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ETHICAL CONSIDERATIONS IN INTERNATIONAL BUSINESS PRACTICES
1. Cultural Diversity and Respect
1.1. Understanding Cultural Differences
In particular, the development of the digital business environment has put into question the basic
definitions of nexus and PE in the international tax regulation. Nexus literally means the degree
of connection that is needed for a country to tax a business, typically in the form of physical
presence. Though, the concept of digital businesses can carry out substantial business in a certain
jurisdiction without any physical nexus, regarding the sufficiency of the current principles of PE
rules (Chair, 2022). Beps Action 1 of the OECD recognizes the difficulty of taxing digital
economy and has suggested a change in the concept of PE to include significant digital presence.
These include the ‘substantial economic presence’ or ‘virtual permanent establishment’ where a
business maybe deemed to be resident and therefore taxable in a country on the basis of volume
of business transacted, number of users or data collected rather than physical premises (Bakker
& Levey 2022). According to Herzfeld (2022), a problem of the PE rules arises from the fact that
they were developed at a time when physical presence was the norm. For most of the digital
companies including online ad serving, e-commerce or cloud computing companies, it is possible
to achieve significant revenues from an actual market with little or no physical presence. This
has contributed to severe tax base erosion in market jurisdictions because profits are redirected to
jurisdictions that may not have significant operations of the digital firms, but where they enjoy
tax advantaged conditions. In order to reduce these challenges, the OECD recommended the
introduction of unified implementation under Pillar One of the BEPS 2. 0 project. This approach
attempts to apportion the taxing rights for business activity according to the consumers or users’
location since the market jurisdiction creates value for the company. This is actually a transition
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from a traditional geographical approach, where the focus is given to the physical presence of a
market, to more economic integration of a market into any economy (OECD, 2022). Therefore,
the digital economy should force the reconsideration of the connection between the nexus and PE
rules in order to execute fair taxation.
1.2. Embracing Inclusivity and Diversity
The main ethical and practical concepts indicate the importance of adopting policies supporting
diversity within the frame of international human resources management. Very often, diversity
and inclusiveness responsibilities are not reported to be fulfilled just as legislation commands;
they are much more about making everyone feel, and be accepted as an important part of the
entire organizational whole despite ethnic, sex, age or other related differences. Actually, as
Avery and Bergsteiner mentioned in their work (2021), successfully applying inclusive
approaches imply generating and implementing a broad set of ideas and perspectives. Cultural
diversity in the workplace minimizes the chances of making mistakes when addressing problems
in global markets as people can learn from their counterparts. This kind of mindset is very useful
in ideas generation. giving businesses the ability to come up with new ideas, thus constantly
adapting and operating in a competitive global market environment. Employment discrimination
has been found to correlated to higher employee turnover rates. inclusion and diversity of
employees in the workplace therefore is crucial. Firms that consider deal these values are likely
to attract a large pool of talented professionals, which may lead to an improvement of their
appeal to employees. To wit, Olthuis and Al-Samman’s (2021) is the point that if people are
made to feel welcome and wanted at their place of work, they are more likely to be motivated
and productive. The above engagement can easily mean that productivity has bumped up and or
that there are decreased rates of turnover thus being a plus for any business. Besides, awareness
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of the importance of assimilation of diversity seen as a key driver of repeated patronage of
products or services leads to enhanced customer satisfaction. Gender and cultural sensitivity,
therefore, should be given attention not as mere policies but as strategic steps to follow. As
explained by Raschke and Sen (2021), data governance and literacy will play a key role in
elucidating and overcoming possible roadblocks of marginalisation. It may involve modifying
the procedures of selection, providing training to cultivate cultural sensitivity and establishing
more resources for mobilization of groups that do not find themselves well represented.
1.3. Avoiding Discrimination and Bias
Non discrimination & elimination of prejudice is critical to ensure that new generation of
workers is given the best chance to succeed. In this paper, prejudice and prejudice acting at the
workplace will be discussed as they are detrimental to the organizational integrity and
productivity. Vivid and Bergsteiner further supported that if bias is not effectively managed, it
could create more monoculture environment in the work place which is detrimental to innovation
and creativity. When business leaders make a conscious effort to eradicate discrimination and
prejudice in the workplace, they would be able to enhance their employees’ productivity because
of fairness and the appreciation of the unique skills that people of color bring to the organization.
