This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Risks of a Blind Eye to Foreign Ethics Violations

NEW YORK ( TheStreet) -- One of the earliest fears of America's global economic efforts was culture clash and the consequential risks of foreign business practices that differ from ours.

Are Mexico, China, and India worth the risk?

Now, before I'm labeled Xenophobic, let me simply say America has enough problems with business ethics without taking on the fraud, abuse and corruption of other countries.

We have been in a never-ending battle fighting "crony capitalism" in recent decades and fighting the blind eye of industries supporting and favored by whomever is in power. Now overlay the known corruption of the China, the Communist icon of the world.

Mexico's drug cartel alone is responsible for over 50,000 killings in the last 10 years. Combine this with drug trafficking, human trafficking and corruption within the government and somehow a retailer's alleged greasing the palms of a few regulators seems almost innocent - overlooked there as easily as it is in too many American cities, states, and Washington, D.C.

And the latest...

India and then China recently announced that they'd continue buying oil from Iran, a country whose leadership was denounced by the U.S. for its human rights violations and support of terrorism. Isn't trading with Iran direct support of that regime?

Mexico, China, and India place us in an ethics dilemma of economics where we're forced to deal with terrorist-supporting, narcotics-generating, or human-rights-violating regimes.

So what's American business expansion worth?

Who cares, money is money, right?

Perhaps while Washington struggles with understanding military and humanitarian disconnects in the world, American business should also reflect on our core values and legal guidelines for making money. Only then can we engage in a rigorous risk assessment, risk appetite and risk management framework for doing business with adversarial, or at least dubious regimes.

To paraphrase wisdom a few thousand years old, "What profits a company if it gains country expansion, but loses its integrity?"

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs