Ethical Dilemma in International Business

1. Ethical Dilemma in International Business Presented to Prof. Abhay Singh

2. Group Members Roll nos. • BRENDA THAIKKATTIL 10 • DHANASHRI DALVI 16 • EUREKA BORGES 20 • JENNIFFER MONTEIRO 26 • Lavina Sequeira 90 • Sonali Murzello 114

3. INTRODUCTION • Business ethics is defined as what is right and wrong, good and bad and harmful and beneficial regarding the decisions and actions in and around organizational activities.

4. Ethical dilemma • Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable. • The ethical obligations of a multinational corporation toward employment conditions, human rights, corruption, environmental pollution, and the use of power are not always clear cut.

5. What is ethical Dilemma? • In today’s business, the workforce comprises of people who are diverse in their nationality, religion, caste, race, age, education and even socioeconomic status. • They are all expected to work together as a team towards the success of the organization. • Dilemmas are bound to rise in issues such as downsizing the staff, pollution control, toxic waste disposal, utilization of resources, changes in law and technology, issues related to discrimination, employee rights and even on product quality.

6. Ethical Issues In International Business The most common ethical issues in business involve: • employment practices • human rights • environmental regulations • corruption • the moral obligation of multinational companies

7. GENERAL SCENARIOS… • BANK TELLER: • You have worked as a bank teller for several months when one of the other tellers who has become a good friend tells you that her daughter is extremely ill and that she must have an operation to survive. She also tells you that she has no insurance and the operation will cost $10,000. Sometime later you ask her about her daughter and she tells you she is just fine now. She then confides in you that she took $10,000.00 from a dormant account at the bank to pay for the operation. She assures you that she has already started paying it back and will continue to do so until it is all returned. • What do you do?

8. CONTD… • TEACHER • You have a student who is from a single parent family. The student must work to attend college. However, the job is interfering with the student’s performance and several assignments have not been turned in. You have determined that a “D” is all the student can make when a counselor informs you that the student need a “C” to qualify for an academic scholarship.’ • What do you do?

9. CONTD… • JOURNALISM • Your newspaper has published a report on a national study, which concluded that bottled water has virtually no health advantages over the tap water in more cities,including yours. The study included comments from local health store owners and water distributors challenging the study. The AquaPure Bottled Water Company,advertising account worth over $75,000. a year, has threatened to pull its account with your newspaper unless you run another story of equal prominence, focusing on the benefits of bottled water. • What do you do?

10. ETHICAL DILEMMA: RACIAL DISCRIMINATION • Raj Singh has been working with the Dubai branch of XYZ Bank. • Performing extremely well, he is given a substantial raise with a promotion to Qatar where the company has set up a new branch. • On joining, he realises his immediate superior is a Pakistani- Mr. FerozeMiandad • Feroze is a hard core Pakistani who harbors negativity and hatred against all Indians

11. RACIAL DISCRIMINATION • On realizing Raj is an Indian, Feroze inflicts unnecessary discrimination and harassment on Raj by making him work long hours, passing remarks on Raj’s lineage etc. • Although they are supposed to collaborate and work as a team, Feroze does not consider Raj’s opinions or ideas. • Feroze also takes credit rightly due to Raj.

12. RAJ’S DILEMMA • Raj’s appraisal is shortly due to be done by Feroze. • Should he complain against Feroze to the higher authority? • Should he confront Feroze and have a discussion on the issue? • Should he stick around for the high pay? • Should he quit his “ dream” job?

13. RESOLUTION • Raj should primarily have a discussion on the concerned issue with Feroze • If Feroze shows signs of unrelenting and unyielding behaviour, then Raj should complain to the higher authority because Raj’s basic right of ‘dignity at workplace’ is being violated.

