Ethical Issues in International Business
Ethical refers to the approved right or wrong in doing and especially in making a decision for the business. Businesses focus on profit maximization drops ethical practices in their daily doing mostly for the long term effect. Ethical involved in business are like, bribery and corruption, environment regulations and human rights.The use of ethical minimizes legal problems to business.
Business which avoids law compliance to its operation incurs huge loses when caught in erroneous. This may results to sanctions, high legal fee charges or heavy fines. Due to public awareness and publicity the business damages its reputation which highly affects it than fees and fines. Business that maintains ethical, experiences conducive environment and has no law suit challenges (Wolf, R., & Issa, T. (2015).
Ethical creates high morale to the employee by good and respectful treatment. This is passed through to the customers by employees, bringing in repeat business. These good morals improve market share. A business that observes ethical has high chance of winning a competitive advantage in a client.
Any shareholder feels satisfied in investing in such business structure where their shares are not at risk of unethical activities.The business objective is a better world, this can be achieved ethically .Promoting strong public image. A business observing ethical is advantaged to growth, earning customer royalty, conducive working environments thus building an organization of high value to all stakeholders. Such a business observes the environmental and contributes towards community projects.
This ethical enhances growth of business and moreover betterment of the world class. Ethical in business can be achieved and improve both profit and world betterment.
In Wolf, R., & In Issa, T. (2015). International business ethics and growth opportunities.
Rothlin, S., & McCann, D. (2016). International Business Ethics: Focus on China. Berlin, Heidelberg: Springer Berlin Heidelberg