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International marketing Due to the globalization of markets and production processes, an ever increasing number of marketers and business people have to deal with ethical issues in cross-cultural settings. In this article, main approaches in marketing ethics have been reviewed for ethical
analysis and decision making in international settings. The purpose of this article is to
present some guidelines that can serve as a guide for global marketers in the important
areas for marketing ethics. It is supposed to assist marketers in their efforts to behave in an
ethical fashion. It is assumed that, local conditions of international markets may be
different; but the some global marketing ethics principles should be applicable to all
markets. It is proposed that a uniform code of ethics should be created by WTO and UN
organizations to solve diverse cultural differences to arrive at cooperative strategies in international marketing.
Globalization and International Marketing Ethics Problems are closely related to each other. Increased
globalization resulted in many problems including ethical ones. From 1950 to 2000, world trade
expanded almost 20-fold, far outstripping world output, which grew by six and a half times (WTO,
2001). In this expansion, exports and foreign direct investment has played an increasing role in the
Even small businesses are increasing their cross border investments. In general, the average
yearly outflow of FDI increased from about $25 billion in 1975 to a record $1.3 trillion in 2000 (UN,
2001). These mean that millions of business people working abroad in different geographical, political,
legal, social and cultural environments. It is easy to guess that different environments have created
many problems, including ethical problems, for international marketing personnel at home and abroad.
Especially during the past 55 years, technological improvements in transportation,
communication and information processing and internet made great contribution to the development of
globalization. If this trend continues, the prophesies of Levitt, about globalization, in 1960`s, will
become reality in 2020`s. To manage this trend fairly, it is advisable to create universal ethical norms,
rules and regulations.
Globalization of Markets and Competition: Trade is increasingly global in scope today. There are several reasons for this. One significant reason is technological-because of improved transportation and communication opportunities today, trade is now more practical. Thus, consumers and businesses now have access to the very best products from many different countries. Increasingly rapid technology lifecycles also increases the competition among countries as to who can produce the newest in technology. In part to accommodate these realities, countries in the last several decades have taken increasing steps to promote global trade through agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU).
What is globalization?
Globalization is a process that has been going on for the past 5000 years (Tehranian, 2005), but it has
significantly accelerated since the demolishing of the Soviet Union in 1991According to Friedman (1999), globalization is: "The inexorable integration of markets, nation
states, and technologies to a degree never witnessed before- in a way that is enabling individuals,
corporations and nation-states to reach around the world farther, faster, deeper and cheaper than before,
the spread of free-market capitalism to virtually every country in the world. On the other hand, a great
number of economists assert that globalization, as an on-going historical process that reached its apex
toward the end of the 20th century. This process leads to the increasing integration of the production of
goods, services, ideas, culture, communication and environmental pollution on a world-wide scale,
imparting locality of populations and labor.
B. Dimensions of Globalization
Globalization is an umbrella term and has some dimensions. It can be related to every fields of daily
life. For instance, a marketing staff versus an engineer could interpret globalization in different ways.
Dimensions are as follows:
â€¢ Economics - related to globalization in trade, money, corporations,banking, capital,
â€¢ Political - science, governance, wars, peace, IGOS, NGOS, and regimes,
â€¢ Sociology-communities, conflict, classes, nations, agreements,
â€¢ Psychology-individuals as subjects and objects of global action,
â€¢ Anthropology- cultures overlapping, adapting, clashing, merging,
â€¢ Communications- information as knowledge and tools-internet,
â€¢ Geography- Everything, provided it can be anchored in space.
Each of these social sciences looks at a special aspect of the whole system of interdependent
parts that constitutes our world system. Each discipline constructs a concept of globalization that
reflects its special point of view: Consider how it relates its focal concerns to the contemporary world
C. The Emergence of Global Institutions
In international business, globalization has several facets, including the globalization of markets and
globalization of production (Hill, 2004: 7-8). The globalization of markets refers to the merging of
historically distinct and separate national markets into one huge global markets. On the other hand, the
globalization of production refers to the sourcing of goods and services from locations around the
globe to take advantage of national differences in cost and quality factors of production (such as labor,
energy, raw materials, land, and capital).
As markets globalize and an increasing proportion of business activity transcends national
borders, institutions need to help manage, regulate, and police the global marketplace, and to promote
the establishment of multinational treaties to govern the global business system. During the past 55
years, a number of important global institutions have been created to help perform these functions.