14. Scenario - Homosexuality • Ford Motor Co. is one of the company which gives benefits to the partners of homosexual employees • Homosexual relationships are a taboo in many countries like Afghanistan, Bhutan, Iran, Maldives, Qatar, Sri Lanka etc. • Also homosexuality is looked down upon in some communities. For ex. Traditionally Christianity banned such relationships. • Now suppose a person (say Dawit) from such a country or community, works for Ford Motor Co.(in US)

15. According to him he cannot use a product ( eg the facilities or e mail system) by a company that provided benefits to partners of homosexual employees or work for people with the same belief, because his community and his country both do not support such relationships. • This person refuses to co operate with the policies of the company and cuts himself off from the team, creating a major obstacle to the product development. • Here the ethical dilemma is whether to stick to your own beliefs and continue to not support the organization or to leave your beliefs behind you to work amicably with the organization

16. …..scenario contd • The other scenario would be if a homosexual person is employed by an organization which has branches in the above mentioned countries. • Here the dilemma would be whether to forego your job or your partner.

17. Resolution • Accept the laws of other country and the company and work amicably with the organization. • Leave the job for your beliefs. This will not only affect your employment but the organization will also lose a good employee. • Accept other human beings as they are in order to live peacefully in a society. This is the best solution

18. Ban on Burkha in Belgium • Shelina is a Muslim girl born and brought up in India. • Having completed her PhD in Psychology, she intends to join a university in Belgium as a professor. • Shelina has now received an offer letter from Universiteit Antwerpen, Antwerp (university in Belgium) as a professor in the department of Psychology. • The home affairs committee of Belgium's parliament has unanimously voted to ban face-covering Islamic veils that prevent the wearer from being fully identified.

19. Shelina who belongs to a conservative Muslim background is in a split mind. • This has been a dream job for her and so she cannot let go of it. • On the other hand she believes in the preaching of Islam and would not compromise on her freedom to dress up the way she wants (i.e. she wouldn’t give up wearing burkha). • She is now in a serious ethical dilemma as to whether or not to take up the job. • Whether to compromise on her beliefs or the job

20. Resolution • Give up her personal beliefs and take up the job. • Take up a similar job in a country where no such laws prevail. • Stick to her beliefs and work in the home country.

21. Ethical Dilemma: Loyalty • Bharat was transferred to U.S by his company, initially he was apprehensive as to how he would face the huge culture difference. • However his supervisor made him feel at ease an helped him settle down. • As years passed Bharat developed a good bond with his supervisor but off late he realized John was not performing well. • In spite of meeting his deadlines. Their team was suffering due to John’s non deliverance. • John soon started leaving from work early saying he had to nurse his sick wife, however later Bharat learned that John would have 2 – 3 martinis during lunch and was totally inebriated to return to work. In due course of time several such instances of negligence towards work was noticed.

22. Bharat’s Dilemma • Should he confront the higher manager about John’s situation who has been like a mentor to him. • Continue to overlook John’s negligence towards his work presuming it is not his duty. • Ignoring the problems would violate his pursuit for excellence. • Speaking to John about the same could result in offending him. • Cover up for John which would mean he would encourage his actions and John would never take accountability for his negligence.

23. Resolution • Speak to John about the situation, ask him if everything is fine. • Instead of directly approaching the top authority wait to see if any changes are noticed in John. • If no changes are noticed wait for the top managers to confront about the deteriorating performance. • Explain the situation in an explicit manner.

24. Ethical Dilemma: Sexual Harassment • Reena has been recently transferred to the U.S. • Within a course of few days she notices that her Superior Ross has been constantly misbehaving with her colleague Eve an African American employee. • Passing lewd comments in the cafeteria, brushing of shoulders in the hallway, and various such gestures. • On Reena asking Eve to report the issue, she explained that Ross is highly influential and has the potential to fire her. • Further she needed the job to support her family as she was the sole breadwinner of her family.

25. Reena’s Dilemma • Ignore the issue as she was not the victim in this situation. • Report to the higher authority, which could result in her losing her job as well as Ross was a highly influential man whose brother in law was the Managing director of the company. • Ross could convince Eve to remain silent on the issue by promising her monetary benefits. • There was no guarantee that the issue would be pursued by the higher authorities.

