Ethical Challenges in International Business

Ethical Challenges in International Business

The ethical challenges that the organization faces is: effectively promoting human rights and respect for international law. This is challenging, because a variety of governments around the world engage in various human rights abuses in one way or another. Amnesty International takes a world view on human rights abuses. However, for the purpose of this discussion we will be focusing on China. ("Who We Are," 2010)

A real or fictitious organization expecting to expand its operations to the region.

The organization that is expanding into the region is Jones LaSalle. They are real estate services firm that covers real estate transactions such as: closings and sales. The reason why they are expanding into China is: because of the rapid growth that has been taking place, in the commercial real estate market. This has been having ripple effects in residential housing, as the growing population and rising levels of income are creating a housing shortage. (Maloney, 2008) The ethical dilemma that the company faces is the Chinese government is controlled by the Communist Party. They have maintained control of power, since the 1949 Revolution and have been known for not following international standards on human rights. In the case of Jones LaSalle, the fact that Communist government is controlling the country means that they are helping to support a brutal regime. With the various taxes and laws that they follow as a part of doing business in the country, are serving as rubber stamp of the various human rights abuses. A good example of this can be seen with a report that was released by Amnesty International, which found that the rapid increases in economic growth have meant that the government has also been clamping down on human rights (most notably free speech). ("Censorship in China," 2010)

Recommendations for the business

The issue of human rights is a problem, for Jones La Salle because their presence could mean that they are indirectly supporting the activities of the Chinese government. To address this ethical concern, there are a number of different actions that could be taken including: leaving the Chinese market and working with the Chinese government behind the scenes. Leaving the Chinese market would mean, that company could take a major loss and it may affect the competitiveness of the firm in the global marketplace. That being said, this action would deal with the ethical dilemma, but at a high price. Working behind the scenes with the Chinese government, could mean that company officials, can slowly influence public policy on human rights. Where, government officials will not feel the public pressure to change. This could help to address the ethical dilemma. However, if these concerns are addressed in the wrong way, this could outrage the government. At which point, they could impose severe restrictions on the company.

Select the most appropriate action and justify it.