chapter Ethics in International Business McGraw-Hill/Irwin Global Business Today, 5e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 4

4 - 3 Chapter 4: Ethics in International Business INTRODUCTION Ethics refers to accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization. Business ethics are the accepted principles of right or wrong governing the conduct of business people. Ethical strategy is a strategy, or course of action, that does not violate these accepted principles.

4 - 4 Chapter 4: Ethics in International Business ETHICAL ISSUES IN INTERNATIONAL BUSINESS The most common ethical issues in business involve employment practices, human rights, environmental regulations, corruption, and the moral obligation of multinational companies.

4 - 5 Chapter 4: Ethics in International Business Employment Practices Human Resources Environmental Pollution Corruption Moral Obligations

4 - 6 Chapter 4: Ethics in International Business ETHICAL DILEMMAS Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable.

4 - 7 Chapter 4: Ethics in International Business THE ROOTS OF UNETHICAL BEHAVIOR What are the roots of unethical behavior? Personal Ethics Decision Making Processes Organizational Culture Unrealistic Performance Expectations Leadership

4 - 8 Chapter 4: Ethics in International Business PHILOSOPHICAL APPROACHES TO ETHICS What are the theories of business ethics? Straw Men Utilitarian and Kanitian Ethics Rights Theories Justice Theories

4 - 9 Chapter 4: Ethics in International Business IMPLICATIONS FOR MANAGERS How can firms ensure that ethical issues are considered in business decisions?

Chapter 4: Ethics in International Business Hiring and Promotion Organization Culture and Leadership Decision Making Processes Ethics Officers Moral Courage Summary of Managerial Actions