8 Standards of International Corporate Ethics

Ethics goes a long way in building trust in an international business system. As information spreads faster along quickening fiber optic cables the world will continue to integrate in terms of interrelated laws, regulations, cultures, and business standards. Having an international standard of ethics is important in ensuring that companies are encouraging  better business environment. 

 When companies move into international locations they will need to understand and respect the cultures of those nations. There is a difference between respecting local culture and becoming involved in unethical practices. When few options are left, organizations can seek to remove themselves from such countries. Each company will decide what they stand for.

Today’s world needs a new way of looking at business and how that business interacts with other countries. Developing strong international ethical systems means that both companies and countries come to an understanding of what a “good international citizen” is. Below you will find 8 ethical standards (Be George, 1997):

1.      Do not intentional direct harm.

2.      Produce more good than harm for host countries.

3.      Contribute to the host countries development.

4.      Respect human rights.

5.      Respect local culture.

6.      Pay a fair share of taxes.

7.      Cooperate with local government when beneficial.

8.      Withdraw from a country if it becomes impossible to act with integrity.

De George, R. (1997). Human rights and the multinational enterprise. Dilemma, 6, 6–14.

The Advantages of English as an International Language

English is the language of business and offers unique advantages for international commerce and business education. As a communication medium, the ability to share ideas and conduct transactions across multiple continents helps speed up trade and idea sharing that often leads to wealth generation. The building of international relevance in the business world is fostered by connecting people and their ideas.

Consider the purpose of communication and its impact on the transference of information. When two people share similarities of a language, they need fewer feedback loops to understanding the conversation. Using the same language lowers the time it takes to propose and clarify propositions within daily interactions. This process of knowledge sharing speeds up exponentially and can increase the profitability that people will enhance knowledge.

American companies have an advantage because of the commonality English as a business language (Cavaliere, Glasscock, & Sen, 2014). The more English is used around the world, and the more likely the U.S will be advantaged from present and future business contracts. International commerce becomes more plausible when two companies can communicate and integrate easily. A similarity of language can create similarity of thought and purpose.

Language is embedded with codes, symbols, patterns of thinking and values. When a particular language is spoken in different cultures and locations, the people’s culture will begin to align with the values of that language. The more the people speak a particular language, the more they are going to find similarities with others who speak that language.

In the education arena, opportunities for employment in English speaking companies support English education.  English as a business language ensures that the majority of the great ideas and opportunities are supported by using the mental framework set out by the semantic structure of the language itself. Language changes the way we think and understand problems.

Using English as an international business language also helps in educating and employing individuals with American businesses. Graduating students will associate opportunity and education with English speaking companies. The eventual result is the attraction of talent to an opportunity like a magnet is attracted to metal objects.

The way we think is related to the way we talk and use words. Speaking in a particular language activates various centers in our brains and becomes part of our memories and thought processes. Using English as a business language helps people to understand the same perspectives and values that made America an economic powerhouse. Ease of communication speeds up the transference of knowledge, ideas and collaboration with other entities and countries. The commonality of language can encourage higher business theory development and marketing effectiveness.

Cavaliere, F., Glasscock, K. & Sen, K. (2014). The englishization of business: does this help or hinder teaching global business? Education, 135 (2). 

The Winners and Losers of Low Oil Prices-The Sweet Spot

There are advantages and disadvantages to oil. Some nations will capitalize on lower oil prices while others may see significant economic decline. Those dependent on exports are going to feel the most pain while those important oil are going to find the most benefits. Below is a video on the negative factors of low oil that appears to cover the issue from a shale industry perspective. Oil price has more of a sweet spot that is adjusted as technology, consumption, and production change.

The break even point of shale oil is somewhere between $60 and $80 per barrel (As cited in Bloomberg).  At present prices are between $74 and $80 per barrel; dangerously close to the break even point for shale companies. This of course means less hiring and expansion for this relatively new industry. When oil dips under $80 it puts pressure on international producers.

Despite the potential short-term damage to this new industry the general economy grows when oil is in the zone. Where the benefits of low oil push the economy forward through cheaper transactions costs, as well as put greater pressure on the shale industry to further develop. Cheaper alternatives are explored when oil prices are high and existing industries adapt when oil prices are low.

Some countries will be winners and losers in low oil prices. Those nations that rely heavily on oil to prop up their economies and maintain high oil production costs are likely to be the losers (i.e. Russia). Seventy percent (70%) the Russian Economy is dependent on oil prices and recent fiasco with bills highlight how important that oil is (As cited in The Week). This year Russia is likely to be the loser.

Nations that win from lower oil prices are already established or budding manufacturing centers where any reduction to the cost of doing business is a benefit for growth. Lower oil prices may help the U.S., China, Europe, and a few fast growing sectors in India and Asia. As with any change in prices there will be winners who are in a position to capitalize on cheaper costs and losers who will scramble to balance budgets.

Are Millennials Becoming Known as “Generation Unemployed”?

A growing crisis is unfolding among Millennials worldwide that could someday have an impact on international business. That is at least according to The Ground Truth Project that includes 21 fellows reporting from 11 countries. Global youth unemployment and few opportunities for training new skills are rising across the world.  Where these Millennials seem to be lacking in opportunity they are also trying to create their own avenues through entrepreneurship. 

