Navigating Cultural, Legal & Ethical Challenges in Global Business - Essay Sample

Introduction

Companies are expected to understand the mission, vision, policies as well as legal and ethical issues as they venture globally. New business ventures mean that they have to the full understand the cultures and deal with both moral and ethical challenges in these new environments. These short term and long term plans help the company to be successful in the international setting. Some of the ethical issues in international business include working conditions, workplace diversity, outsourcing, as well as quality manipulation, as in the case of Volkswagen.

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To avoid ethical issues, the company can, for example, comply with the quality standards and ensure that what they market is what they sell to the consumers. It is expected that such a reputable country would not cheat about its emissions. Being honest about a product or service is very critical and helps in enhancing customer loyalty (Doell, 2012). Additionally, knowing the laws of the host land and following them strictly. Many countries are environmentally conscious, so if they realize a company has is not following the guidelines or is cheating to evade the regulations, they are bound to question the company (Hotten, 2015). Volkswagen should have ensured that their carbon dioxide emissions levels were low. They should have restrained from using software to manipulate the tests.

When opening the branch of a company in another country, the Tesla manager needs to be aware of the environment that the company is setting up a branch. Knowing the environment enables the manager to identify the best entrance strategy into the environment, there is a way of doing things in any country (Doell, 2012). The manager needs to identify the target market and come up with strategies to convince them to purchase the vehicles. The role of the manager is ensuring that all operations of the company are running smoothly.

When a company is producing its goods or services, it should ensure that everyone in the society enjoys their liberty maximally without intruding on the freedom of others (Doell, 2012). The liberty principle and the difference principle help in ensuring that the social contract governs the people. Even in the absence of laws and environmental regulations, Volkswagen should have ensured that their products cause environmental destruction by releasing excess carbon dioxide in the atmosphere.

There are limitations that one is likely to face when managing companies in foreign countries. Tesla manager in Kazakhstan needs to be aware of the limitations and avoid complications. The limitations include the rules and policies set by Kazakhstan against foreign companies and their employees. The law limits the activities that the manager can engage in. There also limitations in staffing regarding how hiring should be done. The interests of shareholders undermine the position of managers because they are interested in earning dividends. Their interests undermine managers by influencing the decisions regarding the growth of the company, including financial decisions (Doell, 2012). The business is responsible for the arms because it's the source of the problemcompanies need to make differences in their work and the way they do things to avoid conflict with the various stakeholders.

Conclusion

In conclusion, companies are expected to understand ethical issues that they are likely to face during the global venture to ensure they successfully engage in business. They can avoid ethical scandals by ensuring that they understand the laws and regulations of the host country and follow them strictly. Even with the absence of laws and regulations, a company should endeavor to follow the social contract.

References

Doell, L. (2012). 6 Tips to Navigate the Ethics of Global Business. Retrieved 3 October 2019, from https://www.americanexpress.com/en-us/business/trends-and-insights/articles/6-tips-to-navigate-the-ethics-of-global-business/

Hotten, R. (2015). Volkswagen: The scandal explained. Retrieved 3 October 2019, from https://www.bbc.com/news/business-34324772