International Business Ethics Research Articles

VESTAS: NEW CHALLENGES AFTER COVID-19

This case contemplates the context of a multinational company that was able to reach prominence in the renewable energy market and has to make strategic choices to face a world crisis minimizing the long-term effects. Present in 81 countries, the company, designs, manufactures, installs, and services wind turbines all over the world and is one of the world leaders in renewable energy. This teaching case aims to promote a reflection on the strategic choices in turbulent moments and its possible implications strategic, operational and financial. The case can be used in undergraduate and graduate courses in the field of Corporate Strategy, International Business, and Business Ethics.

To be or not to be? A tale of immigrants’ entrepreneurial journey: the case of Sinorama’s international tourism empire

Theoretical basis Transnational entrepreneurs (TEs) are individuals that migrate from one country to another, concurrently maintaining business-related linkages with their former country of origin and currently adopted countries and communities. TEs are active social actors who enact networks, ideas, information and practices for the purpose of seeking business opportunities or maintaining businesses within dual-social fields, which, in turn, force them to engage in varied strategies of action to promote their entrepreneurial activities (Drori, Honig & Wright, 2009). This case research focused on the ethic, legal and cultural challenges TE has been facing when operating their business across boards. Research methodology The data used in this case were collected from mainly third-parties, including the office de la protection du consommateur; Office of consumer protection (OPC), securities and exchange commission (SEC) reports, news as well as marketing materials posted on public media by Sinorama Corp. and Vacances Sinorama. The authors conducted interviews with former employees of Vacances Sinorama to gain the understanding of the owners and the business challenges faced during the years of operation. The authors also communicated with the OPC through to obtain specific case-related information through the Canadian freedom of information channels. Triangulation of such information from multiple resources had been conducted to validate and support the details described in the case content. Case overview/synopsis A Chinese immigrant couple migrated to Canada and started Vacances Sinorama Inc. (“Vacances Sinorama”) in 2005. The focus of this case is on the expansion of their travel businesses after 2015. In 2016, they established a financing shell company, Sinorama Corporation (“Sinorama Corp.”), in Florida, USA, which became the holding company to the operation subsidiaries. Born during the 1970s and raised in Mainland China, the owners were culturally traditional and operated the company with the values and norms from their heritage culture. Vacances Sinorama successfully penetrated the local tourism market using Web-based technology and aggressive low-pricing strategies after the scaling-up strategies. However, Vacances Sinorama was operating in the red for several consecutive years (2015–2018). Sinorama Corp. received additional capital of US$4.4m by listing a portion of its shares on the NASDAQ over-the-counter market during 2016 and 2017. Canadian regulators began to investigate its operational and financing activities in 2017. They found a comingling of client and operation funds, which directly violated Canadian consumer protection laws. As a result of these violations, the license for Vacances Sinorama was nonrenewed in August 2018. The majority of owners fought to overturn the regulators’ decision and failed at all levels of appeal, administrative and judicial. This entrepreneurial endeavor ended with Vacances Sinorama declaring bankruptcy in October of 2018. Complexity academic level This multipurpose teaching case aims to assist students from an integrated approach whom are learning about entrepreneurship, international business, business law and business ethics. It is best suited for advanced undergraduate courses in entrepreneurship, business ethics, international business and business law as well as specific teaching modules in MBA courses.

TEACHING OF NATIONAL PECULIARITIES IN BUSINESS ETHICS AS AN IMPORTANT PART OF TRAINING AT HIGHER TECHNICAL EDUCATIONAL INSTITUTIONS

The goal of the study is to show how university teachers can help students acquire knowledge and practical skills based on international and national business ethics. In accordance with this, training materials and a package of business cases were created. Based on the results of a conducted survey, the importance of knowledge and skills related to national differences in business communication was confirmed.The implementation of the author's course “National Peculiarities of Business Ethics” would be an effective tool for developing business communication skills of modern specialists.

