Syllabus and schedule highlights

What kind of problem do you want to see? Nokia in the Congo: Blood in the MobileBlood in the Mobile Al Jazeera: Nepalese kids sold to work in Indian circusesNepalese kids sold to work in Indian circuses Corruption in Cambodian logging destroying forests and local livelihood (be sure to click the “show more” button below the video United Nations: Shell Oil’s pollution in Nigeria may cost $1 billion to clean upShell Oil’s pollution in Nigeria may cost $1 billion to clean up The Cove: Dolphin slaughter for free school lunches in JapanDolphin slaughter for free school lunches in Japan PBS NewsHour: Health dangers of making i-Phones in ChinaHealth dangers of making i-Phones in China 60 Minutes: Child labor on farms in USChild labor on farms in US

Set 3: Ethics and Social Responsibility Ethics in international management Some ethical issues and problems for MNCs Pressures/action—industrialized countries, companies Initiatives for corporate accountability, corruption

Ethics Study of morality and standards of conduct Dilemmas due to differing ethical standards Most evident in employment practices/HR Legal issues of right and wrong

Social Responsibility Corporate Social Responsibility (CSR): Closely related to ethics Firm’s actions to benefit society beyond law and self-interest CSR involves taking voluntary action Typical MNC CSR issues: factory conditions, environmental impact, human/animal rights

Employment/Human Resources Hard to standardize practices across countries Working, length of shift, vacation, safety, pay e.g., U.S. MNCs give more vacation in Europe  Moving because of cheap labor Discrimination—sex, age, religion, race, appearance

Human Rights No universal standards Subjectivity, cultural bias Some basic rights? Life, freedom from slavery or torture, freedom of opinion and expression, general ambiance of nondiscriminatory practices Terrible track record around the world

Corruption Pervasive in international business environment Transparency International Corruption Index (perceptions of experts and polls): _indices/cpi/2010/results _indices/cpi/2010/results

Corruption Exercise: Pick an industry/sector and let’s talk about how corruption might be relevant…

Corruption Index: Least and Most Corrupt Countries

NGOs, MNCs and Ethical Balance Non-Governmental Organization; private, not-for-profit, focused on social, political, or economic issues e.g., poverty, social justice, education, health and the environment. Oxfam, Doctors Without Borders, Red Cross, One Laptop Per Child, Save the Children, CARE, World Wildlife Fund, etc Numerous, powerful, influential, active NGO leaders have high trust

Trust in Leaders

Rise of NGOs Rise due to problems MNC response to social obligations: Create agreements and codes of conduct Maintain in domestic and global operations Cooperate with NGOs Some heavily-criticized companies Nike Levi’s Chiquita

Ethics/CSR Examples: CHINA Poor pay, hazardous work, Piracy, counterfeiting, industrial spying Prisoner/child labor Pollution

Ethics/CSR Examples: JAPAN Political and business scandals: bribes and favors for politicians and bureaucrats banking loan collapse Minimata Bay mercury, Fukushima reactor Discrimination: against other Asians women absent from management treatment of women at work

United Nations’ Global Compact for Business Human Rights Labor Environment Anti-Corruption

United Nations’ Global Compact for business Human Rights Labor Environment Anti-Corruption

Corporate Governance The direction and control of corporations: Distribution of rights and responsibilities Stakeholder management Rules and procedures Goal-setting, decision-making, planning, monitoring

Corporate Governance Many foreign companies are “insider” systems Concentrated ownership Owned by holding companies, families, banks U.K. and U.S. systems are “outsider” systems Dispersed ownership Many outside investors

Some Initiatives to Increase Accountability and Limit Corruption Foreign Corrupt Practices Act US law, has lead to international changes More countries making bribes of foreign officials illegal (but often not payments to political parties…)

International assistance partnerships Government-corporate collaboration For example, Gates Foundation: health, poverty, education

UN Millennium Project goals

What we just did Set 3: Ethics and Social Responsibility Ethics in international management Some ethical issues and problems for MNCs Pressures/action—industrialized countries, companies Initiatives for corporate accountability, corruption