Business Environment in the UAE - Assignment Example

PH1300 – ASSIGNMENT By 2. Describe our business environment in the UAE and debate the extent to which business ethics differs from ethics in other countries. Do not forget to connect personal moral codes to business behaviour Introduction The United Arab Emirates is located along the south-eastern tip of the Arabian Peninsula. This consists of different cities, including Abu-Dhabi, Dubai, Sharjah, Ajman, Umm Al-Quwain, Ras Al-Khaimah, and Fujairah (BKR International, 2012). The business environment of UAE is considered to provide many opportunities for people. The economy of UAE is diverse, and the oil resource has over the years contributed to growth the economy of UAE. Government policies in the UAE have supported the growth of business, as these put a limit on the level of involvement of the government and allowed free markets. The discovery of oil in 1966 in the UAE had special impact on the region. This motivated the government to work on long-term economic diversification. This country therefore, changed and adopted modernization with high standards of living of the people. The government of the UAE has invested in employment, development of infrastructure, tourism sector, as well as free markets for easy commerce. This country has a vision of being the best country for conducting business in the Middle East (BKR International, 2012). The UAE is known to have low risks with regard to security and politics, thus this attracts many investors to the country. In addition, there are various areas in the UAE that are free trade zones, where there is 100% foreign partnership with no taxes. Although the global financial recession had a toll on the UAE, the economy is expected to continue improving in the coming years (BKR International, 2012). Although the UAE has a healthy business environment, this country also faces major challenges as far as its business environment is concerned. A major challenge is the overdependence of the country on oil. Oil is a non-renewable resource, thus depletion of oil in the country might result in adverse effects on the country’s economy. In addition, the UAE relies on foreign workers in order to grow its economy. The shortage of human resources is known to reduce the productivity of the economy. Overall, despite the various challenges facing the UAE, the government of this country is devoted to improving the economy, and has developed effective policies that will create in the country a business environment that is conducive to the growth of the economy. Business ethics is important in the UAE. This refers to the behaviour that a business adheres to in its daily operations with the world. In UAE, businesses operate basing on personal relationships and mutual trust. Therefore, employees and business people in the UAE are expected to adhere to these. In addition, people in the UAE value courtesy and good manners, and consider these as important attributes. However, punctuality is not considered a value in the UAE, therefore, appointments might be delayed. In addition, people in UAE consider it important to establish relationships with other people in and out of business (UAE INTERACT, n.d). The business ethics in the UAE might differ slightly with those of other countries. Nonetheless, this mainly depends on the culture that is dominant in a country. For instance, in the United States, punctuality is considered a virtue. Therefore, it is important for people to keep time in the United States, unlike in the UAE. Another difference is that in the United States and other European countries, personal relationships are not important in business. This is mainly because people have embraced individuality, thus relationships become less important. This is unlike the UAE, where the foundation of business is personal relationships. Conclusion The business environment of UAE presently is considered to be conducive for economic growth. In future, if no major financial setbacks occur, the business environment in the country is expected to become better. The government of the UAE has contributed greatly to the good business environment in the country. With regard to business ethics, the culture in the UAE has influenced how business is conducted. Therefore, people in the UAE value personal relationships, but do not consider punctuality a virtue. This is unlike most countries, where the opposite is the truth. 4. How do you respond to Albert Carr’s claim that business, as practiced by individuals as well as by corporations, has the personal character of a game? Are there any criticisms to be made of this position? Should business be allowed to play by its own rules? And, if not, to what extent do you think businesses ought to be responsible to the community at large? Introduction Albert Carr supported the “game-strategy” view of business. In this view, he considered that businesses should not be governed by the common ethical standards. This view is in support of some of the actions that people consider unethical, such as deception. Even an individual might value religious ethics and the traditional ethical standards; they do not practise them in business, as this hinders profit-making (Kirkpatrick, 2002). Therefore, according to Carr, a person has different characters at work and out of work. There is considerable truth in the view point that was defended by Albert Carr. It is quite true that business has the personal character of a game. This is because most businesses adopt this strategy in order to make more profits and succeed in their operations. Nonetheless, although this game-strategy of businesses exists, most people will not address this issue publicly. Most specifically are the business people, who will not advocate for this strategy openly. This is for the fear that the public would lose their trust in them, thus influencing their business in an adverse manner (Sullivan, Langley & Powell, 1984). The view of game-strategy of business as adopted by Albert Carr can also be proved to be true for different reasons. For instance, in the present world, if business people were to abide wholly by the traditional ethical standards of honesty, then it is more likely that these might not make many profits or realize success in their operations. On the other hand, the game-strategy of business can be criticized on different grounds. First, this view undermines the traditional ethical standards of honesty. For this reason, more people might let go of honesty, since it is perceived as an impediment to success in business. Although Albert Carr argued that this only applies in the case of businesses, it is possible for business people to apply this game-strategy in other areas of their dealings outside business. This would therefore, lead to a world full of dishonest people; and this is injurious to relationships and harmonious coexistence. In addition, this view can be criticised on the grounds that it is offensive to people that embrace ethics. People that embrace ethics believe that bluffing and deception are unethical acts. Therefore, any view that supports bluffing and deception in any area of practice can be considered to undermine the ethical convictions of people. This already in itself is also unethical (Sullivan, Langley & Powell, 1984). Business should not be allowed to play by its own rules. If this is allowed, basing on Albert Carr’s view, it means that business people will continue to bluff and deceive people to their own advantage. Therefore, just like any other dealings, business should adhere to the traditional standards of honesty; meaning no bluffing, no deception (Kirkpatrick, 2002). Businesses have to be responsible to the community at large. These should engage in honest dealings, and not bluff or deceive customers in order to gain. Instead, businesses should engage in ethical advertising and pricing, among other activities. In addition, instead of having only one goal of profit-making and expansion, businesses should also care about the welfare of communities around them through engaging in voluntary and humanitarian services (Kirkpatrick, 2002). Conclusion The view of “game-strategy” of business by Albert Carr is true to some extent. Although many businesses today engage in this strategy, most will not publicly agree to practising this. This is mainly because the public will lose their trust in the businesses. The game-strategy view is controversial to the firm believers of traditional ethical standards of honesty; therefore, its applicability can be questioned. Overall, businesses should not be allowed to play by their own rules. Although businesses consider this to boost their profitability, it only exhibits the level of selfishness of the business people, as they go to the extent of bluffing and deception in order to make profits. References BKR International (2012). Doing Business in the United Arab Emirates. Retrieved from http://www.kanaancpa.com/downloads/dbituae.pdf Kirkpatrick, J. (2002). A Critique of “Is Business Bluffing Ethical? Retrieved from http://www.csupomona.edu/~jkirkpatrick/Papers/CritBluff.pdf Sullivan, R., Langley, V. & Powell, D. (1984). A Response to “Is Business Bluffing Ethical?” Business & Professional Ethics Journal. 3 (2): 1-21, 23 UAE INTERACT (n.d). Business. Retrieved from http://www.uaeinteract.com/english/business/ Read More