ETHICAL ISSUES IN

INTERNATIONAL BUSINESS

PRESENTED BY- 1) SANJAY SAHOO

2)SANJIB KU.BISWAL
3)SASWATI NAIK

GUIDED BY- 4)SAUBHAGYALAXMI SINGH

DR NEHA GUPTA 5)SHAHBAZ KHAN

6)SHAILESH NAYAK
 CONTENTS

1) INTRODUCTION
2) MEANING OF BUSINESS ETHICS
3) DETERMINANTS OF ETHICAL BEHAVIOUR
4) SOURCES OF ETHICAL ISSUES
5) CONCLUSION
 INTRODUCTION

According to Forbes, more than 60,000 multinational organizations are

currently controlling about 500,000 subsidiaries around the world. There is
hardly a country left that has not witnessed the flavor of international
business.. 
As political, legal, economic, and cultural norms vary from nation to nation,
various ethical issues rise with them. A normal practice may be ethical in
one country but unethical in another. Multinational managers need to be
sensitive to these varying differences and able to choose an ethical action
accordingly.
 MEANING OF ETHICS IN BUSINESS

Ethics means the set of rules or principles that the organization should
follow. While in business ethics refers to a code of conduct that
businesses are expected to follow while doing business.
Through ethics, a standard is set for the organization to regulate their
behavior. This helps them in distinguishing between the wrong and the
right part of the businesses.
 DETERMINANTS OF ETHICAL BEHAVIOUR

Personal Decision- making

Ethics Processes

ETHICAL
BEHAVIOUR

Organizational
Culture Leadership

Unrealistic
Performance
goals
 SOURCES OF ETHICAL ISSUES

EMPLOYMENT PRACTICES AND ETHICS

 Ethical issues may be related to employment practices

in many nations. The conditions in a host country may
be much inferior to those in a multinational’s home
nation.
 Many may suggest that pay and work conditions need
to be similar across nations, but no one actually cares
about the quantum of this divergence.

HUMAN RIGHTS

 Basic human rights are still denied in many nations.

Freedom of speech, association, assembly, movement,
freedom from political repression, etc. are not
universally accepted.
ENVIRONMENTAL POLLUTION

 When environmental regulation in the host nation is much inferior to

those in the home nation, ethical issues may arise.

 Many nations have firm regulations regarding the emission of pollutants,

the dumping and use of toxic materials, and so on. 

CORRUPTION
 Corruption is an issue in every society in history, and it continues to be so
even today. Corrupt government officials are everywhere.

 International businesses often seem to gain and have gained financial and
business advantages by bribing those officials, which is clearly unethical.
UNFAIR DOMINANCE

 When excessive power gets in the hands of a few, it distorts the natural balance.
The global international business landscape tells us the same story as only a few
developed countries enjoy a strong position in the market.

 They control most of the international trade and have direct influence over trade
authorities.

TAX AND TARIFF ESCAPES

 Numerous multinational companies violate international tariffs and trade duties.

They indulge in unethical practices of smuggling and under-invoicing to avoid
taxes and export-import tariffs.

 It provides benefits to the company but inflicts trade losses on the host country.
CONCLUSION
We do enjoy the ease of purchasing things from other countries with a mere
click. However, we also face stringent regulations for cross-border trade. The
key is to understand the dynamics of international trade and follow the best
practices. Appropriate ethical drives should always back businesses. Ultimately,
your business will enjoy a better operational environment as well as a loyal
customer base.