International Society and Ethics
International Society and Ethics
The question of ethics where business is growing – both nationally and internationally. This trend is accentuated by high-profile examples of violations of accepted standards of ethical behavior. For example, the recent case of Enron, where inadequate checks and balances within the company have permission unethical behavior there is a development facilitated by the fact that the external auditor to perform its role. Assumptions about ethics and business are inevitably influenced by the fundamental beliefs about the role of business in society. On one side are those who believe that the only social responsibility of business is to generate profits. For some proponents of this view, the generation of profit-taking is a dimension moral, whereas others see the benefits that the key to wealth creation – the primary means to solve social problems (Davies, 1997, p. 88). On the other hand, other believe that the role of companies is much higher than profit generation and all those affected by the way a company operates – shareholders, employees, customers, suppliers, local community, future generations (especially in relation to environmental issues) – have a legitimate interest and involvement in how a company behaves.
Many of these concerns are relevant to the business, whether national or international in nature. However, international trade creates problems for individuals and issues beyond those facing the purely internal affairs. To reconcile international trade and being ethical, the company must follow the principles of rights human comply with legal work, avoid corruption and match the standards of environmental protection. Although it is not easy to combine the benefits and adapt to ethical principles, some non-compliance with laws and regulations of my results in the negative image of public international society and the loss of customers. Therefore, the international community can still cause more damage if you choose not to follow ethical principles.
The first question related to the ethics of rights human. It is a generally accepted principle that international society should not engage in direct violation of human rights in the UN Universal Declaration of Human Rights (UDHR) is generally considered the appropriate reference. However, some people go further, preferring to refrain from companies doing business in countries known to affect human rights systematically. Critics of this view argue that if a company fails to international business in a country with a regime dubious ethics, the only concrete result is a hands on business opportunities to companies without reservations (Barlett and Ghoshall, 1998, p. 110).
On coming to power in 1992, for example, President Clinton has proposed to withdraw MFN status of China following the slaughter of Tiananmen in 1989, in which many pro-democracy demonstrators were killed (Kepstein, 2001, p. 108). Such action would have resulted in retaliation against U.S. companies companies operating in China and the U.S. pressed to convince President to change their minds. They argued that the commercial interests of the United States would be irrevocably damaged by rapid market growth and that the result would improving human rights in China, but a boost to business prospects competing U.S. companies in China. The lobbying campaign was successful: the link between trade and human rights has been broken and replaced by the doctrine that the possibility of change is more important business links and other contacts are maintained.
International labor issues may be related to human rights, particularly with regard to issues of forced and child labor. Work ethics also occur outside the framework of the Universal Declaration of Human Rights in cases where certain work practices may be legal and customary in the host country, but not necessarily represent a fair and equitable treatment of the workforce. The question facing an international organization is: to maximize their competitive advantage through low-cost/low-regulation placement in a country and adopt local practices or should not take advantage in labor costs by adopting more stringent standards ethical practices and strict compliance with local laws needed? A company may choose to take the path of it and still experience a significant increase competitiveness.
Codes of conduct governing the behavior of firms in general and treatment of labor, in particular, are not new. Its manifestation Modern began in mid-twentieth century in the form of codes of the House International Trade and other collective codes (Donaldson, 1989, p. 55). His popularity increased again in the 1990's in response to pressure from NGOs, the emergence of corporate social responsibility as a key element for companies and social phenomenon and responsible action by the shareholders. Moreover, examination of the possible inclusion of labor regulation under the auspices of the WTO encouraged international companies to take greater responsibility for their own labor standards, if only to prove that international law organizations was not necessary. codes of conduct to take many forms. Many international companies have developed their own individual codes to cover their own employees and their subcontractors and suppliers. Some industries have developed their own codes. Whichever way you take the necessary codes for the positive public image international business and demonstrate that the business enterprise reconciliation and act ethically. The codes must meet certain conditions before you can say to operate fair and credible (DeGeorge, 1993, p. 88):
1.The content of the code should be clearly formulated and at least meet the basic standards
2.The company adopting the code must be committed and be prepared to provide resources for their implementation, including training, information systems for monitoring and enforcement, and personnel to implement new procedures;
3.knowledge code through the organization is essential for its implementation: particular, employees of the company and its subcontractors and suppliers need to know the contents of the code and information system should be established, which allows workers to report violations without fear of reprisal;
4.The code must be verified by independent evaluators to access the page without notice at any time.
The application of these codes can improve the internal management and facilitate the internal management of geographically dispersed sites. There some evidence to show real commercial benefits can be obtained from the proper application of fair labor standards and fair, although more research is needed to disseminate this (DeGeorge, 1993, p. 111). Provided that the code of conduct adopted by the credibility of an outside company, you can protect and enhance the reputation a business, in particular the importance of those days when we hope more companies in terms of corporate social responsibility.
Levi Strauss is one of the manufacturers the world's largest clothing chain and one of the first international companies to adopt a code of conduct applicable to all contractors who manufacture and finish of their products and selection including countries in which to operate (DeGeorge, 1993, p. 118). The Code of Conduct consists of two parts:
conditions 1.Business recruitment partners: Levi Strauss used to select partners who continue to labor standards and practices consistent with its policies and to help identify potential problems. In addition to complying with generally acceptable ethical standards, complying with all legal requirements and commitment to the participation of shared environment Levi Strauss environment and community, business partners, Levi Strauss, must comply with the Employment Guidelines:
-Wages and Benefits: Partners company must comply with all applicable laws in force practices and the manufacturing and finishing industry.
