Share
Explore BrainMass

Managerial Ethics from a Pro-Globalization Standpoint

It is important to understand the difference between internationalization and globalization in the context of global business.

Answer the following from a pro-globalization standpoint.
- Assume you are the CEO of a domestic corporation. Would you choose to expand internationally? What ethical issues would you consider before making a decision?

1. Drawing on the notions of moral, amoral, and immoral management , categorize your impressions of
(a) Nestlé, in the infant formula controversy;
(b) Union Carbide, in the Bhopal tragedy; and
(c) Google, in moving its search engine out of China.

2. As an MNC seeks to balance and honor the ethical standards of both the home and host countries, conflicts inevitably will arise. What criteria do you think managers should consider as they try to decide whether to use home or host country ethical standards? Does it depend on the ethical issue involved? Explain.

3. Differentiate between a bribe and a grease payment. Give an example of each.

4. Conduct research, for purposes of updating the latest rankings of Transparency International and the activities of the OECD, UNCAC, and individual country initiatives. How could countries such as China, India, and Russia most effectively improve their TI rankings?

5. What are the major strategies companies might employ in improving global business ethics? What are the key steps research has shown are important to successful company anticorruption efforts?

Solution Preview

1. Assume you are the CEO of a domestic corporation. Would you choose to expand internationally? What ethical issues would you consider before making a decision?

Yes expanding internationally will be a viable option if I would find sufficient demand of the product in the world market. We will take care of the interest of stakeholders in the country in which we are expanding. Stakeholders are those parties which are interested in the organization. Stakeholder includes Staff, public, vendors, regulatory authority, customers, investors, operational team, customers and society at large. The much- publicized ethical transgressions of various well-known corporations have heightened organizational and regulatory sensitivities to establishing and abiding by firm ethical standards. Following ethical issues will be considered:
- The laws - every country has different rules and regulations which govern the business practices. Local lawyers and accountants should be consulted in understanding laws of the land which should be followed.
- The culture - customs, languages, religion, people are unique and different in each country. So the local culture should be known to be successful in business environment.
- The taste and preferences - production, distribution, promotion or any activity should not offend anybody. The locality- need to be cautious in making different promotions and activities in different regions in a new territory because a practice that may be permitted in one area doesn't necessarily mean that it will likewise be acceptable in another area even though it is in the same country.

http://stunningoptions.wordpress.com/2007/11/14/issues-to-consider-before-going-global/
Ethical guidelines:
We will instil following ethical values in our employees:
1) Commitment amongst the team members for the organizational goals
2) Inspiring Leadership
3) Delightful working Environment
4) Clearly communicating the Vision, Mission and other aspects.
5) Proper action plan and effective coordination
http://www.scitopics.com/Team_Management_Lessons_from_the_Leadership_Styles_of_Successful_Team_Managers.html
http://www.inc.com/articles/1999/11/15744.html

2. Drawing on the notions of moral, amoral, and immoral management , categorize your impressions of
(a) Nestlé, in the infant formula controversy
- Nestlé's marketing tactics in promoting the use of infant formula in Third World countries wasn't moral. Every corporation must understand and realize the corporate ethics and responsibilities they should have. The problem was that Nestlé used unqualified sales girls, the distribution of free samples, marketed to people who were incapable to fulfill the minimum requirements for giving formula safely to the baby, and the association of bottle-feeding with healthy babies to promote the use of infant formula to mothers who would have been better off breast-feeding their babies. In many Third World countries there never should have been advertising and promotions for infant formula because it is not safe due to unsafe water supplies and the difficulties in keeping bottles sterile.

(b) Union Carbide, in the Bhopal tragedy
- The events in Bhopal revealed that expanding industrialization in developing countries without concurrent evolution in safety regulations could have catastrophic consequences. The disaster demonstrated that seemingly local problems of industrial hazards and toxic contamination are often tied to global market dynamics. UCC's Sevin production plant was built ...

Solution Summary

The solution gives over 2000 words to cover the topic of ethics in globalization. It looks into the cases of Nestle, Union Carbide and Google to assess the ethics of their decisions and then speaks on considerations for multinational corporations, cultural issues like bribes vs. grease payments, and ways a country may advance its TI ranking. References included.

$2.19