1. Global Business Ethics and Social Responsibility
Chapter 10
Global Business Ethics and Social Responsibility

2. Brainstorm
List 1 positive and 1 negative media story you’ve heard recently about business ethics and issues?
To whom should multinational businesses show corporate responsibility?
What is the role of Canadian international businesses in developing nations?

3. Understanding Business Ethics
Code of Ethics
Values, written or not, that represent principles for actions of individuals and organizations
E.g. home, schools, businesses, countries
“The Tiger Way”

4. Understanding Business Ethics
Rule of Law
Written laws, refined in history, establish the rules that citizens are expected to follow
E.g. Canadian Charter of Rights and Freedoms
Ethical Dilemma
2+ courses of action conflict, choice between two fundamental rights

5. Cultural Relativism vs. Ethical Imperialism
Ethical Imperialism - belief that certain forms of behaviour are categorically right or wrong
Cultural Relativism - belief that behaviour should be governed by what will bring greatest good
E.g. smoking, children working

6. Corporate Social Responsibility
Broadly covers corporate standards and practices regarding human rights, the environment, human resources, and community relations
Stakeholders - people affected by performance of company
E.g. management, employees, shareholders, host community
                                           
                                           

7. Social Marketing Social Marketing
Proactive initiatives that companies take to support a cause, e.g. literacy, environment, poverty
Also known as Cause Marketing
Successful recent examples:
(red) campaign – Gap, Motorola, Converse, iPod
Idol Gives Back – over $75 million raised for global poverty

8. Homework
Read “Cause Related Consumerism”. Answer the questions at the end of the article.
Page 311
Explain the term ‘business ethics’.
Describe the difference between cultural relativism and ethical imperialism.
Identify three stakeholders in any international business organization.

9. “Latte Activist” vs. Traditional Social Activist
Prefer to buy products that benefit the greater good of society
Don’t research deeply into cause
Don’t buy exclusive brands
Jump from trendy cause to trendy cause
Traditional Social Activist
Strong believe in a cause
Helping the cause is far more important than consumerism
Not lazy – actively involved in a cause
Well researched – experts in the cause
Support the same cause from year to year

10. Product (red) Campaign created by Bono of U2
Benefits the “Global Fund”
Broad spectrum of corporate support – iPod, American Express, Converse
Corporations are not shy about pursuing profit while supporting a cause
Taps into our insatiable desire to buy stuff…always

11. Traditional Route for CSR
“Portion of proceeds go to…”
Hide the fact that profit is a motivation for social responsibility
Examples:
Timbits program
Employee volunteer programs