| ID | 124581 |
| Title Proper | Business risk and ethics in prospective emerging markets |
| Other Title Information | the case of sports sponsorship in North Korea |
| Language | ENG |
| Author | Horak, Sven |
| Publication | 2013. |
| Summary / Abstract (Note) | urpose-This article discusses ethical issues of doing business with the Democratic People's Republic of Korea (North Korea) and associated risks in the area of sports sponsorship.
Design/methodology/approach-Ethical questions influence an international firm's engagement in North Korea in significant ways. Starting from a theoretical anchorage in business ethics, I apply descriptive case study methodology based on media analysis in order to understand ethical challenges of business management with North Korea by the example of firms from developed economies and emerging economies. This article is suitable to be used as a teaching case in international business and management classes (teaching notes are available on request from the author at sven.horak@gmx.de).
Findings-The study leads to three major propositions. International investors may benefit from first mover advantages in the area of sports sponsoring. On the contrary, breach of contract risks are high and a doubtful image of the sponsoring firm may be created in the eyes of the consumer while sponsoring a dictatorship. Moreover, the article finds indications that business transactions between two emerging markets appear to be smoother than between emerging markets and developed economies.
Originality/value-Only a few international firms are maintaining business relations with North Korea. If the new leadership opens up the country for international investors as proclaimed, international firms need to understand the prevailing business environment. In this context, the link between business ethics and associated risks has been rarely discussed since leadership change in 2011. |
| `In' analytical Note | North Korean Review Vol. 9, No.2; Fall 2013: p.18-28 |
| Journal Source | North Korean Review Vol. 9, No.2; Fall 2013: p.18-28 |
| Key Words | Business Ethics ; Business Risk ; Emerging Markets ; North Korea ; Sponsorship ; Sports |