Should national cultures or company codes control a firm's ethical decisions? Of course, some companies opt out for the less stringent of the two, defending their actions with the plea that "when in Rome do as the Romans do." Or in the PC (politically correct) spirit, their detractors retort that "We would never presume to impose our ethical standards on another culture. We are not ethical or cultural imperialists."

While this last argument hoists the anti-globalization movement on its own petard, it does not solve the problem of deciding which set of ethics to apply: local? foreign? or global?

There is no escaping the fact that not all cultures consider corruption to be an illegitimate and illegal behavior. Though no government in the world openly allows a politician or public official to claim to be empowered by law to commit corrupt acts, accept bribes or squander limited resources, it is declared often enough "sotto voce." The logic goes that since corruption is necessarily accompanied by secrecy, the more transparent international business becomes the faster it moves towards a global standard of transparency the better the chance there is of defeating corruption and bribery. Markets will work more efficiently for everyone's benefit, except, of course, for those people who have been taking bribes in the past.

Today, the consensus is growing among both developed and developing countries that business success comes to companies and countries that provide for a rule of law. This means good business ethics, good corporate governance and effective commercial dispute resolution, all of which are found in the world's most successful economies.

In many countries, society does not reward socially responsible behavior by businesses. If a company can get away with cutting corners, handing out bribes or ripping off the government or the consumer, it will be done. For global business to reach its full potential of benefiting societies, it must operate in societies that respect the law and appreciate and reward (or at least not punish) ethical behavior.

It is impossible for a company to ignore the overall moral climate of a country or culture. If the society suffers from moral confusion, lack of respect for the law, lack of trust and cynicism, what hope does a multinational corporation have of being successful? Therefore, business ethics not only needs to address the business of doing business, but also must be useful in helping to maintain a moral society.

Note: Demand for more uniform and organized business practices, based primarily on EU and North American models, is leading to a global standard for such practices as corporate ethics, corporate governance and corporate accounting. This does not always go down well with the developing economies of Asia or Africa. Morality can be both a tool and a cudgel.

More Trends Favoring an International Code

There are some basic macro trends that favor the development of an international ethics code:

• Corporations are realizing that in order to be successful they must address the needs and concerns of all stakeholders customers, shareholders, employees, suppliers, host governments and host countries. Indeed, this growing recognition of stakeholders' interests means that corporations are no longer merely economic entities devoted to maximizing profit at any cost.

• Growing North American and European participation in world markets and the harmonization of their laws concerning bribery and corruption.

• The realization in developing markets, especially Asia, Africa and Latin America, is that Western-style business ethics is an important first step for achieving integration in the global economic community. Good ethical practices will also play an important role in their own domestic economic development as well as their access to global capital.

• The dangers of litigation and media scandal that make corporate and individual success dependent on business conduct as well as financial performance.

• The developing ethos of business professionalism. Ethics is fast becoming a management skill, not an occasional option.