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A Question of Ethics In some countries, people expect family members to be given jobs in a company before others. In other countries, payments or gifts are expected before a company does business. These cultural differences can create ethical problems. Ethics are principles of right and wrong guiding personal and business decisions. When considering the ethics of business situations, you should ask yourself the following questions. Is the action legal? Laws vary among countries. Most companies base international decisions on the statutes in their home country. When a conflict occurs, managers usually consider such other factors as professional standards and the effect of the action on society. Does the action violate professional or company standards? Professional or company standards will frequently exceed the law. This helps to ensure that decisions will be in the best interest of both the company and the country in which it operates. Who is affected by the action and how? Although an action may be legal and within professional or company standards, decision makers should also consider possible effects on employees, consumers, competitors, and the environment. Think Critically
1. How do cultural differences create problems when business is done in different countries?
2. What actions can global managers take to avoid ethical problems?
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