journal ethics


Tugas Journal Business Ethics
Journal of Academic and Business Ethics
International business ethics: strategies and responsibilities
Iraj Mahdavi,
National University
This paper examines the importance of global ethical business responsibilities.The recent public scandals of corporate malfeasance have heightened this need and organizations face numerous ethical issues. Strategies such as codes of conduct, developed by various international entities, can guide multinational corporations in thiseffort. The authors also analyze various ethical climate and ethical problems. Author concludes that a global code of ethics, developed and enforced by an international agreement is the best means of bringing ethics to international businesses.
Key Words: Business Ethics, Global business, International Organizations
Importance of ethics in the business world is superlative and global. New trends and
issues arise on a daily basis which may create an important burden to organizations and endconsumers.
Nowadays, the need for proper ethical behavior within organizations has become
crucial to avoid possible lawsuits. The public scandals of corporate malfeasance and misleading
practices, have affected the public perception of many organizations (e. g., Enron, Arthur
Andersen, WorldCom etc.). It is widely known that advertising does not promote the
advancement of human moral sensibility. Lascha��s contention (1978: 1) that modern advertising
a�?Seeks to create needs, not to fulfill them: to generate new anxieties instead of allaying old ones.
. It addresses itself to the spiritual desolation of modern life and proposes consumption as the
curea�? seems to still be true. The recent expansion of global business and fall of trade barriers worldwide have further underlined the interest in the topics of ethical behavior and social responsibility (See among others, Jones, 1991: 366-395). In addition, as many scholars believe, human rights and environmental conservation are gaining increasing more recognition in both academic and commercial settings.
As multinational companies expand globally and enter foreign markets, ethical conduct of the officers and employees assume added importance since the very cultural diversity associated with such expansion may undermine the much shared cultural and ethical values observable in the mores homogeneous organizations (Mahdavi, 2001). Although understanding of other cultures and recognition of differences among them will enhance the cross-cultural communication, it may not be sufficient to provide viable guidelines of proper ethical behavior in organizations. Thus, concerns about unethical behavior of corporations in other countries, are manifested in legislations such as The Foreign Corrupt Practices Act of 1977, and the Sarbane-
Oxley Act of 2002. In the academic arena, on the other hand, the culture-based consequentiality
model is developed to explain, among other things, how cultural differences alter the ethical
perception and actions of individuals engaged in making decisions with ethical overtones
(Robertson and Fadil, 1999: 385-392).
Turnen-Red and Woodland (2001:61) stated:
“Through the post-World War II period international trade policy reform has seldom been absent from the mind of policy-makers. The formation of General Agreement of Tariffs and Trade (GATT) as a forum for the discussion of international trade and policy issues and the resolution of disputes, and as a sponsor of regular rounds of multilateral negotiations leading to a substantial drop in the average level of tariff protection, has ensured the trade policy issues have retained currency. More recently, there has been considerable focus on bilateral and regional trade agreements with the expansion of the customs union of the European Community and the advent of organizations such as the North America Free Trade Agreement (NAFTA) and Mercusor. Nevertheless, cooperative trade policy remains an important part of the international landscapea�?.
Wimbush and Shephard (1984: 637-647) reported that businesses annually spend an estimated $40 billion on the ethical behavior problems. Thus, pointing to the fact that ethical dimension of employeesa�� behavior has a clear impact on the profitability of the company. In order to improve the ethical climate of an organization, management must effectively communicate proper ethical behavior throughout the organization. Training sessions, codes of Journal of Academic and Business Ethics
ethics, reward systems, and coaching are a few methods that organizations employ in this regard
(Delaney and Sockell, 1992:719-727; Laczniak and Indemeden, 1987: 297-307; Jansen and Von
Glinow, 1985: 814-822).
Therefore, the problems that organizations face today are: How ethical values are communicated
most effectively to employees? Which communication channel works best?
American business in spite of all of its faults and weaknesses, still form a key model for much of
the world. An important force in disseminating the American style of management is the role of
the U.S. as the worlda��s largest manufacturer of contemporary culture. Moreover, many
researchers have pointed to the significant role that the American business schools play in
propagating the U.S. style of management throughout the world. (See Mahdavi, 2001; and
Nimgade, 1989:104, among others)
Morf (1999: 265) believes: a�?Ethics is the moral principle that individuals inject into their
decision making process and that helps temper the last outcome to conform to the norms of their
societya�?. Moreover, ethical principles have the very profound function of making behavior
predictable (Mahdavi, 2003). The truly global companies must come to grips with the legal and
moral atmosphere in which they operate. But above all, they need to establish an environment
that fosters ethical behavior, because in the final analysis to do otherwise cuts into their
In contrast to this view a group of scholars put forth the theory of Virtuous Ethics, which
is defined as a theory that focuses mainly on an individual’s moral character. According to these
scholars, marketing researchers have paid little attention to virtuous ethics. Furthermore, they
propose that without taking virtuous ethics into account, a comprehensive analysis of the ethical
character of marketing decision makers and their strategies cannot be attained.
