In the recent time, the trend of international business is rapidly adopted by corporations. The businesses tend to target global clientele instead of just confining themselves to national borders. Therefore, the borders appear to disappear and it has facilitated easy movement of people and goods across different nations (Armstrong and Sweeney, 2014). However, I believe that the rising movement of people and goods across borders has also raised new challenges to the global health. The international managers are now required to put appropriate attention on the problems such as ethics, economic development, and corporate social responsibility in the country, where the organization is operating (Armstrong and Sweeney, 2014). It is vital for the international businesses to follow several ethics when operating at a global level. As per Griffin and Pustay (2012), ethics are defined as the moral principles guiding a person’s behaviour. In the organizational context, ethics serve as a compass to direct how organizations should treat their stakeholders and conduct their business. There are many laws and regulations monitoring the behaviour and practices of the organizations at the global level (Griffin and Pustay, 2012). This essay aims at examining the significance of ethics and global business. To achieve this, the essay discusses the problems that are faced by multinational corporations when entering the foreign markets and how they are able to cope with those problems effectively.
Steps taken by the global businesses to cope with the challenges
Culture is considered as an important determinant of ethical attitude of business managers. The above sections of this essay have determined several challenges that international firms when entering a foreign market and also how there is a huge ethical complexity in the cross-cultural business context. It is vital for the global businesses to cope with these challenges to operate effectively in the international market. One strategy to cope with cross-cultural ethical issues is to understand the different cultures in the organization (Kohls and Buller, 2014). In case, the organization has a diverse workforce then understanding the cultures of different people and negotiating them in an appropriate way is crucial. However, multinational companies usually rely on localizing employment in the host countries to avoid such need to handle cross-cultural teams. Therefore, localization of HRM has emerged as an important phenomenon for international corporations. Another strategy to cope with the cross-cultural ethical issues is to encourage communication in the organization. Communication enables the individuals from different cultures to understand each others’ similarities and dissimilarities (Kohls and Buller, 2014). Another way, which can be employed in such situations, is the development of positive leadership. Businesses that operate under appropriate guidance are able to cope with the problems faster than those that do not. These are some of the responses to cope with the cross-cultural ethical issues.