Thursday, July 9, 2015

8 Standards of International Corporate Ethics



Ethics goes a long way in building trust in an international business system. As information spreads faster along quickening fiber optic cables the world will continue to integrate in terms of interrelated laws, regulations, cultures, and business standards. Having an international standard of ethics is important in ensuring that companies are encouraging  better business environment. 

 When companies move into international locations they will need to understand and respect the cultures of those nations. There is a difference between respecting local culture and becoming involved in unethical practices. When few options are left, organizations can seek to remove themselves from such countries. Each company will decide what they stand for.

Today’s world needs a new way of looking at business and how that business interacts with other countries. Developing strong international ethical systems means that both companies and countries come to an understanding of what a “good international citizen” is. Below you will find 8 ethical standards (Be George, 1997):

1.      Do not intentional direct harm.
2.      Produce more good than harm for host countries.
3.      Contribute to the host countries development.
4.      Respect human rights.
5.      Respect local culture.
6.      Pay a fair share of taxes.
7.      Cooperate with local government when beneficial.
8.      Withdraw from a country if it becomes impossible to act with integrity.

De George, R. (1997). Human rights and the multinational enterprise. Dilemma, 6, 6–14.

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