Business ethics are necessary whether a company is operating on a domestic or an international level. The responsibilities of any business organisations multiplies many folds ones it expands to other parts of the world as it has to comply with many policies, rules and regulations under the purview of many agencies. The need for proper ethical compliance is essential as business organisations have to safeguard themselves from the possible ethical lawsuits. With the advent of globalisation the need and importance of ethical behaviour has increased too in the market not only for compliances with the governmental agencies but also for portraying a good image in front of the customers around the world. As employees operate in multi cultural world the companies need to ensure that they respect the cultural and lingual diversity of the other cultures. The understanding of the cultural behaviour helps in conducting the business more smoothly but the companies need to push themselves extra hard to make sure that ethical behaviour is observed as both are not connected . However many a times it is seen that the cultural differences play a critical role in determining the ethical practices of the individuals.

The scope of outsourcing has improved many fold in times of globalisation as companies around the world shift their manufacturing and service jobs to developing counties. They get cheap labour, abundant of raw materials in such countries and take benefit from the cost savings. However with the process, concerns for ethical issues also increases as companies involve themselves in unethical practices to save costs. They pay lower salaries to the workers, provide harmful working conditions and exploit them as much as possible. Many of the companies like Nike who outsources 80-90% of their manufacturing to the developing countries like Vietnam, India, and Philippines etc. Nike has come under constant scanner by press agencies, law enforcement agencies and media around the world for practicing unethical practices and exploiting human and labour rights blatantly. Nike howver has refused the allegations but media has constantly shown proofs of the unethical practices done by Nike and other such firms around the world. It thus becomes essential for the companies like these to follow ethical practices, respect the human rights and labour laws while trying to cut the costs in such activities.

Many corporations lobby with the government agencies to enable them to do the business in foreign markets as is the trend in the globalised world. While conducting such practices business organisations need to adhere to moral responsibilities and right conduct to make sure that they do not involve themselves in wrong practices (Porter, 1998). It has been seen by many that business organisations bribe politicians to make an easy entry to foreign markets or ask political groups to modify norms and policies in their favour so that they can conduct business freely. Some of the other ethical concerns which emerge in the international business are unauthorized payments to several parties and favours and gifts to the political parties or business organisations. Many companies particularly the oil and gas exploration companies have faced charges as they have been found charged of environmental issues. In some of the cases corporations have also come under scanner over the employee conflict of interests and the sexual harassment charges. Organisations thus need to understand there their moral responsibility also increases as they operate internationally in multiple markets. They need to comply with not only the local laws and regulations but also with the global ones related to human rights, business ethics and labour laws. The importance has become more crucial as consumers also give it a great deal about the ethical practices of the companies with whom they deal with.

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