In scenarios that the discrimination and bias are unavoidable, train your employees to avoid such
conduct by adopting effective measures such as anti-discrimination and bias awareness
programs. While using Samman’s attitude towards the article, Olthuis and Al-Samman (2021)
consider the unconscious bias training that means the activity aimed at helping people become
aware of their prejudice. Training in these areas should be more constant and incorporated with
the diversity and inclusion efforts of the organization. It is also imperative to set or define
specific measures when discriminations are to be reported and be corrected. Such policies should
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help the organization to be sensitive to the complaints that are received, attend to the complaints
professionally, and timely, in a way that helps independent complainants feel that they are being
treated seriously, and with due respect. Data-driven approaches can also help reduce bias The
following considers the other strategies that could exist to reduce bias. According to Raschke and
Sen (2021), organizations that are developing proper data management strategies are able to
prevent and mitigate bias in their endeavours more effectively. This paper aims to find out the
steps that are necessary to implement this approach and detect potential discriminations in hiring,
promotions, and pay which might require changing the language used in the personnel
specifications to one that is not biassed, ensuring that all hiring procedures have a sound premise
of fairness, and regularly checking the wage differential between male and female staff. This
means that organizations’ leaders’ commitment is an essential aspect when it comes to the
negation of discriminations and bias.
2. Human Rights and Labor
2.1. Fair Labor Practices
Protection of employee’s rights is a vital component of the general human rights and is a key
area that every international business must embrace in order to ensure that employees are
protected against any form of exploitation. The principle of fair labor mostly has to do with
ensuring that every employee receives reasonable wages, does not work for an unreasonable
number of hours, and works in a safe environment. This not only holds a moral imperative but
also an effective business model in an aim to reduce the unwanted legal consequences and retain
a good image in the market. Based on ILO (2022), fair labor practices affect the welfare of the
employees and society in general and economic growth of the area drives efficiency and
sustainability of the business. The organizations that treat their employees fairly would have less
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turnover rates currently, and the morale of their employees will be higher leading to better results
in the organization. Thirdly, Boehe and Cruz (2020) have noted increased stakeholders’ concerns
pushing international trading companies adopt ethical labour standards. This pressure from
stakeholders can take the form of consumer collapse, negative media action, and investors
pulling out there investments from the company which can be very damaging. staying true to the
principles of the fair treatment of employees also benefits the company’s competitive position.
According to Khan, Bali, and Wickramasinghe (2021), global organizations need to adopt ethical
personnel management policies since more consumers and workers are becoming conscious of
organizations with humane standards due to the rise of corporate social responsibility industry.
This is especially true in fields where talent is scarce and replacing employees with high turnover
can be costly in terms of both time and resource. Also, it is good to note that, fair labor practices
also correlate with adherence to international labor standards since this would assist the business
organization to avoid expensive legal cases and resulting penalties. The promise to adhere to fair
labor standards remains one of the subcategories within the general concept of the company’s
corporate social responsibility. Lipschutz (2021) also points out that when a company
implements its CSR policy that encompasses fair labour practices it repays the customers,
investors and regulatory authorities for their trust through the positive image that the company
gains. In this extended view of business ethical responsibility, not only are the workers benefited,
but also the organization is set up for effective ongoing success.
2.2. Child Labor Prevention
Child employment banishment is among the most effective techniques of defending the rights of
children besides facing ethical problems in international business. Child labor is work that may
be hazardous to the child’s health and may affect the child academically, physically or
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psychologically, or work that is unlawful, which is likely to compromise the normal child hood,
has remained a persistent vice globally. Based on Human Rights Watch (2020), there are
millions of children exposed to dangerous employment types including physically and mentally
hazardous employment. Companies who do not take into consideration the aspect of the use of
child labor in their production systems are likely to be heavily penalized in terms of demoralized
consumers’ support, degraded reputation, and fines. Measures that need to be taken Regarding
Child Labor To effectively end the cases of child labor then various actions have to be taken. The
following paragraph supports the argument based on the years of experience Nath, Islam, and
Rahman (2019) have in the field of supply chain, and they said that to voluntarily search for a
potential violation of child labor, businesses must investigate to determine if child labor exists in
its operations or supply chain. This means conducting periodic evaluations, having tight Systems
of oversight, and Ensuring the Reports prepared are Reusable. Therefore, such firms in
conjunction with local states, non-governmental organizations and other partners should come up
with strategies that can lead to the eradication of child labor. Among such measures it is possible
to name the following: equip children and their families with educational equip children and their
families with economical support in order to free them from work. Nonetheless, there is still one
more aspect that encompasses the problem of child labor – this is corporate policies and code of
conduct. As noted by Banerjee (2020), it is nob left for the corporates to institute policies which
prohibit or completely eliminate child labor and also outline the consequences of the
infringement on the polices.
