Corporate Social Responsibility
Part A - Challenges of responsible business
Introduction
With the globalisation of world business, China has become an appealing market for foreign investors (Zhang, 2004); a large number of these entered the Chinese market by forming joint ventures or participating in mergers and acquisitions. The development of cross-national business, on one hand, has created tremendous opportunities for global collaboration among different countries; on the other hand, however, it has also created a unique set of ethical problems.
“As one expert estimates that about two-third of the 500 largest American corporations have been involved in one form of illegal behaviour or another” (Gellerman, 1986). Many large multinational companies are more likely to treat Chinese market as a mechanism to save money rather than a strategic business partner. It is obvious to see from recent news that many large companies have conducted unethical practices in China. For instance, Nike’s alleged sweatshops in China: “in 2005 and 2006, Nike ‘secured’ more than 6.53 million yuan ($911,000 Canadian) in back wages owed to workers in China.” (Reuters News Agency, 2008)
This paper analyses how large multinational companies overcome the challenge of managing its diverse stakeholders ethically when they doing business in China. I have intended, in my analysis, to accomplish four goals in discussing diverse stakeholder challenges. First, I will discuss how to judge unethical practices in pan-national business operations and the risks which are incurred. Secondly, I will explain how large multinational companies and individuals within the companies need to behave to avoid unethical behaviours. Finally, the paper presents some self-reflection on theory and how issues of business ethics can be addressed in the future.
Business ethics and the challenge of ethical behaviour
The term “business ethics” is often in the news these days. By definition, “Business ethics is the study of business
Introduction
With the globalisation of world business, China has become an appealing market for foreign investors (Zhang, 2004); a large number of these entered the Chinese market by forming joint ventures or participating in mergers and acquisitions. The development of cross-national business, on one hand, has created tremendous opportunities for global collaboration among different countries; on the other hand, however, it has also created a unique set of ethical problems.
“As one expert estimates that about two-third of the 500 largest American corporations have been involved in one form of illegal behaviour or another” (Gellerman, 1986). Many large multinational companies are more likely to treat Chinese market as a mechanism to save money rather than a strategic business partner. It is obvious to see from recent news that many large companies have conducted unethical practices in China. For instance, Nike’s alleged sweatshops in China: “in 2005 and 2006, Nike ‘secured’ more than 6.53 million yuan ($911,000 Canadian) in back wages owed to workers in China.” (Reuters News Agency, 2008)
This paper analyses how large multinational companies overcome the challenge of managing its diverse stakeholders ethically when they doing business in China. I have intended, in my analysis, to accomplish four goals in discussing diverse stakeholder challenges. First, I will discuss how to judge unethical practices in pan-national business operations and the risks which are incurred. Secondly, I will explain how large multinational companies and individuals within the companies need to behave to avoid unethical behaviours. Finally, the paper presents some self-reflection on theory and how issues of business ethics can be addressed in the future.
Business ethics and the challenge of ethical behaviour
The term “business ethics” is often in the news these days. By definition, “Business ethics is the study of business
References: Rosenberg, S., Heimler, R. & Morote, E. (2012), "Basic employability skills: a triangular approach", Education + Training, vol. 54, no. 1, pp. 7-20. Oertig, M. & Buergi, T. (2006), "Thechallenges of managing cross-cultural vitual project teams", Team Performance Management , vol. 12, no. 1, pp. 23-30. Robinson, J.P. (2000), "What are Employability Skills?", Alabama Cooperative Extension System, vol. 1, no. 3, pp. 1-3. Smith, E. & Comyn, P.(2003), The development of employability skills in novice workers, NCVER, Australia.