Business Ethics: China and Mexico This Work

¶ … Business Ethics: China and Mexico

This work in writing will discuss the business ethics in view of countries that are foreign to one another and specifically the countries of Russia and China and Mexico. This work will contrast and compare the business ethics of these two countries toward providing a contribution to the global ethical perspective. The work of Ma (2010) states that business ethics "refer to the moral principles or values that govern a group of people. These principles and values distinguish right from wrong, good from evil, and thereby guide individuals in their personal and professional decision making." As noted in the work entitled "European Business and Economics Ethics: Diagnosis -- Dialogue -- Debate: Is There a European Business and Economic Ethics Approach?" presented at the Berlin September 2007 states that the economic reality in Europe today is increasingly determined by pan-European and global forces that transcend the one predominant level of the nation state. As a result the 'economic ethical reality' has changed as well: economic actors, non-governmental organization, governments and the scientific community have to look beyond national borders in addressing ethical issues." ( )

I. Examination of Business Ethics of Russia

According to Ziegfeld (2011) the most recent report card on Russia indicates that "Russia is no-man's land in term of investing. The Heritage Foundation reports that Russia scores an F. In economic freedom and this is in addition to the fact reported that Russia "Then Transparency International delivers Russia's evaluation in business ethics. You guessed it, a third F. Russia is ranked #154 out of 178 states scrutinized for economic corruption, placing it alongside Tajikistan and Kenya in the bottom 15% of all world nations, even worse than Russia's performance in political liberty in a country governed by a proud KGB spy." (Zigfeld, 2011) Russia is also reported to be one of the worst possible countries for investors coming in behind even China.

II. Examination of Business Ethics in Germany

Malterer and Eastwood (2009) state that Recently, many international corporate groups have "received adverse publicity due to either compliance issues or misuse of data. This is in part due to ramified corporate structures which prove hard to control and also due to their businesses operating in countries where corruption is endemic." It is specifically stated that in Germany "fines of over €100 million have been imposed on companies. According to a recent survey, the total damage caused to the German economy, by proven corruption cases alone, is estimated to amount to €6 billion per year. This amount does not even take into account indirect damage such as that caused by the loss of reputation, business relationships or important employees. Lengthy investigation proceedings will lead to the loss of productive management time, and this must also be considered." (Malterer and Eastwood, 2009)

High criminal fines are applicable in these cases with companies potentially facing substantial increases in operational costs. In the even an agreement is made involving bribery the consequences may be that the agreement is void. (Malterer and Eastwood, 2009, paraphrased) In addition to loss of reputation and state sanctions "…the company may also expose itself to blackmail and damage its own market on account of price distortion as a result of corruption. A company's ability to plan will also be hindered by the uncertainties surrounding the duration and amount of the "necessary" payments; benefits and expenses will be incalculable. Even where investigations are stopped in the end, business reputation will still be damaged." (Malterer and Eastwood, 2009)

III. Cultural Relativism

Cultural relativism is the term utilized in understanding the business ethics and how the culture of a society affects these ethics as cultural relativism refers to 'the right way to act' and varies depending on a country's culture and societal norms or "behavior that is socially approved by a majority within a culture." (Mitchell, 2003)

Summary and Conclusion