2.3. Worker Safety and Well-being
Protecting the lives and health of workers in a company is a primary prerequisite for ethical labor
relations in the International Business. In fact, protection from life-threatening hazards of the
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workplace is not only an employee entitlement, but more importantly it is an important
determinant of a good performance. The management that is committed to safe workplace
practices can greatly decrease the rates of injuries and diseases in the workplace and, thus, avert
numerous losses in terms of time and money, as well as legal consequences. Thus, the
International Labour Organization (2022) claims that millions of workers experience an
occupational accident or work-related disease annually; thus, it is crucial to consider proper
health and safety measures at work. Hence, enhancing the quality of programs that seek to
improve the nature and extent of protection offered to the workers entails some critical steps
including;According to Heidrich and Barry (2021), employers have the responsibility to evaluate
risks periodically to determine the risks that may affect the business and recommend measures
that can be taken to avoid these risks. This include the distribution of protective gears, having
well maintained machineries and equipment’s and also the creation of proper working spaces
that would enhance ergonomic health. It is therefore important that organisations provide
constant training since through such training the workers can be well informed on safety
measures and practices. It is through such training that safety culture within the organization is
promoted and employees are aware of the need to avoid unsafe acts in their operations and those
of their co-workers. Ensuring that the bodies of the workers are safe is not enough and should be
complemented by measures that enhance the psychological well-being of the workers. In a
similar vein, Kaufmann & Hao (2022) posit that managers should offer support and organise
procedures that reduce workplace stress, direct employees to sources of mental health help, and
support the notion of the work-life balance. It is quite factual that these initiatives contribute to
high rates of employee satisfaction and increased organizational performance. For example,
numeric workplace options such as flexible working hours, EAP and wellness programs enable
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the worker persevere stress and balance life between family and workplace. Both corporate
governance and transparency are also important factors that protect the lives and rights of
workers.
3. Environmental Responsibility and Sustainability
3.1. Eco-friendly Business Operations
Environmental management has a particularly important role in the management and mitigation
of the impacts of commerce on the environment so as to support sustainability. In as much as
firms undertake international operations, they contribute to environmental degradation and this
has raised the call for green operations. The concept of operating sustainably environmentally
entails the consideration of the environmental factor in the operations of the firm, from the
supply stage to the production and even the competitive strategy of operation. According to
Gupta and Mirchandani (2019), green supply chain management not only helps organizations
reduce their impacts on the environment, but also enhances their performance and sustains their
benefits and resources. It can be seen that sustainable procurement helps a business reduce
expenditure while at the same time ensuring a conservative use of resources. it can be concluded
that any organization that wants to improve its overall image and brand equity should give
consideration to environmental sustainability. The current consumer and stakeholder of today’s
world are demanding the organization to be more Specific and responsible for the environment.
Regarding the environmental perspective, Heidrich and Barry (2021) explain noting that
consumers tend to rely on companies protecting the environment and remain loyal to those
companies. This can be translated to competitiveness because consumers are more willing to
interact with companies that have a cause that is dear to them or that they support. There is the
question of rising regulation because governments continue to establish strict environmental laws
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across the global. These and the following other regulatory requirements are easily met by the
companies that permanently adhere to the environmentally friendly policies avoiding the
punitive measures and possible legal suits. Technological resources the likes of renewable
energy systems, efficient machineries, and proper and efficient means of waste disposal can go
along way in preventing harm to the environment. As pointed out by Gao and Bansal (2020),
companies that wish to subsidize sustainable technologies do not only contribute to nature
conservation but also enable technological advancement and strategic improvement in the firm.
