Global marketing opportunities usually form the pillar under which viability and profitability of international marketing depend upon. This merged with globalization of market today makes international marketing practices a concern globally that calls for moral responsibility (ethics) in conducting business (Danley, 1983). Ethics in international marketing poses many dilemmas and this is because value judgments differ among different cultures. What is fully accepted as right in one country is completely wrong in another country. Upon a close look of existing ethical frameworks, international marketers cannot fully depend on universal ethical norms like hyper norms. In spite of this, basic moral value should be used in assessing international marketing ethics (Nejdet, 1995).
It is claimed that only those business that focus on profit maximization survive in competitive business environment. However acting unethically very often brings short-term gains which eventually undermine the economy over time.
Issues in Rapid Packaging Services
Many people in the marketing realm disagree on the purpose of business ethics with some arguing that the main purpose of any business is profit maximization to the ownershareholders. Others suggest that own interest would require business to observe law and basic moral responsibility because the implication of failing to do that would be expensive to the company in terms of fines and loss of company reputation. In addition, any business should have moral responsibilities both to those that are affected by the business directly such as stakeholders and indirectly such as state government (Amstrong Evert, 1991).
In business field, often situation arises where there is conflict between one or more parties. In this situation serving the interest of one party becomes detrimental to the other(s). To resolve the stalemate, ethics plays a major role of harmonizing and reconciling the conflicting interests. In international marketing, ethics are necessary particular when a company is dealing with multiple conflicting legal and cultural expectation compliance. Even so, question arises on whether the company will obey the laws of it home or the less stringent law of the country in which it does business.
Conducting business internationally has presented various ethical challenges. It is clear that a company must have knowledge on behaviours that are acceptable and ethical standards within a given society. This places a marketer to recognize three key players in the market place which are the company, the industry, and society. These three groups have in most cases conflicting needs and wants and meeting these needs and wants by the marketer is often a challenge (Chonko, 1995).
Increased global awareness on corporate social responsibility has placed ethical issues as an integral part of managerial decision making in marketing. This decision making involves an acknowledgement of conflict arising from different culture. The marketers are expected to have an understanding of historical, cultural, political, and legal facts of a country they want to do business. This is because the facts affect the way people think, mingle and transact business.
Formulation of International Business Ethics
Studies have revealed that a relationship exist between the cultural environment and ethical problems. Different culture in international marketing give rise to different ethical perceptions. This makes it necessary to develop internationally acceptable ethical norms in cross-cultural settings. This will help in reduction of criticism of international marketers for ethical misconduct (Najet, 1995, Amstrong, 1992, Danley, 1983).
Ethical decision making internationally is influenced by many ethical approaches which include descriptive-prescriptive and communicative approach and normative (prescriptive) and descriptive (positive) theory of marketing ethics approach. Descriptive ethics tries to give an understanding of ethical decision making process based on the description of individual or group values and moral reasoning. On the other hand, normative ethics is based on answering the moral question of what ought to be done (moral responsibility). Normative ethics has been argued whether moral responsibility can be attributed to company in that only individuals working on behalf of the company can be moral, have intensions and can be held accountable (Amstrong, 1992).
Normative approach is categorized into deontological and teleological theories. Deontologists aim at determining the best rules to live by for example doing to others what you would expect them to do to you. The key issue here is moral obligation of international marketer to practice fidelity, justice, self-improvement, and no injury. On the other hand teleologists assess all the impacts caused by various behaviour and suggest that an action is ethical if it produces more good than evil than any available alternative. We have two categories of teleology namely Egoism and Utilitarianism (Fishbein, 1975, Becker, 1992).
In egoism what is right is determined in terms of consequences for the individual. It state that one should opt for actions that brings maximum benefit to oneself. Utilitarianism on the other hand suggests that an act is right if it produces the greatest good for the greatest number (Bowie, 1990).
All business that desire to compete effectively in the global market should adhere to legal and ethical norms. Behaving ethically and socially ought to be the pivot of every international marketer. Law determine the boundary of ethical responsibility and the basis on which individual morality is tested. For example in US legal sanctions prevent unethical transactions. The best recommended solution to unethical international marketing includes avoid directing intentional harm to any direct or indirect party of the venture, produce more good than harm to the host country, respect the rights of all affected by you actions or policies, and respect the local culture and work with not against it (Keely 1988, Blau, 1993).
