Arizona State University (ASU) MGT302 Principles of International Business Exam 3 Practice

In the context of international business, committing to ethical practices while improving community quality of life is considered essential for several reasons.

Firstly, businesses operating internationally come into contact with diverse cultural, legal, and social environments. By prioritizing ethical practices, companies not only adhere to local laws but also build trust and credibility with local communities. This commitment to ethics is vital for maintaining a positive corporate reputation, which can significantly influence customer loyalty and employee satisfaction across different markets.

Secondly, improving the quality of life in the communities where a business operates can lead to more sustainable operations. When companies contribute positively to local communities—through initiatives such as environmental stewardship, education programs, and health services—they not only enhance community welfare but also foster a favorable business environment. This can lead to improved business performance and create opportunities for long-term success.

Moreover, many international stakeholders, including consumers, investors, and governments, increasingly expect companies to act responsibly and contribute to social good. A focus on ethical practices and community well-being aligns with these expectations and can provide a competitive advantage in the global marketplace.

In contrast, focusing solely on profit maximization or prioritizing local market trends over global ethics can result in short-sighted strategies that may harm both the company's reputation and the communities in which