We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byRylee Punt
Modified about 1 year ago
© 2005 by Nelson, a division of Thomson Canada Limited. 1 Ethical Issues in the Global Arena Search the Web An excellent listing of global principles and codes for ethics may be found at:
© 2005 by Nelson, a division of Thomson Canada Limited. 2 Chapter Nine Objectives Identify the internationalization and globalization of business Summarize globalization arguments Discuss multinationals in the global environment Identify ethical challenges at the global level Define ISCT, hypernorms, and moral free space Outline strategies for improving global ethics Introduce seven moral guidelines for global business
© 2005 by Nelson, a division of Thomson Canada Limited. 3 Chapter Nine Outline The New, New World of International Business Multinational Corporations (MNCs) and the Global Environment Ethical Issues in the Global Business Environment Improving Global Ethics Summary
© 2005 by Nelson, a division of Thomson Canada Limited. 4 Introduction to Chapter Nine The focus of the chapter: –The transnational economy –Internationalization –Global ethics
© 2005 by Nelson, a division of Thomson Canada Limited. 5 Eras of Internationalization The Post-World War II A period of reconstruction dominated by the United States The Growth Years Japanese and European firms recover and U.S. international firms become multinational The Troubled Years U.S. deficit and worldwide oil crisis have a negative impact.
© 2005 by Nelson, a division of Thomson Canada Limited. 6 Eras of Internationalization 1980s-The New International Order Though the U.S. role in the world economy is diminished, it is pressured to be a world leader in the ethics arena now The New, New World A backlash against globalism began.
© 2005 by Nelson, a division of Thomson Canada Limited. 7 Concepts of Global Business Internationalization Globalization
© 2005 by Nelson, a division of Thomson Canada Limited. 8 Pros and Cons of Globalization IMPACTONIMPACTON GlobalistsAntiglobalists Consumers Free trade promotes lower costs, etc. Benefits the wealthy at the expense of the poor Employees Faster economic growth promotes higher wages, etc. Places profits above people Environment Creates resources needed to address the issue Exploits and destroys ecosystems Developing Nations Promotes national economic development and standards World financial institutions conspire to keep poor nations in debt Human Rights Creates cultures that support law and free expression Corporations pursing profits ignore human rights violations
© 2005 by Nelson, a division of Thomson Canada Limited. 9 MNCs and the Global Environment Change scope and nature of U.S.-based multinationals Face challenges of operating in new world of business: –Corporate legitimacy –MNC and host country philosophy –MNC and host country challenges
© 2005 by Nelson, a division of Thomson Canada Limited. 10 Ethical Issues in Global Business Marketing and safety practices Sweatshop and labour abuse Corruption and bribery Search the Web For student activists interested in sweatshop practices, visit
© 2005 by Nelson, a division of Thomson Canada Limited. 11 Arguments For and Against Bribery For A necessary tool Accepted practice Form of commission, tax, or compensation Against Wrong/illegal Compromise personal beliefs Promotes government corruption Benefits recipient only Creates dependence on corruption Deceives stockholders
© 2005 by Nelson, a division of Thomson Canada Limited. 12 Trends Against Bribery Foreign Corrupt Practices Act enacted Transparency International developed OCED Antibribery Initiatives launched
© 2005 by Nelson, a division of Thomson Canada Limited. 13 Bribes vs. Grease Payments DefinitionsDefinitions –Grease Payments— Money given for the purpose of getting minor officials to do what they are supposed to be doing. –Bribes—Relatively large amounts of money given far the purpose of influencing officials to make decisions or take actions that they otherwise might not take. ExamplesExamples –Money given to minor officials (clerks, attendants, customs inspectors) for the purpose of expediting a project –Money given, often to high-ranking officials. Purpose is often to get these persons to purchase goods or services from the bribing firm.
