...expand its business and increase sales. What is ethical? In my opinion ethics are defined by what is “right.” Some ethic standards are defined by law, but many must come from within the person or business. One must realize that sometimes what might be considered unethical by law or ethical by law might need to be revisit and thought about if the law or lack of it produces unethical outcomes. In doing business so many times an organization must think globally. This might be done to increase sales and/or profits or to lower labor costs. In either case, problems can occur due to ethical and cultural barriers in global expansion. In this paper, I will attempt to show some of what a global organization and a cultural issue that affects their interactions outside the United States by identifying and comparing some of these cultural differences. One company that faces these cultural issues daily is Levis Strauss and Company. Levi Strauss and Company is a large American company found in 1853 and it well known for its denim line. Currently Levis Strauss and Co. has operations in over 110 countries with over half of its corporate revenues coming from outside the United States. In American history, we have all heard complaints of companies in the garment industry hiring underage employees outside the United States and poor working conditions. Levis Strauss and Company has not been left out of these accusations. In the United States, child labor is considered unethical and illegal...
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...International evidence on ethical mutual fund performance and investment style Rob Bauer b a,c , Kees Koedijk b,* ´ , Roger Otten c a ABP Investments, Schiphol, The Netherlands Faculteit Bedrijfskunde, Erasmus University Rotterdam and CEPR, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands c Maastricht University, Maastricht, The Netherlands Received 23 September 2003; accepted 28 June 2004 Available online 23 September 2004 Abstract Using an international database containing 103 German, UK and US ethical mutual funds we review and extend previous research on ethical mutual fund performance. By applying a Carhart multi-factor model [Carhart, Journal of Finance 57 (1997) 57] we overcome the benchmark problem most prior ethical studies suffered from. After controlling for investment style, we find no evidence of significant differences in risk-adjusted returns between ethical and conventional funds for the 1990–2001 period. Our results also suggest that ethical mutual funds underwent a catching up phase, before delivering financial returns similar to those of conventional mutual funds. Finally, our performance estimates are robust to the inclusion of ethical indexes, which, surprisingly, are not incrementally capable of explaining ethical mutual fund return variation. Ó 2004 Elsevier B.V. All rights reserved. JEL classification: G12; G20; G23 Keywords: Mutual funds; Performance evaluation; Style analysis; Ethical investments * Corresponding...
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...continue to be around for many to come. In the following ethical and cultural views will be examined, social responsibilities and how the stakeholders make unanimous agreements among the organization. The North Atlantic Treaty Organization (NATO) was established in 1949. In fact, the Alliance’s creation was part of a broader effort to serve three main purposes: deterring expansion of the Soviet Union, forbidding the revival of nationalist militarism in Europe through a strong North American presence on the continent, and to encourage integration of European politics. (NATO.int, 2014) NATO consists of 28 countries. When the organization originally started in 1949 it consisted of 12 founding members of the Alliance: Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom and the United States. After many years these countries joined as well: Greece and Turkey (1952), Germany (1955), Spain (1982), the Czech Republic, Hungary and Poland (1999), Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, Slovenia (2004), and Albania and Croatia (2009). (NATO.int, 2014) NATO is a political and military organization. The political aspect promotes democratic views and encourages cooperation on security and defense issues to prevent conflict and build trust in the process. The military aspect is committed to peaceful solutions to disputes. NATO has many cultural and ethical issues that...
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... Many studies have noted differences in ethical judgments across individuals within organizations, industries, and countries. Such differences tend to become more pronounced and problematic when one enters the international arena, because members of different national cultures frequently apply different ethical standards and criteria This remains a vexing challenge for those engaged in international trade. This gave us the opportunity to observe cross-cultural differences firsthand, using our own students as subjects. Initially, our data originated as a class exercise intended simply to motivate discussion. As is customary in marketing and business ethics classes, students were asked to read a printed scenario, to rate the ethics of the actor in the scenario, and to discuss justify their evaluations. The discussions revealed the ethical criteria applied by the students and the importance weightings they placed on each criterion. It was our observation of the pronounced differences evident across national groups that sparked our investigation into the sources of these differences. This study was also motivated by our curiosity concerning whether U.K students ethical evaluations would be similar to those of their North American counterparts (by merit of being Anglophones) or similar to their French counterparts (by merit of being European, an historically Catholic culture, ancestrally Gallic, etc.). As the pattern of differences began to emerge, our research...
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...Ethics Essay Ethics played a very important role in our lives. While we were growing up, we have been taught on what is right and what is wrong. People from different parts of the world practice different cultures, religions, beliefs, and ethics. Everyone believes that his or her ethical practice is the only one that existed and others should follow. Most of the people still do not know what to belief and who to follow. Throughout this paper, I will discuss the similarities and differences between virtue theory, utilitarianism, and deontological ethics. These similarities and differences will include a description of the differences in how each theory addresses ethics and morality. They will also include a personal experience to explain the relationship between virtues, values, and moral concepts as they relate to one of the three ethical theories above. Description of Similarities and Differences To discuss the similarities and differences between virtue theory, utilitarianism, and deontological ethics, I will start with each ethical theory. The similarities between these three theories represent the good in people, how they strive for excellence, and how they justify good. The differences in these three theories begin with the ethics and morality. Virtue theory is not the same as the other two normative theories, utilitarianism and deontology ethics. This theory focuses more on an individual and his or her characteristics. Utilitarianism and deontology ethics look...
