Ethical_Organization

Profits The American business structure has been building a foundation for many years. America’s basis is still a work in progress to some extent and companies and employees alike are making strides to make cultural understanding and ethical dignity a part of daily business interactions. As a part of the growth of any company international trade and commerce becomes commonplace for what is considered a successful business portfolio today. When studying the inner-workings of the American culture one must gather information that helps define the role that ethics and morals play in business transactions both domestically and internationally. Ethical dilemmas are presented regularly and contribute to shaping the environment of domestic partnerships and international agreements. Moreover, American strategies and practices are not autonomous everywhere. International trade and relationships with other countries in business is a vital part of the global economy. Individual countries attempt to maintain free trade by importing and exporting products to and from other countries. This interaction can introduce cultural misunderstandings and distrust if no parties involved are careful to have an appreciation of what is morally acceptable from one country to the next. What is ethical in one country may be unacceptable in another. Business practices need a firm grasp of and respect for cultural diversity and bias because of such diversity. When a corporation has aspirations of being successful internationally, said ventures must have a set of ethical and moral standards and realize that other businesses in other countries do as well. The combination and understanding of cultural values and respect must be recognized to ensure a successful global business. Ethical Issue The world has been transformed in recent years by a phenomenon affecting everyone, globalization, especially in the field of employment. According to Carnegie Council (2002) website there was a time when the people in another country would not have any concern with people or the issues of another country. Today, not taking into account what happens in other country is nearly impossible especially concerning financial support from another country. According to Singer (2002), “national borders have less meaning as issues of trade, environment, and health, along with incredible technological advances of the last century. We now have a legacy of connectedness to other countries we cannot ignore.” (p1) Singer (2002) also stated in a study recently done “The World Bank and what additional aid would need to achieve the targets set at the United Nations Millennium Meeting. Issues have come up about reducing global poverty by 2015, the goal would be to provide safe drinking water to everyone world wide as well as providing primary education but few brought to light the aid of global unemployment.” (p1) The United States spent 60 billion in additional aid per year but one also have to consider what the United States have allocated for defense spending. A major amount of that budget could be used toward global aid, and that is just from the United States. Other developed countries, presumably would have invest as much in largely United States supported areas. "We do believe that human beings are equally precious or equally important no matter what country they live in, and we think of ourselves as contributing to the development of a global community” (Singer, p1, 2002). Perceptions Globalization started back as early as the fifteenth century as one of history noted adventurer, Christopher Columbus, showed us by going to different nations to satisfy a curiosity. Globalization can be good and bad. Globalization has and is helping countries develop to catch with the mighty United States of America as assumes by many undeveloped nations. The Good Globalization allows the United States of America to obtain cheap labor in which the jobs in America are outsourced to different countries like China and India in which the people are willing to work for less pay. How does this affect the American people' The current perception is that many Americans are forced to seek higher education on grounds that residents from outside the country are competing for the same employment opportunity locally. Graduating from college today does not guarantee him or her employment in the degree field just earned. However, graduates are considered more educated and worthy of consideration by other countries. Students overseas are also looking at the same jobs opportunities as the American students but are going beyond the level of education that the American population is currently willing to go. A prospective employer only sees a much more educated applicant who is willing to accept less salary that affects the business bottom line. Knowing that people overseas will work for less gives business a presumably better chance at hiring a must more qualified applicant who is more than willing to work toward the company’s bottom line. Bad On the other hand, ethics within companies overseas are not as strict as that of corporate America; this permits the abuse of labor forces. Because another nation’s ethical standard was being used for American owned and operated businesses this called for the development of policies and guidelines for global business