Major legal and ethical issues facing international business in the world todayIntroductionDuring the 20th century’s second half, international business has turned out to be a significant economic force. Currently few, countries are self-sufficient economic wise. Even China, regardless of its massive natural and human resources, has failed to remain distant from the economy world. International business in the United States (US) touches the lives of people on a daily basis. Common services and goods, frequently connected with the US, are, actually, foreign owned. Some of the examples include and not limited to Pillsbury, Burger King, Citgo and Shell gasoline stations, and hardware stores like Scotty (Hamilton & Webster, 2009).
Questions arise regarding the major issues that face this international business. As a result, this paper seeks to address some of the major issues with respect to legal and ethical issues in the international business. Ethical issues facing international businessInternational business involves trade in not less than one nation (Morrison, 2009). It entails selling and buying services and goods within foreign nations. Other activities involved in international business include manufacturing, marketing, farming, and mining.
In general, international business is about the activities dealing in a distinct country does, however, at the global level. Global business cannot operate within a vacuum. The business functions in the framework of international and, occasionally, regional regulations and rules designed by suitable organizations (Hill, 2005). Even though every organization is separate, a number of their general features are supporting trade amongst countries that are members, establishing universal regulations and rules, encouraging trade practice. Regardless of the booming of international business, some ethical dilemmas still face this industry (Morrison, 2009).
Significance of ethics within the world of business is exceptional and global. Latest trends in addition to issues come up on a day to day basis which might bring about a considerable burden to companies and consumers. These days, the call for appropriate ethical behavior in companies has turned out to be fundamental so as to avert possible lawsuits (Cavusgil et al, 2012). The present expansion of international business and trade barriers’ fall worldwide has further underscored the concern in the subject of ethical behavior. The global codes of conduct are designed from: the International Chamber of Commerce (ICC), concerned with just treatment amongst multinational corporations; the Organization for Economic Cooperation and Development (OECD), entitled with making policy for industrialized countries; the International Labor Organization (ILO), deals with express investment within developing nations; and the Center for Transnational Corporations (CTC), concerned with maximizing the transnational corporations’ contributions to economic growth and development and to reduce the unhelpful effects of corporations’ activities (Griffin & Pustay, 2010).
These several codes were devised so as to institute order amongst multinational corporations; however, a number of organizations do not comply with these codes, principally because they are not completely sanctioned by the national governments.
Without consistent and complete enforcement, organizations that are multinational may possibly have uncontrolled choice in global ethical issues. Behind this absence of agreement is the subject of national together with corporate culture. According to Cavusgil et al, (2012), each country is different, just like each organization that is multinational is by some means different in the manner they conduct business, specifically in other nations.