Such investments sometimes mean innovation that results to development of new goods or
services to meet this rising need for sustainability. It is also important to understand the role that
management and organizational culture can play in this practice.
3.2. Reducing Carbon Footprint
Environmental sustainability is another factor that has continued to gain importance due to the
current global climate change, and there is no option but to minimize the carbon footprint as a
business responsibility. A company’s carbon footprint is the total sum of carbon dioxide
emissions received from the company’s demand in energy, transportation and production. The
long-term consequences of climate change have started to manifest themselves therefore
shareholders, regulators, as well as consumers, are forcing organizations to reduce their carbon
footprints. Wan and Wan (2021) argue that climate change concerns that affect the environment
may have risks thus, companies that minimize their carbon emissions’ impact can stand to gain
in the market. The two methods of decreasing carbon emission is by adopting Energy Efficiency
and switching to renewable energy source. These energies, including the solar, wind, and
hydroelectric power are considered clean energies and emit little to no GHG emissions as
opposed to the fossil energy. Malik (2020) also notes that companies that spend capital in
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renewable energy projects not only help the environment, but it is also a wise strategic move as
they harness the long-term financial benefits that come with procurement of inexpensive energy
and possibly tax credits. companies can try to shrink their carbon footprint through efficiency
and different methods of managing their business. improving production tools and attending to
the company’s energy efficiency. This is done through procuring new efficient machines,
improving the ways in which the company operates, and installing a proper energy management
system. Another crucial strategy is therefore to eliminate dependent transport systems that have
adverse impact on the environment. Transportation emissions are some of the biggest
contributors to the emission figure and especially in any company that undertakes a significant
amount of transport operations. According to Gupta and Mirchandani (2019), current emission
mitigation strategies relate to logistics improvement, the usage of fuel-efficient transport
vehicles, and the evaluation of other fuels that can minimize transport emissions. Moreover, by
telecommuting and utilizing virtual conferences as a means of coming to agreements rather than
involving an extensive business travel, the emission of greenhouse gasses is diminished. The
corporate policies and engagements are some of the ways through which the organization aims at
achieving carbon reductions. Specific targets must be in place for reduction of the Carbon copy
and then a regular report on how the management is progressing with the plans. According to
Heidrich and Barry (2021), tangible business promises to decrease carbon emissions can be
beneficial, as the target market and consumers’ focus toward climate change becomes more
significant.
3.3. Sustainable Resource Management
Environmental management is a crucial concept, especially in the conservation of resources as
they should be used well in a way that they fitted for use in the future. Companies also play the
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great part in achieving Resource Management element because they are responsible for waste
minimization, and efficient utilization of resources and follow the rules of circular economy.
According to Lipschutz (2021), sustainable resource management means making environmental
protection as a consideration for acquiring recursos, with incorporating and using such resources,
and disposing of them in the business. It proactively assists in reducing wastage, and enhances
the longevity and feasibility of the business entity. Recycling and using times for production in
minimizing wastage. As have been demonstrated by Gao and Bansal (2020), the implementation
of these practices results in cost advantages in business organisations and environmentally
sustainability. Approved packaging material must be used and a conscious effort made to recycle
packaging material and other off cuts used in the manufacturing process should also be put in
place. It is also important to stipulate that for a better progress of the circular economy, some
product designs can be made durable, easily repairable and recoverable as they cannot require
new material. The other aspects of resource management that can be considered effectively
embraced as part of sustainability is water management. For that reason, water is known to be an
innoticeable raw material whose sources are being depleted gradually through over exploitation
and climate change. Wan and Wan(2021) posit that CACs must reduce water consumption,
improve on the efficiency of water usage and guarantee availability of water. Employing low-
flow fixtures and efficient irrigation, or by employing water recycling and reuse is one the ways.
It is also possible for the companies to work hand in hand with the local communities or
government in an attempt to fight for sustainable use, and conservation of water resources.
Another component of Sustainable Resource Management relates to acquisition of raw materials.
Using several subcategories, the suppliers with responsible practices for sourcing and product
manufacturing such as sourcing raw material from renewable sources, causing minimum harm to
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the environment, and treating the employees right should be the preferred suppliers for the
businesses. As Malik (2020 shows, responsible sourcing ensures environmental sustainability as
this increases the stability of the supply chain to reduce risks associated with scarcities of
resources and other social issues.
