ETHICS MEANS : Moral principles that govern a person's or group's behavior

Ethical Dilemma An ethical dilemma is a situation that involves a conflict between two moral choices.

Definition of 'Business Ethics' The study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, bribery, discrimination, corporate social responsibility and fiduciary responsibilities. Business ethics are often guided by law, while other times provide a basic framework that businesses may choose to follow in order to gain public acceptance.

ETHICAL ISSUES IN BUSINESS :

IB should understand the major religion in the host country as well as ethics that are derived from that religion IB should understand the varying global standards with regard to price , standards, child labour ,salary levels , etc

Employment practices
Human rights

Environmental regulations
Corruption

Moral obligation of multinational firms

Employment Practices When work conditions in a host nation are clearly inferior to those in a multinational's home nation, what standards should be applied? Those of the home nation? Those of the host nation? Or something in between?

Human rights
Basic human rights are still not respected in many nations Many rights are not universally accepted such as freedom of: association speech Assembly movement

Role of the Multinational Firm It is often argued that inward investment by a multinational firm can be a force for economic, political, and social progress that ultimately improves the rights of people But there is a limit to this argument because some governments are so repressive that investment cannot be justified on ethical grounds

Environmental Pollution When environmental regulations in host nations are far inferior to those in the home nation, ethical issues arise Should a multinational feel free to pollute in a developing nation and is it the right and moral thing to do?

Corruption
Corruption has a been a problem in almost every society in history and it continues to be one today Some international businesses can and have gained economic advantages by making payments to government officials Two laws addresses this issue 1977 U.S. Foreign Corrupt Practices Act 1997 OECD Convention on Combating Bribery or Foreign Public Officials in International Business Transactions