Assignment 1: Discussion—Cultural Differences And Eth 948311

Assignment 1: Discussion—Cultural Differences and Ethical Standards Your Module 3

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.

Paper For Above instruction

International business practices are deeply influenced by the cultural, legal, and ethical standards of the host country. Navigating these differences requires a nuanced understanding of local customs and regulations to ensure ethical compliance and sustainable success. The scenario presented highlights a common dilemma faced by multinational companies: whether to participate in practices that may be ethically questionable in their home countries but are customary or tolerated in foreign markets.

Understanding cultural differences is pivotal in determining the appropriateness of paying commissions that could be perceived as bribes. According to Hofstede’s cultural dimensions theory, societies differ in their attitudes toward authority, individualism versus collectivism, and uncertainty avoidance, which influence business interactions and expectations (Hofstede, 2001). In some cultures, facilitating relationships through such commissions may be considered a norm, whereas in others, it may be viewed as corrupt and unethical. Recognizing these differences is essential to avoid inadvertent violations of ethical standards and legal laws, which vary significantly across jurisdictions (Meyer, 2014).

Legally, many countries have enacted anti-bribery laws that prohibit or restrict such payments. For example, the U.S. Foreign Corrupt Practices Act (FCPA) explicitly bans such payments to foreign officials, with limited exceptions (Department of Justice, 2012). However, enforcement and interpretation often depend on local customs. If a company knowingly pays a commission suspected of being a bribe, it risks severe legal repercussions and damage to its reputation. Ethically, paying a 10 percent commission that may be shared with government officials could be considered facilitating corruption, which contradicts principles of transparency and integrity integral to international standards such as the OECD Anti-Bribery Convention (OECD, 2018).

Whether to pay the commission hinges on balancing legal obligations, ethical standards, and strategic considerations. If competitors routinely pay similar commissions, this indicates a possible industry norm, which could influence the company's decision. However, emulating unethical practices can entrench corrupt behavior and expose the company to future risks. According to transparency international, participating in corrupt practices perpetuates a harmful cycle that ultimately hampers economic development and erodes trust (Transparency International, 2020).

Deciding against paying such commissions aligns with promoting ethical standards, compliance, and long-term sustainability. Moreover, organizations committed to Ethical Business Conduct should adhere to anti-corruption policies, even if local practices differ. Companies can instead invest in building genuine relationships with local officials through transparent and lawful channels, such as corporate social responsibility initiatives or official negotiations (World Bank, 2017).

Regarding international regulation, there is a need for stronger and more consistent oversight. The current patchwork of laws and enforcement mechanisms leads to loopholes and uneven compliance. International organizations, such as the United Nations and OECD, have a vital role in harmonizing anti-corruption efforts and fostering global standards. Fewer, more robust regulations could promote a level playing field, discourage corrupt practices, and bolster global trust (United Nations, 2021). Conversely, overly strict or poorly implemented regulations might impose undue burdens, especially on developing countries. Hence, a balanced approach is essential—one that enforces accountability while respecting cultural diversity.

In conclusion, paying a 10 percent commission that may be a bribe presents significant legal and ethical dilemmas. Upholding international ethical standards and legal obligations suggests avoiding such payments, regardless of competitors' practices. Strengthening global regulations and promoting transparency are crucial steps toward creating a fairer, more ethical international business environment. Emphasizing integrity and lawful conduct ultimately benefits long-term business sustainability and enhances the reputation of multinational companies operating across diverse cultural contexts.

References

• Department of Justice. (2012). FCPA Enforcement Plan. https://www.justice.gov/criminal-fraud/foreign-corrupt-practices-act
• Hofstede, G. (2001). Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations. Sage Publications.
• Meyer, E. (2014). The Culture Map: Breaking Through the Invisible Boundaries of Global Business. PublicAffairs.
• OECD. (2018). Anti-Bribery Convention. https://www.oecd.org/corruption/oecdantibriberyconvention.htm
• Transparency International. (2020). Corruption Perceptions Index. https://www.transparency.org/en/cpi/2020/index/nzl
• United Nations. (2021). UNCAC Implementation Review: A global overview. https://www.un.org/en/corruption-convention
• World Bank. (2017). Doing Business Report: Comparing Regulations in 190 Economies. https://www.worldbank.org/en/programs/business-environment