Getz (1990: 567-577) analyzed international codes of conduct in four entities: (1) the
Organization for Economic Cooperation and Development (OECD), which is the primary policymaker for industrialized nations, (2) the International Chamber of Commerce (ICC), which is concerned with fair treatment among multinational corporations, (3) the International Labor
Organization (ILO), which is concerned with direct investment in developing countries, and (4)
the Center for Transnational Corporations (CTC), whose objective is to maximize the contributions of transnational corporations to economic development and growth and to minimize the negative effects of the activities of these corporations.
These various codes were developed in order to establish order among multinational corporations; although, some organizations refuse to abide by these codes, mainly because national governments have not sanctioned them completely. Without uniform and full enforcement, multinational organizations could have rampant choice in international ethical issues. Underlying this lack of consensus is the issue of national as well as corporate culture (See
Hofstede, 1980: 46-47). Every nation is different and every multinational organization is in one
way or another distinct in the way they do business, especially in other countries. In addition to these codes, the moral corporation should address human rights and whistle blowing and the international ethics code under which it operates. These issues are not very new. In a survey of 300 multinational corporations, 80 percent agreed with seven items being ethical issues for business: (1) employee conflict of interest, (2) inappropriate gifts to corporate personnel, (3) sexual harassment, (4) unauthorized payments, (5) affirmative action (6) employee privacy; and (7) environmental issues (Brooks, 1989; Berenheim, 1987, 1989: 117-129). Journal of Academic and Business Ethics.
Strategies, such as these codes of ethics, are only one means of achieving the ultimate goal of having ethical international responsibility in the engagement of business worldwide. As stated above, there are many ethical responsibilities faced by multinational organizations. Theorists generally agree that situational variables such as organizational climate can affect ethical behavior of individuals (Kelly et al., 1989: 327-340). However, there have been no attempts to study the relationship of ethical climate of an organization and ethical behavior of its members.
Ethical climate, it must be emphasized, is not the same as culture is commonly perceived,
but rather a broader concept of culture (Schein, 1990, pp. 109-119). Culture is believed to be
more associated with deeper beliefs, values and assumptions (Denison, 1996, pp. 619-654).
Therefore, just as one can value an individuala��s culture by his or her actions and personal
activities, ethical climate can be observed on a larger scale; in this case, the organization. Ethical
climate is, in essence, the employeea��s perception of the norms of an organization (Bartels et al.,
1998: 799-804).
As Bartels and others have shown (1998:799-804), organizations with a strong ethical
climate experienced few serious ethical problems, and were more successful coping with such
problems. Their research suggests that it is imperative for managers to consider developing strong ethical climates if they aim to provide organizational members the ability to handle ethical
dilemmas and to avoid any inherent liabilities. Managers must create and maintain a clear and
strong set of norms to promote good ethical behavior.
In this approach, a persona��s own beliefs and values and their influence on his/her
perception and behavior are not taken into account. Nonetheless, ethical climate is a very potent
tool in steering the behavior of an organizationa��s members. As Mahdavi has shown (2003, 2005),
an organizationa��s codes of ethics and enforcement of rules go a long way to control and direct
behavior of social entities.
Based on the above discussion, global corporations must recognize the need for a uniform code of business ethics since without such a code, behavior of actors in this arena remains unpredictable. Furthermore, national governments must realize that probably the most effective means of protecting their citizens, their national interests, and the global environment against the
ravages of the over-reaching global business rest in the development, adoption and enforcement
of such a code. Until then, it is not realistic to hope for any such international agreement to be
adopted. However, a growing momentum for such a movement is observable. As stated in
previous pages, international organizations, especially those involved in international business,
finance, labor, economics and environment are developing rules and policies that can be regarded as the building blocks of a universal code of business ethics. Until such a uniform body of rules is drawn, signed and enforced, global corporations and organizations will be doing well to develop their own codes of conduct, applicable to all of their officers regardless of location.
