ETHICAL BEHAVIOR AND INTERNATIONAL BUSINESS

1.     What does the statement “all capitalism is crony capitalism” is referring to? Do you agree with this statement or not? Give an example.

The statement “all capitalism is crony capitalism” refers to the fact that sometimes states or governments are responsible for the success of a determinate company and not just the market mechanism by itself. When the state influence the market, benefits came come from the companies of such markets which have been influenced.

2.     Why is it problematic that in the business world “The Media” becomes a corporation?

The Media has nowadays become as a problematic corporation due to the enormous influence it has over everything or everyone and also due to its rapid growth. It´s a huge and powerful force that can bring you positive or negative consequences. According to the situation, you make it your enemy or your ally.

3.     In this situation, what behaviors are considered unethical for corporations, journalist and the state?

·         CORPORATION: the types of relations or bonds between high officials, commanders and politicians, and how those high officials control through the media their business.

·         JOURNALIST: the un-neutral scope they give to their news can have positive or negative consequences, the kind of information they present and also the fact of controlling the quality and amount of information they broadcast.

·         STATE: When politicians in order to achieve their personal objectives don’t care about the society´s welfare, giving certain benefits to some but not to all.

4.     What is a Banana Republic? Why the author is comparing India with a Banana Republic?

A Banana Republic is a term referred to countries that are highly dependent from the agricultural sector, where their economy is based on agriculture, and also where crony capitalism and corruption are part of the “government”.

He compares India with a Banana Republic trying to explain that when countries are very poor and with a high percentage of crony capitalism, instability and unbalance will emerge reinforcing the richer and the poorer.

5.     What can The Media, Corporations and the States do in order to behave ethically and in the benefit of the people and not their own interest. Give at least 5 good ideas. 

·         Media, Corporations and States must reinforce education, where I think everything starts; promoting development for the society and the community and also at the same time that would bring progress and growth.

·         States should focus on what’s really their task, common welfare, needs, progress… and not that much on some particulars welfare and must fight openly against corruption.

·         Media should be aware of the consequences of their actions and be a neutral part, letting individuals, states or companies decide by themselves.

·         States must demand for corporations a minimum of social responsibility, and at the very same time corporations must accomplish and grow their social responsibility projects creating and allowing benefits for the community.

·         Corporations must use legal, honest and straight means in order to achieve their objectives and maintain a sustainable company.