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Discussion board 1 Ethics not sure what else
to add.
International Business (Liberty University)
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Discussion Board Forum 1 Part 2
Key Term and Why You Are Interested in
It
I have chosen the key term ethics. I am interested in researching this key term as over the
years I have observed companies make choices that were financially profitable for the company
yet did not abide by moral or legal directives. A few of the companies that come to mind are
Nestle and their baby formula in Africa, VW and the emissions scandal, and Coca Cola and
worker’s rights violation. As mentioned in the textbook, companies train their employees as to
what the minimum application of ethics is for their company (Satterlee, 2018, p.44). In each of
these cases, the country of origin would not agree with the ethical decisions that were applied in
a different county.
Explanation of Key Term
As defined by Satterlee (2018), “Business Ethics is the study of ethical dilemmas, values,
and decision making in the world of business” (p.44). Corporations guide their employees as to
the business ethic policies they want their employees to abide by. When businesses interact with
other nations who have a different religious background, a different culture, and a different way
of life, ethical boundaries can often differ. Regardless of where a corporation does business,
ethical decision making should be pursued. Some of the ethical dilemmas companies have to
navigate when interacting with international businesses are: Working standards and conditions,
child labor, bribery and corruption, workers’ rights, discrimination, human right, and
environmental pollution.
Major Article Summary
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Bowie (2017) states he believes the multinational corporations (MNCs) can have a
positive impact on the unethical practices in other parts of the world (p. 941). Others do not
always agree and some hold the view that capitalism erodes a moral approach to business.
MNCs have made mistakes in the past. Boeing bribed foreign leaders to purchase their F-
104 Starfighter. Nestle marketed baby formula in Africa where not only is the availability of
water scarce, it is often not suitable for consumption. Nestle also bought up water resources that
the people needed. Union Carbide Corporation had a gas leak explosion that lead to the death of
2000 people. The leak was determined to be due to poor management, improper maintenance,
and the general idea that Indian people were not as valued as American people. MNCs have
moved production sites to other countries where children and adults work long hours in
deplorable conditions. Public pressure played an important role in changing the conditions of
several of the situations above from being destructive to more civilizing. Due to public pressure
and publicity MNCs are choosing to move away from destructiveness to become more civilizing.
In the 1990s, the overall consensus was that it was up to the country in which the business
was located to protect human rights. Corporations widely held the belief that they were not to
interfere in human rights in other countries. Saro-Wiwa execution by the Nigerian government
changed the way MNCs were held accountable for their actions in foreign countries. The
Alien Tort Claims Act and the UN brought many changes.
Bowie (2017) argues that the following initiatives by the UN can be applied by MNCs
to foreign countries (p. 944).
1. An expanded Commitment to Human Rights
2. Support of the United Nations Global Compact
3. Corporate Social Responsibility as a Civilizing Force
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Bowie (2017) states that he understands that many MNCs still make unethical decisions;
however, he also wants to point out that a lot has changed over the last few decades (p. 949).
Discussion
How Cited Work Relates to Above Explanation
Bowie (2017) gives several examples of corporations that did not apply ethical policies when
they were located internationally. Bowie also shows that public pressure, as well as publicity,
brought attention and change to these unethical practices. The UN along with other international
laws have made a change in how corporations can do business when they move some or all of
their production sites overseas. Bowie (2017) expounds on some of the key concepts that
Satterlee (2018) mentions. At one point it was thought that corporations should stay out of
political decisions. However, when politics can intervene on behalf of those affected by
unethical choices it is now valued for corporations to improve conditions internationally and to
take a stand by using their corporations. Satterlee (2018) mentions that ethics and business ethics
should be the same (p.44) Unfortunately, the past has shown that corporations often turn a blind
eye to unethical situations and value profit above choosing to do make the right choice.
How Cited Work Relates to Content of Assigned Module
Gerde and Michaelson (2016) present a case for closing the gap between what
corporations know what to do ethically and what actually happens (914). They also recognize
that profit is often a key element in today’s society. Bowie (2017) feels that awareness and legal
directives lead corporations to close that gap (p.945).
Gamso (2019) presents research that trade with the West encourages the betterment of
human rights while China influences other countries to not value ethical decision making and
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thus hindering the Western influence on human rights (p. 727). This supports the fact that
corporations can have a positive (or in China’s case negative) impact on unethical practices in
other parts of the world.
Brenkert (2018) agrees with Bowie and that a lot of change has happened. Brenkert
(2018) states that “business ethics needs a theory of moral change.” (p. 929). Creating laws is not
enough. It has to be ingrained in the culture and individualistic change.
Nguyen et al.’s (2019) research shows that different cultures have different perceptions of
ethics (p.865). This makes it difficult in enforcing ethical policies from one country in another
county and supports Bowie’s approach that MNCs can have a positive effect when international
laws and public pressure can be applied to those who are unethical in their business dealings.
These five articles combined all recognize the fact that ethical decisions are vital in international
business and that ethical standards can differ. Having international business laws in place can be
a method to close that gap.