These institutions include the "General Agreement on Tariffs and Trade"(GATT) and its
successor, the "World Trade Organization" (WTO); the "International Monetary Fund" (IMF) and its
twin sister, the "World Bank "; and the "United Nations" (UN). All these institutions were created by
voluntary agreement between individual nation-states, and their functions are enshrined in international
treaties (Hill, ibid: 9). These organizations have many important roles in creating international business
ethical rules and regulations. Especially, The World Trade Organization is primarily responsible for
policing the world trading system and making sure nation states adhere to the rules laid down in trade
treaties signed by WTO member states. Now it has over 145 nations, and the last member is the
Republic of China. The WTO is also responsible for facilitating the establishment of additional
multinational agreements between WTO member states.
D. Drivers of Globalization
From the economical point of view, two macro factors seem to underlie the trend toward globalization
(Frankel, 2000). The first is the decline in barriers to flow of goods, services and capital that has
occurred since the end of World War II. The second factor is technological change, particularly the
dramatic developments in recent years in communication, information processing, and transportation
Everybody knows the importance of the role technological innovations and developments in
globalization, on the other hand, "declining trade and investment barriers" with the help of GATT and
WTO is as important as the first one.
During the 1920s and 30s, many nations erected formidable barriers to international trade and
foreign direct investment. International trade occurs when a firm exports goods or services to
consumers in another country. Foreign direct investment occurs when a firm invests resources in
business activities outside its home country. Many of the barriers to international trade took the form of
high tariffs on imports of manufactured goods. The typical aim of such tariffs was to protect domestic
industries from foreign competition. Ultimately, this practice depressed world demand and contributed
to the Great Depression of the 1930s (Hill, ibid: 11).
Having learned from this experience, the advanced industrial nations of the West committed
themselves after World War II to removing barriers to the free flow of goods, services, and capital
between nations (Bhagwati, 1989). This goal was protected and realized in the General Agreement on
Tariffs and Trade. Under the umbrella of GATT, nine rounds of negotiations among member states
have worked to lower barriers to the flow of goods and services. The impacts of GATT agreements on
average tariff rates for manufactured goods were formidable. If we give a figure, average tariff rates
have been fallen significantly since 1950, from average 30-40 percent to 3.9 percent in 2000 (The
United Nations, 2001). In order to nullify this tariff rate, Regional economic integrations have been
created. Such as, European (EU), North American Free Trade Area (NAFTA), Free Trade Area of the
America (FTAA), Association of Southeast Asian Nations (ASEAN), and Asia-Pacific Economic
Cooperation (APEC) are important attempts to achieve economic gains from the free flow of trade &
investment between neighboring countries.
The most successful regional economic cooperation is the EU. The Single European Act sought
to create a true single market by abolishing administrative barriers to the free flow of trade and
investment between EU countries. In the near future, it is expected that the EU will become a political
union like the USA.
F. Is Globalization Good for Everybody ?
International Monetary Fund (IMF) asserts that as globalization has progressed, living conditions have
improved significantly in virtually all countries. However, the strongest gains have been made by the
advanced countries and only some of developing countries.
97 International Research Journal of Finance and Economics - Issue 26 (2009)
That the income gap between high-income and low-income countries has grown wider is a
matter for concern. And the number of the world`s citizens in abject poverty is deeply disturbing. But it
is wrong to jump to the conclusion that globalization has caused the divergence, or that nothing can be
done to improve the situation. In contrast: low-income countries have not been able to integrate with
the global economy as quickly as others, partly because of their chosen policies and partly because of
factors outside their control.
No country, least of all the poorest, can afford to remain isolated from the world economy.
Every country should seek to reduce poverty. The International community should endeavor-by
strengthening the international financial system, through trade, and through aid-to help the poorest
countries integrate into the world economy, grow more rapidly, and reduce poverty. That is the way to
ensure all people in all countries have access to the benefits of globalization.
In order to manage globalization process fairly, international reform efforts and democratic
transnational institutions should be created and empowered. To reach such an objective UN-supported
commission of 28 leaders produced influential 1995 report " Our Global Neighborhood" and 1999
report " The Millennium Year and the Reform Process" proposes to strengthen global governance
without creating world government, while respecting the "rights of people and the role of civil society.