Modelling of corporate exposure at default (EAD) in emerging financial markets: The case for counters listed on the Zimbabwe stock exchange (ZSE) in the dollarization era

This study explores the exposure at default (EAD) emanating from credit events undertaken by listed banking corporations trading on emerging markets, such as Zimbabwe’s Stock Exchange (ZSE) or Market in the dollarization era, namely period 2010-12. The dollarization of the Zimbabwean economy in 2009 coincided with the recovery of the global financial economy from the worst worldwide economic recession ever experienced in this world. The study used audited and published data drawn from financial statements of two banking corporations for the period 2010 to 2012 that were accessible on ZSE website. These data were presented and analyzed using Eviews7. The study revealed that there was a lot of non-performing loans drawn from EADs of banking corporations trading on the ZSE in the period under review. The study further noted that credit exposures issued by commercial banks in the period 2010-2012 were also exposed to risk from the nature of the borrowers, banks’ internal and external market variables. The variables that impacted on banks’ credit exposures include political, social, industrial, unemployment, technological challenges, state of financial markets, their capitalization and liquidity statuses. We therefore conclude that banks in emerging markets need to efficiently and effectively manage their credit portfolios in their desire to grow towards sustainable development. The study also concludes that banks in emerging markets that are into lending activities should adopt and implement financial econometric (EAD) models that are easy to apply, practical, pragmatic and adjusted for market friction. The study recommends that listed banking corporations in emerging markets need to adhere to the requirements of the Basel II and III Capital Accords if they are to make meaningful business out of their credit exposure operations. It also recommends that banks should come up with capitalization and investment strategies that suit their economic conditions if they are to grow and develop sizeable market shares and wealth from their lending businesses. Finally the study recommends that banks in emerging economies should adapt to international business standards, strategies, ethics and corporate governance parameters if they are to grow towards greater similarity with those in developed nations in their service delivery to the stakeholders and contribution to nation building and sustainable development.

The Importance of Ethics And Social Responsibility In International Business

<p><em><strong>Ethics is defined as a person's beliefs about whether certain decisions, behaviors, or actions are right or wrong. Therefore what determines ethical behavior differs from one person to another. For example, someone who finds money on the floor of an empty house may believe it's perfectly fine to pick it up, while another may feel obligated to return it to the lost items section. The concept of ethical behavior usually refers to behavior that is accepted by general social norms. Unethical behavior is behavior that is not in accordance with general social norms. Ethical behavior in business is something that is important for the survival of the business itself. Businesses that do not have ethical behavior will be detrimental to the business itself, especially when viewed from a long-term perspective. A healthy business is not only a profitable business, but a healthy and good business is that in addition to being a profitable business, it is also a business that is morally good and has a sense of responsibility that can be implemented.</strong></em></p><p><strong> </strong><strong>Keywords: Business Ethics, Social Responsibility, International Business</strong></p><p> </p>

International business ethics: Corporate social responsibility (CSR) of Taiwanese enterprise applies in Vietnam

International business ethics: Corporate social responsibility (CSR) of Taiwanese enterprise applies in Vietnam

Issues in International Business Ethics with Special Reference to Indian MNC’s

Issues in International Business Ethics with Special Reference to Indian MNC’s

Nietzsche's Constructions of Power

Power is inextricably linked to business rhetoric and praxis. Given Nietzsche's prominence in modern and postmodern thought, his constructions of power are relevant for understanding broader implications of ethics in the context of business. In this paper, the corpus linguistics techniques of type-token ratios (TTR), sentiment analysis, clustering, and concordancing enabled an assessment of Nietzsche's uses of power and the establishment of points of consistency and divergence among his fourteen major philosophical works. The results suggest that Nietzsche's posthumous manuscript, The Will to Power, is significantly different from the other 13 works in terms of its focus on power. Additionally, his later works are richer in textual variety (as measured by TTR) than his early and middle works. Through the concordance analysis, the authors identified themes in Nietzsche's use of power, which provides a fulcrum for understanding potential linkages between Nietzschean power as well as his popularized, social-media presence, and implications for international business ethics.