4. Corporate Governance and Transparency
4.1. Ethical Leadership and Accountability
Ethics and responsibility are the primary aspects of maintaining the corporations and their
governance since these determine the direction and integrity of the organizations. Extraordinary
administrators regional ethical approaches to determine; particularly in environment of fairness
and transparency which boost strong reputation and growth in a company. According to Banerjee
(2020), ethical leaders encourage their subordinates to act with honesty and uprightness, which
benefits every worker and the company’s overall organizational structure. Responsibility as key
feature of ethical leaderships, means that a leader is expected to be answerable for his or her
actions and for actions of other people in that organization. According to Gao and Bansal (2020),
an aspect of accountability including policy of set standard practices, performance appraisal, and
the establishment of reporting systems in organizations is crucial in preventing ethical decay.
They of help in making sure that the organizational leaders and employees in particular are
answerable for their actions and decisions as this enhances accounting responsibility. However,
from the context, accountability works to ensure that a company and all stakeholders involved in
its activities conduct their business with integrity. When carrying out their functions, it is
necessary for such committees to also come up with more refined ideas of expected behaviors
and ethical benchmarks to endorse to the institution. According to the ethic conduct authorized
by Gupta and Mirchandani, both the organizations should conduct ethic training consistently to
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remind the employees on the ethic conduct principles and the new changes in the ethic policy
and the law. Other measures are setting up complaint procedures, such as whistleblower
instruments, also aimed at preventing and detecting ethical misconducts. Abiding by ethical
standards is crucial, particularly when it is shown that leadership is committed to practicing high
standards of business ethics. Banerjee (2020, p. 312) further opines that leaders should also
ensure that they are ethical in their conduct and choices, which are a model to be emulated. This
entails making decisions that may at times entail choosing the greater ethical good to focus and
act on, rather than focusing on what brings more immediate benefits now but could be
detrimental in the long run; as well as identifying and comprehending the worries of different
stakeholders. To sum it up, ethical leadership and accountability are crucial bearing the
responsibilities of corporate governance.
4.2. Anti-Corruption and Bribery
Preventing bribery and corruption is a critical and vital aspect within many organizations since
these have the potential of distorting fairness and integrity of corporate governance systems.
According to Kaufmann and Hao (2022), strong anti-corruption policies act as a positive driver
for corporate governance for the same reasons; in place, they ensure organizations and those who
have invested in them detect unethical practices and the theft of their resources to prevent the
loss of the shareholders’ and stakeholders’ investment. To tackle the challenges of corruption
and bribery appropriately, organizations require well-rةي س compliance frameworks that
comprise of understand and clear communication of company’s ethics and policies opposed to
such mischievous acts, escalated training of employees, and strict measures on compliance.
Writing about the multifaceted issue of corporate integrity, Olthuis & Al-Samman, 2021 drawing
attention to the need to match them with the international anti-corruption policies, for instance,
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the OECD Anti-Bribery Convention as well as the UN Global Compact, to guarantee police and
ethical operations in the various regions. The principles of transparency should be the key whe
dealing with corruption. Sound system of preparing and presenting financial statements that
contain accurate and timely information about the firms operations reduces corrupt practices
because the acts that the cheaters would want to conceal become easily detectable. Heidrich and
Barry In their article in 2021, they state that the measures mentioned provide clarity when
publishing reports and promoting external audits for increased accountability to ensure
compliance with anti-corruption measures.Leadership plays major role of supporting and
facilitating anti-corruption and bribery measures in order to achieve this. E ankering of ethical
cultures entails firming up a high standard of ethical practices such that corruption is not
tolerated within the firm. As Gao and Bansal (2020) have pointed out, leaders should respect
whistleblower protection and facilitate the reporting of potential fraudulent activities without any
risk to one’s employment. Itis also important to interact with other players outside the company’s
system. Organizations in the business world should engage other business organizations,
government, and the non-governmental organizations in enhancing the sharing of information as
well as promoting best practices regarding the future risks of corruption.
4.3. Financial Transparency and Reporting
While accounting specialized in financial reporting helps in companies’ management, increasing
shareholders’ confidence, and representing fair financial position of the organization. Schillaci
& Castellano (2022) noted that the financial transparency assists the investors and the regulators
in their decision-making process thus eradicating dishonest actions and increasing the credibility
level. The most important standards and regulations for preparing financial statements are IFRS
and GAAP; these make financial statements comparable, reliable, and relevant (Lipschutz,2021).