Ethical Issues in International Marketing
A. History of Ethics
Ethics is a branch of philosophy that studies morals and values. Interest in ethics and ethical codes has
been around for a long time. Centuries ago, Aristotle referred to character, which he called "ethos", as
the most potent means of persuasion (Lane Cooper, 1960). He also identified elements of virtue as
"justice, courage, temperance, magnificence, magnanimity, liberality, gentleness, prudence, and
wisdom". In Roman times, the emperor Justinian was the first to incorporate ethics into the legal
system and to establish schools to educate lawyers concerning ethics morality, and law. Napoleon
established a code of thirty-six statutes based on the concept that all citizens, regardless of
circumstances of birth or social stature, should be treated fairly and equally. Indeed, every civilization
has recognized the need for establishing laws and codes to guide human relationship and behavior
(Metcalfe, 2003: 74).
Ethics studies the differences between right and wrong, and through these studies philosophers
have developed several theories. Some major ethical theories are egoism, intuitionism, emotivism,
rationalism, and utilitarianism. Egoism is the belief that people should only look at how the
consequences of an action affect them. Intuitionism is the belief in an immediate awareness of moral
value. Emotivism is the belief that ethical decisions are expressions of emotion. Rationalism focuses on
the metaphysical aspects of ethics. Utilitarianism in ethics considers how moral actions produce the
greatest overall good for everyone.
B. Ethical Universals and National Cultures
1. What Is Culture ?
Academics and researchers have never been to agree on a simple definition of culture. In the 1870s, the
anthropologist Edward Taylor defined culture as "that complex whole which includes knowledge,
belief, art, morals, law, custom, and other capabilities acquired by man as a member of society (Taylor,
1871). As other capabilities, we can include economic and political philosophy, religion, language and
Especially, religion is very important in shaping ethical systems refer to a set of moral
principles, values, that are used to guide and shape behavior. Most of the world`s ethical systems are
the product of religions (Hill,ibid:105).
Dutch Management Professor Geert Hofstede refers to culture as the "software of the mind"
and argues that it provides a guide for humans on how to think and behave; it is a problem-solving tool
(Hofstede, 1984: 21). Business consultant E. Hall gives a better definition for international marketers :
"The people we were advising kept bumping their heads against an invisible barrier...We knew that
what they were up against was a completely different way of organizing life, of thinking and of
conceiving the underlying assumptions about the family and the state, the economic system, and the
man himself" (Hofstede, ibid: 21).
Most traditional definitions of culture center around the notion that culture is the sum of the
values, rituals, symbols, beliefs and thought processes that are learned, shared by a group of people,
and transmitted from generation to generation (Herskovitz,1952: 634). Values mean abstract ideas
about what a group believes to be good, right, and desirable. If we put it differently, values are shared
assumptions about how things ought to be (Mead, 1994: 7). On the other hand, values are rules and
guidelines that prescribe appropriate behavior in particular situations.
2. Ethical Perceptions and Culture
A research conducted by Armstrong reveals that there is a relationship between the cultural
environment (Australia, Singapore and Malaysia) and the perceived ethical problems. In another study,
Armstrong finds out the most frequently cited problem of Australian International Business Managers
is gifts/favours/entertainment and that this problem may be related to the culture where the
international business is being conducted. And the most important ethical problem to Australian
international managers is large-scale bribery (Armstrong, 1992).
Although, different cultural environments result in different ethical perceptions in international
marketing, for the sake of ethical consistency, it is necessary to generate internationally applicable
ethical rules and regulations. As a matter of fact, a finding of an empirical research conducted by
Armstrong proposes that "The Australian general managers disagreed that it is necessary to
compromise one`s ethics to succeed in international marketing"
C. Ethical Approaches in International Marketing
Due to the globalization of markets and production, ever increasing number of international marketing
personnel have to deal with ethical issues in cross-cultural settings. Murphy and Laczniak (1981: 58)
asserted two decades ago that "as more firms move into multinational marketing, ethical issues tend to
increase".Actually, international marketers are often criticized for ethical misconduct (Armstrong et al.,
1990: 6-15). In a cross-cultural environment, marketers are exposed to different values and ethical
norms (Nill, 2003: 90-104). Which ethical position should marketers take when acting in a foreign
culture? In other words, whose ethics do we use in international marketing? is very important to be
answered. DeGeorge answers this question as "our ethics"; our ethical values are not like a coat that we
put on in certain seasons and places throw off elsewhere. We cannot leave our ethics behind as we
venture around globe. If we think we can, or if we have no ethics, then, of course, the question is
beside the point
In International Marketing, ethical decision- making process can be influenced by many ethical
approaches. These approaches can be classified "descriptive-prescriptive and communicative
approach" (Nill, 2003: 90), and "normative (prescriptive), and descriptive(positive)" theory of
marketing ethics approach.
