International platform

While corporate ethics emerged as an academic field in the 1970s, international business ethics did not emerge until the late 1990s, looking back on the international developments of that decade. Many new practical issues arose out of the international context of business. Theoretical issues such as cultural relativity of ethical values receive more emphasis in this field. Other, older issues can be grouped here as well. Issues and subfields include:

• The search for universal values as a basis for international commercial behaviour.

• Comparison of business ethical traditions in different countries. Also on the basis of their respective GDP and [Corruption rankings].

• Comparison of corporate ethical traditions from various religious perspectives.

• Ethical issues arising out of international business transactions; e.g., bioprospecting and biopiracy in the pharmaceutical industry; the fair trade movement; transfer pricing.

• Issues such as globalization and cultural imperialism.

• Varying global standards—e.g., the use of child labor.

• The way in which multinationals take advantage of international differences, such as outsourcing production (e.g. clothes) and services (e.g. call centers) to low-wage countries.

• The permissibility of international commerce with pariah states.

3. Corporate ethics management

It is known that an ability to act effectively in situations, which involve ethical aspects, is becoming one of the standards of corporate governance and a key element of business tasks solution and possible risks reduction.  Thus, selection, definition, coordination and promotion of regulating values, norms and principles make the major task of corporate ethics management.  Presence of corporate ethics standards is among the key factors that matter when, for instance, a company is planning an IPO. Ethical standards also help regulate the conduct of personnel in accordance with corporate values. Executable ethical standards are essential to reduce the risk of breaches when conventional measures of control prove inefficient. A system of corporate ethics to ensure that these standards are abided by is no less important than the standards themselves.

Corporate ethics presupposes the following works:

• Elaboration and introduction of corporate ethics code and other materials on values and ethics

A properly functioning corporate ethics code which is in line with standards of business conduct is an effective instrument of management enabling to maintain organisational identity at the level of reducing risks, enhancing reputation, abiding by laws and standards and of constructive relationship with a community.

To be successfully embedded into employees’ activities the code should reflect corporate identity and meaningful risk zones laid down plainly enough for employees to understand and accept them. This is why the following works are to be carried out:

• Creating a conception of values code project;

• Discussing the project with employees;

• Meaningful correction, approval and transmission of the code;

• Developing a system to implement the code or corporate ethics standards;

• Producing papers about corporate ethics policies.

• Creating, maintaining and developing business ethics infrastructure

The effectiveness of a company’s ethics code or business conduct standards is achieved by the code implementation system which comprises business ethics infrastructure as its key element. Depending on the size of an enterprise and the nature of business, business ethics infrastructure may include structural subdivision, separate and combined authorities, lines of communication, special procedures, document workflow, databases on difficult ethical situations. With the help of such infrastructure an enterprise may support employees and reward their responsible behaviour if it’s in line with the requirements, avert and discover breaches of standards or digressions from them to provide adequate response.  Moreover comprehensive programmes have to be designed to mould and support business ethics infrastructure falling into:

• Elaborating a conception of activities for departments, committees, commissions, business ethics managers and other company’s officers in charge of corporate ethics;

• Providing guidelines on proper functioning of dedicated lines on advice and communication in business ethics;

• Creating a viable communication network to carry out corporate ethics projects and programmes.