Individual ethics + values–Martha McKasky

Organization culture–GCC

Ethics in the organization–How to implement

Ethics Codes/Policies in Organizations: How to

The code is about corporate culture

-What lines can’t be crossed? Get input

– From ALL levels Don’t be too specific or too vague Ask experts (HR, ethicist, lawyer) Put someone in charge

-Who applies and updates?

What do your company’s codes look like?

Standard or unique? Do they work very well? What single change would you make?

Creating an ethical culture

Ethical leaders

Ethics committees Ethics officers/ombudspersons Hot lines Ethics audits Corporate ethics awards

Individual ethics + values Organization culture Ethics in the organization The organization in the world–Stakeholders–Cultural considerations–CSR

Theories of the Firm

What is a corporation?

They are not all psychopaths!

100 Best Companies to work for

Milton Friedman’s Stockholder Model

“The Social Responsibility of Business is to Maximize Profits” (1971)

The Stakeholder Model

Appeals to utilitarian considerations of overall well-being + individual rights

Requires management to achieve balance

Who are stakeholders?

People and groups that affect or can be affected by an organization’s decisions, policies, and operations

Benefits v. risks

Primary + Secondary

Primary stakeholders are critical to company’s existence and activities

Secondary stakeholders are those people/groups that are affected directly or indirectly by a company’s primary activities and decisions–Secondary DOES NOT = less important

Corporation

Stockholders

CustomersCustomers

EmployeesEmployeesCommunitiesCommunities

GovernmentsGovernments

EducationalInstitutionsEducationalInstitutions

ThePoorThePoor

FutureGenerations

FutureGenerations

Earth’sBiosphere

Earth’sBiosphere

ReligiousGroupsReligiousGroups

PoliticalParties

PoliticalParties CreditorsCreditors

PoliticalInterestGroups

PoliticalInterestGroups

TradeAssociations

TradeAssociations

SuppliersSuppliers

MediaMedia

CompetitorsCompetitors

UnionsUnions

PrimaryStakeholders

SecondaryStakeholders

Prioritize your stakeholders

The Stakeholder Paradox

An ethical problem will still exist whether or not management takes a

strategic or multi-fiduciary position.

Some Problems and Concerns

Institutionalizing/Implementing

Conflicts between stakeholder groups

Efficiency/practicality

But…

It helps rule out alternatives and can be tested in the marketplace.

Maybe it is practical enough?

What is national culture?

Culture comes from a tradition Culture is experienced in a collective, for which it is

an important binding force Culture is a process, not static

Hofstede: Levels of cultural programming

Personality

Culture

Human nature

Inherited and learned

Learned

Inherited

Specific to individual

Specific to group or category

Universal

Basic Assumptions

Fundamental beliefs about the world; about...–the relationship between people and the environment–the existence of truth–the nature of space –the nature of time–the nature of human relationships

Cultural Dimensions: Hofstede

Power Distance Individualism Masculinity Uncertainty Avoidance Short/Long Term Orientation

These are GUIDES!

Power distance

To what extent do we accept that some people have more power than others?

High: hierarchical, top-down (Latin) Low: egalitarian, bottom-up (Germanic)

Individualism vs collectivism

Collectivism– “We”– extended family, group– interdependence– Harmony

– Portugal, Greece, Spain, Africa, Asia, Latin America

Individualism

– “I”– small group– independence– personality

– Western 

Masculinity vs femininity

Masculinity

– be the best– ambition, competition– money, performance– success, technology

– Italy, Germany, UK, Belgium, USA

Femininity

– don’t be different– sympathy for the weak– solidarity, caring– Environment

– Scandinavian countries, The Netherlands, Africa

Uncertainty Avoidance

Strong – uncertainty = threat– the unknown = danger, – risk averse– distrust, stress

– Greece, Latin countries, German speaking countries, Finland

Weak

– uncertainty = normal– the unknown =

interesting– risk taking, “open”– Relaxed, “cool”

– Scandinavian, Anglo-Saxon, Dutch

Bonus Dimension: Long vs. Short term orientation

Long

–persistence–ordering relationships

by status and observing this order–Thrift–having a sense of

shame•Virtue

Short

–personal steadiness and stability–protecting your ‘face’–respect or tradition–reciprocation of

greetings, favors, and gifts

•Truth

High-Context Cultures

Infer information from message context, rather than from content.