“Every Bite Buys a Bullet”: Sanctions, Boycotts and Solidarity in Transnational Anti-Apartheid Activism

This article examines the genesis and development of transnational anti-apartheid activism between the 1960s and the 1980s. Underpinning anti-apartheid was the fundamental principle of “solidarity”, an emotional and ideological connection between the self and a distant oppressed other. It was this concept that served to mediate the transnational dimension of anti-apartheid as a form of humanitarianism. Calls for sanctions against South Africa represented the movement’s most explicit engagement with political systems and structures, and thus the shifting power of humanitarian values in political discourse. Participation in boycotts represented a kind of activism from the ground up, in which individual economic decisions — the refusal to “buy apartheid” — became humanitarian acts. The notion of solidarity marked, moreover, a significant break with the paternalism of ”imperial” humanitarian efforts, while calls for sanctions and disinvestment promoted a global norm of racial equality and a wider sense of humanitarian justice in international relations and global business ethics. Anti-apartheid connected a humanitarian ethos to individual and community action, and the consumer boycott became a primary form in which consciousness-raising and identity-forming functions of “new” social movements were enacted.

A framework for analyzing international business and legal ethical standards

Globalization increasingly brings businesses and legal providers together. With the help of lawyers, savvy businesspeople can complete complicated international transactions or create multinational networks of related corporations. This isolates risk, facilitates local business transactions, and carefully tailors localized ownership structures. However, these globalization activities can also facilitate activities such as international jurisdiction shopping, tax evasion, money laundering, and even terrorist financing. The resultant challenges undermine the ability of all parties to both compete and pursue ethical behavior across national markets. This article develops a framework for analyzing international business and legal ethics. Specifically, we focus on four key topics: (1) how globalization impacts both business and legal ethics; (2) the special role played by national interests in shaping the applicable ethics and legal standards; (3) a framework to explain how the configuration of international business networks and related legal services can have dramatic ethical implications; and (4) applicable issues identified in the Panama Papers and the Paradise Papers.

Reflections on business ethics through 1992-2017

PurposeThe purpose of this paper is to provide reflections on business ethics in the 25-year window from 1992-2017, and to then seek to examine some of the concerns for the future of which we all need to be cognizant.Design/methodology/approachThe paper represents the reflections of a now retired academic who spent the period from 1992 to 2017 researching in the area of business ethics.FindingsIn the world of commerce, we are still seeing the same alleged behaviours by corporations from developed economies that have dogged business for so long. Have we moved forward and how far have we moved are difficult to determine.Research limitations/implicationsThe paper is based on the reflections on 25 years of research in the area of international business ethics. The limitation is that the paper is based on the experiences of one academic.Practical implicationsThe paper points to considerations that are required if the field of business ethics is to move forward in a positive manner.Originality/valueThe paper looks at many of the pertinent issues facing the field of commerce in respect to business ethics now and into our foreseeable future.

Convergence in International Business Ethics? A Comparative Study of Ethical Philosophies, Thinking Style, and Ethical Decision-Making Between US and Korean Managers

This study investigates the relationship among ethical philosophy, thinking style, and managerial ethical decision-making. Based on the premise that business ethics is a function of culture and time, we attempt to explore two important questions as to whether the national differences in managerial ethical philosophies remain over time and whether the relationship between thinking style and ethical decision-making is consistent across different national contexts. We conducted a survey on Korean managers’ ethical decision-making and thinking style and made a cross-cultural, cross-temporal comparison with the results presented by previous studies that surveyed Korean and US managers with the same questionnaire at different points in time. Our analysis revealed that Korean managers have become more reliant on rule utilitarianism for ethical decision-making over the last two decades, which is dominantly used by US managers, corroborating our convergence hypothesis built on social contracts theory. However, as opposed to previous research, we found that managers with a balanced linear and nonlinear thinking style do not necessarily make more ethical decisions compared to those with a predominantly linear or nonlinear thinking style. This study contributes to international business ethics literature by presenting a theoretical framework that may explain the convergence of ethical philosophies employed by managers in different national contexts over time, and that the relationship between thinking style and managerial ethical decision-making may not be universal, but contingent on contextual factors.

