Ethics in International Business
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Ethics in International Business
The issue of applying ethics in international business activities has been a major challenge when compared to local operations. The variables that exist such as cultural differences in the code of ethics make it highly difficult to adopt a standard set of ethical behavior. The clash between domestic, international, and corporate regulations and laws as well as the extent of compliance with these administrative demands forms the core of this speech. The corporation in question is the Japanese automobile manufacturer, Toyota. The ethical violation by the carmaker revolved around the intentional concealment of the safety defect that affected the acceleration and braking in their vehicles. As a manufacturer of automobiles, Toyota works under a platform of laws and systems that are formulated to take care of consumer’s safety. By choosing to conceal the critical safety issues, Toyota provided a wrong impression to public consumers and even furnished the Congress with doctored reports.
The Toyota executive and management team exhibited the problem of adherence to a code of ethics particularly to Japanese and international industrial regulations. The quality assurance team failed to comply with the regulations by implementing low standards of inspection and assembly. The relatively liberal environment at international levels allowed Toyota to pass most hurdles and release the flawed vehicles for distribution and use. The issue of placing financial profits as the highest priority and disregarding safety and brand reputation within Toyota culminated in massive financial losses and drop in reputation of the firm. Although ethical situations are usually sensitive and unique, developing a tradition of analyzing projects on a case-by-case basis will avoid complications such as those experienced by Toyota. Nonetheless, ensuring strict compliance with local, international laws, and regulations will contribute towards creating an ethical environment for Toyota Corporation.