For many managers who venture overseas to do business in the global marketplace, the challenge of facing some questionable practices and different ethical principles can be overwhelming. Discuss

What will be an ideal response?

In developing countries, institutions are not always present to provide guidance to firms and their managers. Also, issues are more complex when people do not have the means to protect their rights and advance their interests. Poverty, lack of education, and inadequate health care create situations in which individuals cannot be expected to make the same decisions that would be made in a developed country. Furthermore, their governments may not have the means to provide the needed information, guidance, or regulation found in developed countries. In developed countries, for example, the liability system assigns the social cost of injuries to producers and consumers, creating incentives for care and the reduction of hazards. In addition, regulation establishes safety standards and requires information and warnings about hazards. If institutions are not present or function imperfectly in a developing country, business is without an important source of guidance. In such cases, the temptation may be to follow local practice. The consequences, however, may not be acceptable. Following local practice could lead to the exploitation of the ignorant and disadvantaged or the exposure of consumers or workers to hazards that they may not reasonably be able to avoid. Ethics provide guidance in such situations. Donaldson (1989,