1. Descriptive Approach
Descriptive ethics describe the values and moral reasoning of individuals and groups and attempt to
provide an understanding of the ethical decision-making process (Schopenhauer, 1979). It is assumed
that the ethical decision-making process affected by a variety of individual, situational, and contextual
factors such as personal experiences, opportunity, the organizational environment and the cultural
2. Normative Approach
Normative ethics suggest an answer to the general moral question of what ought to do (Schlegelmilch,
1998; Murphy and Laczniak, 1981, Chonko, 1995). These researchers are concerned with the
justification of moral norms and ethical values. It has been debated for many years whether moral
responsibility can be attributed to business organizations. Some years ago, ethics have nothing to do
with international business; then, normative ethics cannot be a concern for business corporations. Some
scholars discuss that business organizations cannot assume moral responsibility. Only individuals
acting on behalf of the corporation are morally motivated, have intensions, and can be held accountable.
On the other hand, some scholars argue that some aspects of the organization are not
reconcilable with moral responsibility. Organizations serve a purpose and in that sense are not entirely
autonomous. Organizations can never ends in themselves; they have been created for a specific
purpose. The organization cannot be held responsible for actions that go beyond or against that purpose.
Normative approaches can be classified as "deontological theories" and "teleological theories".
One of the purposes of these theories is to develop guidelines or rules to assist international marketers
in their efforts to behave in an ethical fashion. Fundamental difference
between these theories is that deontological theories focus on the specific actions or behaviors of an
individual, whereas teleological theories focus on the consequences of the actions or behaviors.
a. Deontological Evaluations
Deontologists believe that "certain features of the act itself other than the value it brings into existence"
make an action or rule right (Frankena, 1963). Deontological views have a rich intellectual history
dating back at least as far as Socrates. For them the problem has been to determine the "best" set of
rules to live by. Examples proposed have been the "golden rule" of "doing unto others as you would
have them do unto you" (Sidgwick, 1907). According to Laczniak; international marketers have certain
duties, under most circumstances, constitute moral obligations that include the duties of fidelity,
gratitude, justice, beneficence, self-improvement and noninjury.
b. Teleological Evaluation
Teleologists suggest that people ought to determine the results of various behaviors in a situation and
evaluate the goodness or badness of all the consequences. A behavior is then ethical if it produces a
greater balance of good over evil than any available alternative (Nill, Ibid). Teleology can be divided
into two subcategories as egoism and utilitarianism.
Egoism defines rightness in terms of the consequences for the individual.
It postulates that one should choose actions that result in the maximum of good for oneself.
In contrast to the egoist,the utilitarian does not minimize "bad " or maximize his/her own "good" in
general. Ethical universalism (utilitarianism) holds that an act is right only if it creates the greatest
good for the greatest number. Hobbes and Nietzsche were ethical egoists but such philosophers as G.E.
Moore and John Stuart Mill were ethical universalists. If we explain these theories with an example;
deontologists do not tell a lie and they do not consider the results of the action, on the other hand,
teleologists could tell a lie if they save a life, or when telling the truth hurts another person
3. Dialogic Approach
As a third approach proposed by Nill and Shultz (1997: 4) is communicative approach as an alternative
ethical framework for macro marketers. Dialogic idealism combines moral universalism with moral
relativism by suggesting universally valid rules that prescribe how an ideal dialogue is to be conducted
without imposing moral core values or hyper norms. Thus, the actual outcome of the dialogue will
depend on its participants. Only the way in which the dialogue should be conducted can be seen as a
universal obligation for everyone who is truly motivated in participating in the dialogue.
Depending on the nature of the ethical problem and specific situational requirements a dialogic
approach could be a helpful tool for marketers. Nill (2003: 92-97) argues that " more work is needed to
find out how a communicative approach can be implemented as a real-world corporate ethical
D. Ethical Problems in International Marketing
The moral question of what is right or appropriate poses many dilemmas for domestic marketers. Even
within a country, ethical standards are frequently not defined or always clear (Cateora and Graham:
142). The problem of business ethics is infinitely more complex in international marketplace, because
value judgments differ widely among culturally diverse groups. That which is commonly accepted as
right on one country may be completely unacceptable in another. Giving business gifts of high value,
for example, is generally condemned in the United States, but in many countries of the world gifts are
not only accepted but also expected (www.business-ethics.org).
