France Business Code Ethics - Case Study Example

France Business Ethics Project Summary A myriad of factors determine the conduciveness of a business environment. France, though having almost all incentives to business success, has cultural undercurrents which can either bolster or weaken the cause of entrepreneurship. The fact that France is a culturally variegated country is a matter that unleashes panic among new entrants in the market, while cultural pluralism in fact should spur onwards, entrepreneurial exploits due to varied tastes, preferences and wants. This paper therefore seeks to identify the connection that exists among cultural heritage, ethical values and business success in France. A. A Brief Understanding of the Country France is not only a developed country, but one that has moved from economic government ownership and control, to free market economy. Many large companies in France have been privatized, with France Telecom, Air France, Thales and Renault being examples of plans that have undergone privatization. France enjoys the third largest earning from tourism, being the world’s most visited tourist destination. Despite these points of strengths, France is greatly affected by cultural dynamics and ethical constraints. 1. History France, officially known as the French Republic is an independent republic in Western Europe. It extends as far as the Mediterranean Sea, the English Channel, the North Sea, the Rhine River and the Atlantic Ocean. Presently, France is the largest country in Europe and also owns the world’s second-most important exclusive economic zone. While the history of France is always traced back to the Franks, France has developed over time to be a leading democracy and one of the pillars of European Union (EU). Likewise, France had been an absolute monarchy until the Storming of the Bastille took place on July 14th, 1789 and culminated unto the French Revolution. It was also at this historical juncture that France founded the fundamental rights and freedoms of the French citizens without any exception by making a declaration on the rights of man and those of the French citizen. All the above developments have given businesses in France a greater impetus. For instance, through the declaration of human rights and freedom, French citizens are able to choose their occupation, including entrepreneurship. Conversely, the aforementioned leadership position is seen in the manner in which it has continued to dispense an important global role as one of the permanent member of NATO, the EU, the Great 8, the Great 20 and the United Nations Security Council. Initially, France had been removed from NATO forces or membership, courtesy of Gualle’s 1966 decree, but in 2009, France resumed its position in NATO’s military command. This means well for France, given that political, economic and social stability and infrastructure are needed for businesses. 2. Political System Since 1958, France has been a combination of both presidential and parliamentary systems. This means that France has been able to delude the dangers and excesses that come with the presidential systems. Likewise, after the end of World War I and II, France has come to maintain cordial relations with other powers in Europe such as Germany. The import of this is that this international reconciliation and subsequent cooperation has not only paved way for economic integration of Europe but also for the use of a common currency, namely the Euro. This has been the case since 1999. That France is a democracy is a matter that is not only underscored by its constitution which was written on September 28th, 1958, but also by the arms of the government which are independent of each other. The president as the head of the state and the prime minister who is the head of the government form the head of the executive. France’s legislature is a bicameral parliament which comprises the 319 members of the Senate and 577 members of the National Assembly. Conversely, France has a judicial arm which is made up of the Court of Cassation, the Constitutional Council and the Council of Senate. The Court of Cassation deals with both criminal and civil law, while the Council of State discharges the duties pertaining to administrative courts. The constitutional court deals with matters pertinent to constitutional law. Political pluralism is very vibrant in France with the existence of several political parties such as the Union for a Popular Movement (UMP), the New Center Movement, the Socialist Party, the Communist Party and the Democratic Movement serving as a testimony to this healthy interparty competition. French citizens get to vote in their preferred presidential candidates and members of the legislative council, upon having attained age 18. The provisions of democracy enlisted above remain of critical importance to business and trade, given that they ensure continuity and peaceful political transition from one regime change to another. This in turn provides a strong chance for political stability which is inextricably integral to business or commerce. 3. Ethical System The ethical value system of France is one that is drawn from different traditions and sources. The greatest part of France’s legal system comes with the declaration of human rights and freedom. In this light, a matter becomes an ethical concern when it contravenes the rights and freedoms of others. The fact that the highest fraction of France’s population derives their identity from nationality in lieu of religion is a direct exemplification of France’s ethical system being derived from secular laws and values. Religious tradition, especially Christianity has also had a greater impetus in shaping the ethical system of France. Polls that were carried out in 2005 and 2011 by the Pew Research Center revealed that the French were found to be more tolerant than people from the rest of the world (Diane-Laure, 2010). 4. Demographic details According to 2011 estimates, France has a population of 66 million people. This means that France ranks the 20th in demography. The same provisions maintain that since 2010, France’s fecundity rate has risen from 1.68 to 2.01, in 1994. A fifth of France’s population consists of immigrants. Majority of these immigrants are from Algeria Morocco and Turkey. Furthermore, that France is demographically variegated is a matter that is underscored by 40% of the French population having descended from different countries. This high influx of foreigners into France has its underpinnings in the liberal mien of the country. Presently, France is reputed as Western Europe’s leading asylum destination. In 2000 alone, for example, there were over 50,000 asylum applications. Nevertheless, France remains concerned about a vast majority of its population being inordinately situated in urban areas and cities, and thereby leaving rural France depopulated. Over 55% of the French population are the youth, while the old make up 23% of this population. The relevance behind this development is that it shows clearly a country that is very rich in both skilled and unskilled sources of labor which are very important in a country’s entrepreneurial growth and development. Likewise, it is this same age group that is pushed into business ventures and exploits due to the push to make ends meet or passion for business, the failure to access jobs or the need for self actualization. 