How Can We See the Corporate Social Responsibility within Its Application in Business Practice?

In the 21st century, CSR along with other social issues (such as corporate philanthropy and social enterprise) has become one of the key business trends all over the world. Companies have begun to realize certain commitment to society and its values, and have understood the importance of their contribution into social, environmental and economic issues. Globally, CSR is considered as narrower part of international business ethics and with regard to accession of multinational companies as well as small and medium sized enterprises, and its importance is increasing. Many of those companies perceive CSR as the factor increasing their competitiveness in the business environment. From this point of view, we stated the main goal of submitted article like the evaluation how can we see the corporate social responsibility within its application in business practice. For the evaluation, we used the material, which consists from primary data and secondary data. All data were elaborated by the statistical methods. The main part of this article includes the description of the questionnaire evaluation including tables, graphs and statistical evaluation of our three set research hypotheses. In conclusion, we evaluate the overall results of our practical research and propose recommendations for the future. The research results show how the interviewed people in the company have been evaluated according to the characteristics, benefits, reasons and consideration of CSR.

ESTRATÉGIA EM ORGANIZAÇÕES: A PRODUÇÃO CIENTÍFICA BRASILEIRA ENTRE 2003 E 2011

Este artigo analisa nove anos (2003-2011) da pesquisa em estratégia no Brasil publicada nos principais periódicos de administração do país, e nos anais do EnANPAD, na divisão de Estratégia em Organizações (ESO), e do 3Es. A amostra de 1524 artigos foi submetida à análise de conteúdo utilizando um dicionário de termos para classificação de temas e metodologias de pesquisa. Os principais resultados indicam a continuidade da predominância das pesquisas exploratórias por meio de estudos de caso qualitativos e a tendência de crescimento da pesquisa nos temas sobre negócios internacionais e sobre sustentabilidade socioambiental e ética corporativa. Apesar desses temas de pesquisa alinharem-se ao contexto nacional e mundial, o excesso de estudos exploratórios não aprofunda nem adapta os paradigmas teóricos existentes à realidade nacional, muito menos contribui para ser inserido em um fórum de discussão internacional. Palavras-chave: Estratégia em Organizações. Produção Científica. Metodologia de Pesquisa. Brasil. ABSTRACT This study analyzes nine years (2003-2011) of research on strategy in Brazil, published in the country’s main business administration periodicals in the country, and on the annals of the EnANPAD, in the division Strategy of Organizations (ESO) and the 3Es. The sample, consisting of 1524 articles, was submitted to content analysis using a dictionary of terms for classification of themes and research methodologies. The main results indicate the continued predominance of exploratory research, through qualitative case studies, and a tendency towards the growth of research on themes of international business, socienvironmental sustainability, and corporate ethics, Although these research themes are consistent with the national and global context, the abundance of exploratory research does not contribute or alter the existing theoretical paradigms of the Brazilian reality, nor does it contribute to the insertion of this community in the international forum of debate. Keywords: Business Policy and Strategy. Research Themes. Methodology. Brazil.

Join In or Opt Out? A Normative–Ethical Analysis of Affective Ties and Networks in South Korea

So far overlooked by the international business ethics literature, we introduce, characterize, and normatively analyze the use of affective ties and networks in South Korea from an ethical point of view. Whereas the ethics of using Guanxi in China has been comprehensively discussed, Korean informal networks remain difficult to manage for firms in South Korea due to the absence of existing academic debate and research in this field. In this study, we concentrate mainly on the question of whether foreign firms will and can use affective ties in Korea. The informal social network forms are classified and contrasted with the conventional ethical approaches used in international business ethics (relativism, universalism, and social contract theory) to assess which categories can be regarded as ethical or unethical. Finally, foreign firms are advised how to cope with and use different affective network types. Although the nature of affective ties and networks in Korea differs from that found for instance in China (Guanxi), consistent with the conclusion of prior research, we recommend particularistic analysis and decision making regarding the circumstances in which to conclude affective ties and networks and when to opt out. We conclude that foreign firms in Korea should invest in establishing Inmaek, refrain from engaging in Yonjul, and support host country nationals’ Yongo ties. Moreover, it is suggested that foreign firms should find ways to monitor and manage informal ties effectively.

