The Challenge of Ethical Behavior Essay

809 Words Nov 3rd, 2005 4 Pages
The Challenge of Ethical Behavior in Other Countries

The requirements of day-to-day organizational performance are so compelling that there is little time or inclination to divert attention to the moral content of organizational decision-making. Morality appears to be so obscure in nature that it lacks substantive relation to performance. An effective organizational culture should encourage ethical behavior and discourage unethical behavior. Unfortunately, ethical behavior may end up costing the organization. Being unethical in any arena, especially in the international business arena, is both bad-for-business and bad for the public. Unethical behavior is bad-for-business because it reflects an erosion of principles needed for an
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The authors note in this ethical discussion that there are legal reasons for operating a business in an ethical manner but that legalities are not truly a sufficient argument. Also, in a recent issue of the Economist the journalist noted "Now and then depending on the circumstance, it is wrong to obey the law. And merely following the law does not exhaust a firm's ethical responsibilities, and many things required by ethics are not required by law." 1 It seems clear that the law does not cover the entire scope of business ethics. International business is a complex endeavor with many interacting variables from the different social, cultural, educational, economic, and legal systems within the host and home countries. In addition, the variables are affected by the interactions between the host and home countries, especially of their political and military systems. In our opinion, it is no longer sufficient for multinational corporations to do merely what is legal. In every occurrence, multinational corporations must do what is right – through their conduct, not just their words. Managers today have to find the proper balance between severing the company for which they work and serving the public good. After all, it is not their money they are spending - it belongs to the shareholders. Putting assets to use in any other area other than maximizing profit is cheating the company and is also unethical. But companies also have to be

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