WORKSHOP: Ethical Behavior

Ethical Behavior and International Business Exercise:

1.        What does the statement “all capitalism is crony capitalism” is referring to? Do you agree with this statement or not? Give an example.

The statement is saying that instead of a company being successful due to the free market, the success of a company depends on the state, in other words the favoritism shown by the government by granting their favorite companies grants and permits. I do agree with the statement because I believe the government wants to manage, control  and influence everything, to do so governments rely on companies since they are huge influential components on people’s lives. An example is what happens with the multinationals in Colombia the government grants them all of this permits in exchange for money.

2.       What is a banana republic? Why the author is comparing India with a banana republic?

Banana republic refers to an unstable country that depends on bananas or of the agricultural sector and where corruption is abundant, where the poor people get poorer and the rich people get richer. The author compares the banana republic with India because like the author said “banana republics are based on cronyism” and if India continues this cronyism it will end up being an unstable country where those of lesser power will suffer the most.

3.       Why is it problematic that in the business world “The Media” becomes a corporation?

It is problematic that in the business world media becomes a corporation because it would be the dominant corporation. Because it would have the biggest profits compare to other corporations being the envy of everybody. Also the media would acquire stakes of other corporations having influence almost everywhere also there would be very few companies representing the interest of the citizens. They would also publish whatever they want with stories that are sometime better if they are not heard.

4.       In this situation, what behaviors are considered unethical for corporations, journalist and the state?

Behaviors considered unethical include the corporation deciding what is going to be written and by who. Other types of unethical behaviors done by journalist  is exaggerating over an issue  and in this way damaging the credibility of what is  being written, also the journalist indiscretion when publishing something. Lastly the most important type of unethical behavior shown by the state is corruption like in India by showing favoritism for some corporations.

5.       What can The Media, Corporations and the States do in order to behave ethically and in the benefit of the people and not their own interest. Give at least 5 good ideas.

n  The media can start publishing only things that are true and things they are not forced to do by the state or corporations in other words always transmitting the right information.

n  The state can start showing neutrality towards all organizations and leading companies be successful based on a free market rather than favoritism.

n  The state and corporations should always show responsibility and honesty in their work.

n  Corporations can also behave consistently, not changing what they do without a reason.

n  The state, the media and the corporations can start working for the best interest of others instead of only worrying for their profits.