Join In or Opt Out? A Normative-Ethical Analysis of Affective Ties and Networks in South Korea

So far overlooked by the international business ethics literature, we introduce, characterize and normatively analyze the use of affective ties and networks in South Korea from an ethical point of ...

Can Hypernorms Be Justified? Insights From A Discourse–Ethical Perspective

ABSTRACT: I explore the role of hypernorms in the Integrative Social Contracts Theory (ISCT) of Thomas Donaldson and Thomas W. Dunfee, who suggested that hypernorms are a necessary condition for the rejection of cultural relativism and justification of moral norms within and across social communities. Hypernorms are, thus, a significant part of a conception of international business ethics. I highlight philosophical problems that emerge in attempts to identify and justify hypernorms. These problems have not been sufficiently addressed in the ISCT; therefore, I will discuss the discourse–ethical contributions of contemporary German philosophers toward resolving the justification problem with regards to universal norms. Discourse ethics builds on the linguistic and the pragmatic turns in philosophy and develops procedural rules for the assessment of norms. I explore variants of discourse ethics with regards to their concept of justification and discuss the implications of discourse ethical procedures for the justification of norms and actions.

Notes on Business Ethics

This paper formed the basis for five seminars taught as part of the International Business Ethics module, MSc Programme, Birkbeck, University of London, in 2010 and 2011. The overall aim of the seminars was to develop a series of arguments that can provide a route into an ethical analysis of the activities of business. Each of the arguments continues to be under development, and these notes can be read and critiqued in this light. There are of course other ways to address business ethics. The seminars considered how an ethical analysis of business activity might work. The paper has five parts: • Part 1: Responsibilities of firms • Part 2: Global responsibilities of firms • Part 3: Employment and authority • Part 4: Business disciplines and rationality • Part 5: Firms and the environment

Epistemological and Pedagogical Challenges of Teaching International Business Ethics Courses

International business ethics courses imply four basic epistemological and pedagogical challenges: (a) understanding various perceptions of ethics and values/virtues; (b) identifying ethical maxims among religious/spiritual traditions; (c) designing international business ethics courses as dialogical experiences; and (d) deepening our personal contribution to others’ learning process. This article argues that those epistemological and pedagogical challenges could determine the design and the contents of international business ethics courses: facing up to compatible/incompatible ethical theories (philosophical questioning), identifying ethical maxims among religious/spiritual traditions (religious and spiritual questioning), and reading our actions/decisions as quasi-texts (literature-bound questioning). Business ethics teachers could take those challenges upon themselves and design their business ethics courses accordingly. For each of the four challenges, a specific ethical issue is described; advice for teachers as well as ethical questions for debate and personal development are provided.

An evolutionary logic towards the convergence of international business ethics

The fundamental problem in developing a theory of international business ethics, without imposing ethnocentric assumptions, lies in the inherent conflict between the need for universal ethics and the reality of diverse national cultures. Integrative social contracts theory holds an intermediate position between ethical universalist and relativist positions — recognizing universal hypernorms on the one hand and moral free space on the other. We argue that all businesses share a common objective of sustaining long-run economic value for their stakeholders. We develop this argument using an evolutionary logic into a hypernorm along three propositions: First, the firm influences, and is influenced by, members of the society (social context proposition). Second, managers maximize profit subject to joint constraints of technical feasibility and ethical norms (managerial decision proposition). Third, ethical norms evolve from interactions among the stakeholders without a central authority. Natural selection favors norms that maximize long run economic value for the society (natural selection proposition). We show that the hypernorm can spawn widely agreed authentic ethical norms. However, moral bounded rationality when interpreting the hypernorm generates different authentic norms in the moral free space. The evolutionary logic is testable along the dimensions of variation, inheritance and selection of ethical norms.