ethics. The core values of firms abroad were not the same as firms in the United States. The respect for human rights and dignity was not a primary concern. The company’s bottom line was the sole focus. Labor laws overseas with regard for the working children were not important. An employee working for 12 hours a day at four dollars a day was and is the way firms overseas operates. Some American owned and operated corporations are included in these firms. Globally, companies are still struggling with creating a code of ethics and a management system to adapt to the cultures for which corporations operates in. Unethical behaviors of the companies overseas are frowned upon heavily, however that aspect is still a work in progress and the risks and consequences are still high. Risks and Consequences Risks Risks are high when outsourcing through globalization is done. The issues come with the country of manufacturing. For example, Christmas 2007, Mattel Toys Company lost billions of dollars in revenues because products manufactured in China, in which lead-based paint is legal and were used. Mattel sold toys in countries in which lead-based paint was illegal. The consumer, assuming the product is safe, goes ahead and purchases it. “Another week, another recall of Chinese-made toys, said Sen. Dick Durbin, D-Ill., who suggested detaining and inspecting all Chinese toy imports for lead paint. We can’t wait any longer for China to crack down on its lax safety standards. This needs to stop now before more children and more families are put at risk” (MSNBC, p1, 2008). When profits come before safety, it is a recipe for disaster. History has proven that contractual standards are not always followed, many companies sees profit first and safety second and that is when the phrase ‘me against the world’ comes in for buyers and consumers of the world. Consequences Today many products are manufactured in countries that have minimal safety laws than that of the United States. Business ethics issues seemed to have fallen through the cracks even with the United States being a country with strict guidelines. Another example is also from China. Baby formula was tainted and sold to families, killing innocent babies in the name of profit. Most recently, the nation has experienced a Peanut product recall as well; people have died from salmonella in their peanut products. Businesses have thought consumers globally that companies producing the products are focusing on profits and not safety. Consumers must now be ever more vigilant and take additional responsibility because companies’ products cannot be trusted especially at the risk of losing a loved one. Extended research must now be done on the consumer’s part, checking labels for where a product was manufactured has become an essential part of acquiring a product. Consumers must also know that not all products produced in or out of the USA are perfect and that research much be done to ensure safety. Reports do exist to advice consumers of dangers and recalls but the work must be done to protect oneself as well as loved ones, as many severe warnings never make headline news. The ethical manifestations are severe, as profits are placed before safety. Examine a culture and ethical manifestations become clear. One question many United States consumers ask is why are products being produced in China versus USA' Another question is why did innocent babies have to die' One answer seems to fit, profits for the shareholders despite safety and any ethical dilemma presented. Conclusion Although transformation is necessary for growth and many nations have embraced diversity, some not as eagerly, the United Stated of America has embraced globalization. As a democratic nation in which one focus seems only to be the bottom line profit and not safety, ethics have become the forefront. Many times ethics have taken the sidelines to that of what the shareholders crave; profits. As individuals holding onto learned values and beliefs is a must to ensure humanity rights as each have learned, and to respect and value what each culture has to offer. Without respect for individuals’ ethics, businesses cannot exits locally much less globally. One does not exist without the other, a world in which one person can cause change if respect and value is not present. Humanity’s biggest challenge is accepting and appreciating each individual as an individual with unique beliefs and values. References De George, R.T. (2006). Business Ethics. Ch.19: The International Business System, Multinationals, and Globalization. Prentice Hall. Jamal Al-Khatib, Mohammed Y A Rawwas, Ziad Swaidan, & Richard J Rexeisen. (2005). THE ETHICAL CHALLENGES OF GLOBAL BUSINESS-TO-BUSINESS NEGOTIATIONS: AN EMPIRICAL INVESTIGATION OF DEVELOPING COUNTRIES' MARKETING MANAGERS. Journal of Marketing Theory and Practice, 13(4), 46-60. Retrieved May 1, 2010, from ABI/INFORM Global. (Document ID: 1041628521). MSNBC: Associated press. (2008). FDA: Beware of tainted infant formula from China. Retrieved from http://www.msnbc.msn.com/id/26661751/ Singer, P. (2002). Global Ethics. Carnegie Council for Ethics in International Affairs. Retrieved from http://www.cceia.org/contact/index.html Somodevilla, C. (2010). MSNBC: Mattel issues new massive China toy recall. The Associated Press. Retrieved from http://www.msnbc.msn.com/id/20254745/