Ethics assignment 6: International Ethics & Economics
I believe it is impossible to determine whether unethical local practices means respect for local practices. This is simply because the way business is conducted at a lower administrative level is not indicative of the morality or ethicality of an entire population of people. I fact, I think poverty has a lot more to do with corruption of public officails than does the ethics of the local population. The manager's decision, however, is not necessarily reprihensible. The line between "expedition" of government services and bribery can be blurry. This is especially true if one makes the distinction among bribery, grease payments, and extortion. In this case, the payments made by the manager are a paradigmatic case of grease payments.
One may say, “Using child labor and demanding unpaid overtime work are normal practices of local businesses.” Why shouldn’t we do the same?
We shouldn't do the same for the simple reason of Respect for Persons (RP). RP is the idea, which is a somewhat culture-transcending notion, that individuals have a certain degree of rights. These rights include the right to life, health, and protection. We don't adopt these practices because we consider children individuals with rights.
If bribery or kick-backs can get businesses moving to best benefit the company, why can’t they be adopted?
Bribery or kickbacks can get business moving to best benefit the company, but aren't adopted. This is mostly because they encourage corruption, and add unfair advantage to those currently in power. In addition, such practices discourage competition, and make it impossible for legitimate business practices to exist. In essence, they are self-destructive to the country that accepts them.
Should the code of ethics for domestic businesses be applied to international situations?
The code of ethics for domestic businesses should not be directly applied to international situations, because many countries would not be able to make a rapid change and eliminate corruption. As long as this corruption exists, companies will find a way to participate in it. It is better to establish a set of "do"s and "don't" that may evolve into a more stringent code of intenational ethics.
The US Foreign Corrupt Practices Act prohibits bribery beyond the national borders. Is this act valid for American-owned international businesses? What challenges these businesses to encounter to keep themselves clean?
These companies face the challenge of being caught, for one. However, if a company can prove that it was paying money as a form of grease payment, or being the subject of extortion, they may, in fact, participate in these questionable acts. The difference is that extortion and grease payments are more of a response to an offer from a government, while bribery is an active solicitation to commit a crime.
I would propose that a well defined set of rules be made on a region by region basis. Intracontinental countries with similar cultural norms often have similar economies. If we, as the United States, establish a consistent policy to start with, a transition into a more honest way of business can begin. These regulations may be somewhat unrestrictive at the beginning, but will at least provide a basis for further legislation.
One may say, “Using child labor and demanding unpaid overtime work are normal practices of local businesses.” Why shouldn’t we do the same?
We shouldn't do the same for the simple reason of Respect for Persons (RP). RP is the idea, which is a somewhat culture-transcending notion, that individuals have a certain degree of rights. These rights include the right to life, health, and protection. We don't adopt these practices because we consider children individuals with rights.
If bribery or kick-backs can get businesses moving to best benefit the company, why can’t they be adopted?
Bribery or kickbacks can get business moving to best benefit the company, but aren't adopted. This is mostly because they encourage corruption, and add unfair advantage to those currently in power. In addition, such practices discourage competition, and make it impossible for legitimate business practices to exist. In essence, they are self-destructive to the country that accepts them.
Should the code of ethics for domestic businesses be applied to international situations?
The code of ethics for domestic businesses should not be directly applied to international situations, because many countries would not be able to make a rapid change and eliminate corruption. As long as this corruption exists, companies will find a way to participate in it. It is better to establish a set of "do"s and "don't" that may evolve into a more stringent code of intenational ethics.
The US Foreign Corrupt Practices Act prohibits bribery beyond the national borders. Is this act valid for American-owned international businesses? What challenges these businesses to encounter to keep themselves clean?
These companies face the challenge of being caught, for one. However, if a company can prove that it was paying money as a form of grease payment, or being the subject of extortion, they may, in fact, participate in these questionable acts. The difference is that extortion and grease payments are more of a response to an offer from a government, while bribery is an active solicitation to commit a crime.
I would propose that a well defined set of rules be made on a region by region basis. Intracontinental countries with similar cultural norms often have similar economies. If we, as the United States, establish a consistent policy to start with, a transition into a more honest way of business can begin. These regulations may be somewhat unrestrictive at the beginning, but will at least provide a basis for further legislation.
posted by Aureliano at 2:51 PM
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