable to some; however, it could create a violation for others.

“Laws such as the U.S. Foreign Corrupt Practices Act dictate what is and is not permissible when working abroad. To avoid breaking the law, reject any favors or compensation that you wouldn’t normally accept at home” (Stuart, 2015). There have been international agreements on preventing corruption, which include the Organization for Economic Cooperation and Development, as well as the Anti-Bribery and Corruption Treaty. These treaties provide ethical practices for all individuals involved in working abroad.

Ethics to Follow

Companies who have made a commitment to following their clearly defined ethical standards have found a significant amount of success in their business. The study determined “If you have integrity, nothing else matters. If you don’t have integrity, nothing else matters.” (Moment, 2015). Utilizing integrity and ethical business standards allow other business partners to view the company in the manner that they operate. “Not only is ethical behaviour in business life the right thing to do in principle, we have shown that it pays off in financial returns” (Moment, 2015). The bottom line is directly affected by how business partners and consumers view the business. That is why setting an explicit standard for ethics to follow is vital to any businesses success.

Ethical Decision Making Across Borders

Making ethical decisions across borders is not as easy as it sounds. Many companies utilize international manufacturing and resources because it is significantly cheaper. Often financial incentives are used to encourage business participation, however, ethical decision-making must be employed in situations like this. “Different cultures, however, have varying degrees of tolerance for corruption. For instance, some cultures will ignore the use of “consultation fees” that would violate the U.S. Foreign Corrupt Practices Act” (Mallinger et al., 2005). It is vital to understand that tolerance on different business practices does not make them legal or ethical. Conducting business internationally requires maintaining ethical practices regardless of the change in legalities.

Conclusion

Ethical decision-making is vital to roll over into all international areas of business. Inevitably, what we know as moral and legal may vary based on location. That does not create legalities to participate in activities we know as wrong because the international location does not carry the same classification. Understanding cultural variations also plays a significant role in international business. What we consider to be practical may be offensive to other cultures. It is important to do the necessary research to ensure communication is adequate, cultures are respected, and ethical practices are employed.

References

Mallinger, Mark; Gerry Ross; and Diane Singel. (2005). Corruption Across Boarders. Retrieved from http://gbr.pepperdine.edu/2010/08/corruption-across-borders/

Moment, Robert. (2015). 7 Principles of Admirable Business Ethics. Retrieved from http://sbinformation.about.com/od/bestpractices/a/businessethics.htm

Stuart, James. (2015) What Ethical Issues Are Faced in Working in a Different Culture? Retrieved from http://people.opposingviews.com/ethical-issues-faced-working-different-culture-2529.html