Consider a situation where “David” works for a US based firm in another Country
ID: 3583772 • Letter: C
Question
Consider a situation where “David” works for a US based firm in another Country “XYZ”. The government in Country XYZ assesses taxes at an exorbitant rate as the firms are expected to report only 70% of their actual earnings. If a firm reported its actual earnings, the taxes would force it out of business. David’s firm is considering whether it should adopt the local practice of dishonestly reporting its profits to Country XYZ, even though it would be illegal to do this in the United States. Whatever the decision, the firm will continue to report its profits honestly to the US government.
Describe ethical issues raised in this case? Be sure to address cross-cultural nature of the issues. (Write 1 paragraph)
Using the ethical approaches found in the text for cross-cultural ethics, do you think there are any creative middle way solutions? If so, discuss one of them. Identify the positive and negative consequences that would result from this solution. (Write 1 paragraph
Explanation / Answer
Ethics involves two phases :
As this investigates the questions such like
In this situation wrong choice is to live with dishonesty.
As we know here the country XYZ expressing injustice and oppression on its business workers by posing these people to very huge taxes and they would be thrown out of business for being honest. In this case, David’s firm have to break the code of ethics in country XYZ as well as maintain honesty in their own country, because the culture at home is always based on truth.
-------------------------------------------------------------------------------------------------------------------------------------------------------------
In this scenario what I suggest is we see here there is a conflict for cultural ethics, they is only one alternative to deal with this issue and simultaneously not a solution but kind of resolution, which is if the country was just a person or organization where we can agree terms and conditions without harming other organizations. But what I see is law can’t be changed as this is a foreign firm, so the final solution is accepting the terms of foreign firm and move accordingly. So that our firm will be saved and on the other route we are against to the right of our cultural believes.