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Ethics and Social Responsibility in International Business

Ethics and social responsibility establish the foundational principles that guide individual and company decisions in international business. Together, ethics and social responsibility form the corporate values and leadership characteristics that enable companies to truly make a difference, become leaders of purpose, and bring their purpose to life. Upholding ethical standards builds trust between business partners and customers over time, gaining a reputation for fairness, respect for human rights, and social responsibility.

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ANOUSHKA KATOCH
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90 views6 pages

Ethics and Social Responsibility in International Business

Ethics and social responsibility establish the foundational principles that guide individual and company decisions in international business. Together, ethics and social responsibility form the corporate values and leadership characteristics that enable companies to truly make a difference, become leaders of purpose, and bring their purpose to life. Upholding ethical standards builds trust between business partners and customers over time, gaining a reputation for fairness, respect for human rights, and social responsibility.

Uploaded by

ANOUSHKA KATOCH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Ethics and social responsibility in international business

Ethics is "the discipline dealing with what is good and bad or right and wrong or with moral duty and obligation"
while
Responsibility is “moral, legal or mental accountability”.
Together, these two terms make up the foundational principles and character, which drive the decisions a company
and individual present.
Ethics sometimes get confused with a person’s feelings; however, doing what is right may differ from one‟s
feelings.
“In fact, feelings frequently deviate from what is ethical”
In reality, ethics and social responsibility is the study and governance of one‟s morals by which acceptable
standards are based on.
The combinations of the two make up the corporate values company‟s stand for. These values in turn underpin the
leadership characteristics and purpose of a company, which enable the following:
1. “Building an Organization that truly makes a difference in the marketplace
2. Becoming a leader of great purpose; and
3. Bringing your purpose to life so that your constituents know exactly what you stand for.
Ethical standards establish trust between parties doing business together, including both
partners and customers. Organizations earn this trust by demonstrating a pattern of ethical behavior
over time, gaining a reputation for fair dealing and respect for human rights and social
responsibility.
First and foremost, ethics are their own reward, in business and in our private lives. Living ethically
reflects good character and concern for the well-being of others. This leads to a sense of goodwill
toward others that nurtures self-respect and inner strength.
At the same time, companies conducting their international business ethically realize higher profits
by attracting business partners who share the organization’s commitment to ethics in international
business.
Importance of ethics in international business
To function effectively, a business organization needs a common system of moral and ethical
beliefs to drive and direct the day-to-day decisions made by individuals throughout the operation.
Many ethical requirements are dictated by laws and regulations, such as environmental protections
and worker safety rules.
Management leadership demonstrates and promotes other ethics in international business, modeling
ethical behavior and decision-making for employees.
International business ethics defined
Beyond presenting a code of ethical conduct for employees, an international business ethics policy
must consider such practices as corporate governance, bribery, discrimination, social responsibility,
and fiduciary duties.
A definition of international business ethics begins with a moral code of right and wrong, but
modern business ethics has expanded to encompass supporting social and environmental causes,
and being a responsible member of the communities where the company operates.
Examples of ethical business practices include mandating truthful advertising, instituting internal
quality control checks, and never profiting from insider information:
A cereal manufacturer’s ethical standards prevent it from making unsubstantiated health claims
about its products, even if its competitors make such unproven assertions in their marketing.
An electronics manufacturer must halt production after defects are found during quality control
checks of several batches even though the delay will cause it to miss the shipping date.
An employee who learns of a financial shortfall at a confidential internal meeting is prevented by
law and by the company’s ethics policy from profiting from the information in any way.
Global ethics standards
Among the organizations that have developed a code of ethics intended to be applied to all business
and nongovernmental organizations are the Global Alliance and the International Management
Association (IMA).
The Global Alliance Code of Ethics is a set of principles and statements regarding ethics in
international business communication and public relations. Among its guiding principles and
principles of professional practice are the following:
Obey laws and respect local customs.
Work in the public interest.
Engage in honest, truthful, and fact-based communication.
Practice transparency and disclosure.
Honor privacy.
Act with integrity.
Recognize freedom of speech, assembly, and media.
Avoid conflicts of interest.

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