Consumer safety has always been one of the most important business ethics issue for so long as there have been regulatory agencies that test the products as well as considering them safe or unsafe. The work of those organizations if to ensure the safety of the products from the regulations that they have implemented and to report if they find out some unsafe effects particularly those that can jeopardize humans. One thing that should be considered is the relative peril of a product as well as the relative resources that are invested in it, both in the sense of research as well as development product is believed hazardous by the Consumer Products Safety Commission and either illegalized for sale in the US, product inventories are then moved to the regions where the product is considered illegal to be sold. This trend is referred to as product dumping.
In this brave new world, businesses are always competing with each other to achieve the market share in their product group. This competition between commerce has coined the word dumping. Dumping causes nations like the United States to establish antidumping laws, which look to avoid products manufactures abroad from being sold by overseas firms in America, less than the fair value. These laws were planned to obtain free trade between nations as well as advantageous to US consumers. On the other hand, in actuality their influence is anything although advantageous to the US consumers. Of inferior quality, these laws drive up the costs of imported parts utilized by other American enterprises, making their products less aggressive in global markets. Consequently, the antidumping laws, American consumers are paying higher prices for both international and national goods, as well as Americ...
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...nd particular nations if they desire to, although the government should not turn out to be concerned in private decisions like these. Governments should not formulate boycotts unlawful and should not forbid persons from ingoing into contracts with whomever they decide.
From a managing ethics viewpoint, managers should remain these arguments in governments. At the same time as it is frequently not a good initiative to break laws to perform business, it is from time to time completed, and there are occasionally methods to circulate the laws of one nation or another. Managers who attempt to scamper an ethical business must be capable to choose for themselves whether they desire to perform business with exacting individuals as well as governments. Their ethical options should not be prohibited by some administration that takes away their alternative to operate ethically.
After the War of 1812, cheaper British manufactured goods poured into American markets. In order to protect American “infant industries” from British competition, Congress passed a protective tariff in 1816. Proponents of the tariff reasoned that, without some protection, American would always be in the position of supplying raw materials (such as cotton) in ret...
“For a long time – a time so long that the men now active in public policy hardly remember the conditions that preceded it – we have sought in our tariff schedules to give each group of manufacturers or producers what they themselves thought that they needed in order to maintain a practically exclusive market as against the rest of the world. Consciously or unconsciously, we have built up a set of privileges and exemptions from competition behind which it was easy by any, even the crudest, forms of combination to organize monopoly; until at last nothing is normal, nothing is obliged to stand the tests of efficiency and economy, in our world of big business, but everything thrives by concerted arrangement. Only new principles of action will save us from a final hard crystallization of monopoly and a complete loss of the influences that quicken enterprise and keep independent energy alive.”
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
When America's cotton is sent to China, it is made into T-shirts in the sweatshops of China by laborers working 12-hour days and being paid subsistence wages. When the finished T-shirts re-enter the U.S., they are protected by the government through subsidies, tariffs, taxes, and protectionist policies that ensure that these foreign products will not provide too much competition to American-made shirts. Government regulations control how many T-shirt can be imported from various countrie...
Nelson, K., & Trevino, L. (2004). Managing business ethics: Straight talk about how to do it right (3rd ed.). New York: Wiley
Our week five case study, Mattel and Toy Safety, involves toy safety inspection and product recall concerns among outside contractors. In 2007, the infamous toy company, Mattel, recalled a very large number of toy products covered with lead-based paint that were manufactured in China. Mattel responded to the massive toy recall by increasing the testing of all products and reassuring its customers that they will take affirmative action to correct the recall issues as soon possible. In my opinion, I believe Mattel acted in a socially responsible and ethical manner regarding the safety of it toys because as soon as Mattel was aware of a European merchant finding lead paint on their toy products, Mattel conducted an immediate investigation.
“Ethics is about choosing or doing the 'right ' thing, the ethics of business is about making the right business decisions, or doing the right thing in business.” (Haddad, 2007) Each person decides
Ethics in business is a highly important concept, as it can affect a company’s profits, salaries paid to employees and CEOs, and public opinion, among many other aspects of a business. Ethics can be enforced by company policies and guidelines, set a precedent when a company is faced with an important decision, and are also evolving thanks to new technology and situations that arise due to technology usage. Businesses have a duty to maintain their ethical responsibilities and also to help their employees enforce these responsibilities in and out of the workplace. However, ethics and the foundation for them are not always black and white. There are many different ethical theories, however Utilitarianism, Kant’s Deontological ethics, and Virtue ethics are three of the most well known theories in existence. Each theory is distinct in that it has a different quality used to determine ethicality and allows for a person to choose which system of ethics works best with both the situation and his or her personal ethical preferences.
Many managers and organisations make the mistake of assuming that what’s wrong is illegal and what’s legal is right and if it’s legal it must be ethical. Yet many ethical dilemmas present themselves before the decision makers where right and wrong can not be clearly identified. They involve conflict between interactive parts – “the individual against the organisation or the societ...
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
Economic risks faced by companies that want to expand their business globally are exchange controls, local content laws, import restrictions, tax controls, price controls, and labor problems (Cateora, Gilly & Graham, 2011). These risks can be just as harmful, in some cases, as the political risks faced. As implied by its title, import restrictions are limitations placed on certain goods being shipped in from another country. “There are especially tight import restrictions on goods with a potential to be hazardous” (Dugger, 2016). Many restrictions are placed on imports in order to protect and promote the domestic market within the host country. Tax controls are put into place primarily to generate revenue and operating funds. Unfortunately, many companies that attempt to expand their business overseas experience unreasonably high taxes. Elevated tax rates can also be seen as a form of protectionism in efforts to deter threatening foreign companies from entering their market, thus allowing domestic companies to
One of the most cited arguments for intervention is that of protecting jobs and industries from unfair foreign competition (Hill). While industries like aerospace are protected given their importance for national security, job protection appears as a result of unions and industries putting political pressure given the threat of more efficient foreign firms (Hill). Many countries achieve this by increasing the tariffs on imports of foreign products. What really happens when a certain industry is ...
That is the reason that it is highly susceptible to a huge number of laws and regulations in order to ensure the health and safety of the consumers.
- Unsafe products can be banned ( product faulty and can not be sold again) or recalled (all stock taken back repaired and then put on the shelves)
International trading has had its delays and road blocks, which has created a number of problems for countries around the world. Countries, fighting with one another to get the better deal, create tariffs and taxes to maximize their profit. This fighting leads to bad relationships with competing countries, and the little producing countries get the short end of this stick. Regulations and organizations have been established to help everyone get the best deal, such as the World Trade Organization (WTO), but not everyone wants help, especially from an organization that seems to help only the big countries and those they want to trade with. This paper will be discussing international trading with emphasis on national sovereignty, the World Trade Organization, and how the WTO impacts trading countries.