This paper will examine multiple topics that XYZ Construction, Incorporated should engross before expanding into the global market. In particular, the owners believe that Canada, Asia, and Mexico have niche markets for the company and are front-runners for market expansion. Furthermore, the owners believe that expansion into these markets will ultimately help increase their initial public offering (IPO) number. This paper will examine the issues present in the global market as it relates to ethics and social responsibility. In addition, this paper will study the considerations that are required for opening field offices in foreign countries with respect to international management and cultural diversity.
Ethical Issues within the Global Market
Before a discussion on ethical issues within the global market begins, a clear definition of ethics is useful for a common understanding. By definition ethics is a methodical approach to deciding the correct action(s) to take in a given situation (Ovaitt, 2008). Ethical issues are present, magnified, and extremely difficult to discern when considering the global market. This can be seen in, examining the following issues: child labor working age, sweat shops, abuse of labor rights, and discard for health, safety, and environmental standards. While all of the aforementioned topics are of high concern, child labor working age and environmental issues tend to stand out as major topics of concern.
There are many domestic child labor cases present in the United States of America; however, in foreign countries this issue is more dynamic. For example, Sharma (2009) says that India has a significantly high number of child labor cases (14-percent). That statistic leaves many perplexed because India has shown promising signs of increasing economic performance in recent years and it has a high per capita income coupled with a low illiteracy rate (Sharma, 2009, p. 29). In addition, South Asia has a high number of child labor incidences; in fact, they average about 7-percent annually (Sharma, 2009, p. 29). Government officials in South Asia recognize the high rates of violations and are currently implementing plans, policies, and programs to help reduce the large number of child labor incidences (Sharma, 2009, p. 29). XYZ Construction, Inc. must be vigilant and aware of the possibility of these types of child labor cases happening once they begin to expand and collaborate with companies in Canada, Asia, and Mexico.
With an increase in green house gases comes an increase in the number of ethical issues present within the global market. For example, Brown (2010) says scientists are noticing global evidence of threats posed to our ecosystems and human health caused by pollution. In particular, the pollutants that threaten our health and ecosystems are persistent organic pollutants (POPs) (Brown, 2010, p. 59-76). Persistent organic pollutants have multiple forms. There is a certain strand of the POPs...