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...Business Ethics across Cultures In both The United States and China there have been many ethical dilemmas reported, though some are the same there are numerous difference in which both countries classify as either being ethical or unethical, they to have some things in common. Some of the bigger differences are in their life styles and culture. In this paper I have outlined one of the larger ethical differences and ethical perspectives in relation to business. In china most main ethical concerns are based upon how they live their lives, their goals in life, and also how to conduct themselves if ever they should hold a position of power. However in the business world china has on numerous occasions been found unethical with the way they run their businesses. In plain terms they often violate the essential rights of humans. “During the late 1980s and the early 1990s, China was routinely cited by various international; organizations such as Amnesty International and Freedom Watch for major human rights violations, including torture, beatings, imprisonment, and executions of political dissidents” (Ekonomi, 2007). Despite this, in the late 1990s and early 2000s China received record levels of foreign direct investments, mainly from firms based in democratic societies amongst these was the United States (Ekonomi, 2007). Meanwhile in the United States our ethical issues are of a totally different caliber, many of our ethical problems include: illegal campaign contributions...
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...information, and focus on international business, the positive effect of globalization is much more apparent as well as the challenges it presents to countries with different ethical cultures. While most would assume that people in another land speaking a different language, following a different religion, and eating different food would more than likely perceive and behave differently from than our own; the truth is that even though these differences may be perceived, very little is done to actually understand them appropriately unless it is deemed necessary. However, what is quickly becoming equally apparent, for international businesses and corporations to deal successfully with a foreign contractor, business, or even government; the proper measures must be taken to understand the differences in ethical perception and to work to accommodate those differences. Failure to do so leave many of these companies and businesses vulnerable for international ethical dilemmas that are quickly brought to global attention by international media sources; where the wide-spread use of the Internet and digital communication have helped companies grow internationally, now any unaddressed unethical practice or issue from businesses can be heard and commented on around the world. Cultural difference begins with the ethical variations of perspectives or business ethics of each individual international company. Language is a huge barrier when it comes to international or inter-cultural business dealings...
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...Running head: HOW PERSONAL CAN ETHICS GET? How Personal Can Ethics Get? - Assignment #1 1. Discuss how personal differences and preference can impact organizational ethics. Personal differences and preferences can impact organizational ethics. As stated Hellriegel and Slocum (2010, pg. 34), according to Lawerence Kohlberg theory, individuals’ mature through six stages of moral development. Harrison and Pietri (1998) also states, that the six stages are broken down into three different levels which consist of low, middle, and high. Harrison and Pietri (1998) states the lowest level of moral development is also known as the “pre-conventional” level. This level consists of the first two stages of moral development, which is obedience and punishment, as well as the instrumental stage. According to Harrison and Pietri (1998) individual usually evaluates ethical dilemmas in order to avoid punishment or seeking personal rewards. Hellriegel and Slocum (2010, pg. 35) states that organization do not want individuals that have not matured past this level, because of their simple reasoning of thinking. Individuals that are still in the pre-conventional level, personal difference and preferences could have a tremendous impact on organizational ethics. Individuals in these stages make decision based on following the rules to avoid being reprimanded. On the other hand, individuals in this stage also follow the rules in something for return. For example, an individual report...
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... This paper will provide a brief summary of both articles and try to explain some of the primary ethical perspectives of the countries. In the contents of this paper there will also be a discussion on how the articles contribute to understanding global ethical perspectives and will briefly describe the similarities and differences of the business ethics in these two countries and the United States. Although the first article is titled ‘Business Ethics in Australia and New Zealand’ I will discuss only Australia as New Zealand is considered a separate country. Australia This article discusses the effects of the scandals of the 80’s and extending into the 90’s on Australia and New Zealand as both countries have always claimed to be open, fair and honest societies and the scandals that erupted during the 80’s and 90’s shocked the people of Australia exposing the corruption and dereliction of duty that existed where they felt none did. These scandals brought to light the need for ethical codes within the private and government businesses within Australia, however chief executives and senior government officials still are finding it difficult to accept that they are role models and are expected to uphold higher standards within the community. The focus of ethical values within Australia is on specific ethical values such as integrity, fair dealing and only on certain ethical dilemmas such as treatment of minority stockholders in takeover situations and bribery in international...
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...religious beliefs. Ethics can also be defined as merely following what the law requires of us in respect of others in all areas such as professional differences, ethnic differences, as well as an overall feeling to be non-judgmental towards others. Ethics can also pertain to a patient’s right to reject treatment such as blood transfusions, chemotherapy, or any medical treatment they choose. Ethics in Healthcare branches out into many important aspects such...
