Ethical Environment in Mexico
The topic of business ethics is one that too often ends up on the back burner, unless you happen to be a social activist. There are perceptions and realities associated with bribery and corruption when doing business in Mexico. Corruption, bribery, “mordidas” (translated as “bites”, but are actually bribes) and tips are part of Mexico and the foreigner’s perception of Mexico. It’s a difficult subject to address because it involves ethical and moral decisions for the foreign visitor or business person. What is culturally OK in Mexico, may be seen as immoral and corrupt by an individual from another country. Historically, corruption in Mexico is blamed upon the Spanish conquistadors. While corruption no doubt existed prior to the Spanish conquest, they certainly did institutionalize it in government and throughout the Mexican (and Latin American) culture. Today corruption, bribery and tipping occur at all levels of Mexican society and at many different degrees. For one reason or another it has become part of daily life. Most of it involves small sums of money, and is thought of as tipping and not as a bribe. In fact, to eliminate corruption in Mexico overnight is unrealistic and would probably result in chaos. As some Mexican observers have noted, “La mordida” is the grease that makes the system work.
In a country like Mexico, regarded as a low-trust culture in the work environment, can employees be led to trust one another? Or is greater control needed because of the lack of trust? Surprisingly, there is evidence to suggest that given the proper organization, it is possible to have a trusting environment.
The positive outlook is that an ethical and profitable business environment can be created. All it takes is the commitment from leadership, both in terms of consistency and willingness to spend the resources and time to train employees.
Ethical Environment Canada
Ethical Environment in Canada is more conducive for retail industry with low corruption and organizations trying to enforce Ethical Code of conduct and Corporate Social Responsibility as a main aspect of the business. As the pace of enforcement of corruption laws increases in many countries around the world, any company operating outside Canada should ensure that it has a robust compliance program and other internal controls in place to protect its operations and its brand from violations of anti-corruption legislation.