Hours of work: the local partners have to maintain the legal limits on working hours and give preference to those who cultivate less than a week to 60 hours. Levi Strauss will not rely on partners who typically require workers to work more than 60 hours. Employees also must have at least one day off per week.
Child labor: the use of child labor is not permissible any of the facilities of the business partner. Workers should not be under 15 years below the age of compulsory schooling.
-Disciplinary Practices: Levi Strauss did not appeal to business partners who use corporal punishment and other forms of physical or mental coercion.
Working -Prison/forced: No jail or forced labor must be used by business partners or use of Levi Strauss or companies buy computers or forced prison labor.
"Freedom of association: rights workers to organize and collective bargaining must be respected.
-Discrimination: respecting cultural differences, Levi Strauss believes workers should be employed on the basis of their ability to do their job
-Health and Safety: Levi Strauss agrees to use commercial partners that provide a work environment healthy and safe and, if necessary residential
2.Country assessment guidelines: are used to address issues beyond the general willingness of companies individual and are designed to help Levi Strauss assess the extent of their reputation and success can be at unreasonable risk. It was a country assessment side caused Levi Strauss for ending its involvement in China in the decade of 1990, mainly based on human rights – a decision that was subsequently revoked. In particular, the Company assesses whether:
"The image is affected by the perception or image of a country among the clients
"The health and safety employees and their families are at reasonable risk;
Human rights environment prevents the company from conducting business in a consistent manner general direction and policies with another company;
"The legal system prevents the company from adequately protecting trademarks, investments or other business interests;
"From the political, economic and social protection of commercial interests and business branding company.
Levi Strauss is an example of the company that combines successfully do business through the implementation of ethical practices. As shown, the code of conduct demonstrated by Levi Strauss company meets the job and environmental standards while at the same time such actions have a negative impact on your business. On the contrary, as Levi Strauss has a positive public image, the Customers should be more attracted to their products.
Other important ethical issues that society must bear in mind is corruption. Bribery and corruption is not as clear an issue that seems at first sight, it is true that there may be more of a gray area. In some cultures it is considered quite normal to give an official or a gift for the host (and Asgary Mitschow, 2002, p. 245). In others, the gifts of nominal value minimum or no gifts at all allowed. The problem arises when the standard is of a contract to be signed only after the payment of "commission" to an officer or key officials (and Asgary Mitschow, 2002, p. 240). Such circumstances international companies are in a difficult situation: no payment of such fees, the contract does not materialize, and if you do not pay, many other companies (although this is not an ethical justification for proceeding with the Commission). The U.S. position is unequivocal on this point: they are all payments, such as pots wine and, as such, are immoral and illegal. Corrupt Practices Act prohibits Abroad U.S. companies making improper payments to foreign governments, politicians or political parties to obtain or retain business. Therefore, the only option that U.S. companies have in Corruption is not considered to make the payments as bribes, otherwise you can see that a company violates the law.
The latest ethical challenge facing international companies is related with environmental protection. Companies can face the adverse publicity following environmental outcomes of their activities, such as pollution is getting more attention media (Bartlett and Ghoshal, 1998, p. 98). For the protection of many, the environment and corporate responsibility in this area has an ethical dimension clear. This debate is framed in terms of "World Heritage" in which all human beings have a challenge and a responsibility to ensure the welfare of the environment for future generations (Donaldson, 1989, p. 211).
To combine business meetings and the environment ethical standards of an international society should respect the following basic principles of environmental policy.
The first rule refers to the "polluter pays." It stipulates that polluters must pay total cost of environmental damage they cause (DeGeorge, 1993, p. 100). Environmental costs are often called "externalities" (eg, damage to health, rivers, air, etc relating to economic activity) that are not included in the cost of a product, but are borne by society as a whole (DeGeorge, 1993, p. 100). As polluter pays the full cost of their activities, including externalities, this principle is an incentive for organic products and / or reduce consumption of polluting goods. This internalizing external costs can be met by the use of instruments based on the political market.
The principle concerns prevention. If the company decides to follow the precautionary principle as it is transformed into products and processes to prevent environmental damage occurring, instead of relying on corrective action to repair the damage after it has occurred (Davies, 1997, p. 108). This involves the development of "clean technology" minimal use natural resources, cheap air emissions, water and soil, and maximize recycling and product life.
In conclusion, international trade, adds an extra dimension to ethical issues in the company. All organizations have their own culture based on common language and terminology standards of behavior, the dominant values, informality / formality etc. This inevitably becomes more complex when the organization has a presence in more than one country. Some companies believe that a strong corporate culture is a way to overcome different national cultures, while others evolve in different cultures and different organizations to integrate cultural diversity management strategy. Many organizations like Coca-Cola and McDonald's for consumer brands, but also to adapt their products to local markets ethical standards and comply, either by necessity or to maximize yields. Ethics and corporate social responsibility are closely linked. Debates about corporate social responsibility has been dominated by labor and environmental issues, but a growing number of corporate governance scandals involving the multinationals is increasing pressure for stricter regulation. International companies can reconcile doing business internationally and continue to be ethical if they comply with labor and environmental standards established at international level and to establish and follow a code of ethics. The long-term corporate commitment to ethical principles and socially responsible behavior is good for business.
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