Unit VI Discussion Board
Please make sure that it is your work and not copy and paste off of someone work. Please watch out for spelling and grammar errors. Please use the APA 6th or 7th edition. Please read the study guide. This is a DBA course and needs to be done on the level.
Book Reference: Johnson, C. E. (2019). Organizational ethics: A practical approach (4th ed.). SAGE. https://online.vitalsource.com/#/books/ 9781506361765
Using the Unit VI REM Case Study Scenario, discuss the questions listed below.
- Does the organization accept the gift?
- Is this considered a bribe or trying to influence business?
- Is this a thank you for the years of working together?
- What are the ethical ramifications concerning this situation?
- What are your thoughts? How would you handle the situation?
DBA 7632, Business Ethics and Corporate Responsibility 1
Course Learning Outcomes for Unit VI
Upon completion of this unit, students should be able to:
2. Examine ethical issues in international business.
2.1 Explain international business ethical issues found in a journal article.
2.2 Analyze the purpose of research focusing on ethical issues in international business.
Course/Unit
Learning Outcomes
Learning Activity
2.1
Unit Lesson
Chapter 12, pp. 355–377
Unit VI REM Case Study Scenario
Unit VI Article Critique
2.2
Unit Lesson
Chapter 12, pp. 355–377
Unit VI REM Case Study Scenario
Unit VI Article Critique
Reading Assignment
Chapter 12: Ethics in a Global Society, pp. 355–377
Click here to access the Unit VI REM Case Study Scenario.
Unit Lesson
This unit builds upon the previous units and begins to bring us to a close as we discuss more application-
based issues. The foundation is laid; it is important that you have a solid understanding of the concepts,
theories, and practices to this point. Ethics in research as well as ethics in organizations carry a high cost. To
develop and implement an ethical standard, there must be a solid foundation upon which to build. Past units
discussed different aspects within an organization itself and the organization’s reach to vendors and
customers. The last unit addressed the issue of intellectual property. When addressing ethical concerns in
regard to intellectual property, working internationally must be discussed.
An organization choosing to operate internationally is not necessarily a large conglomerate. The organization
that has global reach may only sell products or services in different countries, regions, and territories. The
organization may contract out components such as computer parts or automobile parts made in China to be
assembled within a larger unit that are installed in the United States. Businesses continue to grow globally,
whether it be through the Internet and other means of technology or through the manufacturing, production,
and harvesting of raw materials.
Cultural Acceptance
Global business is a growing field, and the barriers are shrinking. Ethical behavior takes on a new face
because what is acceptable in one country is not always acceptable in another country. Johnson (2019)
explains how a company that enters into a contract with a German organization will find that the contract is
highly detailed and specific as to what precisely will be expected. This approach is very different than a
company that is based in South America. According to Johnson (2019), nations in South America are far
more relaxed about the constraints of a contract as there is an expectation that the contract will be
continually renegotiated. The contract serves as more of a guideline rather than as a strict regulation of
UNIT VI STUDY GUIDE
International Business
https://online.columbiasouthern.edu/bbcswebdav/xid-89303229_1
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agreement. Breaking an element of a contract in South America is not given much concern, but breaking an
element of the contract in Germany will have a far greater negative impact (King County Bar Association
[KCBA], n.d.). Johnson (2019) discusses that the validity of a contract in Mexico is based on individual
reputation. If one party is not known to maintain its integrity as to completing what it says it is going to do,
there is a greater likelihood that another individual or organization with high expectations would not conduct
business with this party.
Integrity, along with individual accountability, is significant. How an organization behaves and conducts
business in one country may have to be adjusted in another country. For example, for a large organization
such as General Motors, which has interests all around the world, the types of contracts that they enter will
be handled very differently in the respective countries. The company will have expectations; however, the
company will have to adjust to the culture of the individual and the nation in which it is conducting
business Understanding the culture of the nation as well as the business practices proves to be valuable.
Determination of what is needed to develop a successful relationship with a host company requires
comprehensive research about the organization as well as business practices and organizational culture.
This research decreases risk associated with appropriateness of action and deliverables between the
contracted organizations.
The previous unit talked about the use of intellectual property and how it is respected in the United States.
Intellectual property is protected. Several Asian countries do not have the same perspective on how
intellectual property should be protected or used. Two companies from different countries should have a clear
understanding about what is reasonable regarding the use of common knowledge, collective intelligence,
design, and production or manufacturing.
