2 International business impacts daily life around the world and also affects ethical decisions in business.
3 To describe settings in which international business affects people To list issues that affect ethics in international business
4 It is necessary to work in the global environment in an ethical and legal way in order to sustain effective global trade.
5 a set of moral principles by which people conduct themselves personally, socially, or professionally ethicsa set of ideas about how a company should conduct business in relation to legal, social, and environmental issuesbusiness ethics
6 social responsibility the duty to do what is best for societya statement that explains what a company or group believes is proper and improper conductcode of ethics
7 the various individuals or groups of people who have a direct interest, involvement, or investment in somethingstakeholders
8 The Impact of International Business State or ProvincialInternational business affects countries on several levels.Local
9 People can buy products from firms around the world. Local LevelPeople can buy products from firms around the world.Customers expect local businesses to keep up with local and international trends.Internet use makes the world of international business move faster.
10 State or Provincial Level State and provincial governments seek ways to sell regional products globally.Businesses located in one state look to build relationships with international companies and national governments.
11 National LevelHighly developed countries seek to keep a balance between exporting their products and importing products.Countries with few natural resources or goods to export have trouble with economic stability.
12 International LevelTaxes and tariffs can be imposed on a country that is gaining an unfair advantage by pricing its exported products too low.A recession in one country can affect the economies of other countries.
13 Ethics and Social Responsibility Ethics exist to serve as guidelines for behavior.ethicsa set of moral principles by which people conduct themselves personally, socially, or professionally
14 Ethics and Social Responsibility Business ethics have to do with doing “the right thing” in business.business ethicsa set of ideas about how a company should conduct business in relation to legal, social, and environmental issuesBusiness ethics include practicing business legally, morally, and fairly.
16 Social Responsibility To promote social responsibility, businesses can:social responsibilitythe duty to do what is best for societyEliminate negative activities.Perform positive activities.
17 Social Responsibility A code of ethics might be created or sponsored by a company or profession.code of ethicsa statement that explains what a company or group believes is proper and improper conduct
18 Business organizations have many stakeholders. the various individuals or groups of people who have a direct interest, involvement, or investment in something
19 Stakeholders in a Business labor unionsemployeesownersStakeholders in a Businessgeneral publicstockholderscustomersgovernmentssuppliers
20 StakeholdersEvery ethical issue, from unfair wages to tax evasion, has a specific impact on a stakeholder group.
21 Factors Affecting Ethical Decisions Factors affecting ethical decisions include:The culture and history of a countryUnion issuesGovernment regulations
22 Factors Affecting Ethical Decisions Recall Name three factors that affect ethical decisions.
23 Some consequences of unethical decisions include: LawsuitsGovernment interventionJailLoss of business partners internationallyLoss of customers
24 Factors Affecting Ethical Decisions Relate Do you think it is fair for one country to sell goods to buyers in other countries at much lower prices if companies in the seller’s home country pay low wages to employees?
25 Local and Global Impacts Global business has expanded with the Internet, technology, and transportation.The growth of global business requires responsible action by businesses around the world.
26 How does international business affect ordinary people? 1.2How does international business affect ordinary people?on the local level, through offering new goods and services; on the state or provincial level, by representing local products internationally; on the national level, by impacting the nation’s economy
27 What are ethics and social responsibility? 1.2What are ethics and social responsibility?Ethics is a set of moral principles by which people conduct themselves; social responsibility is the duty to do what is best for the good of society.
28 1.2What are stakeholders?individuals or groups of people who have a direct interest, involvement, or investment in something