2. The Impact of Global Ethics on Leadership Decision-Making One of the challenges leaders face in the global environment is that are no global ethical standards. Robbins and Judge (2010) suggested that leaders of global organizations must establish ethical principles for decision-makers and modify them to reflect cultural norms if high standards are to be upheld and consistent practices are to be achieved. Global leaders must be both ethical and legal. International business leaders will frequently face ethical dilemmas such as corruption, bribery, and abuse of power. Ethics, according to Cavusgil, Knight, and Riesenberger (2013), are a consideration in all international business decisions and should be considered when making financial decisions. Bribery is very common in many countries and payments to gain favors are also legal and expected in some countries. Cavusgil et al. (2013) provided a list of countries with low corruption levels. These include Canada, Denmark, Finland, and New Zealand. They also provided a list of countries with high corruption levels, including several nations in Africa and the former Soviet Union states. Review some of the ethical issues a global leader will face: Falsifying/misrepresenting contracts or financial statements Paying/accepting bribes, kickbacks, or inappropriate gifts Tolerating sweatshop conditions, labor, or other employee abuses Employing false/deceptive marketing practices Engaging in deceptive, discriminatory, or predatory pricing Deceiving/abusing intermediaries in international channels Engaging in activities that harm the natural environment Review some examples of unethical behavior: Companies polluting the air, water, or land with factories Employing workers, even children, in conditions or for long hours at very low wages
2. The Impact of Global Ethics on Leadership Decision-Making One of the challenges leaders face in the global environment is that are no global ethical standards. Robbins and Judge (2010) suggested that leaders of global organizations must establish ethical principles for decision-makers and modify them to reflect cultural norms if high standards are to be upheld and consistent practices are to be achieved. Global leaders must be both ethical and legal. International business leaders will frequently face ethical dilemmas such as corruption, bribery, and abuse of power. Ethics, according to Cavusgil, Knight, and Riesenberger (2013), are a consideration in all international business decisions and should be considered when making financial decisions. Bribery is very common in many countries and payments to gain favors are also legal and expected in some countries. Cavusgil et al. (2013) provided a list of countries with low corruption levels. These include Canada, Denmark, Finland, and New Zealand. They also provided a list of countries with high corruption levels, including several nations in Africa and the former Soviet Union states. Review some of the ethical issues a global leader will face: Falsifying/misrepresenting contracts or financial statements Paying/accepting bribes, kickbacks, or inappropriate gifts Tolerating sweatshop conditions, labor, or other employee abuses Employing false/deceptive marketing practices Engaging in deceptive, discriminatory, or predatory pricing Deceiving/abusing intermediaries in international channels Engaging in activities that harm the natural environment Review some examples of unethical behavior: Companies polluting the air, water, or land with factories Employing workers, even children, in conditions or for long hours at very low wages
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