Question & Answer: Discuss the importance and challenges of ethical decision making in global businesses……

Discuss the importance and challenges of ethical decision making in global businesses.

Expert Answer

Ethics:

The ethics is most important thing in the business and when it comes the turn of International or global business it is very important and much needed thing. Ethics deals with morality about what should be treated as “right” and what should be treated as “wrong” while doing and making business decision by the people in various situations. Ethics should not be confused with the law

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In current situation in the world where people are caring much for the environment and other things, it is important to map every business decision on the scale of ethics and we must not do anything ethically wrong.

Importance of Ethics:

Ethical decision making is very important in the organization in International Business:

  1. Ethics is the good practice and it creates and helps in develop integrity, hence an honest and open workplace is possible in International business where people from different nation interacts among each other.
  2. Ethics helps in earning customer loyalty and trust.
  3. Helps in long term association with the client
  4. Many legal consequences can be avoided
  5. Create profit in long run.

Challenges with Ethical decision making in International business:

Ethical decision making is not a simple thing, when we consider ethics in business decision making then it becomes very challenging. Ethical decision needs a great degree of value clarity. Ethical decision require critical thinking and evaluation. There are often challenges to this:

  1. When there is conflict of interest for profit and the steps to do this needs some ethical hurdle

Example: Making a farm to produce biscuit require cutting of 100 trees.

  1. In International business environment, there are lots of things comes in business like cross border documentation, political, social and economic and technological conditions. So it is very important that decision making should not affect the culture custom and tradition of the other nation.
  2. Taking care of the wages of all the employee in different nations in global business is also a challenge as if an organization don’t care for the employee it is not ethical right.
  3. There are different customer expectation and in order to win the customer, there are chances where any of the employee can be in trap of doing wrong thigs, so making a strong ethical rule is required here.
  4. With ethical decision every time and in every decision seems hampering profit in short term but it is helpful in long run

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