1. Ethics in Global Markets

2. Ethics in a Cross Cultural Environment
1. Why Bother?
 “Good Ethics is Good Business”

3.  “The Business of Business is Business”
Milton Friedman
Governmental Control versus Market Control
Inefficient Externalities
Costly Justice of Distribution

4. Legality versus Ethicality
Ethics is Prerequisite for Legal System,
Legal System is Prerequisite for Free
Market Economy

5. 2. What Does it Mean to be Ethical?
“Ethics is the enterprise that attempts to formulate the
principles by which human life is to be lived”
Douglas Rasmussen
History
Culture
Ethics

6. 3. Ethics in a Cross Cultural Environment
Major Problem Areas:
Environmental Issues
Safety Issues
Wage Issues
Gender Issues
Consumer Deception
Corruption
FCPA

7. 4. Cross Cultural Validity of Values
- Ethnocentrism
“When in Rome or anywhere else do as you would at home”
- Relativism
“When in Rome do as the Romans do”
- Universalism
“When in Rome do as you should do all over the world”

8. 5. Traditional Universal Ethical Rules
- Deontological Theories
Inherent Wrongness or Rightness of Intended Actions
Examples:
 Golden Rule
 Categorical Imperative
“Act according to that maxim only, which you can wish,
at the same time to become a universal law”
Immanuel Kant ( )
Elusive
Impractical
Might Lead to Irresponsible Consequences

9. - Teleological Theories Moral Consequences of Actions
Example:
 Utilitarianism
“Greatest Happiness for the Greatest Number of People”
John Stuart Mill ( )
Denies any Absolute, Categorical Values
No Cross Cultural Understanding of
Happiness
Measurement Problems

10. - Dialogic Idealism
Communicative Approach for Ethical Dilemmas
“Act according to that maxim only, which you can
expect to be acceptable to all stakeholders in a dialogue
that is removed form all forms of force and coercion”

11. Two Principles of the Dialogic Idealism:
Universality Principle:
* Universal Rules of Ideal Dialogue
1. Everybody has the right to participate in dialogue
2. Everybody has same rights in dialogue
3. Everybody is willing to follow the better argument
4. A norm is only accepted if all participants can agree on it
* Universal Objective
Apply the rules of the ideal dialogue as much as possible
in real dialogue
Responsibility Principle:
* Assessment of Consequences in Real Dialogue