They have been nicknamed “Generation Jobless” because they are unemployed and not enrolled in some type of formal schooling. They could someday be the chronically unemployed class of people who are not, or cannot seek, to improve their positions in life through formal channels. This makes them more likely to use alternative paths to achievement. 

Nearly a quarter of the world’s 15-24 year-olds are seriously struggling to meet the day-to-day needs of buying food, affording a place to stay or attending trade/formal post-secondary schooling. This is a generation where a large percentage lives in near despair every day making them a major challenge for business and government.

At present, Millennials should be entering into part-time introductory jobs to learn the necessary skills to earn higher wages later on in their careers. Without out these introductory jobs they will be lacking both education and on-the-job skill training to meaningfully fulfill highly skilled job openings.  

Since this is a phenomenon occurring in multiple countries it has implications for future business recruitment and consumption on a global scale. A generation of young people struggling to find their footing will naturally come along with a desire to change their circumstances. This is also a large generation much like the Baby Boomers that has shown a willingness to protest and support causes. 

Without opportunity many have moved toward starting their own micro and small business enterprises in an attempt to develop their own income streams. Their learning style appears to be more focused on a natural style of development outside of formal education. We can see the same mechanics at work with the initial interest in free MOOCs. 

With a decade of recession and rapid environmental change Millennials live in a different world than their parents and grandparents did. There is no such thing as a life-long job, substantive wage increases, or even a reasonable assumption Social Security will still be around when they retire. They are on their own, globalized, and transient making them one of the first generations forced to someday rewrite all the rules.  

http://thegroundtruthproject.org/2014/10/10/generation-t-b-d/

Developing Online Education to Meet the Needs of International Business

As business information and financial transactions increases there will be a need for more international oriented higher education curriculum. Online education affords an opportunity for greater global reach and revenue development without overburdening cost existing structures. Technology has adapted over the years to allow similar platforms of classes to be used across borders to encourage international higher education.

The global business community that makes up a large portion of international firms have different needs then domestic productions. Senior leadership positions will require a higher level of cultural awareness and additional understanding of how systems work within different cultures. Such leaders will need to develop a wider perspective commerce through proper preparation. 

International Education Models: 

Crossing international borders offer some advantages but rests on 1.) host institution, 2.) technology, 3.) learning models of students and 4.) learning models of teachers (Sadyknova & Dauterman, 2009). These four domains provide a way to understand how sharing resources and technology matched with sound learning and teaching theory can be beneficial.

Universities sometimes partner with other universities to offer programs that they do not or cannot offer themselves due to lack of enrollment. Under mutual agreement these universities may exchange programs to enhance both entities by sharing course resources. As technology increases and distance learning becomes mainstream the transference of shared courses will be easier.

Models for teaching online is also improving and as more universities conduct research in online education and adapt current models to teaching and learning in a virtual environment the stronger the system becomes. Some argue that online education is making its way from disruptive technology to mainstream with distinct advantages for both students and colleges who adapt it and financial disadvantages to those who don’t. 

Student Engagement as a Priority Factor: 

Having the right models and technology only brings you so far because it is the students that need to engage the classroom for higher levels of learning. It doesn’t’ matter much how efficient universities become or their models if students are not willing to engage the classroom. The same problem occurs in traditional and online education.

Engagement is influenced by the nature of the course, its technical approach, its practicality, and the students background (Pimpa, 2011). Students will need to find some interest in the actual course and believe that it is practical information that is beneficial for their futures. When they engage, pay attention and complete work they are more likely to be satisfied with the outcomes. 

Making It Work Together: 

Higher education can take any form from sitting under a tree to zooming cyber world as long as students learn practical information that enhances their lives and opportunities. Research is starting to support the financial and educational benefits of online education. Universities that are suffering under heavy legacy costs, supersized facilities, and expensive structures are seeking ways to revamp.

Online education has strong international possibilities as Internet access gains momentum in most developing nations with intense hunger for higher education. Sometimes these universities will partner, swap, or collaborate with domestic universities. At other times universities may decide to go it alone and develop their own curriculum to meet the needs of the local student population and the requirements of the international community.

Sadykova, G. & Dautermann, J. (2009). Crossing cultures and borders in international online distance higher education. Journal of Asynchronous Learning Networks, 13 (2).

Pimpa, N. (2011). Engaging international business students in the online environment. International Journal of Management Education, 9 (3).

Call for Papers: 3rd International Conference on Management, Economics and Finance

Abstract Submission: August 29th 2014
Location: Kuala Terengganu, Malaysia

3rd International Conference on Management, Economic and Finance (ICMEF 2014) is a traditional conference for scholars of Management, Economics and Finance studies, welcoming participants from around the world, with broad and diverse research interests. Among the many topics related to Management, Economics and Finance, the special focus of the conference is on social responsibility, professional ethics and management. Issues of ethical Management, Economics and Finance, social and environmental sustainability and cohesion of organizations, fair remuneration of workers and management have become prominent.

The aim of the conference is to present and discuss research that contributes to the sharing of new theoretical, methodological and empirical knowledge, and to better understanding. Papers related to issues of intercultural dialogue and multicultural societies are also welcome.

Web address: http://www.internationalconference.com.my