Question

What are some ethical issues that an organization may face when entering the global market? Do organizations have different brand messages for different ethnic groups and does an organization have ethical and social responsibilities when entering the global market? How do you determine the ethical standards in various countries? Provide examples of organizations that have effectively introduced products into foreign markets. Provide examples of organizations that have had other unsuccessful product introductions in foreign markets. What factors contributed to this unsuccessful attempt?

Answer 1

Some of the ethical issues are:

• Payment of full tax or adoption of tax evasion techniques is a dilemma that companies have to deal with.
• Also, for example beef burger is unethical to sell in India but McDonalds was selling it which resulted in a lot of backlash from the Indian audience and hence ethically they should not have sold beef burger.

Yes organisations have different brand messages and brand messages depend on the tastes and preferences of the people of that particular ethic group and are customized as per that only. Yes definitely when the organizations are entering the global market then they should be aware about the importance of CSR activities and in some way or the other they should contribute ethically in the social service as a payback to the country in which they are operating in.

Ethical standards can be determined by doing secondary research and reading the norms of the country. Also, previous organizations data and trends can be studied that what went successful and what had to face the backlash.

Some of the organizations who have successfully done this are McDonalds, Apple, Samsung and Nokia.

Some unsuccessful organisations are Lee (in some countries), Indiamart and Flipkart. Factors because of which they were not able to do so are inadequate secondary research and non-customization of products as per the tastes and preferences of the people.