Examination of the recent development in the international trade and the far-reaching expansion of global entities lead the authors of this paper to the inevitable conclusion that ethical issues and concerns facing business entities are no longer related to the limited frameworks of Journal of Academic and Business Ethics, national or even regional arenas. These issues have assumed global dimensions and as such require global solutions.
To that end, it is postulated that probably an international organization is the best vehicle through which a code of ethics covering all aspects of business can be developed. Once- on the basis of such a code- an international treaty is drafted, signed and ratified; it may be prudent to leave the implementation of the treaty to the member nations subject to regular audit by an independent international body. WTO may eventually take on this role. Meanwhile, global organizations need to develop and enforce their own codes of ethics specifically directed at the issues related to a multicultural, multinational business environment.
Bartels L.K. et al.: 1998, a�?The Relationship between Ethical Climate and Ethical Problems within Human Resource Managementa�?, Journal of Business Ethics 17, 799-804.
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Brooks, L.J.: 1989, a�?Corporate Codes of Ethicsa�?, Journal of Business Ethics 8, 117-129.
Delaney, J. T. and D. Sockell: 1992, a�?Do Company Ethics Training Programs Make a
Difference? An Empirical Analysisa�?, Journal of Business Ethics 11, 719-727.
Denison, D. R.: 1996, a�?What is the Difference between Organizational Culture and
Organizational Climate? A Nativea��s Point of View on a Decade of Paradigm Warsa�?,
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Systemsa�?, Academy of Management Review 10(4), 814-822.
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Modela�?, Academy of Management Review 16(2), 366-395.
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Research Organizationsa�?, Journal of Business Research 18, 327-340.
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upon Ethical Decision Makinga�?, Journal of Business Ethics 6, 297-307.
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Expectationsa�?, (Norton, NY).
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Journal of American Association of Behavioral and Social Sciences, Fall 2001
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Older?a�? Proceedings of the International Business Association, Conference, 2003.
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Business Association Conference, 2005.
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Large Organizationsa�?, Journal of Business Ethics 20, 265-271: 1999.
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Horizons, November-December, 1989, Pgs. 98-105.
Journal of Academic and Business Ethics
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Relationship to Ethical Behavior and Supervisory Influencea�?, Journal of Business Ethics
13, 637-647.

Jurnal Akademik dan Etika Bisnis
Etika bisnis internasional: strategi dan tanggung jawab
Iraj Mahdavi,
Universitas Nasional
Makalah ini membahas pentingnya tanggung jawab global bisnis yang etis.
Skandal publik baru-baru ini perusahaan telah meningkatkan penyimpangan kebutuhan ini dan
organisasi menghadapi berbagai isu-isu etis. Strategi seperti kode etik, dikembangkan oleh entitas internasional, bisa membimbing perusahaan-perusahaan multinasional dalam hal ini usaha. Para penulis juga menganalisis berbagai masalah etika iklim dan etika. Penulis menyimpulkan bahwa kode etik global, dikembangkan dan ditegakkan oleh internasional kesepakatan adalah cara terbaik untuk membawa etika bisnis internasional
Jurnal Akademik dan Etika Bisnis
Pentingnya etika dalam dunia bisnis adalah superlatif dan global. Baru tren dan masalah timbul setiap hari yang dapat membuat beban penting untuk organisasi dan end- konsumen. Saat ini, kebutuhan untuk perilaku etis dalam organisasi telah menjadi penting untuk menghindari tuntutan hukum mungkin. Masyarakat skandal penyimpangan perusahaan dan menyesatkan praktek, telah mempengaruhi persepsi publik dari banyak organisasi (misalnya, Enron, Arthur Andersen, WorldCom dll). Hal ini secara luas diketahui bahwa iklan tidak mempromosikan kemajuan sensibilitas moral manusia. Contention Lasch (1978: 1) bahwa periklanan modern “Berusaha untuk menciptakan kebutuhan, bukan untuk memenuhi mereka: untuk menghasilkan kecemasan baru bukan yang lama menenangkan. .
. Ini alamat sendiri untuk kehancuran spiritual dari kehidupan modern dan mengusulkan konsumsi sebagai mengobati “tampaknya masih benar. Ekspansi terbaru dari bisnis global dan jatuhnya hambatan perdagangan di seluruh dunia telah lebih lanjut digarisbawahi minat dalam topik perilaku etis dan tanggung jawab sosial (Lihat antara lain, Jones, 1991: 366-395). Selain itu, sebagai banyak sarjana percaya, hak asasi manusia dan konservasi lingkungan yang mendapatkan pengakuan lebih meningkat di kedua akademis dan pengaturan komersial.
