Topic > Ethical Issues in Global Trade - 996

Modern economic activities are global. The companies are multinational or are looking to expand globally. There are some localized businesses but these businesses are not isolated from the international community. These activities are influenced by what happens in another country thousands of kilometers away. Many of the ethical issues in global trade are the direct result of diverse political, legal and economic growth around the world. In some parts of the world, business practices may also vary. What would be normal in one region of the world or in one country could easily be considered unethical or even illegal. In this article, I will try to discuss what should be the norm for international business and the optimal resolution of ethical dilemmas that all multinational organizations should face. adhere as part of its normal conduct of business. Furthermore, I will discuss how to resolve the dilemma of fair wages paid to its employees, while keeping the organization sensitive to the various international cultures in which it operates and to not let local corruption and bribery tarnish the good efforts and image of the company. organization. Many times the working conditions of a host nation are clearly inferior to those of the multinational's home nation. Multinational operations often raise the question of which standards should be applied: host nations or domestic? Further questions also arise about what drives managers to behave unethically and what they can do to incorporate ethical considerations into their decision making. Literature Review Absolutism versus Relativism The absolutist position is that business should be conducted the same way throughout the world, without double standards. When in Rome, do as you would with a... middle of paper ......or for the betterment of humanity and the environment. It is expected to offer charity and goodwill to the community in which it operates. Historically, some multinational corporations have abused its power for private gain. Take the British East India Company for example. He had warships, a standing army and thus a de facto ruler of India. Some countries hired protection from rebels when doing business in a hostile country. This protection will come in the form of the provision of not only money but also weapons. The power itself is neutral, but how it is used is relevant. It could be used positively for social welfare or for private gains at any cost. What to do in Rome Multinationals should not adopt double standards. Morally Relevant Differences Conditions in developed countries would presumably be different from those in developing or underdeveloped nations.