Tuesday, November 8, 2011

Ethics, Law & Corrupt International Business Transactions


Professional ethical standards are a system of moral values that motivated the way people conduct themselves based on an idea of right and wrong. The standards have a tendency to be codified in a formal system of rules explicitly adopted by the group using them and internally defined.  Hartman (2011) states that the shared patterns of belief that are fashioned by an organizational culture  “influence and guide the thinking and behaviors” of the people who are a part of that culture. Ethics are also sometimes refered to at morality because the two are so closely related.
Culture affects ethics and shapes businesses behavior because unspoken standards and expectations develop and influence practices. The climate of a firm’s culture is significantly influences by the values and morals exhibited by their leader. The behaviors that culture impacts the most are the tempo at which work is done, approach to humor, methods of use for problem solving, individual autonomy, and how competetive the environment is. Unfortunately, because of the influence that culture climate has on the members of the group, people can be swayed to make both moralily and immoraly responsible business decisions.
Because different countries have different cultures, they may have a different stance on the difference between right and wrong. They may make business decisions that they feel are ethical that seem unethical to our culture and vis versa. It is important to be sensitive to the views of others that you are conducting business with. It is also important to develop a set of values that your company adheres to, and not take the easy way out of things just because it has been made available. A company’s corporate integrity is dependent upon the decisions that they make.
Some things that we as Americans view as unethical and the wrong thing to do could very possibly be legal in another country.  Corrupt international business transactions would not be ethical because the very definition of corrupt is “to change from good to bad in morals, manners or actions” (Merriam-Webster, 2011). Whether or not it is legal is a different question. The Foreign Corrupt Practices Act and other such measures were created both domestically and internationally in an effort to reduce the amount of corrupt international business that was taking place. Igor Osyka (2000) categorizes the types of corruption in international business transactions in three groups; Political, commercial and personal. While you may be able to get away with corrupt international transactions like insider trading, there's always the possibility that you could get caught and jeopardize your future as well as your company’s future.  “Knowledge of international and domestic legal instruments and local custom, use of code of ethics and wise risk management policies could make it possible and successful to do business in any developing country and with avoiding conflicts with FCPA” (Osyka, 2000).
References
Hartman. (2011). Business Ethics: Decision-Makng for Personal Integrity & Social Responsibility. McGraw-Hill.
Merriam-Webster. (2011). Merriam-Webster. Retrieved November 8, 2011, from corrupt: http://www.merriam-webster.com/dictionary/corrupt
Osyka, I. (2000). Univd. Retrieved November 8, 2011, from International Business Transactions and Corruption: http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&ved=0CFYQFjAH&url=http%3A%2F%2Fwww.univd.edu.ua%2F_projects%2Fezloch_kor%2Fdocs%2Feng%2F1.doc&ei=CmO5TpLoCoHX0QGoq5HVCA&usg=AFQjCNHAW7gRi8UXKI2I9ruCuYVimkPwNQ

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