5. Cultural Diversity of the Region France is the most culturally diverse country in Western Europe. This cultural diversity has its underpinnings in France’s friendly attitude towards immigrants. Because of France’s friendliness towards immigrants and asylum seekers, Arabs, Muslims and even people from African descent are part of France’s demography. Other demographic sources of culture include the Caucasians who are mostly Christian. Another factor that renders France a cultural variegation is the European Union immigration law. EU immigration laws allow any citizen of the EU to visit any EU-member state. In fact, to strengthen this cause, all member states of EU share one passport (and also have the same trade and travel laws) and thereby making influx into and out of France relatively easier. Conversely, France’s cultural variegation has its roots in its history. If there are countries that should brag about having intellectual prowess, France must centrally feature among them. France is known to have produced several philosophers such as Voltaire, Rene Descartes and Michael Foucault. Some of these philosophers such as Voltaire were not only atheists, but they also existed alongside Christianity, and thereby giving an alternative to theism. It is against this backdrop that culturally, France is a cultural melting pot consisting of Christian influence and tradition, Islam, atheism (and agnosticism), oriental culture and a following for eastern religions such as Buddhism, Confucianism, Sikhism and Taoism among others. 6 Impacts on Business Ethics The cultural and social variegation mentioned above greatly shape and affect France’s business ethics. This is in light of the fact that France’s business ethics is largely drawn from secular laws and values, as opposed to religious traditions. In France, business operations, transactions, rules and regulations are drawn from the French Constitution. Provided businesses are registered and do not engage in larceny, fraud and contravention of labor laws, they may be considered legit. Nevertheless, religion is seen to have a salient role in drawing up business regulations in France. For instance, although French laws and international labor laws through the office of the International Labor Organization (ILO) are largely secular, yet a concept such as the entitlement of the worker to his just wages is a matter that has strong religious traditions. B. Assessing the Nature of the Government Business Policies/Laws and Their Impacts on Business Ethics and Trade Activities Fassin et al. (2010) divulge that French business laws are unlike others, more comprehensive and restrictive. Because of France’s restrictive laws, forming French companies is more complicated and time-consuming. For instance, Societe par Actions Simplifiee (SAS) spells out the steps that foreign organizations and subsidiaries ought to follow when entering France. These laws also affect the way goods and services are distributed and transported. This is because the French Business Law does not only regulate distribution of products, but the same also dictates selling techniques, franchising and commercial leases. For instance, SAS makes it mandatory to follow standard nine year terms that are set for commercial leases that are affected in France. These obligations are only lifted after every three years and greatly favor the interests of the tenant. C. The Codes of Ethics/Conduct That the Team Will Put Into Practice The team prefers to follow after honesty when carrying out the distribution. Since SAS, for instance, fundamentally defines how commodities in France are to be transported and distributed, it becomes necessary that honesty in advertising is held as paramount. In this effect, it will behoove the company in point to eschew highlighting features that do not exist in the product that is being introduced into the market. For instance, 2G (second generation) Internet bandwidth is to be branded as such, and not as 3G, the way some Internet services providers do, as a form of marketing gimmick. Secondly, the company is to consider integrating corporate social responsibility (CSR) into its modus operandi. This includes ensuring strict adherence to tax laws and the terms and services that govern services provision. This measure will not take into consideration the unforeseen uncertainties in the market and the competition therein. For instance, if this Internet services providing company had started providing unlimited data bundle to subscribers, in the event that competition renders the package and the price it was to be offered at as untenable, the Internet services company will have to wait until the package is exhausted by the market. While most companies and businesses do not honor this approach, it remains a salient feature in business success. Businesses that shift goalposts during their points of convenience are usually passed on as dishonest by consumers, and exploitative by the government (Bowen, 2007). D. Investigating the Relationship between Ethics and Cultural Diversity The relationship between ethics and cultural diversity is one that is inextricably integral. Many a time, cultural diversity has led to broader interpretation and adoption of ethical values. Shum and Yam (2011) contend that this is because cultural diversity readily brings about multiculturalism. Multiculturalism, in its turn, leads to ethical relativism instead of ethical absolutes. To this effect, one cultural value is not used to interpret or judge another cultural value. This leads to a situation where ethical values are no longer drawn from the diverse cultural standpoints, but from secular views. This is especially the case when there are divisive or competitive interests between cultures, or when one culture tries to gain hegemony over the others. This, for instance, exists among religious values. For example, no sooner will the state borrow business law from Judeo-Christian values, than Muslims call for the creation of Kadhi’s courts to address their civil litigations. Conversely, a society with one cultural heritage such as is exhibited in a nation or a nation-state is likely to have more radical ethical values. Conclusion and Future Work It therefore emerges clear that culture affects work and business ethics. Likewise, culture emanates from the drawing from a common historical heritage and interaction between different cultural heritages. The gravity behind this development is that business ethics are drawn from culture to safeguard consumers’ rights and interests, to ensure adherence to the law, and to ensure continual provision of essential goods and services. Since social interactions are ongoing, it befits to assert that culture is also dynamic and so is business and work ethics. It also remains true that ethics and culture affect business. The more radical ethical values get, the more businesses are affected. Business that are least affected are essential commodities such as food, clothing and shelter. The most affected businesses on the other hand may be those that fulfill secondary needs. References Bowen, F. (2007). Corporate Social Strategy: Competing Views from Two Theories of the Firm. Journal of Business Ethics, 75 (1): 97-113. Diane-Laure, A. (2010). A Social Movement Perspective on Finance: How Socially Responsible Investment Mattered. Journal of Business Ethics, 92 (4): 57-78. Fassin, Y. et al. (2010). Small-business Owner-managers Perceptions of CSR and business- related Ethical Concepts: A European cross-cultural comparative Analysis. Academy of Management Annual Meeting Proceedings, 12 (14): 1-6. Shum, P., &Yam, S. (2011). Ethics and Law: Guiding the Invisible Hand to Correct Corporate Social Responsibility Externalities. Journal of Business Ethics, 98 (4): 549-71. Read More