Sebagai perusahaan multinasional berkembang secara global dan memasuki pasar asing melakukan, etika petugas dan karyawan menganggap penting ditambahkan sejak keanekaragaman budaya terkait dengan ekspansi tersebut dapat merusak nilai-nilai budaya dan etika banyak berbagi diamati dalam organisasi adat istiadat homogen (Mahdavi, 2001). Meskipun pemahaman budaya lain dan pengakuan perbedaan di antara mereka akan meningkatkan lintas-budaya komunikasi, hal itu mungkin tidak cukup untuk memberikan pedoman yang layak perilaku etis yang tepat dalam organisasi. Dengan demikian, kekhawatiran tentang perilaku tidak etis dari perusahaan di negara lain, yang diwujudkan dalam peraturan perundang-undangan seperti The Foreign Corrupt Practices Act tahun 1977, dan Sarbane- Oxley Act of 2002. Dalam arena akademis, di sisi lain, consequentiality berbasis budaya model dikembangkan untuk menjelaskan, antara lain, bagaimana perbedaan budaya mengubah etika persepsi dan tindakan-tindakan individu yang terlibat dalam membuat keputusan dengan nuansa etika (Robertson dan Fadil, 1999: 385-392).
Turnen-Merah dan Woodland (2001:61) menyatakan:
“Melalui periode pasca Perang Dunia II Perang reformasi kebijakan perdagangan internasional
jarang absen dari pikiran para pembuat kebijakan. Pembentukan Persetujuan Umum Tarif dan Perdagangan (GATT) sebagai forum untuk diskusi tentang perdagangan internasional dan isu-isu kebijakan dan resolusi perselisihan, dan sebagai sponsor putaran reguler perundingan multilateral mengarah ke penurunan substansial dalam tingkat rata-rata proteksi tarif, telah
memastikan isu-isu kebijakan perdagangan telah mempertahankan mata uang. Baru-baru ini,
telah ada fokus besar pada perdagangan bilateral dan regional perjanjian dengan perluasan serikat pabean Eropa Masyarakat dan munculnya organisasi seperti Amerika Utara Free Trade Agreement (NAFTA) dan Mercusor. Namun demikian, koperasi kebijakan perdagangan tetap merupakan bagian penting dari lanskap internasional ” Wimbush dan Shephard (1984: 637-647) melaporkan bahwa usaha setiap tahunnya menghabiskan diperkirakan $ 40000000000 pada masalah perilaku etis. Dengan demikian, menunjuk pada fakta bahwa etika dimensi perilaku karyawan ‘memiliki dampak yang jelas pada profitabilitas perusahaan. Dalam rangka memperbaiki iklim etis organisasi, manajemen efektif harus berkomunikasi perilaku etis yang tepat di seluruh organisasi. Sesi pelatihan, kode etika, sistem penghargaan, dan pelatihan adalah beberapa metode yang mempekerjakan organisasi dalam hal ini (Delaney dan Sockell, 1992:719-727; Laczniak dan Indemeden, 1987: 297-307; Jansen dan Von Glinow, 1985: 814-822).
Oleh karena itu, masalah yang organisasi menghadapi hari ini adalah: Bagaimana nilai-nilai etika yang dikomunikasikan paling efektif untuk karyawan? Saluran komunikasi yang terbaik?
Bisnis Amerika meskipun semua kesalahan dan kelemahan, masih berupa model kunci bagi banyak dunia. Sebuah kekuatan penting dalam menyebarluaskan gaya manajemen Amerika adalah peran AS sebagai produsen terbesar di dunia budaya kontemporer. Selain itu, banyak peneliti telah menunjuk peran penting bahwa sekolah-sekolah bisnis Amerika bermain di menyebarkan gaya manajemen AS di seluruh dunia. (Lihat Mahdavi, 2001; dan Nimgade, 1989:104, antara lain)
Morf (1999: 265) berpendapat: “Etika adalah prinsip moral bahwa individu menyuntikkan ke mereka proses pengambilan keputusan dan yang membantu marah hasil terakhir untuk menyesuaikan diri dengan norma-norma mereka masyarakat “. Selain itu, prinsip-prinsip etika memiliki fungsi yang sangat mendalam untuk membuat perilaku diprediksi (Mahdavi, 2003). Perusahaan-perusahaan yang benar-benar global harus datang untuk mengatasi dengan hukum dan moral yang suasana di mana mereka beroperasi. Tetapi di atas semua, mereka perlu membangun suatu lingkungan yang menumbuhkan perilaku etis, karena dalam analisis akhir untuk melakukan sebaliknya memotong ke mereka profitabilitas. Berbeda dengan pandangan ini sekelompok ulama diajukan teori Etika budiman, yang didefinisikan sebagai sebuah teori yang berfokus terutama pada karakter moral individu. Menurut sarjana, peneliti pemasaran memiliki sedikit perhatian dengan etika berbudi luhur. Selain itu, mereka mengusulkan bahwa tanpa mengambil etika berbudi luhur ke rekening, analisis yang komprehensif dari yang etis
karakter dari pembuat keputusan pemasaran dan strategi mereka tidak dapat dicapai.
