Ethical convergence and advantages of ethical convergence - MBA Notes

Write short note on Ethical convergence and advantages of ethical convergence - MBA Notes

A) Ethical convergence

Ethical convergence is defined as the practice of a uniform system of ethical codes in different countries that are culturally and socially different. Business ethics pertains to the application of ethics to business, and it is a matter of concern in the corporate world. It is almost similar to the generally accepted norms and principles. 

Behaviour that is considered unethical and immoral in society, for example dishonesty, applies to business as well.

There is a growing pressure on international business to follow a uniform set of guidelines in managing ethical behaviour and social responsibility across the countries in which they operate.

Some of the advantages of ethical convergence are:

· The growth of international trading blocks, such as North American Free Trade Agreement (NAFTA) and the European Union promotes common ethical practices across national cultures and borders to reduce institutional differences. 

Predictable interaction and behaviour among trading partners from different countries makes trade more efficient.

 
· People from different cultural backgrounds increase their interactions and exposure to varying ethical traditions. They adopt, adjust to, and imitate new behaviour and attitudes which leads to acceptance of best practices.

 
· International businesses have employees from different cultural backgrounds. The companies rely on their corporate culture to provide consistent norms and values that govern ethical issues to set common standards for employees from different cultural backgrounds.

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