The paper 'Major Legal and Ethical Issues Facing International Business in the World Today" is a good example of business coursework. With the increasing internalization and globalization which has recently become of key importance, many companies have started looking abroad with the aim of expanding their business and the world is becoming more interconnected. The Importance of ethics and legal framework in the business world is global and superlative. As the world continuously open up for foreign firms, the number of multinationals is constantly glowing and new business destinations are being created every day (Mahdavi, 2009).
However, new ethical and legal issues and trends arise on a daily basis and are likely to cause a burden to the organizations and their esteemed customers. The challenges that the company must handle while going international are new and unfamiliar. The multinationals thus need to instil proper ethical behaviors in order to avoid possible lawsuits. The public scandals especially involving corporate malfeasance and some misleading unethical practices have adversely affected the perception of the public on the way various organizations conduct their businesses. The recent global business expansion and the fall of the trade barriers across the world have further underlined the interests particularly in the topics of social responsibility and ethical behavior.
This paper discusses the major legal and ethical issues facing international business in the world today. It also and address the common question of whether multinational corporations should be bound by an international ethical standard or should domestic considerations be the guiding principle. Ethical and legal issues that were traditionally considered irrelevant are now becoming crucial as the international companies face new obstacles in their daily routine.
One of these obstacles is culture. Culture is capable of influencing business activities in various ways. Ethical differences, language problems, culture collisions and pricing difficulties are common issues, especially in the beginning. The multinational companies must be able to operate in an environment with diverse cultures and be able to handle these differences in a manner that is satisfying to all the parties involved (Mahdavi, 2009). Disrespect or ignorance of the foreign culture can cause mistakes which are usually hard to correct and this might lead to the destruction of the entire operation. Recently, there has been a heated debate on the ethics subject, especially in international business issues.
This debate has been sparked by speculation that some of the multinational companies were conducting unethical business operations in the overseas countries especially China. These firms purportedly conducted their business without following rules and regulations as they do in their own countries. For instance, the companies pay attention to some issues such as product safety, working conditions and work safety in their domestic operations whereas they abuse the legal and regulatory environment in the foreign country. The national codes of many nations put more emphasize on the ethical nature of reputable corporate governance.
These nations place a special emphasis on the fact that ideal governance is the one that is based on some cardinal ethical values. Among the values that should be given allegiance for the sake of good governance include accountability, transparency, probity and responsibility. These values should diffuse itself in all aspects of the governance and be displayed in all decisions and actions of the company board. Various aspects of governance such as board function and compilation, disclosure, risk management and reporting are usually seen as instrumental in realizing the cardinal ethical values that will ensure good governance.
Ferrell, O. C., & Fraedrich, J. (2012). Business Ethics: Ethical Decision Making & Cases. South-Western Pub.
Mahdavi, I. (2009). International business ethics: strategies and responsibilities. Journal of Academic and Business Ethics , 1-6.