© 2005 by Nelson, a division of Thomson Canada Limited. 14 Improving Global Business Ethics The Multinational Corp. Home Country Stakeholder Pressures Host Country Stakeholder Pressures The Dilemma of the Multinational Corporation
© 2005 by Nelson, a division of Thomson Canada Limited. 15 Improving Global Business Ethics Broad Middle Ground Mix of Home and Host Country Standards Home Country ETHICAL IMPERIALISM Host Country CULTURAL RELATIVISM Application of Ethical Principles (see notes) International Law Global Codes of Conduct Cultural standards Ethical/mor al standards of home country Cultural standards Ethical/mor al standards of host country Ethical Choices in Home vs. Host Country Situations
© 2005 by Nelson, a division of Thomson Canada Limited. 16 Improving Global Business Ethics Typology of Global Types Foreign type Empire type Interconnection type Global type
© 2005 by Nelson, a division of Thomson Canada Limited. 17 Improving Global Business Ethics Integrative Social Contract Theory (ISCT) Hypernorms-- transcultural values including fundamental human rights Consistent norms-- norms that are culturally specific, but consistent with hypernorms Moral free space norms-- strongly held cultural beliefs in countries that are in tension with hypernorms Illegitimate norms– those norms that are incompatible with hypernorms
© 2005 by Nelson, a division of Thomson Canada Limited. 18 Improving Global Business Ethics Four Actions for Improving International Business Ethics Create global codes of conduct Integrate ethics into a global strategy Suspend activities in host country Create ethical impact statements
© 2005 by Nelson, a division of Thomson Canada Limited. 19 Improving Global Business Ethics Global Codes and Standards Developed by International Organizations Caux Principles Global Reporting Initiative Global Sullivan Principles OECD Guidelines for Multinational Enterprises Principles for Global Corporate Responsibility UN Global Compact
© 2005 by Nelson, a division of Thomson Canada Limited. 20 Improving Global Business Ethics 1.The right to physical movement 2.The right to ownership of property 3.The right to freedom from torture 4.The right to a fair trial 5.The right to nondiscrimination 6.The right to physical security 7.The right to freedom of speech and association 8.The right to minimal education 9.The right to political participation 10.The right to subsistence Fundamental International Rights
© 2005 by Nelson, a division of Thomson Canada Limited. 21 Improving Global Business Ethics Inflict no intentional or direct harm Produce more good than bad for the host country Contribute to host country’s development Respect the human rights of their employees Pay their fair share of taxes Respect local cultural beliefs that do not violate moral norms Cooperate with the government to develop and enforce background institutions Seven Moral Guidelines for MNCs
© 2005 by Nelson, a division of Thomson Canada Limited. 22 Selected Key Terms Anticorruption movement Bhopal tragedy Bribes Consistent norms Ethical impact statements Globalization Grease payments Hypernorms Illegitimate norms Infant formula Internationalization Less-developed countries (LDC) Moral free space Multinational corporation (MNC) Sweatshops Transnational economy
9-11 Ethical Issues in the Global Arena 9-22 Chapter Nine Objectives Identify the internationalization and globalization of business Summarize arguments.
Ethics in International Business 4. Ethics in International Business INTRODUCTION Ethics refers to accepted principles of right or wrong that govern the.
Faculty of Business Management & Globalisation BBI3363 International Management Lecture 8: Corporate Social Responsibility and Ethics.
What is it that the business is responsible for? It is responsible for the welfare of the shareholders and the stakeholders, the former being the.
Chapter 6 The Challenges of Globalization Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
What is CSR? Why CSR? What are Companies and Governments Roles?
chapter National Differences in Political Economy McGraw-Hill/Irwin Global Business Today, 5e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
Globalization Chapter 13 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. This chapter: Explains globalization in more depth.
PLANNING THE AUDIT Individual audits must be properly planned to ensure: Appropriate and sufficient evidence is obtained to support the auditors opinion;
Institutionalizing Global Principles of Business and Human Rights From Institutional Misalignments to Socially Sustainable Governance: The Guiding Principles.
National Differences in Political Economy 2. INTRODUCTION To explores how the political, economic, and legal systems of countries differ Together these.
Introduction to Ethics From Accumulated Notes. What is Ethics Ethics is the practice of making a principled choice between right and wrong Oxford American.
Learning Objectives 11.1 Describe the advantages and disadvantages of the most common forms of business ownership Identify the stakeholders of a.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 5–1 Social Responsibility and Managerial Ethics Chapter 5 Management Stephen P. Robbins.
The emerging area of sustainability reporting Associate Professor Hadrian G. Djajadikerta Program Director, School of Business Associate Director, Centre.
Development of CP Policies: Approaches and Instruments Guidelines for the CP Centres UNIDO NCPC Programme April 2002.
Human Resource Policies. Human resource policies are systems of codified decisions, established by an organization, to support administrative personnel.
The UN Global Compact Corporate Citizenship in The 21 st Century.
The Role of the Market Mechanism, the State, NGOs and the Development Process ECON 3508March 7 and See text book, Chapter 11. pp , and.
1.00 UNDERSTAND COMMUNICATION SKILLS, STRATEGIC MANAGEMENT, EMOTIONAL INTELLIGENCE, AND PROFESSIONAL DEVELOPMENT Ms. Salim.
Chapter 1 Management Accounting: Information That Creates Value.
Learning Objectives 4.1 Recognize and define an existing or potential workplace problem. 4.2 List the nine steps that comprise a systematic approach to.
Climate Justice and UNFCCC Processes Brian Kagoro.
4-1 Copyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Deegan, Financial Accounting Theory 3e Financial Accounting Theory Craig Deegan Chapter 4 International.
Essentials of Contemporary Management, 1Ce. Copyright © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 3-1 Managing Ethics, Social Responsibility,
Renewed EU strategy for corporate social responsibility CSR by Ms Evelyne Pichenot, EESC member 10 April 2012 – Hong Kong.
Youth and Globalization By Dr. Mahmoud Al Sarhan Amman – Jordan 2005.
July 2012 Vendor/Client/Tenant/Landlord Jones Lang LaSalle Due Diligence.
GLOBALIZATION OF ECONOMICS AND DEVELOPMENT Prof. Anna Nedyalkova DSc Eleonora Tankova PhD.
COMMUNICATION SCIENCE 3 INTERNATIONAL COMMUNICATION Media, Culture and Globalisation Introduction & Overview Lecture 1 Instructor: Mr.T.G. Mokgosi.
© 2016 SlidePlayer.com Inc. All rights reserved.