How to Address Differences in Ethical Standard and International Business

Ethical decision-making can be more challenging for international businesses than local operations. Culture-driven codes of ethics vary between countries, making it difficult for managers to adhere to a strict code of ethics in each market. The textbook ethical dilemma for international businesspeople occurs when a manager must decide whether to commit an act that is unacceptable in the home country, but expected and necessary in the host country. Because of this, international business owners must know how to address differences in ethical standards around the world. Here are a few steps for ethical standards around the world.

Step 1
Keep the unique ethical climate to ensure that it is relevant to the international area. Adherence to the code a priority among executive and management to set an example and post the code of ethics in high-traffic area. Justify ethical decision in foreign markets and it is important to include international employees in the process creating ethic program.

Step 2
Follow local customs and traditions. Decide on a case-by-case basis which local customs to follow and which to avoid. Use code of ethic when dealing with humanitarian and environmental issues. Furthermore, use discretion in issues such as bribery and wage.

Step 3
Apply standards equally in all markets. Respond courteously and respectfully if to turn down an opportunity. Do not act superior or derisive when turning down unethical opportunities. Make sure that all managers and decision-makers understand commitment to ethical standards.

Step 4
Make company-wide ethics training a regular activity. Do administering comprehensive ethics training programs for new hires. Training sessions to highlight actual areas of concern in organization and citing specific examples as often as possible.