In the business world there is no place for dishonesty, arrogance or greed. People have to be held accountable; they are responsible for upholding ethical business practices. The old adage “Ignorance is no excuse” applies in business as well as personal lives. Corporate Leaders and CEO’s have to be held to a higher standard. Ethical behavior means to act in a way that is good and mutually beneficial for the individual and society (Mautner, 2005). This statement makes me wonder who decides what is good and mutually beneficial for society and the individual in business practices.
When you deal with International Business relations it is good practice to study the business culture of that country. For example Japan acts on the principle of “Wa” the ancient word for the concept of peace and harmony. It basically means “circle” and managers and employees work in a circle of harmony. It is important to understand International culture. In Mexico it is believed that if employees have a siesta midday production will increase. In our Western culture you would be fired if you had a siesta on the job.
If a company does not take the time to study the culture and business practices of a country they can find themselves tied up in corrupt business transactions. Is it ethical to take part in corrupt international business transactions? Legal? Explain. The answer to this question depends on the country. While it may be illegal to do this in the US, there may not be any laws enforced against this in other countries because of the different culture there that allows business corruption such as bribery as a daily business practice.
Thus, ethically, this is wrong on a universal basis but it is also relative in terms of wrong or right or ethical or not depending on the country and the moral base that they are using as ethics are based upon morals. Thus, in the US, it is not either legal or ethical to take part in corrupt international business transactions but it may be necessary in order to compete in business in certain parts of the world as that is the way that they do business. References: Japanese Etiquette and Ethics in Business / Edition 6 by Boye Lafayette De Mente International Business Law