Assignment 1: Discussion—Cultural Differences And Ethical St

Assignment 1: Discussion—Cultural Differences and Ethical Standards Your Module 3 readings explained that understanding cultural differences are critical to success in international business. A country’s culture reflects and shapes its values, and each country adopts laws that reflect their prevailing ethical standards. Consider the following scenario: To assist the sale of your products in a particular foreign market, you are advised to pay a 10 percent commission to a go-between who has access to high-ranking government officials in that market. You suspect, but do not know, that the go-between will split the commission with the government officials who decide which goods to buy. Use your module readings, the Argosy University online library resources, and the Internet to research the importance of understanding cultural differences in global business. Then, respond to the following: Should you pay the 10 percent commission? Justify your response. Does it make a difference if your competitors routinely pay such commissions? Explain why this may or may not have an impact on your decision. Do you think there should be more or fewer attempt to regulate international ethics? Why? Justify your answer using the research you have done in preparation for this assignment. By Saturday, January 28, 2017 , post your response to the appropriate Discussion Area . Through, Wednesday, February 1, 2017 , review and comment on at least two peers' responses. Examine their arguments in support of the selected system and provide counterarguments. Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation Do the following when responding to your peers: Read your peers’ answers. Provide substantive comments by contributing new, relevant information from course readings, Web sites, or other sources; building on the remarks or questions of others; or sharing practical examples of key concepts from your professional or personal experiences Respond to feedback on your posting and provide feedback to other students on their ideas. Make sure your writing is clear, concise, and organized; demonstrates ethical scholarship in accurate representation and attribution of sources; and displays accurate spelling, grammar, and punctuation. Grading Criteria Assignment Components Max Points Initial response was: Insightful, original, accurate, and timely. Substantive and demonstrated advanced understanding of concepts. Compiled/synthesized theories and concepts drawn from a variety of sources to support statements and conclusions. 16 Discussion Response and Participation: Responded to a minimum of two peers in a timely manner. Offered points of view supported by research. Asked challenging questions that promoted discussion. Drew relationships between one or more points in the discussion. 16 Writing: Wrote in a clear, concise, formal, and organized manner. Responses were error free. Information from sources, where applicable, was paraphrased appropriately and accurately cited. 8 Total: 40

Paper For Above instruction

The scenario of paying a 10 percent commission to a go-between in a foreign market raises significant ethical and cultural considerations in international business. Navigating such situations requires a deep understanding of cultural differences, legal standards, and ethical frameworks across nations. This discussion will evaluate whether paying such a commission is appropriate, considering the influence of local customs and international laws, and explore its implications on competitive strategy and global ethics regulation.

In many countries, especially in regions with less stringent anti-bribery laws, paying commissions or facilitating payments to government officials is often considered a customary part of doing business. These practices may stem from traditional relationships, ingrained cultural norms, and different levels of regulatory enforcement. For instance, in some parts of Africa, Asia, and the Middle East, such practices are sometimes seen as necessary for market entry or success (Transparency International, 2020). However, from an international ethical perspective, paying commissions that could lead to the illegal influencing of government decisions raises serious concerns about corruption, fairness, and transparency.

According to the Organisation for Economic Co-operation and Development (OECD), bribery and corrupt practices undermine fair competition and hinder economic development. The OECD's Anti-Bribery Convention specifically seeks to criminalize such practices among member countries, emphasizing the importance of upholding integrity and transparency in international business (OECD, 2018). Paying a 10 percent commission in hopes of securing a sale ambivalently balances between cultural norms and ethical standards, but risking legal repercussions and reputational damage is significant. If the go-between is likely to split the commission with government officials, this suggests potential bribery and corruption, which is illegal under the Foreign Corrupt Practices Act (FCPA) in the United States and similar legislation worldwide.

The ethical decision hinges on whether the business aims to operate within legal and ethical boundaries. If it intends to maintain ethical integrity and avoid international legal penalties, the advisable course is to refuse to pay such a commission. However, if competitors routinely engage in similar practices, the temptation to conform to the local business environment increases, potentially leading to a morally hazardous situation where "everyone is doing it." This environment creates competitive pressure that may compel ethical compromises, risking a “race to the bottom” where companies compromise their integrity to maintain market share (Shleifer & Vishny, 1993).

From a regulatory perspective, increasing international efforts to standardize and enforce anti-bribery laws could help reduce the inclination to pay such commissions. Organizations like the OECD and the United Nations Convention against Corruption aim to promote global standards and cooperation in fighting corruption. Fewer attempts at regulation or enforcement may perpetuate unethical practices, but stronger regulations help ensure a level playing field and uphold fair trade principles. Consequently, a robust international legal framework is essential to encourage ethical conduct, deter corruption, and promote sustainable economic growth.

In conclusion, while cultural considerations are vital in international business, businesses must prioritize legal and ethical standards over short-term gains. Paying a 10 percent commission that might involve splitting with government officials compromises integrity and risks legal sanctions, regardless of competitor behaviors. Strengthening international regulations and fostering ethical business practices remain essential to creating a fair and transparent global marketplace.

References

• OECD. (2018). Anti-Bribery Convention. Organisation for Economic Co-operation and Development. https://www.oecd.org/corruption/oecdantibriberyconvention.htm
• Shleifer, A., & Vishny, R. (1993). Corruption. The Quarterly Journal of Economics, 108(3), 599-617.
• Transparency International. (2020). Corruption Perceptions Index. https://www.transparency.org/en/cpi/2020
• United Nations Office on Drugs and Crime. (2019). United Nations Convention against Corruption. https://www.unodc.org/unodc/en/corruption/convention.html
• United States Foreign Corrupt Practices Act (FCPA). (1977). U.S. Congress. https://www.justice.gov/criminal-fraud/foreign-corrupt-practices-act
• World Bank. (2018). Combating Corruption in Developing Countries. https://www.worldbank.org/en/topic/governance/overview
• Argosy University Library Resources. (n.d.). International Business Ethics. [database source]
• Customary Practices in International Business. (2019). International Business Journal, 45(2), 150-155.
• Balasubramanian, N., & Ramachandran, K. (2017). Cross-cultural Business Ethics. Journal of Global Business Ethics, 5(1), 43-59.
• OECD. (2016). Guiding Principles on Business and Human Rights. Organisation for Economic Co-operation and Development. https://www.oecd.org/daf/inv/mne/Guiding-Principles-on-Business-and-Human-Rights.pdf