Business Ethics: How Politics is Affecting the Business World?

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Business Ethics: How Politics is Affecting the Business World?

Technology and innovation nows day become a major role of our life, it’s taught the competitor sector with the biggest companies in the world creating and innovating every year by giving the quality and the innovation on every product they produce. But when politics come affect this interesting field, it becomes more complicated to determine who controls the market .in this assignment, I will discuss one the major economic crisis between the 2 Global economic power and why is it related directly to The second biggest Smartphone producer in the world? and why this decision is unethical? For me to go deep in the subject I have to give a background about the company and what the company major fields and why is it important to know that to understand the hole crisis because it’s not just related to the smartphones but it is related also to China and USA.

Huawei Technologie is a company that was founded in 1987, it is the leader in global provider of information and communication technology. Huawei have approximatively 194000 employees and operate in 170 countries and regions in the world with more than 3 billion people around the world. Huawei offers to their customer’s value by providing them with open, flexible and secure ICT (information and communications technology), Stable secure and stable network operations by making it as secure as possible and it has been their priorities since 2018, Promoting industry development and providing people with strong growth platform. Huawei is also known as the second-biggest smartphone producer in the world and one of the companies that are going to implement the 5g in the next few years, however with the cold war between that was started by the US and involved China and Huawei, it is an important challenge to make it happened.

STAKEHOLDER MAP: Stakeholders’ impact and are impacted by the company in different ways, each one of them plays a major role in the development and the innovation of Huawei.Based on the sic principles that Huawei relies on to priorities stakeholders that are: Principles of responsibility, influence, Proximity, Dependency, Representation, and policy & strategic intent and by doing that Huawei make sure to understand the requirements of each one of the stakeholders.as in the issue each stakeholders have an effect and been affected by it because since the materials that made to create the product are based on multiple stakeholders but also the customers are related to the product since they buy the product.

Customers: They are the ones ho buy the products and influence the numbers of the company, in this case, costumes play a major role because not only they are impacted by the issue but they are going to impact the company in a negative way. the most important thing to a customers is the product quality and safety since the issue impact directly the product in a negative way then the product quality will decrease because the product will not be the same and that will influence the customers Purchase but there is an expectation from the customers towards the company that Product quality will not decrease. Huawei in this situation communicate with the customers through customer surveys and satisfaction surveys to know more about what the customers think about the issue and what are their concerns and obviously, Huawei reassure their customers that the quality will not decrease but it’s the opposite actually, it’s still going to increase and be innovative as usual and the prof of that is they launch The Huawei Mate 30 without Google Apps after the US and Google Ban them from using Android fully and Google Apps, they were able to sell one million after the launch by just pre-orders in china, obviously the smartphone will be available in Europe very soon but the question is will it do good numbers?
Suppliers: The suppliers are related directly to this issue. Because of the influence of the US, most suppliers that use to do business with Huawei are cutting the ties off with them because of this situation but the main one is Google. Since Android-powered every Huawei smartphone, it is one of the main suppliers for Huawei. After Putting Huawei in the blacklist of the US, Google was forced to drop the license from Huawei but even tough, Android is open-source which means it can be used as the funding to build a system for the smartphones which what Huawei did because they anticipated this situation way before. But Google was one of the companies that stop working with Huawei, others stoped such as Qualcomm, Intel, Panasonic, Vodafone, Microsoft and some of them are not American companies just because their country is an ally to the US which complicated things for Huawei to stay in the same level as it was before but one the companies that made a huge crisis for Huawei is ARM, it’s a British company that design the Processers of Huawei that they developed called the Kirin but since Huawei bought up the license for 2 years, they still can be designed them for that time but after it won’t be possible which will have a serious impact on Huawei smartphone’s. Normally for Huawei to solve this Problem it needs to invest money and time to be able to produce and design their processor but that’s nearly impossible not only it can take several years to do that but also it won’t have the same performance as the processor that are designed by ARM. For now, they still trying to find a solution between Huawei and ARM to find a way to work together.
Governments: In this issue, the government is very involved, the issue was created trough politics since they were a conflict between the 2 economic Power in the world.Because Huawei has an impact not just in China but in the world. The US wasn’t very happy with what they discover and with the fact, they couldn’t work with China to get the negotiation into a point where both parties will have a win-win situation but obviously after the ban of Huawei from the Americans, china is supporting Huawei in every possible way to minimize the impact that was caused by this situation. The president Trump decided that after the situation that it’s the best choice to cut ties with Huawei since they represent China and it’s the second manufacturing smartphone company in the world behind Samsung and apple in the third which not only it represents a threat to an American company but also to Samsung too ho also supplies some of the material to Apple. It is ethical that politics influence companies and to put pressure on Huawei?
Media / Non-governmental Organizations: in this case, the media plays a major role and it is also impacted by the situation because it’s a global issue. Since The Us and China are also involved directly, obviously the media will talk more about the issue either by making rumors spread like they did recently by saying that The president Trump is working on an agreement to solve the Issue which he denied directly in a press-meeting. When we talk about the media, we talk also about E-platform such as Youtube ho contain Tech YouTubers such as MKBHD and others ho talked about this issue indirectly trough their test to one of the latest smartphone made by Huawei without Android.
Consumers: One of the main parts ho are affected by the issue is the consumers because first they are the one ho buy and use directly the product and also because they are the one ho make reviews to give their opinions about the product. When the customer hear that google apps won’t be part of Huawei system, a part of them will be worried because the experience and most of the apps are well developed to compete with appel apps for example but the other part ( Chinese people ) they are not worried because in china they don’t use the Google apps, they have their own apps and that’s why since the Mate 30 is out the sales increased in China.

