Copyright © 2003 by South- Western, a division of Thomson Learning1 Chapter Eight Business Ethics In The Twenty-First Century

Copyright © 2003 by South-Western, a division of Thomson Learning2 Chapter Topics 1.A perspective on business and ethics since September 11, Emerging macro-ethical issues in the twenty-first century 3.The technology revolution 4.The changing workforce 5.Stakeholder management and ethics

Copyright © 2003 by South-Western, a division of Thomson Learning3 A Perspective On Business And Ethics Since September 11, 2001 The September 11, 2001 attacks on the World Trade Center and the Pentagon in New York and Washington, D.C., represent a turning point for the United States, the global community, and globalization. As this crisis transforms into a new type of war, several different issues have emerged. These issues that have ethical, economic, legal, social, and political consequences that are all global in scope include: The vulnerability of nation-states, including all industrialized countries Security as a national and global priority Information monitoring, profiling, and privacy on an unprecedented scale Religious, ideological, and racial stereotyping Whether or not this is and will be a “just war”

Copyright © 2003 by South-Western, a division of Thomson Learning4 A Perspective On Business And Ethics Since September 11, 2001 Coalition-building activity has ensued since the attacks. Whatever pattern emerges from the continually shifting coalitions, the initial U.S. led alliance is unprecedented and could lead to a new chapter on globalization in terms of trade, economic assistance, military cooperation, and peace agreements.

Copyright © 2003 by South-Western, a division of Thomson Learning5 A Perspective On Business And Ethics Since September 11, 2001 The scope and scale of the issue of national and individual security are another result of the September attack. Bioterrorism Cyberterrorism While measures have and continue to be taken to provide security from physical, bio-, and cyberterrorism, there are no guaranteed results. Visionics manufactures a face-recognition technology called FaceIt. Alternative to racial and ethnic profiling

Copyright © 2003 by South-Western, a division of Thomson Learning6 A Perspective On Business And Ethics Since September 11, 2001 Related to racial profiling is the issue of lack of tolerance for ethnic, religious, and ideological diversity. There are many questions, which have come forth, in defending this as a “just war.”

Copyright © 2003 by South-Western, a division of Thomson Learning7 Emerging Macro-Ethical Issues In The 21 st Century Significant issues that involve business and ethics in the foreseeable future include: First and Third World divides There is corruption in all countries MNEs could play a developmental role Many countries are shut out of economic and technological benefits of the 21 st century The human genome project, cloning, and the issue “What is the human self?” Commercial and medical uses of DNA Genetic engineering and human cloning Stem cell debate Sanctity of life versus quality of life

Copyright © 2003 by South-Western, a division of Thomson Learning8 Emerging Macro-Ethical Issues In The 21 st Century Significant issues that involve business and ethics in the foreseeable future include: The environment as free-market commodity or sustainable stakeholder The environment is being respected as a valued and sustainable resource The future of globalization Positive developments that could emerge include: New alliances Trading partners Openness to religious diversity Integration of political adversaries

Copyright © 2003 by South-Western, a division of Thomson Learning9 The Technology Revolution And Ethics The technology revolution led by the Internet and digital and wireless technologies has created change in almost every dimension of society including: Communication Science Medicine Politics Commerce Law Education Productivity Work Professions

Copyright © 2003 by South-Western, a division of Thomson Learning10 The Technology Revolution And Ethics New technologies present ethical problems and issues as well as opportunities. Some issues include: Privacy Individual rights Personal safety Censorship versus free speech

Copyright © 2003 by South-Western, a division of Thomson Learning11 The Technology Revolution And Ethics Stephen Keating suggested five ways to solve privacy issues on the Internet: Research on privacy issues is needed Review of government laws is required Clear disclosure will help Common sense can be used Fair information practices should be created

Copyright © 2003 by South-Western, a division of Thomson Learning12 The Changing Workforce The changing nature of the workforce and related issues affects employers, employees, and stakeholders. The American workforce continues to experience a paradigm shift between the so- called old and new economies. Areas of interest, concern, and change include: The aging workforce Women in the workforce Ethnic and cultural diversity in the workforce Workers with disabilities The education gap in the workforce

Copyright © 2003 by South-Western, a division of Thomson Learning13 Stakeholder Management And Ethical Navigation The legitimacy of U.S. business institutions is founded on the notion that the free-market system operates to provide value to society and to serve the public good. Issues that businesses should prioritize in the 21 st century include: Economic obligations Political obligations Moral obligations Ethical principles and practices in business start with the top leaders.

Copyright © 2003 by South-Western, a division of Thomson Learning14 Stakeholder Management And Ethical Navigation The concept of global ethics is even more complex because people and institutions reflecting different individual, corporate, and societal ethical standards interact. Using universal ethical principles is necessary but not always sufficient for resolving local conflicts of interest where two or three right ways seem to conflict. Resolving ethical dilemmas both locally and internationally involves creative and critical thinking, collaboration, and sound ethical judgment.

Copyright © 2003 by South-Western, a division of Thomson Learning15 Stakeholder Management And Ethical Navigation Key stakeholder management principles to navigate ethics while responding to profit imperatives include: Choices The uses and limits of responsible corporate power Responsibility in flexible business relationships Negotiate and be familiar with cultural norms Know when not to negotiate Know the seven approaches for dealing with cross cultural conflicts Listen to and communicate the best interest of all parties Separate the people from the problem Focus on interests, not positions Generate a variety of possibilities Insist that the result be based upon some objective standard