Upon examination of existing ethical frameworks in the field of international marketing from a
macro marketing perspective, it is argued that marketers cannot always rely on universally accepted
ethical norms, such as hyper norms or core values that have been suggested by a deluge of marketing
literature (Dunfee,1995; Dunfee, Smith, and Ross, 1999: 14; DeGeorge, 2000). Some basic moral
values could be used in evaluating international marketing ethical issues. Violations of basic moral
values in international marketing settings should be accepted as ethical problems.
After studying the literature related to international marketing, it is easily seen that most of the
marketing ethics studies involve the use of scenarios as research instruments and relate to the following
marketing sub-disciplines (Armstrong, 1992: 167): market research, retail management, purchasing
management, advertising management, marketing management, industrial marketing, and marketing
education. Few studies relate to International Marketing Ethics have been most prominent (Armstrong
and Everett, 1991:61-71; Armstrong, Stening, Ryands, Marks, and Mayo, 1990: 6-15; Armstrong,
1992). Major International Marketing Ethical Problems derived from applied researches by Armstrong
(Ibid) are presented with their short definitions as follows:
â€¢ Traditional Small Scale Bribery- involves the payment of small sums of money, typically
to a foreign official in exchange for him/her violating some official duty or responsibility or
to speed routine government actions (grease payments, kickbacks).
â€¢ Large Scale Bribery- a relatively large payment intended to allow a violation of the law or
designed to influence policy directly or indirectly (eg, political contribution).
â€¢ Gifts/Favours/Entertainment- includes a range of items such as: lavish physical gifts, call
girls, opportunities for personal travel at the company`s expense, gifts received after the
completion of transaction and other extravagant expensive entertainment
â€¢ Pricing - includes unfair differential pricing, questionable invoicing - where the buyer
requests a written invoice showing a price other than the actual price paid, pricing to force
out local competition, dumping products at prices well below that in the home country,
pricing practices that are illegal in the home country but legal in host country (eg, price
â€¢ Products/Technology - includes products and technology that are banned for use in the
home country but permitted in the host country and/or appear unsuitable or inappropriate
for use by the people of the host country.
â€¢ Tax Evasion Practices - used specifically to evade tax such as transfer pricing (i.e., where
prices paid between affiliates and/or parent company adjusted to affect profit allocation)
including the use of tax havens, where any profit made is in low tax jurisdiction, adjusted
interest payments on intra-firm loans, questionable management and service fees charged
between affiliates and /or the parent company.
â€¢ Illegal/Immoral Activities in the Host Country - practices such as: polluting the
environment, maintaining unsafe working conditions; product/technology copying where
protection of patents, trademarks or copyrights has not been enforced and shortweighting
overseas shipments so as to charge a country a phantom weight.
â€¢ Questionable Commissions to Channel Members - unreasonably large commissions of
fees paid to channel members, such as sales agents, middlemen, consultants, dealers and
â€¢ Cultural Differences - between cultures involving potential misunderstandings related to
the traditional requirements of the exchange process (e.g., transactions) may be regarded by
one culture as bribes but be acceptable business practices in another culture. These practices
include: gifts, monetary payments, favours, entertainment and political contributions.
â€¢ Involvement in Political Affairs- related to the combination of marketing activities and
politics including the following: the exertion of political influence by multinationals,
engaging in marketing activities when either home or host countries are at war and illegal
IV. Concluding Remarks
It is accepted that globalization is an unavoidable process and will progress forever. All business that
firms desire to compete successfully in international environment, should obey to legal and ethical
rules and regulations. To behave in an ethically and socially responsible way should be a hallmark of
every marketer`s behavior, domestic or international. It requires little thought for most of us to know
the socially responsible or ethically correct response to questions about breaking the law, destroying
the environment, denying someone his or her rights, taking unfair advantage, or behaving in a manner
that would bring bodily harm or damage (Cateora and Graham, Ibid).
Actually, the difficult international marketing issues are not the obvious and simple right-orwrong
ones. In many countries the international marketer faces the dilemma of responding to many
situations where there is no local law, where local practices forgive a certain behavior, or the company
willing to " do what is necessary" is favored over the company that refuses to engage in practices that
are not ethical.
In many countries, laws may help define the borders of minimal ethical or social responsibility,
but the law is only the basis above which one`s social and personal morality is tested. In the U.S.A., in
general, legal sanctions prevent marketers from doing unethical transactions. The problems related to
international marketing ethics are not important problems in U.S. domestic market; but in international
settings, especially differences in culture creates some ethical dilemmas.
