Ethical Issues Affecting Business Organizations Essay

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When businesses of developed nations do business internationally, they must deal with an array of human and labor right differences. The company must learn about these areas of difference and must make ethical decisions about how they produce within these countries. Businesses in the modern world are expected to behave ethically, even by law in most developed countries. Therefore, they must balance their goal of earning a profit with ethics. Businesses today are tempted to bypass ethical issues in order to gain profit by exploiting the developing nations. However, with the constant scrutiny of current business practices by governments, the media, pressure groups, and consumers, ethical risk management has become an important factor in doing business internationally. The first recurrent human rights issue for businesses is workplace health and safety. Employers must ensure safe work practices for their employees who have the right to a safe work environment. However, workplace safety standards tend to vary from country to country, and this is where issues begin to arise. Many Multinational Corporations choose not to own or operate the factories that produce their products. Some companies move into developing nations with the sole intention of subcontracting production in work environments that have weak regulations as well as low cost labor and operation costs. Welcoming Multinational National Corporations to developing countries is not all bad, because they do provide…

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