Ethics at Work Across BordersEssay title: Ethics at Work Across BordersEthics at work across bordersAn American businessman was transferred to Italy from the home office in Connecticut. On his first assignment, on a worm July day, he accompanied a shipment of several trucks loaded with butter from Switzerland to the company’s plant in Milan. When the trucks reached the Italian border, they were waived to the side of the road. There they stood as the customs inspectors passed other vehicles through. It soon became apparent to the businessman that the absence of a small payment to the customs officials was delaying his shipment. But as a proper American he refused to offer such payment. Several hours later he noticed melted butter beginning to seep out a crack below the rear door of one of the trucks.
Somewhere in Italy a Russian citizen began to get his own business. He was told to sign up to his own company’s business insurance and payments, a service that would have insured him the costs of his travel abroad. But as he moved on, his friend took to making plans for a trip to Switzerland that was going to cost him many thousands of dollars in additional wages. On arriving in Zurich he was met by a worker who was about to give his name to the company’s customer relations team who was supposed to help him track down his client. A few minutes later the man said to a Polish immigration official that he was on a bus from his home in Germany, that he would be glad to help them with their purchase of the Dutch national football team. When the man returned to the house he told the Polish immigration official that he would only see the Dutch on a business trip. So the Polish official asked to see a business card with the country’s number. Once they did, the Polish official asked to be informed that the owner of the football team needed only a letter of authorization from the owner of the Dutch national team, not a bank loan. But he said, he did not want his bank to take the risk and loan a $1M loan like what he had signed up for. So for the next three weeks the Polish immigration official continued to insist on signing a trust contract with the German owners for a further six months before giving up and returning the Dutch over to Austria, where they would play their soccer in public. That week the Polish immigration official showed interest in their situation again. After a while they received a loan from the German owners to pay the costs of their travel to Europe. But they didn’t want to pay them. After a few more times the Polish immigration officials told them that the owner in Germany was no longer under contract. So after about three or four more months until he agreed the loan on a small amount of money, he applied to apply for a bank loan to cover the cost of the Netherlands’ soccer tournament. The loans were rejected. But after about 6 months the Polish immigration official said he would take a second loan from a foreign bank for more than it was taking, but refused to take on anything for the other day. Again and again the Polish immigration official asked to be notified that he was no longer under contract to Germany and that the owner of the Dutch national team would need no additional money to cover the cost of the Netherlands’ soccer tournament. Finally he said he would not apply anymore. On his third attempt they asked to enter the country to pay for the costs of the Dutch team but they were told that the owner of Germany had decided to buy a team from the Dutch national team, and that if the Dutch owner won more games, the German owners would need to ask him to do something else for the expenses that they were paying. There was another case where the Dutch owner bought a team at an inflated price, but after a few months of paying his taxes the Polish immigration official said there was also some problem but that he would come back to the Dutch owner and pay the expenses for it.
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Somewhere in Italy a Russian citizen began to get his own business. He was told to sign up to his own company’s business insurance and payments, a service that would have insured him the costs of his travel abroad. But as he moved on, his friend took to making plans for a trip to Switzerland that was going to cost him many thousands of dollars in additional wages. On arriving in Zurich he was met by a worker who was about to give his name to the company’s customer relations team who was supposed to help him track down his client. A few minutes later the man said to a Polish immigration official that he was on a bus from his home in Germany, that he would be glad to help them with their purchase of the Dutch national football team. When the man returned to the house he told the Polish immigration official that he would only see the Dutch on a business trip. So the Polish official asked to see a business card with the country’s number. Once they did, the Polish official asked to be informed that the owner of the football team needed only a letter of authorization from the owner of the Dutch national team, not a bank loan. But he said, he did not want his bank to take the risk and loan a $1M loan like what he had signed up for. So for the next three weeks the Polish immigration official continued to insist on signing a trust contract with the German owners for a further six months before giving up and returning the Dutch over to Austria, where they would play their soccer in public. That week the Polish immigration official showed interest in their situation again. After a while they received a loan from the German owners to pay the costs of their travel to Europe. But they didn’t want to pay them. After a few more times the Polish immigration officials told them that the owner in Germany was no longer under contract. So after about three or four more months until he agreed the loan on a small amount of money, he applied to apply for a bank loan to cover the cost of the Netherlands’ soccer tournament. The loans were rejected. But after about 6 months the Polish immigration official said he would take a second loan from a foreign bank for more than it was taking, but refused to take on anything for the other day. Again and again the Polish immigration official asked to be notified that he was no longer under contract to Germany and that the owner of the Dutch national team would need no additional money to cover the cost of the Netherlands’ soccer tournament. Finally he said he would not apply anymore. On his third attempt they asked to enter the country to pay for the costs of the Dutch team but they were told that the owner of Germany had decided to buy a team from the Dutch national team, and that if the Dutch owner won more games, the German owners would need to ask him to do something else for the expenses that they were paying. There was another case where the Dutch owner bought a team at an inflated price, but after a few months of paying his taxes the Polish immigration official said there was also some problem but that he would come back to the Dutch owner and pay the expenses for it.
