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Global organizations need to adjust to various cultures in today’s international marketplace. Global organizations mainly focus on creating globally-minded communities. They aim at connecting people of different countries, backgrounds, and majors through events that involve business networking, sustainable development, volunteering, and cultural experiences. In the business context, it is very important for global organizations to make informed decisions that will help to expand market shares with the advancement in technology and the expansion of international trade (Zambrano, 2017). Businesses that carry out their activities with the help of global organizations are able to operate on a global level and therefore enjoy the benefits of reducing costs, becoming more competitive, and expanding their market share. As such, intistutional leaders should have a clear comprehension of such variances and ethical issues when making strategic decisions.
Multinational business organizations own or control the production of services and goods in various countries. The most common characteristics of multinational business organizations are that they are large in size and they carry out their activities all over the world. The main functions of these business organizations are to export and import goods and services, make significant investments in foreign countries, selling and buying licenses in different foreign markets, and starting assembly operations or opening manufacturing facilities in foreign countries (AlSagheer, 2011). Multinational business organizations gain in a variety of ways from their global presence. By spreading their advertising costs and expenditures, utilizing managerial and technological know-how, these business organizations are able to benefit significantly from economies of scale. In the Middle East, multinational business organizations are oligopolistic corporations in which management ownership, sales, and production activities cover several national jurisdictions (Godley, 2008). These business organizations consist of head offices in a particular country with subsidiaries in different countries. Some of the common multinational business organizations found in the Middle East include EFG-Hermes, Aujan industries, and Orascom Construction.
Aujan Industries is one of the leading multinational business organizations in the Middle East. The growth of Aujan industries came about as a result of organizational structure and innovation, global outlook, quality branding, good talent management, and good governance (Gao, 2009). Despite the growth and expansion of Aujan Industries, corruption acts the main ethical dilemma confronting the industries. From the point of a manager, an ethical dilemma in business is a conflict between the social and organizational economic performance of the multinational business organization. Ethical dilemmas can appear to be handicapped in international businesses (Hanson, 2014). In the business context, organizations have the choice of behaving unethically or failing to do so. Corruption is one of the evident ethical dilemmas that affect the functioning of Aujan Industries at a global level.
The moral approach used when making ethical decisions greatly determines the outcome or the impact of the decision. Decision makers are the ones who are responsible for making informed decisions that either lead to the growth of an organization or the fall. Decision makers may decide to act on behalf of their interests by making decisions that will benefit them or in the interest of the organization even when they have their self-interests in mind (Nooraie, 2008). Some of the involuntary conducts used by decision makers during the decision-making process include; in-group favoritism, conflict of interest, forms of implicit judgments, and over-claiming credit. These involuntary conducts are the ones that have the potential of intervening in the cause and process of a biased decision-making even for people who have self-evaluation and good evaluation.
A large multinational business organization like Aujan Industries has well-defined ground rules from its code of ethics. The code of ethics used by the Aujan industries helps the organization to provide regulation that is important in answering moral and ethical problems. The ground rules which act as the set values for Aujan Industries help to establish behavioral guidance to the decision-makers in the organization (Kaptein, 2004). Before making any decision, decision-makers should be able to question if the decision they are making is right, fair or right. The value of Aujan Industries helps the organization to make informed decisions because the outcome of every decision made is assessed from different points of view. Analyzing or assessing a situation helps to soften the implications or to understand the implications and go for decisions that bring out the best results.
In case the organization faces an ethical dilemma; it is vital to review the existing company’s code of ethics to get formal guidance. When a decision maker consults an organization’s code of ethics, he or she manages to resolve the ethical dilemma. The codes of ethics of a particular organization help decision makers to weigh the cons and pros of the various business decisions (McKeown, 2009). When faced with a challenge, it is important to share the ethical dilemma with the supervisors to take advantage of their experiences. If a decision maker takes his or her ethical question to his or her supervisor, he or she can evade future problems in addition to solving the conflict.
Discussing an ethical dilemma with different executives is also very important. Executives are known to make the farthest-reaching decisions in organizations since they can add additional challenges and weight to ethical dilemmas. Speaking with colleagues and peers from other organizations is also important when it comes to solving ethical business dilemmas. It is important to speak or consult friends from different cultural backgrounds because it will help in gaining wider insights (McKeown, 2009). Reading past articles or carrying out research on the different challenges of various organizations and how to solve them helps in solving similar cases. Past news will help to provide a glimpse of what organizations should expect if the decision makers were to make decisions that are similar to those made by other organizations.
In conclusion, despite the fact that ethical behaviors and decisions may not be profitable every time, unethical behaviors and decisions tend to generate sustainable losses in the long run. Multinational business organizations should try and adopt a certain moral attitude which they can use as a reference. The moral attitude and value of an organization are very important when it comes to the application of standards in the process of decision-making based on the organization’s moral conscience, consumers’ long-term welfare, and personal integrity. Creating ethical cultures for managers, investors, and consumers are very important when it comes to the process of shaping ethical business environments. Institutional leaders should have a strong comprehension of ethical issues that affect decision making process to avoid losses or wrong decision making since bad decisions negatively affect the performance of any organization. Decisions should not be rushed but instead well thought over by the various decision makers in a moral and more rational way.
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Godley, A. (2008). Editors' Introduction: Business History and the Middle East: Local Contexts, Multinational Responses--A Special Section of Enterprise & Society. Enterprise and Society, 9(4), 631-636.
Hanson, K. O. (2014). Six Unavoidable Ethical Dilemmas Every Professional Face. Business and Society Review, 119(4), 537-552.
Kaptein, M. (2004). Business Codes of Multinational Firms: What Do They Say? Journal of Business Ethics, 50(1), 13-31.
McKeown, T. J. (2009). How U.S. Decision-Makers Assessed Their Control of Multilateral Organizations, 1957-1982. The Review of International Organizations, 4(3), 269-291.
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