Seeing that markets in the United States are the biggest in the world for developing countries, it is in the best interest of the Chinese organization to allow the Food and Drug Administration of the United States to assure that Chinese foods and medical products are safe for the U. S. consumer. As a matter of fact, this is the best business strategy for the Chinese organization to adopt, given the fact that the growth of its business is intimately linked to the U. S. consumer at this point in time.
By refusing to allow the FDA to check on its foods and medical products before they reach the United States, the Chinese organization would only lose in terms of international sales revenue. Indeed, the wiser business strategy must be adopted. The Food and Drug Administration acknowledges the fact that it would be virtually impossible to check on every food and medical product that is brought from a developing country to the United States.
For this reason, the United States government may have to outsource FDA inspectors to some foreign organizations and governments in an effort to verify that the foreign plants producing food and medical products for the U. S. consumer are meeting the quality standards expected in the U. S. (“FDA to Open Inspection Office”). Because FDA inspectors would not be able to reach every developing country and every organization that produces food and medical products for American consumers, a superior business strategy would be for the Chinese organization to contact the FDA on its own so as to verify that its products meet U. S. standards.
In fact, any organization in the developing world that wishes to continue conducting business in the U. S. market should adopt this business strategy – at least as far as food and medical products are concerned. Furthermore, if FDA’s findings are made global, other developed countries would enjoy the benefits that the U. S. consumers are expected to enjoy as a result of this corporate governance strategy. Most importantly, FDA’s method of ensuring corporate governance in the international business arena is remarkable and can be used as a model for ensuring corporate compliance around the world.
As a result of this planned effort on the part of FDA, only those organizations that have complied with FDA standards would be successful in the U. S. market. Such organizations are also expected to succeed in other markets that are concerned about foods and medical products imported from the developing world, where corporate governance has thus far been weak. It is but natural for such organizations to succeed on the international stock market as well. When it is time for investors to consider their stock options, they would definitely opt for those organizations that are marketing and selling quality products in international markets.
The losers are expected to remain behind. The successful organization would be one that is confidently picked from a variety of stock options. If it is a Chinese organization that complies with FDA standards, its stocks are expected to rise in value both in China and abroad, as compared to another organization from the developing world that has not reached out to the FDA to comply with its standards. This line of reasoning makes it clear that business strategy (that is, how to produce quality goods) must be consonant with organizational goals (i. e. consumer satisfaction) for long term success on the stock market to boot.
After all, the successful organization is one that not only produces and sells quality products to increase its profits, but also makes its stocks a success for investors. Therefore, as the article, “FDA to Open Inspection Office in China This Year” reveals, it is best for organizations that sell or plan to sell foods and medical products to the U. S. consumer to comply with FDA standards. This is the best business strategy for organizations that aim to succeed in both their local and international markets.
Indeed, ethical consideration is a must, regardless of whether the consumer or the producer is locally based or on another continent altogether. Ethics demand of businesses to consider both the advantages and disadvantages of the products that they aim to sell. Hence, advertisements for cigarettes in addition to cigarettes packs have been required to explicitly warn the consumer of the ill effects of smoking. As the case of FDA in China shows, organizations may or may not be conscious of the harms of their products.
It takes the government to ensure corporate compliance when organizations fall short in terms of business ethics. After all, it is the government’s duty to protect the people, and this includes the protection of consumer rights as well as consumer health.
Works Cited
“FDA to Open Inspection Office in China This Year. ” USA Today. 16 Oct 2008. 29 Nov 2008. <http://www. usatoday. com/money/industries/food/2008-10-16-FDA-china_N. htm>. Shaw, William H. and Vincent Barry. Moral Issues in Business. 10th ed. Florence, KY: Wadsworth Publishing, 2007.