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 affirmation crony capitalism stands for a capitalism of colleagues. This means that actors involved in the economy only stand up for the interests of those who met their expectations and their own, these being high profits, information and knowledge, technology, etc.

Personally, I agree with this statement, because in today’s world there is a social concept that is necessary to be selfish in order to obtain benefits. This can be evidenced in real life event that goes from personal relationships, to government-enterprises arrangements.

2. What is a banana republic? Why the author is comparing India with a banana republic?

A banana republic refers to a highly corrupted and agriculture depending country, with a government that is more concern with the interests of a few corporations. The author compares a banana republic with India, because in that country there is a lot of Cronyism that would only make corporations become more powerful and allow them to escape unscathed, while leaving the population even poorer.

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

We all born with the right to free expression and communication that is why, in my opinion, the media are the means that help to comply with this right. They have the responsibility to serve as channels of communication that deliver truthful information to the audience, and allow the people to communicate freely with each other.

The Media becoming a corporation signify that they will stop doing that and start only to do what most of today's business do: search for its own benefit without thinking of the consequences or the damage caused to the people. They will start manipulation or covering information if it is profitable for them.

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

·         Corporation: the relations they had with senior officials and politicians, and the way these manipulated the information transmitted by the media to cover corrupted actions.

·         Journalist: Hide and manipulate the information.

·         The state: Benefit the corporation (their cronies) regardless of the population’s welfare in order to achieve its own interests.

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. 

·         The media should do what they are supposed to which is to deliver truthful information and be a neutral party in the political and economic arena.

·         The state should have a better system to monitor its officials so they won’t carry out corrupt actions that would only benefit themselves, but pursue the welfare of the population.

·         The corporations have to work on their Corporate Social Responsibility without having to give up profits.

·         The state must create better regulations to stop corporations continue with the unfair competition.

·         The media, the corporations and the government should join efforts in order to make things better for the population by helping each other to achieve their goals without injure the other.

Sources:

• The Hindu (2010) The Republic on a banana peel. P. Sainath. Opinion. December 3, 2010. Retrieved from: <http://www.thehindu.com/opinion/lead/article927895.ece?homepage=true>  [05/03/2011.]
• S, Mithra. "What Is a Banana Republic?" WiseGEEK: Clear Answers for Common Questions. 28 Dec. 2010. Web. <http://www.wisegeek.com/what-is-a-banana-republic.htm> [05/03/2011.]