Getz (1990: 567-577) menganalisis kode etik internasional dalam empat entitas: (1) yang
Organisasi untuk Kerjasama Ekonomi dan Pembangunan (OECD), yang merupakan kebijakan utama pembuat untuk negara-negara industri, (2) International Chamber of Commerce (ICC), yang prihatin dengan perlakuan yang adil antara perusahaan multinasional, (3) Buruh Internasional (ILO), yang berkaitan dengan investasi langsung di negara-negara berkembang, dan (4) Pusat Korporasi Transnasional (CTC), yang bertujuan untuk memaksimalkan kontribusi perusahaan transnasional untuk pembangunan ekonomi dan pertumbuhan dan untuk meminimalkan efek negatif dari kegiatan perusahaan tersebut. Kode-kode berbagai dikembangkan dalam rangka membangun ketertiban di antara multinasional perusahaan, meskipun, beberapa organisasi menolak untuk mematuhi kode ini, terutama karena pemerintah nasional tidak direstui mereka sepenuhnya. Tanpa seragam dan penuh penegakan hukum, organisasi multinasional bisa punya pilihan merajalela di etika internasional isu-isu. Mendasari kurangnya konsensus adalah masalah nasional serta budaya perusahaan (Lihat Hofstede, 1980: 46-47). Setiap bangsa berbeda dan setiap organisasi multinasional berada dalam satu atau cara lain yang berbeda dalam cara mereka melakukan bisnis, terutama di negara-negara lain. Selain kode ini, korporasi moral yang harus menangani hak asasi manusia dan peluit meniup dan kode etik internasional di mana ia beroperasi. Isu-isu ini tidak terlalu baru. Dalam sebuah survei terhadap 300 perusahaan multinasional, 80 persen setuju dengan tujuh item yang etis masalah untuk bisnis: (1) karyawan konflik kepentingan, (2) tidak pantas hadiah untuk perusahaan personil, (3) pelecehan seksual, (4) pembayaran yang tidak sah, (5) tindakan afirmatif (6) karyawan privasi, dan (7) isu-isu lingkungan (Brooks, 1989; Berenheim, 1987, 1989: 117-129).
Strategi, seperti kode-kode etik, hanya satu cara untuk mencapai yang paling tujuan memiliki tanggung jawab internasional etis dalam keterlibatan bisnis di seluruh dunia. Sebagai dinyatakan di atas, ada tanggung jawab etis yang dihadapi oleh organisasi multinasional. Teoretikus umumnya sepakat bahwa variabel situasional seperti iklim organisasi dapat mempengaruhi etika perilaku individu (Kelly et al, 1989:. 327-340). Namun, tidak ada upaya untuk mempelajari hubungan iklim etis organisasi dan perilaku etis dari perusahaan anggota. Iklim etika, harus ditekankan, tidak sama sebagai budaya yang biasa dirasakan, melainkan konsep yang lebih luas budaya (Schein, 1990, hlm 109-119). Budaya diyakini lebih terkait dengan keyakinan yang lebih dalam, nilai-nilai dan asumsi (Denison, 1996, hlm 619-654).
Oleh karena itu, hanya sebagai salah satu dapat nilai budaya seseorang dengan tindakannya dan pribadi kegiatan, iklim etika dapat diamati pada skala yang lebih besar, dalam hal ini, organisasi. Etis iklim, pada dasarnya, persepsi karyawan terhadap norma-norma organisasi (Bartels dkk.,
1998: 799-804).
Sebagai Bartels dan lain-lain telah menunjukkan (1998:799-804), organisasi dengan etika yang kuat iklim mengalami beberapa masal