There is no doubt that the importance of global business keeps increasing on a day-by-day basis not just in the United States, but throughout the world. For U.S. based companies, about 75% of sales potential is located outside of the country. Global business is not just growing in the U.S.; countries like Japan and Germany have 80%-90% of their sales potential outside of their own country. There are different driving forces behind this global business expansion. Regional economic agreements (like NAFTA), converging consumer needs, infrastructure, and technology are just some such reasons businesses decide to go global, however there are problems with going international. Companies face obstacles such as the "self reference criterion" where people prefer their own country's products. Also, there are government barriers (Keegan, Green). A bigger problem that the international business world is facing is the issue of international business ethics. Rarely does a long amount of time pass without ethical world business issues appearing in the news.
Journal of Business Ethics
Society for Business Ethics
Institute of Business EthicsInternational bribery, corruption, and clashing values and traditions are a few examples. I intend to give some guidelines in agreement with ethical theories for proper international business so unethical situations can be avoided. A major focus will be on bribery. In this paper, I intend to show that the international business climate is different around the world and that ethical values can clash with each other. Furthermore, I will show certain examples of wrongdoing in the international business world. I will also explain why undermining ethics internationally does not mean profits.
Today, it is very popular for a company to go global with its business. Companies operate factories, hire workers, and sell products in many different countries with unique customs. Some of the time, the reasoning behind taking a business to the global level can be attributed to...