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Wednesday, 18 May 2011

Ethical Issues Faced by Disney Walt in Overseas Market

Ethical Issues Faced by Disney Walt in Overseas Market
Business ethics is an important facet for running a successful business. It refers to doing what is right at the workplace that would bring harmony among employees, create positive image to clients and other stakeholders in general.

According to McNamara, (2010), “Perhaps most important, attention to ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass.” The Walt Disney Walt has to confront its own ethical dilemma in the overseas market in China. One of the ethical issues it faces is wage disparity between the local Chinese employees and US employees who have been relocated to work in Chinese Walt Disney parks.

The significance of paying US employees more than their Chinese counter parts is because it is expensive for a foreigner to live and work in China. Accommodation rates are high for them besides the difficulty of finding restaurant that sell their food. However, there are positive things resulting from relocating US employee to China.

To begin with, the firm will enjoy low overhead cost as compared to that of training new Chinese employees to work in the parks. In addition, cultural diversity is of essence for the running of businesses. If Walt Disney employs both US employees and Chinese employees to work in the same park, there would be mutual understanding of cultural differences between these two groups.

Though bringing US employees to China means more running costs, this move is justified as the costs will be subsidized by the employment of cheap Chinese labor that is readily available. “Business ethics in the workplace is about prioritizing moral values for the workplace and ensuring behaviors are aligned with those values -- it's values management,” ( McNamara, 2010). Therefore as long as the firm maintains harmony in the workplace, and that its operations are smooth, wage difference can never be an issue for Walt Disney World.

McNamara, C. (2010). Complete Guide to Ethics Management: An Ethics Toolkit for Managers. Accessed on September 11, 2010 form

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