Ethical Risks

According to business dictionary, ethics is "the basic concepts and fundamental principles of right human conduct." The newly operating shipping company in Mexico must establish a code of ethics to govern all employees, including management. In Mexico there are standard business practices that exist that simply do not exist in the United States. "It is common practice to test women for pregnancy before hired, a practice that is justified because of the mandatory paid leave-of-absence regulations in the country (www.mexconnect.com, 2011)." This could cause ethical risks because this is clearly discrimination when it is heard by American people. This will send a message saying that while some cases may be discrimination, some may not be considered in that nature. With the company setting standards such as this, I see the morale of the employees decreasing to almost non-existent. Other ethical risks involve language barriers, introduction of new laws and regulations, and production quantity versus production quality. The shipping company is new to Mexico, but with a team from the United States running the company; it is a necessity for the management teams to be bilingual. If management is lacking bilingual skills, offensive behavior will take place. The laws and regulations are different, which means research has to be conducted to ensure they are followed properly. Situations such as worker's compensation may be handled in entirely different fashion than it is in the United States. Leadership roles differ from country to country. It will be to management's advantage to learn the business skills and practices of Mexico's business community. In all companies, advanced production is essential to acquire success. Quality must be put at the forefront and should be conveyed to all employees about the importance of great product versus fair, but maximum production. Also, religion and holidays have to be recognized. For example, in the United States we celebrate Independence Day in July and in Mexico they celebrate Cinco De Mayo in May. Management has to change the delivery process and schedule holidays differently than what they may be accustomed to in the United States. Learning the basic ethical practices for doing business in Mexico will help to boost morale continuously, while proving success through hard work and excellent working relationships.

References

www.businessdictionary.com. Retrieved on October 9, 2011.

http://www.mexconnect.com/articles/1780-double-standards. Retrieved on October.