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...Japan vs. United States: Ethical Norms Japan vs. United States: Ethical Norms This paper is about the ethical norms of Japan and the United States. The Japanese culture is very complex as well as their corporate culture. Japan’s government us unitary state, constitutional monarchy, parliamentary system. The United States culture is primarily western and corporate culture is considerably fragmented. The different factors within both cultures have an impact on both countries’ ethical norms. Japanese corporations can be contrasted to American corporations which stress the interests of stockholders and are more likely to emphasize short term goals. Leadership is a term that emphasizes three characteristics which are the human trait requited, to coordinate interests of the group, and towards the group’s goals (Taka & Foglia, 1994). Effective leaders maintain integrity and trust by communicating clearly, leading by example and fostering positive relationships with sponsors, stakeholders, suppliers and employees. When leaders establish a strong commitment to ethical behavior and demand that all employees adhere to a high standard of business conduct, confidence in the company tends to be high. When leaders show disregard for the rules, morale, productivity, and overall success suffer in the long-run. The problem of when and how to adapt to different ethical standards is best approached by examining two sets of issues: those faced by Americans doing business in Japan, and...
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...Addressing International Legal and Ethical Issues Simulation Summary Lisa Jones Law/421 October 31, 2012 Mark Hinueber Addressing International Legal and Ethical Issues Simulation Summary The International Legal and Ethical Issues of working with foreign companies planning to enter an international contract may perhaps wish to study a different system of resolving disputes without going to court. This system which is known as Alternative Dispute Resolution (ADR) offer neutral tools for determining disputes that could arise. To resolve future difference of opinion without resorting to a foreign legal system, companies should plan in advance by including an ADR section in their contract. When dealing with foreign trade the United States should consider the law of the other countries and how overseas trade is conducted. The United States law is not up hold in other countries and other countries law is not uphold in the United States. When considering legal action both the United States and the foreign country have to decide were legal action will take place. The factors that could work against CadMex’s decision to grant sublicensing operating the company correct would bring money to Candora the country the company is located in. Company is not operating properly or the contract is not being followed correctly this could cause a breach of contract and legal issues can arise from Gentura. When the local customs and law conflicts with the customs and laws of an...
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...Ethical Perspective ETH/316 9-24-13 Ethical Perspective The organization selected is a Private Military Contractor or PMC currently known as Academi, most commonly known as Black Water. With being a PMC the company faces numerous ethical issues in the United States as well as worldwide. There are a lot of people who would view this company as an unethical one. The fact is their ethical code should be taken at face value because they are mercenaries and this is the real world, surely they will conduct themselves in the most ethical manner dictated to them by the person or government paying them but if you are on the short end of the stick you may not believe their actions are ethical if they are being paid to shoot you. Ethics is all about perspective and opinion, more often than not those who shout that everyone should have them are on the short end of the stick in one way or another. Cultural Issues There are numerous cultural issues the company must contend with, to name one that would be obvious we can take a look at the Middle East, more specifically Afghanistan. One of the biggest hell holes on the face of the earth and just one section of the world that should be bombed back in to the ocean. In the local culture it is an insult to wave with the left hand but it is ok to stone a woman to death with rocks, this is not an exaggeration. The culture compared to the culture in the United States is insane, it would be a compliment to describe it as barbaric. As such...
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...an industry of leadership, and standards that when faced with challenge, must meet the rising needs of the world. Born from the necessity of standardization, the hurdles of international business, and the wave pool that is the global economy, today, accounting at all levels faces challenges unlike any ever seen in history. To understand how to continue to move forward and face these challenges, it is important to first examine the standards in accounting, and to explore the differences in U.S. standards versus worldwide standards. To look at the development process and the governing bodies surrounding this change, and then examine what change will bring, and whether it is attainable. For continued growth, understanding the modern realm of international business and the changes being seen in accounting leadership as well as the growth of technology, and the mounting concern for ethics in the world environment is as vital as any other component. It is important to explore the economy of the United States versus the world, the impacts of these economies, and how the current political and conflict-areas impact international business, and also what lies ahead. Accounting is an area that is broad and necessary, bringing both the components of business and finance with it, but it also encompasses a large amount of challenge as the world of business continues to move toward a global economy, and understanding those challenges will be...
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...private equity firm it has been transformed from a United States manufacturer to a global company by expansion, merger, and take over. As the worldwide expansion has progressed it has encountered many if the issues raised. Items such demographics, infrastructure, global interdependent, and inferences such as culture. The other issue of ethics and working within different political systems such as the one in China and the effect of the tech revolution and the ease that it has made operations that much easier. Global Interdependence and Cultural Differences Tyden and the equity firm have gambled much on the value of global interdependence. The company requires all division to be able to support each other with sales being in Europe, Latin America, and the largest market the USA. Manufacturing is centered in China and the Far East with a small assembling procedure in Latin America. This interdependence and support of each is essential to the operational success of the organization. As a global manufacturer each and every division must know its place and support each other. The other side of the coin in having a global company that depends on each other is the fact cultural difference play such a part in how well companies run. These differences must be accepted and adjustment made into the procedures of the organization, while not losing the identity of the parent organization. There has to be a teaching of what the differences are from Latin Americans to Chinese, the subtle...
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