Other guidelines should be based on the questions does the action optimize the common good of all constituencies Does the action respect the rights of all the individuals involved Does the action respect the canons of justice to all parties involved Answering these questions will help marketers to decide on actions that are ethical. Solving international marketing ethics problems calls for self regulation by marketers. In addition, there is a need for an institution with authority to direct globalization for instance calling for sanctions for ethical violations (Dunfee, 1999, Nejdet, 1995).
It is claimed that only those business that focus on profit maximization survive in competitive business environment. However acting unethically very often brings short-term gains which eventually undermine the economy over time.
Issues in Rapid Packaging Services
Many people in the marketing realm disagree on the purpose of business ethics with some arguing that the main purpose of any business is profit maximization to the ownershareholders. Others suggest that own interest would require business to observe law and basic moral responsibility because the implication of failing to do that would be expensive to the company in terms of fines and loss of company reputation. In addition, any business should have moral responsibilities both to those that are affected by the business directly such as stakeholders and indirectly such as state government (Amstrong Evert, 1991).
In business field, often situation arises where there is conflict between one or more parties. In this situation serving the interest of one party becomes detrimental to the other(s). To resolve the stalemate, ethics plays a major role of harmonizing and reconciling the conflicting interests. In international marketing, ethics are necessary particular when a company is dealing with multiple conflicting legal and cultural expectation compliance. Even so, question arises on whether the company will obey the laws of it home or the less stringent law of the country in which it does business.
Conducting business internationally has presented various ethical challenges. It is clear that a company must have knowledge on behaviours that are acceptable and ethical standards within a given society. This places a marketer to recognize three key players in the market place which are the company, the industry, and society. These three groups have in most cases conflicting needs and wants and meeting these needs and wants by the marketer is often a challenge (Chonko, 1995).
Increased global awareness on corporate social responsibility has placed ethical issues as an integral part of managerial decision making in marketing. This decision making involves an acknowledgement of conflict arising from different culture. The marketers are expected to have an understanding of historical, cultural, political, and legal facts of a country they want to do business. This is because the facts affect the way people think, mingle and transact business.
Formulation of International Business Ethics
Studies have revealed that a relationship exist between the cultural environment and ethical problems. Different culture in international marketing give rise to different ethical perceptions. This makes it necessary to develop internationally acceptable ethical norms in cross-cultural settings. This will help in reduction of criticism of international marketers for ethical misconduct (Najet, 1995, Amstrong, 1992, Danley, 1983).
Ethical decision making internationally is influenced by many ethical approaches which include descriptive-prescriptive and communicative approach and normative (prescriptive) and descriptive (positive) theory of marketing ethics approach. Descriptive ethics tries to give an understanding of ethical decision making process based on the description of individual or group values and moral reasoning. On the other hand, normative ethics is based on answering the moral question of what ought to be done (moral responsibility). Normative ethics has been argued whether moral responsibility can be attributed to company in that only individuals working on behalf of the company can be moral, have intensions and can be held accountable (Amstrong, 1992).
Normative approach is categorized into deontological and teleological theories. Deontologists aim at determining the best rules to live by for example doing to others what you would expect them to do to you. The key issue here is moral obligation of international marketer to practice fidelity, justice, self-improvement, and no injury. On the other hand teleologists assess all the impacts caused by various behaviour and suggest that an action is ethical if it produces more good than evil than any available alternative. We have two categories of teleology namely Egoism and Utilitarianism (Fishbein, 1975, Becker, 1992).
In egoism what is right is determined in terms of consequences for the individual. It state that one should opt for actions that brings maximum benefit to oneself. Utilitarianism on the other hand suggests that an act is right if it produces the greatest good for the greatest number (Bowie, 1990).
All business that desire to compete effectively in the global market should adhere to legal and ethical norms. Behaving ethically and socially ought to be the pivot of every international marketer. Law determine the boundary of ethical responsibility and the basis on which individual morality is tested. For example in US legal sanctions prevent unethical transactions. The best recommended solution to unethical international marketing includes avoid directing intentional harm to any direct or indirect party of the venture, produce more good than harm to the host country, respect the rights of all affected by you actions or policies, and respect the local culture and work with not against it (Keely 1988, Blau, 1993).
Other guidelines should be based on the questions does the action optimize the common good of all constituencies Does the action respect the rights of all the individuals involved Does the action respect the canons of justice to all parties involved Answering these questions will help marketers to decide on actions that are ethical. Solving international marketing ethics problems calls for self regulation by marketers. In addition, there is a need for an institution with authority to direct globalization for instance calling for sanctions for ethical violations (Dunfee, 1999, Nejdet, 1995).
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