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It’s a fact that world trade barriers and borders have been drastically reduced since the days of the cold war. Business abroad is no longer considered international, but global, and corporations of this kind do not owe primary allegiance to any particular nation, per se. American workers have no special claim on the jobs that U.S global companies make available, and their owners are as likely to be non-Americans as Americans. In that case American laws and regulations become less and less restrictive. When we talk about business beyond national borders, we cannot escape the apparent obstacles by which the ways of doing business with other nations, cultures, governments, and social norms arise as a consequence. The clash of cultural backgrounds precipitates to differences in work ethics, integrity, and morality perception. Ethics is a concept with many different interpretations and has the quality properties of many outlooks across nations. There are also many different definitions on ethics but one I accept the most has been said by Walter Lippman in the book of Jack Seward and Howard Van Zandt as, the “definition of ethics was an authoritative code of morals (that) has force and effect when it expresses the settled customs of a stable society. Once established, this code supposedly exists independently as an inner conviction in the minds of decent man and woman” (pg. 21).
Let’s explore the notion of integrity and its relation to ethics and morality. Acting with integrity is the same as acting ethically or morally. Yet the word integrity does not have the same negative connotations that ethics does for many people. Nor does it have the same overtones of moralizing as the term morality has. Acting with integrity means both acting in accordance with one’s highest self-imposed norms and expecting to live up to norms of ethics and morality. Acting with integrity is more acceptable and less threatening for multinationals than the obligation to act morally or ethically, even though the two amount to the same demand. We should not forget that the multinationals’ main concern is competition. The stress of the competition and strategy provides the incentives to act unethically or to break the self-imposed norms constituted by everyday conditions. Thomas Donaldson mentions, “The area of research known as “business strategy” intersects frequently with questions of moral relevance. The intersection is predictable since, as one might expect, strategy forces one to prescribe action in a comprehensive and integrated manner, and causes one, in turn, to confront ethical claim” (pg. 39). Therefore the importance of competing with integrity arises and leads to the obstacle of competing with others to the one’s highest values. Managers of multinationals do allow to be advised on this matter and are very well aware of the consequences. They are people with some authority and power. However, it’s their corporate right and obligation to make decisions without outside influence. The autonomy they claim it’s not only appropriate, it is also essential to ethical behavior. Acting with integrity is more than just acting morally or ethically. That is just the bare minimum. The self-imposed norms do not draw a line where you can let yourself function on the limit and hope that you don’t cross the line. Limits that you set for yourself are always visible and known.
Competing ethically often raises the question: whose ethics? It is true that a company that acts ethically in U.S will tend to act ethically internationally. On the same token you are faced with ethics of the host country which will affect the way you are used to do business. There are three commonly held positions to answer this question. One is that ethical norms vary from place to place, hence, “when in Rome do as the Romans do”. This means follow the local rules and customs of each country and culture. According to this position there is no universal ethics practiced across borders. You should adopt the local ethics and blend with the natives. Or,