The previous unit discussed the example of RCA and how their design and intellectual property was used
outside of the United States, forming significant competitors that were using the company’s own designs. The
value of protecting the information may be a point of disparity between the companies. Such issues have also
been addressed in the way of Internet technologies as to whether applications or software should be open
source or proprietary. In the research realm, an example of this might be IBM’s ownership of SPSS software
versus open-source data analysis using R, which is a free analysis software that can be downloaded and
perform similarly to the proprietary SPSS software.
Business Practices
How business is conducted across national borders will vary. Walmart chose to open retail business units in
Mexico in 2012 (Reuters, 2017). The individuals that prepared the way for the company to come in and
begin building did not gain a solid understanding of how business practices were done in Mexico. The
company decided that by paying special fees to government officials, the development process could be sped
up, but the company learned that these practices were unacceptable to the Mexican government. Walmart
was delayed in opening up this market, but the company did eventually open stores in Mexico in 2014
(Reuters, 2017).
Understanding how organizations and governments work together, whether they are in the same country or in
different countries, plays a vital role. In countries such as Malaysia, a government official accepting a bribe
will lead to execution (Johnson, 2019). In other countries, added supplemental payments are often how
merchandise is moved around the country, which is the case for South America (Johnson, 2019).
Culture
Understanding the culture plays a central role in what business practices look like in the host country. The
organization that chooses not to study these practices before choosing to invest is selling itself short and
increasing risk. Ethical behavior as we understand it is subject to the individual, the organization, and the
culture in which the standard is held. While taking bribes in one country is seen as unethical, such actions
could be acceptable practices in another country. Making these determinations is important to how a business
is established and perceived. A company that holds a more stringent standard of ethics may not choose to
take part in the perceived less-stringent ethical standards of the host nation.
A different area of ethics within international business is the use of slang terms. It is important to understand
the vernacular of a given country, organization, and industry. A term of endearment in one country may be a
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term of discrimination or offense in another. This addresses the labeling of products and services that may be
effective in one country but may have a highly negative connotation in another. The use of slang terms or
practices is also an ethical issue in how these actions and practices are implemented and enforced
throughout the organization.
How an individual of a certain class, position, or culture is perceived in one country can be very different
than how the individual is viewed in another country. For example, a male of dark skin color in an entry-
level, blue-collar position in Seattle, Washington, may be treated very differently within the same company if
he is working in a suburb of Johannesburg, South Africa. A light-skinned female in middle management who
is working in Huntsville, Alabama, will be treated very differently in Riyadh, Saudi Arabia, because the culture
is different.
Business Practices
The expectations for individuals and business practices will vary in different countries. Along these lines,
understanding how culture, nationality, and practices play a role in the code of conduct or an ethical standard
within an organization also depends on what the traditions are within the host country or the home country. An
organization that is based in China and headquartered in Beijing will have certain expectations about how
they expect operations to be carried out in Western Europe and the United States. Many of these
expectations may entail using similar practices used in China, which might be illegal in the other countries or
considered unethical by those who live in Western countries. The same is true with respect to how employees
and clients are treated by an organization that is based in their home country versus how they treat their
customers and employees in a host country.
A French company may treat certain individuals better than a company from the host country. Understanding
these practices and knowing what is considered to be acceptable behavior can be valuable. How we share
personal and professional information varies from country to country as well. This plays into international
business practices from an ethical standpoint.
In the United States, two executives are not likely to talk a lot about their personal lives unless they are good
friends or long-time colleagues. In some Middle-Eastern countries, there is a very fine line between personal
and professional discussions (“Seven Tips for Doing Business,” n.d.). Such questions about family speaks to
character and integrity. A business associate may want to know how you treat your family as well as your role
within the family, as this will also speak to how you operate in your professional life. As we mentioned above,
what would be considered an ethical violation in one country would be perfectly acceptable in another (“Seven
Tips for Doing Business,” n.d.).
Outsourcing and Giving Back
When we talk about conducting business across international borders, we think of outsourcing to lower the
cost of labor or manufacturing. We hear advocacy groups talk about employees in developing nations being
paid a few dollars per day for the work that they do in what we consider to be sweatshop conditions. As an
international business, working ethically within different nations means knowing the operations and standards
in each country or region.