Perhaps the best guide to good international marketing ethics are the examples set by ethical
business leaders (J. Byrne, 2003). DeGeorge (Ibid) proposes to solve international business ethics
problems in five guidelines:
1. Do not direct intentional harm.
2. Produce more good than harm for the host country.
3. Respect the rights of employees and of all others affected by one`s actions or policies.
4. To the extent consistent with ethical norms, respect the local culture and work with and not
5. Multinationals should pay their fair share of taxes and cooperate with the local governments
in developing equitable laws and other background institutions.
On the other hand, Cateora and Graham (Ibid) propose to be used some guidelines in
international business: such as,Utilitarian ethics-Does the action optimize the "common good" or
benefits of all constituencies? And who are the constituencies?. Rights of the parties- Does the action
respect the rights of the individuals involved? Justice or fairness- Does the action respect the
canons of justice or fairness to all parties involved?
Answers to these questions can help the international marketer ascertain the degree to which
decisions are beneficial or harmful, right or wrong, or whether the consequences of actions are
ethically or socially responsible. Perhaps the best framework to work within is defined by asking: Is it
legal? Is it right? Can it withstand disclosure to stockholders, to company officials, and to the public?
(Dunfee, et al., 1999: 14).
Though the U.S.A. has clearly led the campaign against international bribery, European firms
and institutions are apparently putting more effort and money into the promotion of what they call
"corporate social responsibility (Maignan and Ralston,2002: 497-514). For example, the watch dog
group Corporate Social Responsibility (CSR) Europe, in cooperation with the INSEAD business
school outside Paris, is studying the relationship between investment attractiveness and positive
corporate behaviors on several dimensions. Their studies find a strong link between firms` social
responsibility and European institutional investors` choices for equity investments (Stock, 2003:1, and
All this is not to say that European firms do not still have their corporate misbehaviors (C.
Matlack, 2003: 48-50). However, it is expected that more efforts in the future to focus on measuring
and monitoring corporate social responsibility around the world.
In a global economy, to solve international marketing ethics problems, self regulation by
companies and industries is important, but that additional background institutions with having
authority to direct globalization is very important. Under these circumstances international sanctions
can be applied for ethical violations.
DeGeorge(2000:50) asserts that " for purposes of international business, there are certain basic
claims and norms that are necessary for business, and these throw some light on claims to universality
in ethics". For example, the Universal Declaration of Human Rights is an important norm which has
been ratified by almost every country and lays down basic principles that should always be adhered to
irrespective of the culture in which one is doing business. For instance, Article 23 of this declaration
states that :
â€¢ Everyone has the right to work, to free choice of employment, to just and favorable
conditions of work, and to protection against employment.
â€¢ Every one without any discrimination, has the right to equal pay for equal work.
â€¢ Everyone who works has the right to just and favorable remuneration ensuring for himself
and his family and existence worthy of human dignity and supplemented, if necessary, by
other means of social protection.
â€¢ Everyone has the right to form and to join trade unions for the protection of his interests
There are many articles like article 23, they can be accepted as building blocks of universal
ethical norms and rules. In addition to such international organizations as UN, IMF, World Bank,
World Trade Organization, the International Chamber of Commerce; "International Court of Justice for
Business and Commerce" should be established to solve international marketing ethics problems
legally. Then ethical will become legal. If we want to do business honest and fair in international
marketing area, we can find many universal ethical rules and regulations to obey. Cultural differences
should not result in violations of universal ethics. If UN is reorganized as a more powerful institution,
it can enforce global business agents to conform to the universal ethics norms.
Today, it is generally believed that, the U.S. of America as a superpower has been taking
advantage of official political power of UN and related institutions, such as IMF, WTO, and World
Bank in order to realize his political and economic benefits to sustain global domination. These
institutions could not function effectively and freely to their predefined objectives. A reorganization
and reform is necessary to empower UN and other international institutions to meet the common needs
of all humanity, instead of only U.S. and other developed countries. Otherwise, instead of peace and
stabilization, chaos and terror could dominate the whole world. Adapted to the contemporary world
conditions, well-organized, reformed, empowered and equitable working UN and related institutions
could really contribute to the global peace, security and, social and economic wealth of nations. All
nations could obey the rules and regulations of independent global institutions in regulating and
reorganizing world trade and global economy.
Under these conditions, to solve international marketing ethics problems: international
institutions should manage, regulate, and police the global marketplace, and to promote the
establishment of multinational treaties to govern the global business system.