In modern Western contexts, it is generally wrong for officials to accept bribes. However, in societies that view their institutions as having a different nature and purpose from an individual's view of the nature and purpose, it is not necessarily wrong for businesses to provide bribes. This essay seeks to explore the moral ambiguities between different societies towards corruption and bribery, and also the dilemma that companies face when dealing with different practices while doing business globally using business ethics and theories . Every company has moral principles and guidelines that it follows, however there are no defined ethical practices that every company adheres to. Companies all share the same profit objective and must manage the impact of its activities on all its stakeholders. When a company adopts different ethical practices in the society in which it operates, it must consider from the business point of view and also from the ethical point of view. In societies where accepting bribes is a social norm, it seems that it is ethical to do so. For example, in China, where bribery and corruption are a norm in both the public and private sectors, Avon Products Inc, the world's largest cosmetics trader, launched an internal anti-corruption investigation after reports emerged rumors of corruption. In 2005, questionable payments of several hundred thousand dollars were made to Chinese officials and third-party consultants. Avon's actions violated the Foreign Corrupt Practices Act (FCPA) which prohibits U.S. companies from paying bribes to foreign officials. According to the FCPA, it is not proper to provide government officials with dinner and entertainment, however in China it is an essential practice to manage your own “guanxi”. It may have been more difficult for Avon... middle of paper... countries and foreign investment will boost their economy and benefit from it. However, if all foreign businesses do not follow local norms, the country will be forced to accept global norms or fall behind in globalization. Countries such as the UK and the US have adopted the FCPA which prohibits companies operating abroad from bribing local officials, yet have failed to take the companies to court. The United Nations International Labor Organization (ILO) was established to ensure ethical practices globally, however nations are only bound to its standards if they choose to agree to its conventions. The ILO is a good standard for businesses to adhere to, but it is not applicable to all local regulations. The FCPA and ILO must do more to ensure the same ethical standards are applied globally and to discourage bribery and corruption.
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