ETHICAL DISCUSSION

In terms of the stakeholder position on the issue, I found out that for customers they were forced by the US to stop working with Huawei even if they know that it will affect them negatively since Huawei is growing fast in the past 2 years .the decision that they made was based either on the fact that the country that they represent is an ally of the US or it’s an American company like the example of Google by revoking the license of android on any future Huawei device until further notice. For the governments, we see that the cause of the issue is a political, a crisis between two big countries that involved companies into their issue which not only complicated the situation but it made it worse today. For The media they were affected by the issue positively and negatively, for once the media show that because of unethical decision that was made by the president of the US, it created a crisis between countries and most important companies and because of that decision and the influence behind it will definitely affect both countries and American companies that use to do business with Huawei. For the consumers, well it really depend on the geography, if you are in America, the Chinese products are not welcomed after the Us put Huawei and other Chinese companies in their Blacklist because of the non-agreement between the 2 countries but it is clear that today it is not an easy decision to make when you want to buy a smartphone that is worth around 800 euros because of this issue. Obviously in Asia Huawei will not be affected by it because they don’t use google Apps .

CORPORATE ETHICS

When it comes to Ethics , Huawei is very serious about this matter . Because it is an IT company, it ‘s on her duty to protect the data and privacy of every user ( Companies, consumers) but it’s not just about that, there is also corruption and bribery that are trained very seriously in Huawei .the goal is to foster a fair business environment and maintain order .these issues must be not just addressed but also dealt with in the severe matter in the eyes of the company.

Integrity is one of the main aspects that Huawei relies on, in fact, the company has zero tolerance for Bribery or corruption and to see that Huawei is very serious about it, they launched programs to improve their anti-corruption and anti-bribery management system. Huawei makes sure that every employees or third parties who do business with them or on behalf of Huawei comply with Laws and regulation of the countries they operate and also all the companies must sign the BCGs ( Business Conduct Guidelines ) and also Huawei make their Partners sign agreement of honesty and integrity which help the company to establish an ethical and fair Business.

Based on all the efforts that Huawei is putting to fight corruption and Bribery to make their Business better.

Culture of integrity and compliance: Culture is a very important part of the company since it’s multinational company and is present mostly every continent in the world, Huawei take multiple initiatives when it comes to culture and anti-corruption and anti-bribery to increase awareness in this point.
Compliance management: Huawei takes all the measurements to anticipate any potential risks in all business scenarios.
External communications: Huawei makes sure that all the stakeholders fully understand the compliance regulations and policies.

Huawei also applies the IPR and trade secret protection by owning 2 patents, inside chine and the other outside china .it complies with applicable laws and regulations.By building and developing this protection system, Huawei is against the practices that affect the trade secrets of the others.

Huawei was accused of spying on their consumers and that was one of the reasons why the President Trump decided to put them on the blacklist, but Huawei denied it and was and still want to prove that it’s not true, based what I mentioned the company has a very strict and strong point of view when it comes to ethics, it is seen as one of the companies that rely to ethics in their business. But the issue is more complicated than that, in fact, Huawei also is launching the 5G which is the latest technology when it comes to networking but the US is not accepting that gift to end this conflict with a motif of the 5 G will help Huawei to spy on American people. Huawei is the only company that is very advanced when it comes to 5G, others developed the same technology like Qualcomm but not as good as Huawei.

PERSONAL VIEW

In my opinion, this is an issue was complicated and cause by politics when it comes to politics nothing is ethical. When can see jut because the US and China didn’t have a trade agreement, it caused cause inside the Business world and affected on the biggest companies in the world ( Huawei and Google )? Google was the main company to react in the first place because it was influenced by the decision of the President of USA, is it Ethical ? of course not, in this situation it brakes every code of ethics and make thing even worse than they look. the company was accused of spying on the American people, because of an e-mail from Huawei’s company that proves that but nothing was shown to the public and Huawei offered to prove that it is not true. If the politics come to the business world and influence a company because they have a crisis in their country it definitely brakes every ethical code that exists in this world. But the fact that not just Huawei will be affected by this situation but also Google because Huawei is the second biggest manufacturing smartphone in the world, it means revoking the license will hit Google when it hurt the most but google did nit really have a choice but to follow orders. I believe politics should not involve companies in their issue, what stays in politics stay in politics. We can see that Business is involved everywhere even in politics where in this situation was dragged to it but it is part of our life now, everything is related to business. I think if there is any chance of resolving this situation politically without involving the companies by not influencing them to take action against each other, that would be the most ethical thing that happened in politics.

ISSUE ANALYSIS

The US and China were negotiating a trade agreement between them, the US decided to raise the taxes by 25% for the Chinese product but the Chinese didn’t agree to it, the president trump decided to sign sanctions against some Chinese companies such as Huawei because they suspect them they are spying on the Americans with proof. By adding Huawei to the blacklist of the US, all American companies that use to do Business with Huawei cut ties with them and stopped doing Bussiness with them and even other companies that their country is allied with the US decided that it’s in their interest to stop doing business with them.in this case, it is definitely right versus wrong, because not only we can see that it is not fair to include companies into politics, but to make other companies do something that will benefit the US directly and affect the American companies in a negative way just to put pressure on Huawei and China. I can see that the relevant factors are definitely the fact that President Trump decides to attack china by punishing them through one of their protegy ( Huawei ) by putting pressure on them not just on the smartphone productions but also on the 5G technology that is definitely the future. In this case, the only way to solve this issue is either by solving the political problem between the countries ethically as soon as possible or not involve the Business in politics, after all in politics every weapon are allowed. but that’s not ethical.

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ETHICAL DISCUSSION

CORPORATE ETHICS

PERSONAL VIEW

ISSUE ANALYSIS

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