26. Resolution • Speak to the Human resource Department about the situation. • Incase of wrongful termination, File a case against the company. • Ignoring the issue could result in something disastrous in the future. • Speaking up is the optimal solution as what is happening to Eve today may happen to some other employee as well.

27. bribery • ‘As a partner in a firm of surveyors, you have successfully won a tender for some work in a country where bribes are considered a normal part of doing business. In your own country, bribes are illegal (or, at the very least, not accepted practice). Will you use bribes to get the project completed successfully?’

28. Resolution • As part of gifts • Importance of the project

29. Laws On Monday morning, George, the Vice President of Operations in a large engineering company in Toronto, was considering if he could legally fire the project manager standing in front of him. The project manager and project team had just returned from an American job site early, without having accomplished any of their objectives. George had sent the team of five down to their automotive client in New Jersey on Friday night to perform a one-week software and electrical installation.

30. LAWS • Instead, here the team was, on Monday morning, back in Toronto standing in the VP's office, complaining about their rights. They were unmindful of the financial impact of their actions to the organization and the major inconvenience to the client. They had essentially abandoned the project, because they had refused to undergo drug testing

31. Facts • The US customer had been a client for the past five years • Three years ago, the automotive company began phasing in mandatory drug testing with their employees and all outside contractors. • In Canada, employees have the right to refuse requests for drug testing • A third party performs the testing and this has led to a concern that such companies are not currently restricted from gathering the information, generating statistics and selling it. • Although the drug testing companies provide a list of what they are screening for, there are no guarantees that they are not testing for other things, such as AIDS and other diseases, or pregnancy. • For those people with health conditions, their information may be sold to such organizations as pharmaceutical companies, who can then target these people.

32. The team members approached the PM saying that they were against taking the test. They had done research on the internet about drug testing policies and found out about the ambiguity of the use of the data gathered and the suggested ineffectiveness of mandatory testing. • Clean employees were subjected to the embarrassment of taking the test. There was also the chance of error in the large volumes of samples being tested, which could blacklist a person unfairly. • The project manager had no company policy to fall back on and had not received any coaching or training to deal with an issue such as this. • In the end, of the team of five, two agreed to the testing but took the option of taking the test through their Canadian doctor. Another employee was found who was willing to take the test and join the team. The scaled down project team was able to complete the work, although it required longer hours and additional effort on their part.

33. Resolution • Company’s Policy: company's experience is that organizations should not wait for an event like this to occur. They should become fully aware of the policies of their clients; especially those may impact their business interactions. • Awareness and assurance to the employees

34. Means to resolve Ethical Dilemmas? • Entrepreneurial managers have to rely on their individual judgment while resolving all these different dilemmas related to business. • before making any decision, one needs to be aware of the ethical issues concerned with the business. • There are two different ways of resolving ethical dilemmas in business. • While one approach concentrates on analyzing the practical consequences of the decision, another approach concentrates on the action.

35. Means to resolve Ethical Dilemmas? •  Ethical resolution of conflicts requires discussion, analysis, problem solving and decision making. • In order to resolve ethical dilemmas, managers need to have interpersonal communication and negotiation skills, conflict resolution skills and critical thinking. • Before making any decision, one has to analyze all the positive and negative consequences that are connected with the issue.

36. Conclusion • Political, economic, legal, and cultural differences can give rise to ethical issues and dilemmas in international business, and necessitates ethical strategies. • Moral philosophers argue that with power comes the responsibility to give back, to be an agent of world benefit • Organizations are collections of individuals; ultimately it is up to us to look at our own personal ethics and to help create the organizations and the world in which we want to work, live, and prosper

37. COnCLUSIONcontd…. • Before making any decision, one needs to be aware of the ethical issues concerned with the business. • Ethical resolution of conflicts requires discussion, analysis, problem solving and decision making. • In order to resolve ethical dilemmas, managers need to have interpersonal communication and negotiation skills, conflict resolution skills and critical thinking. • Before making any decision, one has to analyze all the positive and negative consequences that are connected with the issue.

38. Thank You