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One of the biggest reasons companies seek to expand their business internationally is because the market in foreign countries offer a higher profit potential that they home base company. However, these business should strongly consider the legal and ethical issues that surround this expansion, as they differ greatly from those of the United States. Some of these ethical considerations in international business include wages, working environment, corruption, human rights, and pollution and environmental concerns.
Employees in foreign countries are paid a much lower wage than those in the United States. In addition, the working conditions are quite inferior to our own and not conducive of promotion a positive work environment. A U.S. based company must work to fulfill/abide with the local laws, but develop a company policy that also ensures the protection of its foreign employees while paying them a sufficient hourly rate and working reasonable hours to sustain a living.
Corruption is pervasive in foreign business and politics. U.S. companies are strongly encouraged to evaluate potential markets before they make a decision to expand business. Some companies in foreign countries make large payments in exchange for business that they would not likely secure without the large payoffs. This is both unethical behavior and an illegal action under the U.S. Foreign Corrupt Practices Act.
Companies looking to expand into foreign countries should be aware of the disrespect for basic human rights and make a conscious ethical decision, no matter the temptation or pressure, not to fall prey to accepting and participating in the unfair treatment of the foreign citizens. Instead, the U.S. companies should stand for what’s right and be an active participant in promoting and working towards human rights improvements.
Companies in the U.S. are aware of the laws to protect the environment and the continued fight to improve pollution and environment control laws.”
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