Advantages And Disadvantages Of International Business Ethics

617 Words 3 Pages
Register to read the introduction… Lack of Enforceability * Another disadvantage of maintaining ethics in international business is the lack of enforcement for the other companies who break the rules. Chad Philips Brown states in his book, "Self-Enforcing Trade: Developing Countries and WTO Dispute Settlement," that low preferential tariffs are nearly impossible to enforce. Therefore, countries that charge a high amount for certain imports to protect their local economy face few consequences despite the illegality of the act as outlined by the World Trade Organization.
Potential and Consideration * Consumers exert considerable influence over the ethical behavior of corporations, particularly in international affairs. For instance, the high demand for fair trade coffee compelled many large companies such as Starbucks and Pete's Coffee to offer it as part of their menus. Similarly, consumer demand for wooden products not originating from rainforests is also increasing, which in turn inspires companies to use renewable, sustainable materials such as bamboo. Therefore, one of the strongest drivers of international business ethics is the consumer and his spending

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