Ethics in Global Business
I recently read an article about the mess Halliburton got themselves into with bribery charges while doing business around the world. Business in different countries is done differently…many countries do have corruption. How should a company handle these situations? With ethics.
Now don’t get me wrong, I am not naive enough to think that many countries around the world make bribery and power a part of business, it can even be a part of their culture. Heck, I am sure it happens here in the U.S. too. I know that backroom deals and slipping people money can be common practice is certain parts of the world. I know that these situations are often common place in third world countries where governments don’t regulate business – well maybe they do but they can be paid off to look the other way.
Some things to consider when taking your business global, think about these things:
When dealing in business with people of other cultures, it is important to keep differences, at top of mind. Diversity is key to understanding the global marketplace your potential customers, business partners and vendors may have different perspectives on ethics and proper behavior than those you hold.
Understand where you are doing business
Entering global marketplace requires a global state of mind. Leave behind traditional American jargon and opt for international English including general, direct and courteous ways of communicating thoughts, feelings and ideas.
Don’t speak the language? Find someone who does. When it comes to verbal interpretations and written translations, take no short cuts. It is important that you and your global counterparts have a clear understanding your business dealings.
Know and understand the country and the culture of those with whom you will be working. Do your research. It is important that you know the boundaries when it comes to asking personal questions. What you think is polite conversation could actually be an offensive question or comment to someone else.
Be available and understand your global market
Broadening your marketplace broadens your workday. If you’re working with someone who is halfway around the globe, “nine to five” won’t always cut it. Be prepared to put in the occasional early/late and odd hours to make sure that everything is running smoothly. Time zone issues can cause a lot of frustration if you can’t communicate in real time.
Company information and your staff (including you) should be available when someone needs you. Be sure that your employees and partners around the world have access to the information they need in the language they need. Also, make sure there is a point of contact, should they need additional support. Remember, toll-free numbers don’t work outside of North America, so your global counterparts will need a direct-dial number.
Do what your mother taught you
When dealing in business on a global level, some of the basic rules still apply: play by the rules. Under the Foreign Corrupt Practices Act (FCPA), it is illegal for any individual, firm or anyone in connection with the firm to pay, offer to pay or bribe in any fashion foreign government officials to obtain or retain business. One exception to this act is “grease payments,” where firms will pay lower level government officials to secure routine government actions.
Getting into the global marketplace can be both challenging and extremely rewarding. Just be sure that you’re informed and ready to handle the additional responsibilities this work provides and you will have much success.
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