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It is done occasionally most probably to validate the reports that are generated in the system and
analyze for irregularities. The transparency also encompasses disclosure of risk in as detailed
manner as is possible. According to Schons and Steinmeier (2022) they opine that market,
operational and compliance risks that are associated with planning and management should be
reported by the companies. This in turn improves stakeholders’ confidence thus pointing to the
right way in dealing with risk. The most vital component that ensures and sustains good
standards of corporate governance framework is the leadership in matters concerning financial
reporting. In the insights provided by Kaufmann and Hao (2022), the leaders should provide
recommendations and support the financial ethical decision making, and advocate for high
ethical and legal standards for transparency, and promoting ethical financial standards. The
additional briefing and disclosure show commitment to stakeholders hence the following:In fact,
it is possible to have a number of considerations that outlines the manner in which technology
could be used to improve on financial reporting. The method of utilising automatons,
blockchains, and data analysis enhances correctness because it permits tracking in real-time and
has low levels of inaccuracies (Lipschutz, 2021). It is possible to conclude that financial
transparency as well as financial reporting are the critical issues in the field of corporate
governance. The following measures enhances the quality of financial reports: The areas of
accounting standard, audit, risks and disclosures, leadership and technologies are among the
areas that have been affected by IFRS.
5. Fair Trade and Competition
5.1. Anti-Competitive Practices Avoidance
Eeads banning anti-competitive practices is crucial in the fight of fair trade and protection of
market fairness,. Unlike the above practices of market coordination, arrangements at the heart of
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horizontal cartels such as price fixing, market share allocation, and other monopolistic conducts
erode market efficiency besides making consumers lose their power to choose, and end up
paying more. According to Boehe and Cruz (2020), compliance with current antitrust laws and
regulations is crucial for the promotion of competitive Intellectual Property rights innovation.
These are measures which have been put in place to avoid some business players the opportunity
to engage in practices which are prejudicial to other players and which overweight the
competitive force of the market. Integrating rules that prohibit anti-competition laws within
corporate governance framework requires key models of compliance programs such as those that
address antitrust laws through recurrent training within the enterprise’s officials. Luo, Wang, and
Zhang (2020) note that it is necessary that the company has adopted the compliance culture
which is a practice involving every employee of the organization, to comprehend the
implications of engaging in practices that are unfair competitively. This can perhaps be done
through offering education on the same and enhancing whistle blowing techniques for unethical
practice. It is noted that one of the primary focuses of ethics in leadership pertains to issues
concerning fair competition. It is imperative for the leaders in particular to be exemplified in
integrity and fairness that present an unambiguous idea that ethical conduct in the games is
crucial. It entails pointing the various business decisions to the right direction, that is to the
direction of sustainability, instead of short-term gains that may be got unethically. In this
context, Lipschutz (2021) stipulates that ethical leadership enhances a company’s commitment to
fair, transparent, and accountable markets, which are crucial for sustaining fair competition.
Regulatory authorities and others are also very important to work with. The issue is that
particulate should discuss with regulators’ bodies to understand how works and to learn all
antitrust laws.Boehe and Cruz (2020) argue that such collaboration can assist organisations in
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tracking changes in regulations and spurring the advancement of excellent standards in the
sector.
5.2. Intellectual Property Rights Protection
Thus, Intellectual Property Rights need to be protected to encourage innovation and fair
competition in the international market.The Patents, trademarks, and copyrights are strategic
assets for organisations because they are sources of competitiveness. Governing IPR enables the
owners of innovations enjoy from their creations hence facilitating the future advancement of
research. As noted by Khoury, Mohamed, and Bah (2020) enhanced IPR protection is the ticket
to economic growth since it encourages invention. Companies should design appropriate IPR
management strategies that involve applying for patents, trademarks, and copyrights in relevant
countries to protect the innovations. This involves becoming conversant with the legal
framework governing IPR in different jurisdictions and any changes therein. Ertuna and Karatas-
Ozkan (2021) have also stated there is always the need to police to prevent any infringements
and unauthorized use of IP. Such status of IPR assets and their regular inspection enables to
identify the violations and take further actions to protect valuable property. Lawyers and IPR
offices helps and are resources when it comes to managing IP regulations and policies.
