Ethical Dilemmas

54 feature | Business ethics

dilemmas ACROSS CULTURES

Ethical

A

CEO MIDDLE EAST | september 2007

s cultures collide in the world of business, and organisations seek a competitive edge in the global marketplace, executives must take care that their decisions and actions do not hurt their company’s reputation for acting with integrity. While ethical systems, such as those of the West and the Middle East, usually have much in common, there also can be significant areas of conflict when it comes to business practices. As a result, corporate executives may find that business practices acceptable in one place may be considered questionable in another. Examples of areas in the global economy that are rife with potential ethical conflicts include hiring practices, workers’ rights, women’s role in the workplace, internet access and child labour.

Business ethics | feature 55

These conflicts can arise in almost any business relationship, whether with competitors, business partners, consumers or even colleagues. Corporate executives need to learn how to recognise and resolve or avoid such conflicts. If they do not, they may end up straining business relationships, damaging brands and reputations, derailing their careers, or, in the worst case scenario, breaking the law. Simply going along with local practices may be the easiest approach, but it can be dangerous for a company’s reputation for integrity. For example, a company that openly opposes child labour or supports workers’ rights would end up looking hypocritical if it conducted business in partnership with a foreign company that used child labour or abused its workers.

The onus is on executives to understand local customs. By doing so, they are better equipped to head off potential conflicts

Get to know locAl customs

The onus is on executives to understand local customs. By doing so, they are better equipped to head off potential conflicts or, in cases where conflicts are unavoidable, come to a...