...expenses to the business, reducing profits. Profits are a good thing – they ensure that people have jobs. The smaller the profits, the fewer income tax dollars are paid, which would hurt government programs. • The government takes care of ensuring that businesses do things in an ethical way. No other forms of business ethics are required. Hi everyone, according to my point of view, ethics is important in business but only upto a certain extend. Mostly business aims at profit and so there will be stiff competition. One who strictly follows ethics may not be able to survive in the market as the tough competitors would always run far ahead of him. Business ethics reduce a company's freedom to maximize its profit. For example, a multinational company may move its manufacturing facility to a developing country to reduce costs. Practices acceptable in that country, such as child labor, poor health and safety, poverty-level wages and coerced employment, will not be tolerated by an ethical company. Improvements in working conditions, such as a living wage and minimum health and safety standard,s reduce the level of cost-savings that the company generates. However, it could be argued that the restrictions on company freedom benefit wider society. The advantage of having international business ethics is that an ethical company is attractive to consumers. It also helps companies operate within most international regulations. The disadvantage of international business ethics is that...
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...Are US Companies at an ethical disadvantage when doing business overseas? Whether or not US companies are at a disadvantage when dealing overseas has remain a focal point for several years since the passing of The Foreign Corrupt Practices Act (FCPA) in 1977, as bribery has become more common place in the business world with the current trend towards globalization. Despite efforts in the US trying to hold US companies at higher standards, bribery is not considered unethical around the world (De George, 1986). In many foreign countries, bribery is considered the standard medium for businesses transactions and is even allowed to be deducted as legitimate business expenses for accounting purposes, giving legitimacy to the practice. The US Department of Commerce has estimated that foreign companies have used bribes to beat out US companies out of more than $45 billion of international business between1994 to 2000 (Hodgetts, 2000). Bribery is usually defined as the “remuneration for the performance of an act that is inconsistent with the work contract or the nature of the work one has been hired to perform” (Shaw, 1989). Research suggests that bribery is more prevalent in developing countries; however, developed countries (including individualistic countries) also suffer from unethical issues (Shaw, 1989). Recently, American executives at Lindsey Manufacturing Company became the first to be convicted of foreign bribery in more than 34 years of the passing of FCPA (Fulbright & Jaworski...
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...Topic: What are the advantages and disadvantages to the business face when they try to behave in an ethical way? With the development of the global economy, business companies are facing many business challenges in the age full of competition. And business challenges will produce some different values, such as child labor, human rights, hours and wages and environmental laws (Luminita and Constantin,2006). Therefore, business companies need to pay more attention to the business ethics. What is more, ethical business is study of business behavior which promote human welfare and the good( Wikipedia).And in business companies, there are some advantages and disadvantages when they behave in an ethical way .However, there are more advantages than disadvantages in such ethical business companies. First of all, let is talk about some advantages. In recent years, one of the most important problems ‘international managers facing today is the ecological impact of industrialization around the world’ (Caliskan, 2010, p49)Therefore, the environment problems were focused by many organizations. However, an ethical business company must follow the environment friendly policy. Here is an example below. Barclays Hire Cycle sharing scheme, which can save energy. In that way, if using cycles instead of cars, there are no worries about fuel and oil resources to damage the environment and caused pollution. What is more, the company plays the social responsibility...
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...avoid such cases and experiences in the future. Siemens was considered one of the most powerful and productive companies in the field of electronics and that bribery scandal surely affected its business and popularity in the world greatly. It was difficult to understand the underlying causes of this bribery scandal, especially on the part of such large, successful and popular company known not only in Germany but also all over the world. In fact, several employees and even executive board members were charged guilty in this scandal and imposed huge monetary fines for illegal and unethical behavior harming the business of the company greatly. Brooks and Dunn stated that the company developed a corrupt organizational culture “in which hundreds of millions of Euros were put into slush funds that were then used to pay bribes in order to obtain lucrative contracts” (Brooks and Dunn 290-291). There were several cases of such bribery scandals within the company affecting its success and efficacy greatly. Ethical and appropriate behavior of the company’s employees was questioned after those scandals resulting in the firing procedures in the professional environment. The organization surely made several mistakes which resulted in such scandals and affected the future organization of business on the national and...
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...[pic] FACULTY OF BUSINESS AND ECONOMICS DEPARTMENT OF BUSINESS ADMINISTRATION Fall 2014 |COURSE CODE AND TITLE |: |MGMT 101 – Introduction to Business I | | | | | |COURSE LEVEL |: |First Semester/First Year | | | | | |COURSE TYPE |: |Area Core | |LECTURERS | | | |Group: 1 | |Turhan Kaymak Office: BE 322 (Business, 3rd floor) | | | |Tel: 630 2745 e-mail: turhan.kaymak@emu.edu.tr | | | | | |Groups: 4, 5 | |Semi Bora Office BE 315 ...
