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Running head: ASSIGNMENT

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Assignment
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ASSIGNMENT

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Describe the ethical challenges faced by organizations operating globally
Companies are always trying to find new ways to become more competitive in the
industry by providing goods at low prices to their customers (Ethical Considerations in
International Business, 2016). One of the ways is to outsource the production jobs to the
countries having cheap labor costs. The labor available in China, India, Mexico, and the
Philippines is cheaper than the labor available in the US. Various companies like IBM,
General Electric, Microsoft, Verizon, etc, have started outsourcing production jobs to low
wage countries. This has resulted in the unemployment of various workers.
The working conditions of the workers in the globally operated organizations are not
the same as of the United States, rather the conditions worse. Labour has to work for long
hours in a hazardous and uncomfortable environment with insufficient protection. However,
the United States has created various acts but those are applicable only in the companies
operating in the US and not outside the US.
Another major ethical challenge is bribery and corruption because not all international
companies follow the same rules. The foreign corporate managers and public officials are
bribed for the approval of a certain task. However, bribery is normal and expected in various
Latin American countries, on the other hand, it is strictly prohibited in US companies. For
instance, paying a bribe to the foreign government official is allowed in Germany and it is
deducted from the taxes (Woodruff, 2019).
Giving gifts is another ethical concern that is acceptable in Asian countries but
unacceptable in European countries and Canada. For instance, an expensive gift can be
considered usual and appropriate for the Japanese executive but it will be considered as a
bribe for a US executive. Another main concern is child labor as aro...