The Disadvantages of International Business Ethics (Assignment)

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The Disadvantages of International Business EthicsMaintaining business ethics is a worthy goal for all multinational corporations, but not always possible or advantageous. The reality of international business is that upholding these arbitrary obligations comes with severe disadvantages. In many ways, abiding by a self-imposed standard of business ethics impede a company's ability to eke a profit when others are far less likely to abide by similar unenforceable ethical obligations. Wage Ethics Few consumers would profess that 8-year-olds working 16-hour days in a dimly lit factory is ethical. And yet several large multinational corporations disregard these issues in favor of producing a product at a significantly lower cost. John M. Wage, author of the book, "Ethics for International Business," explains the quandary arises when foreign governments have no set minimum wage. In these situations, companies can contract foreign workers and have them work for less than a livable wage. Corporations that wish to maintain strong business ethics by paying local, American workers a higher wage for the same job that an overseas worker could do for less face a significant disadvantage. Because consumers typically value less expensive products over ones that are not made in sweatshops, companies that adopt fair wage practices lose over ones that do not. Bribery and Grease Payments Some countries, particularly African nations, are accustomed to receiving "grease payments" as a means of getting bureaucratic tasks achieved in less time or currying favor with local authorities. For instance, a 2009 "Harper's Magazine" article explains that Halliburton paid

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Term
Spring
Professor
LindaGokhman
Tags
Business Ethics, Ethics, Globalization, Corporation, international business ethics

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