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...Q1 Primary stakeholders are those stakeholders who are directly affected by company’s activities, either positively or negatively. Primary stakeholders always have a close relationship with the company. For example, shareholders, employees, managers, suppliers and customers are in the primary stakeholder group. Secondary stakeholders stand for those who are indirectly affected by company’s operation or project. Secondary stakeholders always play an intermediary role but also have interest related to the company. For example, secondary stakeholder includes government agencies, policy makers, finance institutions and local board members. It is important for company to do stakeholder analysis and classify stakeholders into different groups. Different group are affected by company’s operations in different patterns (Goodpaster 1991). Primary stakeholders tend to be more greatly affected by company’s project; hence, primary stakeholders should be put into the first consideration priority when company makes decisions. Besides, company’s economic and human resource are scarce and limited, it is always impossible for company to allocate equal resources to all stakeholders, thus, company should put those who are directly affected by company and those who are closely related to company in the first priority (Kivits 2011). Stakeholder classification is used to help company identify the significance of stakeholders and attach different importance to different stakeholders. Q3 Crisis...
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...decision you have made (at home or in the workplace), and describe the steps of the cycle in relation to your decision making process. Now review the section on rationalizing unethical behaviors (page 25). What is the relationship between the ethical cycle and the three simple ethical tests used for business decisions? Question 2 List and discuss in depth the three teleological frameworks and the three deontological frameworks. What are the advantages and disadvantages of each? Of these six frameworks, with which one do you most associate? Question 3 Discuss the eight ethical principles in the Global Business Standards Codex. Using these principles, describe an example of a company that does follow one of these principles, and then describe an example of a company that does not follow one of these principles. Question 4 Review Table 2-1 in the textbook, which relates to the myths about business ethics (page 23). Select three myths, and discuss why they represent a general misunderstanding about business ethics. Question 5 Examine the three simple tests identified by the Institute of Business Ethics (page 25). Use these tests, and discuss a decision you made dealing with ethics. Unit IV Question 1 What part should the government take in ensuring that corporations are environmentally “friendly”? Fully discuss your answer. Question 2 Discuss the concept of environmental sustainability. Discuss the challenges to sustainability faced by developed, emerging, and survival...
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...what the others are charging Prices gravitate towards a common “market price” * Monopoly-one producer and source of supply unique product complete control over price no competitors 3. What are profits? Why are they important? * A profit is what remains after a business’s expenses have been subtracted from its revenues. * Rewards the owners of businesses for taking the risks involved in investing their time and money. 4. What’s the formula of businesses making money? * Revenue-Expenses=profit 5. What is outsourcing? Give 3 advantages. * paying suppliers & distributors to perform certain business processes . 6. Why is socio-cultural environment important for business firm? * The socio-cultural environment influences the customer preferences for goods and services, as well as the standards of business conduct that are seen as acceptable. 7. What is unemployment? * The level of joblessness among people actively seeking work in an...
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...Ethics and Social Responsibility in International Business 1 Ethics and Social Responsibility in International Business Ethics and Social Responsibility in International Business 2 Table of Contents Introduction ..................................................................................................................... 3 Defining Ethics and Social Responsibility ....................................................................... 3 Do Countries with Lower Ethical Views Attract Businesses? .......................................... 5 Can Ethical Business Practices be Applied Globally? ...................................................... 7 Which organizations are safe guarding ethical practices and is it working? ...................... 9 What are the Ethical and Social Responsibilities of Outsourcing? .................................. 12 What is Outsourcing? ................................................................................................ 13 Outsourcing is Beneficial........................................................................................... 15 What a Company Needs to Know Before Outsourcing .................................................. 17 What Are the Facts Regarding Child Labor?.................................................................. 18 Child Labor Global Statics......................................................................................... 18 Conclusion .................................................
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...whistles was slightly above the U.S. legally acceptable limits for children ages 7 and younger. A large shipment of the Bean Sprouts toy collection is scheduled to be shipped to schools in South America at the end of this week so that the toys will be on site before the beginning of the new school year. Calculations of the logistics department show that the approximate cost to reproduce the product and repackage the toy collections is $100,000. In response to your memo dated 6/5, I present you the following report. The report will outline 3 possible scenarios of how to address the situation regarding the whistles. I will explain the process/ method that I used for selecting each of the scenarios. I will also discuss the advantages and disadvantages of the respective scenarios, as well as the financial, legal, and ethical considerations of the scenarios. I will conclude with my recommendation on which scenario we should follow and give you the arguments why. The core of the problem that we are dealing with is that we owe the customer but the product we currently have is defunct. To generate the respective scenarios of how to deal with this problem, the members of my team and I sat down and brainstormed on the possible actions to take and their considerations and consequences, basically asking ourselves the question: what are the different actions we can take with the whistles. One associate asked us the question: “Imagine...