The first step is knowing what standard business practices in the host country are. If the normal rate of pay
is equivalent to $2 per day in U.S. currency, and the U.S.-based organization were to pay $10 per hour, this
would cause upheaval in the local economy. The organization is going to conduct its contracted operations
at a similar rate of pay and conditions as what is acceptable in the host country and culture. Yes, the
company can raise the quality of life by offering jobs that would not otherwise be available. Oftentimes, this
can be done by setting up a compound-type environment that provides food, clothing, shelter, education,
and health services through value-added benefits that might not be available through other organizations in
the community.
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Organizations will be assessed by their
footprint on the host country and the culture.
The perspective of one country will be very
different from the perspectives of other
countries. Is the company operating
unethically if they do not pay the same rate
of pay in the host country as they would in
the United States? The company would be
operating unethically as it would create far
more issues in the host country and the host
community if they paid the same labor rates
as they did in the United States or if the roles
were reversed. A similar issue occurs here in
the United States if a position pays $25 per
hour in California, New York, Chicago, or
Washington, yet it pays $10 an hour in
Alabama, Mississippi, and rural Arizona. Are
the employees worth less? No, but the cost
of living is very different in these areas.
There is an ethical standard to pay the rate of pay associated with business practices and commonly
accepted standards in these areas. The same principle carries through across national borders throughout
industries. As a global society, ethical practices are taking on an ever-changing face as organizations become
increasingly global in their suppliers, vendors, clients, and employees.
References
Johnson, C. E. (2019). Organizational ethics: A practical approach (4th ed.). Thousand Oaks, CA: Sage.
King County Bar Association. (n.d.). Business etiquette in Latin America. Retrieved from
https://www.kcba.org/streaming/Documents/COLLABORATIVE-Handout_1
Nasir1164. (n.d.). ID 25322936 [Image]. Retrieved from www.dreamstime.com
Reuters. (2017, May). Walmart is reportedly getting ready to settle a bribery probe for $300 million. Fortune.
Retrieved from http://fortune.com/2017/05/10/walmart-bribery-investigation-settlement/
Seven tips for doing business in the Middle East. (n.d.). Arab Business Review. Retrieved from
http://www.arabbusinessreview.com/en/article/seven-tips-doing-business-middle-east have questions,
contact your instructor for further guidance and information.
Figure 1. Wordcloud of outsourcing issues
(Nasir1164, n.d.)
REM Case Study History
Rogers Engineering and Manufacturing (REM) is a medium-sized business.
Sam Rogers started the organization 60 years ago as a one-man show out of
the shop on his farm. Over the last 60 years, the firm has grown to over
1,000 employees in three locations within the region, and it has contracted
strategic partnerships around the world. The firm generates over $300
million in gross revenue annually. While the company is still family-owned,
Sam’s oldest grandson now runs the organization, grooming the great-
grandkids to eventually take over the firm. Other grandchildren run the two
secondary locations and divisions of the firm.
REM was established on trust, integrity, and a strong ethical environment.
As a family-owned business, the integrity of the company reflects directly on
the family. The reputation of the individuals and the family collectively
reflects on the integrity of the firm. As the firm has grown over the last 60
years, select individuals were placed in leadership positions very carefully to
reflect the integrity of the firm and the family’s belief and value system.
Over the last 20 years, much of the growth has occurred at lower levels, and
outside contractors are now being used. Due to substantial growth in these
areas, it has become increasingly difficult to instill the same values and
ethical practices that the firm has implemented.
Recent years have brought about concerns of ethical considerations as to
project design, planning, and implementation. Recently, reports have
surfaced about there being a discrepancy between what is being promised
and what is being delivered. Sales and marketing have made promises that
were never implemented. Leadership in the lower and middle ranks have
used disciplinary actions as grounds for reprimand and termination rather
than using disciplinary action as a corrective tool.
Purpose
As a business consultant to this organization, there are several factors that
need resolution. The primary concern is to restore the integrity of the
organization’s ethical standards at all levels.
This case example is used throughout the course. The case is open for
interpretation at the individual level. The key goal here is to not only
familiarize yourself with the organization and the scenarios given but to
develop the critical thinking and research skills necessary to develop and
critique practices and beliefs within the organization. There is no right or
wrong answer for the assignments; however, all work must be supported
with credible, professional, and academic sources. The case is important to
exercise a business problem as well as an academic exercise. It is important
to follow the format that the organization, in this case the university,
requires in addressing the project or assignment given to you.