Prefer indirectness, politeness & ambiguity. Convey little information explicitly. Rely heavily on nonverbal signs.

Low-Context Cultures

Rely more on content rather than on context. Explicitly spell out information. Value directness. See indirectness as manipulative. Value written word more than oral statements.

Motivation

“Fighting is in our DNA” - Dana White

What’s going on?

Team HOEHN…?

Considering the history of the UFC and the challenges that cultural differences present to sports- related organizations abroad, can Lorenzo Fertitta make a case that the UFC is culturally viable in these potential international markets?

S. Korea

Sully Jacquelyn David Mu-Ting Ignacio Grant Wang

India

Ted Raj Chris K. Anthony Chris M. Annik Tim Jon Daniel Huiwen

China

Jeff Kathleen Shawna Michelle Sunny Jennifer

What were the most important considerations in your decision?

Will there need to be “tweaks” to the product in order to make it work abroad?

How would you suggest he actually enter your chosen market?

So what did they decide?

China

TUF China–December 7, 2013 - January 26, 2014

-Finale: March 1st in Macao–Cung Lee = mentor–Some issues…

Office IN China

India

TUF India–Announced as partnership with Sony Six

Looking to do several live events in the area

S. Korea

New fighters–Chan Sung Jung –Dong Hyun Kim

‘Korean Zombie’ says UFC needs to show more sensitivity toward Asians

Live event in Singapore

What Lorenzo knew:

=

Solid organizational decisions utilize

Ethics–Individual–Organizational

Stakeholder analysis

Cultural awareness

Is is possible to agree on fundamental rules that cut across all nations?

Hypernorms

Principles that serve as a guide in evaluating lower-level moral norms–Thought to represent intersection of:

-Political, philosophical and religious beliefs

Widespread consensus that the principle is universal.

Component of well-known global industry standards.

Supported by prominent nongovernmental organization or Transparency International.

Known to be consistent with precepts of major philosophies.

Known to be consistent with findings concerning universal human values.

Supported by the laws of many different countries.

Fundamental International Rights

The right to physical movement

The right to ownership of property

The right to freedom from torture

The right to a fair trial The right to

nondiscriminatory treatment

The right to physical security

The right to freedom of speech and association

The right to minimal education

The right to political participation

The right to subsistence

T. L. Ceranic, PhD

The Dilemma of the Multinational Corporation

The Multinational Corporation

Home CountryStakeholder Pressures

Home CountryStakeholder Pressures

Host CountryStakeholder Pressures

Host CountryStakeholder Pressures

T. L. Ceranic, PhD

International LawGlobal Codes of Conduct

International LawGlobal Codes of Conduct

BROAD BROAD MIDDLE MIDDLE GROUNDGROUND

Mix of Home and Host Country Standards

CULTURAL RELATIVISM

ETHICAL IMPERIALISM

• Cultural standards

• Ethical/moral standards of home country

HomeCountry

HomeCountry

HostCountry

HostCountry

• Cultural standards

• Ethical/moral standards of host country

Application of Ethical PrinciplesT. L. Ceranic, PhD

Actions for Improving International Business Ethics

Create global codes of conduct Integrate ethics into a global strategy Suspend activities in host country Create ethical impact statements

Steps in the right direction

SA8000 UN Global Compact Sullivan Principles Cadbury Code

UN Global Compact

1: businesses should support and respect the protection of internationally proclaimed human rights

2: make sure that they are not complicit in human rights abuses

3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

4: the elimination of all forms of forced and compulsory labour

5: the effective abolition of child labour

6: the elimination of discrimination in respect of employment and occupation

7: businesses should support a precautionary approach to environmental challenges

8: undertake initiatives to promote greater environmental responsibility

9: encourage the development and diffusion of environmentally friendly technologies

10: businesses should work against corruption in all its forms, including extortion and bribery

T. L. Ceranic, PhD