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...Although academic business ethics is relatively recent, its intellectual roots are found in the corporate social responsibility (CSR) and business and society literatures originating in law and in business in the early and middle 20th century (Marcoux). The corporate focus is evident in the titles of early works of academic business ethics that have done much to shape the subsequent discussion in the field. Velasquez’s "International Business, Morality and the Common Good" 1992 paper takes business ethics to be concerned centrally with questions about the corporation's proper role in and relationship to the social order. These questions are said to surround the moral status of the corporation: Is the corporation a moral agent? Do multinational companies have any moral obligations to contribute to the international common good? While dominant management thinking is steered by profit maximization, this paper proposes that sustained organizational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. However, the complex process of re-orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of multi-national corporations operating in global markets...
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...Ethics in business 1. Ethics is a moral principle that governs a certain behavior. 2. Ethics impacts businesses in many ways. As expressed in the material, ethics is the foundation of every business. It is the way we conduct business, the stance that we take, the direction of the company, the success of the company, all depend on the ethical value that each business has. 3. The ethical process is a series of movements. The first step is disagreement, engage in dialogue, develop good reasoning skills, value difference, uncover assumptions, evaluate alternative views, and finally modify proposals. In the first step the business is able to bring out the ideas and throw them around, to determine where there could be some disagreement. In step two, we are able to engage in dialogue so that we may value differences, that take us into step three. Here we develop and understand the value of our opinions, that we lead us into the assumption phase. Here we look to all the alternatives that we can think of, and finally we modify the proposals to get to the set goal. 4. The advantage to disagreement is allows us to exam reason, increase the pool of resources, reveal proposal limits, create opportunity for learning, and can promote a more inclusive and realistic proposal. The disadvantages to disagreement are delayed action, stifle participation, could favor argumentative types over others, could threaten cooperation, and create winners and losers. 5. Dialogue and...
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...JDT2 Task 2 A. Ways to address the situation One of the ways to succeed in business is to make sure customers are satisfied. In this case, If the contaminated metal whistle in the toy collection is sold to the elementary school without any corrections, an ethical issue of non-disclosure or health risk would arise. As a result, the company’s reputation and integrity would be ruined and can deter customers. To address the situation at hand, a few alternatives can be considered. The first alternative is to look for another manufacturer that can supply the toy collection for less than $100,000 and on time. The second alternative is to ask the elementary school if they would like a substitute for the whistle. Finally, the company can ship the toy collection without the whistle but give the school substantial discount on its purchase. In choosing alternatives, I first pinpointed the issues that I would like to handle. In this case, the problem was a contaminated whistle in a toy collection for an elementary school. The toy would be hazardous to the health of children due to the levels of lead present. I then decided on the types of outcome that I would like to see my decisions produce. I decided that I wanted all three alternatives to make both the company and its customer happy. Customer satisfaction is very crucial in this line of business because without customers, the business would not exist. Similarly, the company needs to make money to survive. Therefore, my...
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...Marketing Ethics 1 Marketing Ethics in Business Jennifer Rebarchick Marketing MBA Misericordia University Summer 2014 Dr. Gargone Marketing Ethics 2 ABSTRACT The field of business ethics and marketing ethics has evolved normatively and substantively over twenty years since the dawn of Business Ethics Quarterly. (Murphy, P. E.; Business Ethics Quarterly. Oct2010; Vol20; I4 (751-733) 3p. There have been positive and negative developments since then. In this paper it will be discussed marketing ethics in business and how this affects the organization I am employed with. I will discuss the definitions of these terms , how ethics is important, what organizations look for in making certain they are following the rules and regulations and some strategies that my organization may look into while dealing with branding or other issues they may face while doing the marketing. DISCUSSION Marketing ethics is defined as the basic principles and values that govern the business practices of those engaged in promoting products or services to the consumers. Sound marketing ethics are typically those that result in satisfaction with the goods and services being promoted. (www.businessdictonary.com) Ethics alone is defined as the basic concept and fundamental principles of decent human conduct. It includes the study of universal values such as essential equality of all men and women, obedience to the law of land, concern for health...
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...Doing Business in Emerging markets Homework 2: Starnes-Brenner Machine Tool Company- to bribe or not to bribe Silvia Mattei 1. Introduction to the main issue Corruption, bribery and other unethical behaviours are still one of the major concerns in International Business, influencing not only the companies’ performance in local markets, but also mining competition and the welfare of the countries in which this practices are considered part of the culture as such. In particular for very large international companies, with subsidiaries spread all over the world, to keep track of unethical practices may be difficult, as to maintain the integrity of the corporate culture in all the people involved in the organization, from the employees, sales managers and top management. Every country has a different culture, and every culture has its own level of tolerance against corruption. Since bad practices like bribery are well ingrained both in the countries’ culture, as well in the companies’ culture, it is evident that changes do not happen over-night, and to draft an anti-bribery policy and post it in the office blackboard is not enough. The aim of this paper is to analyze several perspectives on the topic, taking the reader into the discussion by giving him/her pro and cons by analyzing a specific company and his cultural and managerial issues when facing a period of internationalization and internal changes. 1.2 Company profile Starnes-Brenner Machine tool...
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