Example of Cultures Clash on Ethical Standards

Question

Illustrates example of Cultures Clash on Ethical Standards?

Answer 1

United State companies are forbidden by the Foreign Corrupt Practices Act (FCPA) from paying bribes to political candidates, political parties, government officials, or others in all countries where they do business. The FCPA needs U.S. companies with foreign transactions to adopt accounting practices that make sure full disclosure of an organization’s transactions so that illegal payments can be detected.

Cross-country variability in business conduct and ethical principles make it a dreadful challenge for multi-national companies to motivate and educate their employees worldwide to respect traditions and customs of other nations and at the same time adhere to the company’s personal particular code of ethical behavior.