Transparency and ethical behaviors when it comes to managing IPRs are important. The owners
of the IPR should desist from what is commonly known as patent trolling or aggressive litigation
that hampers competition and innovation. Malik (2020) has observed that ethical IPR
management not only protects the corporate assets but also contributes to the fairness and
balance in the market. In addition, establishing the culture of innovation in the organization is
also mandatory. Managers needs to encourage creativity at workplace and provide the
required support and resources for the development and promotion of innovations. Khoury,
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Mohamed & Bah, (2020) found that IPR protection and innovation culture support firm
competitiveness and economic growth.
5.3. Ethical Supply Chain Management
The ethical supply chain management policy is one of the most effective tools to mitigate the
supply chains and make improvements which It involves overseeing all its operations involved in
the chain to ensure that it is being done in an ethical manner of getting the inputs and distributing
the outputs. This includes aspects such as labor issues, the environment and fair trade as far as
manifesting views are concerned. In their article ‘Integrating ethics into supply chain
management: Opportunities for future research’ signed in 2019, Gupta and Mirchandani posit
that ethics in the SCM assists in building the companies’ reputation and dealing with risks
concerning unethical actions such as employing children or polluting the environment. In our
case, there is a need to employ stringent procurement and supply policies that would outline the
cultures of ethical practice that should be followed during the supply chain. These should cover
aspects like labour issues, environmental conservation, and compliance with the rules of trade as
outlined by international laws. Daily, weekly or at least monthly revision and evaluation of the
suppliers in relation to these standards should also be encouraged. As stated by Nath, Islam &
Rahman (2019), these kinds of continual monitoring and regular submission of supply chain
management tasks as well as results help to identify possible ethical misconducts at an early
stage and foster stakeholder trust. They permit Supplier relations for ethical behavior also as it is
crucial that the organizations extend lessons on ethical standards and provide the suppliers with
the requisite resources for embracing the subject. This helps in developing beneficial and healthy
relationships in business which are based on the perceptions of trust. Based on Lindgreen, Maon
and Vallaster (2021), it was evident that ethical supply chain management can be defined as one
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that is contingent and continuously evolving, ensuring that policies are responsive to the
enhancement in standards. The integration of sustainable initiatives in the management of the
supply chain is also a major aspect. Therefore, to enhance sustainability; there is need for firms
to make greater efforts to buy from green suppliers. These are some of the ways: cutting down on
emission of CO2, optimal use of resources, the retention of life on earth. From Schillaci and
Castellano (2022), it is evident that sustainability cannot only be advanced in management of SC
projects, which supply environmental support but also enhance organizational performance.
6. Corporate Social Responsibility (CSR)
6.1. Community Development and Engagement
Several of the recommended CSR practices that can facilitate the management of corporate
relations with stakeholders in society include those with focuses of community welfare. These
are not mere charity programs; these are about contributing and joining prepared activities that
contribute towards the community. Malik (2020); The author continues and states that it is
crucial to engage with the stakeholders so that the organizations can know what the community
needs, and work on solutions which can foster the enhancement of social and economic growth.
Some of the activities in which businesses can engage include: education ,
construction/development of Infrastructural facilities, and expansion of local industries.
Therefore, having arrived at the conclusion of this research work, it can be affirmed that
education and skills development, provided by companies, have the positive impact on the
development of communities and skillful staff; being beneficial to both the community in
question and to the companies as well. Moreover, availing infrastructure for construction of
roads, school, and health facility also means that living standards in the communities can be
enhanced. As pointed by Lindgreen et al. , 2021, to gain better community engagement an
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organization should ensure that it is willing to engage with the community for a long-term and
ensure that the needs of the community are met. This means that the faculty needs to establish
and maintain very close relationships with policymakers and with NGOs and other relevant
actors within the local context. Such kind of partnership complements the efforts of CSR at a
times and guarantees its implementations meeting needs of the people. Other issues that raise
concern in the engagement of communities include; Adequate standards of transparency and
accountability. Organizations shall also be required to provide feedback of some of the
developments on the community development projects, and the results in order to assure the
society that they care for their fate and therefore need to be entrusted with such responsibilities.
