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Ethical Considerations in Expanding Business Overseas

Introduction

Companies may face difficult ethical decisions when they expand their operations abroad, especially regarding employee rights, workplace norms, and employee treatment. This essay tackles these ethical issues from the viewpoint of an ethics professional counseling employers thinking about going global. It examines whether businesses should support labor rights, the right of Western businesses to impose requirements on overseas contractors, the moral obligations of particular consumers, and the adoption of common workplace standards.

Advocating for Labor Rights, Minimum Wage, and Unionization

When expanding into emerging nations, businesses must put labor rights, a living wage, and unionization at the top of their agenda (Byars & Stanberry, 2018). This dedication to upholding these values helps to improve working conditions and workers’ well-being. The documentary “Nike Sweatshops: Behind the Swoosh” (TeamSweat, 2011) exposes the Nike sweatshop scandal as a sobering example of what happens when businesses disregard workers’ rights. Companies that support labor rights show a sincere interest in the well-being of their workers, shielding them from unfair treatment and guaranteeing a safe workplace. Social responsibility and sustainability values, which are taking on greater significance in the global corporate scene, align with this commitment.

Western Company’s Right to Insist on Western Protocols

Western firms should exercise prudence and consider the cultural background and practices of the host country while insisting on Western protocols in the factories of foreign contractors. Even though these businesses may have legitimate worries about the working environment and how staff members are treated, enforcing Western standards without consideration for local cultural practices may be seen as cultural imperialism. According to Mintz (2012), organizations should prioritize communication, teamwork, and capacity building to create a work climate that encourages respect for one another. When working with foreign contractors, businesses must understand and respect cultural diversity. Understanding the host nation’s particular customs, traditions, and values is necessary for this, and corporate methods must be modified accordingly. Companies may create connections based on trust and understanding through open and positive discussion. Additionally, working with regional stakeholders and funding capacity-building programs can assist in closing the gap between local conditions and Western norms. Western businesses should exercise prudence and consider the cultural background and norms of the host country while insisting on Western protocols in the factories of foreign contractors (Mintz, 2012). The article by Bain (2017) mentions the Nike issue as an example of the unfavorable effects of applying Western standards without considering different cultural perspectives. While businesses may have legitimate worries about the working environment and treatment of employees, ignoring the local context can be seen as a sort of cultural imperialism.

Ethical Responsibilities of Individual Consumers

When dealing with businesses that hire workers from other countries, customers have moral obligations. Consumers must prioritize buying products made ethically and support businesses that sincerely commit to fair labor standards. According to Bain (2017), Nike had to deal with anti-sweatshop demonstrations. This demonstrates the importance of consumers in pressuring businesses to act ethically. Consumers actively contribute to the demand for ethical corporate practices and play a vital role in accelerating positive change in the global supply chain by aligning their buying decisions with these ideals. Customers can potentially persuade businesses to prioritize ethical issues in their global operations through their spending choices and activity.

Adoption of Universal Workplace Standards

Businesses must implement global workplace standards to guarantee safe, healthy working conditions and employee protection. These guidelines create a uniform framework that protects workers’ rights and advances equity internationally. Universal workplace standards establish a foundation for exemplary work by addressing crucial issues, including health and safety, fair pay, suitable working hours, and protection against discrimination and harassment. By implementing global workplace norms, labor practices become more uniform, diminishing regional differences. It discourages a “race to the bottom” in which businesses exploit the lack of restrictions to reduce prices and jeopardize worker rights. No matter where they are located, employees are treated equitably thanks to these norms, which are benchmarks. However, while putting into practice global norms, it is crucial to consider cultural differences and engage in discourse. Byars and Stanberry (2018) stress sustaining fundamental values while considering cultural differences. The Nike instance discussed in TeamSweat (2011), and Bain (2017) highlights the demand for global norms to stop worker abuse. When putting these norms into practice, it is crucial to consider cultural diversity and engage in communication. Cultural diversity should be honored, and local needs and traditions should be considered. Companies can create workplace norms that promote fair treatment while honoring regional cultures by balancing universal principles and cultural context.

Conclusion

Businesses must handle various ethical issues when expanding their businesses abroad. Supporting unionization, the minimum wage, and worker rights displays a dedication to sustainability and fair treatment. Companies must take care, however, to examine the cultural environment and engage in discourse before imposing Western norms in foreign manufacturing. Through their support of ethical businesses and promoting openness, individual consumers may significantly contribute to advancing ethical practices. Last, adopting universal workplace norms can create a uniform foundation for respect and employee rights while allowing for cultural diversity and personalization. Companies can negotiate the difficulties of international expansion while keeping the values of social responsibility and human dignity by considering these ethical considerations.

References

Bain, M. (2017). Nike is facing a new wave of anti-sweatshop protests. Quartz. Retrieved from https://qz.com/1042298/nike-is-facing-a-new-wave-of-anti-sweatshop-protests/

Byars, S., & Stanberry, K. (2018). Impact of culture and time on business ethics. In Business Ethics. Rice University, OpenStax. Retrieved from http://cnx.org/content/col25722/1.3 p. 138.

Mintz, S. (2012, May). Social responsibilities of a U.S. company doing business abroad. Retrieved from https://www.ethicssage.com/2012/05/social-responsibilities-of-a-us-company-doing-business-abroad.html

St. Clair, J. (2018, September). Nike’s bad air. Retrieved from https://www.counterpunch.org/2018/09/10/105150/

TeamSweat. (2011, July 28). Nike sweatshops: Behind the swoosh [Video file]. Retrieved from https://www.youtube.com/watch?time_continue=1097&v=M5uYCWVfuPQ.

 

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