Malik (2020) also notes this fact, that transparency in CSR activities also improve the corporate
image and also motivate other companies. Therefore, it can be concluded that the community can
and should be involved in the CSR which may have positive impact on its development and the
business-community relations. The investment in education and infrastructure as well as support
for local entrepreneurs also benefit the society and economy and also in turn, earning the
society’s trust.
6.2. Charitable Initiatives and Philanthropy
Non-profit related endeavors and philanthropy constitute crucial measures of CSR which reflect
the corporation’s measures to support the society and the disadvantaged. These activities cover
from giving out cash out to non-profitable organizations, companies, and individuals to direct
participation in non-profit making activities. Avery and Bergsteiner (2021) have pointed out the
idea that strategic philanthropy engages itself not only for the sake of tackling social problems
but also in contributing to brand image and stakeholder connection. Through viewing
philanthropy and economic objectives as compatible, the philanthropic goals can be extended to
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make a stronger impact. For example, an industry association or a healthcare firm’s non-profit
branch is likely to target promoting medical research or improving access to healthcare in
disadvantaged areas. This is an alignment in which social giving advances public welfare while
at the same time promoting the image and goals of the firm. The general public’s trust in
charitable organizations has a direct relation with the extent of transparency of those
organizations. There is need for organizations to express their philanthropic statements, clarify to
whom they will be donating, and what impact will be brought about by their actions. None,
Heidrich and Barry (2021) posit that these claims have the effect of increasing other
organizations and corporations to support charities and perform transparent reporting of such
activities. Using the ideas of philanthropy and volunteering at the workplaces to encourage the
employees to participate at these programs can enhance the effectiveness of these efforts.
Volunteering in charitable activities are business strategies that motivate employees and
promotes meaningful contributions within the work force. Namely, according to Lindgreen,
Maon, and Vallaster (2021), engaging employees in philanthropy contributes to both increased
community well-being and increased organizational efficacy in nurturing positive employee
traits, including the levels of motivation and identification with the organization. Furthermore,
corporations can also make more of their philanthropic efforts go further by forming ‘strategic
alliances which include partnerships with non-profit and other organizations’. It is easier to work
with well-developed organizations to get the desired expertise and input should be properly
managed and properly utilized. Charitable activities and philanthropy are some of the CSR which
acknowledge the contribution of business towards social responsibility.
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6.3. Ethical Marketing and Advertising
Marketing and advertising ethics as aspects of CSR refer to the promotion of corporate goods
and services without deception, spamming, and disrespect for the customers. There are certain
guidelines of ethical marketing namely, truth in advertising, where there is no manipulation of
information or creation of a false image, no deception, and privacy, where the company does not
interfere with the clients’ privacy in any way. From the perspective of Khoury, Mohamed and
Bah (2020), it is suggested that the adoption of ethical marketing increases comprehension and
confidence in the market by the consumers which ultimately results to a sustainable business
success. Ethical marketing is considered to be more credible, increasing the repute of companies
and, therefore, customer relations. Besides, ethical advertising enhances its effectiveness reduces
cases of consumer deceit and provides legal and organizational shields to the firm from legal
consequences as well as undesired dinners to its fame. The necessity to promote transparency in
marketing communications cannot be overemphasized. They should ensure that they give
information that is readily understandable about all their services and products, including the
risks involved in consuming them or using them as well as the benefits that users will accrue
from using these products. Gao & Bansal (2020) pointed out that the lack of transparency in
advertising harms the consumer by offering them misleading information on products. In
addition, consumer privacy as a component of ethical marketing is another aspect that should not
be neglected. Business owners are to apply the principles of data protection and respect having
access to personal information; obtaining prior consent is obligatory for collecting personal
information. According to Ertuna and Karatas-Ozkan (2021), practice should respect privacy
because regulation may require it, but privacy concerns give consumers trust and will return to a
business. Social and ethical perspective of marketing makes it mandatory to look at the society
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and the environment within which it operates. Advertising needs to be brought under reasonable
restrictions so as to make sure companies do not freely advertise products or practices that are
detrimental to the society or the natural environment. Principles also stated by Malik (2020),
which states companies have a corporate social responsibility in the way they sell their products
including the specific way that they market them.
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