Chp 4. BE and LPG
-
Upload
priyanka-naik -
Category
Documents
-
view
225 -
download
0
Transcript of Chp 4. BE and LPG
-
8/2/2019 Chp 4. BE and LPG
1/19
Business Ethics and
Globalization
-
8/2/2019 Chp 4. BE and LPG
2/19
Intense competition for Capital, Resources andMarkets
MNCs operate extensively in more than onecountry so difficult to control them effectively
On international level it is difficult to keep
competition fair and protecting the interest ofworkers and consumer
-
8/2/2019 Chp 4. BE and LPG
3/19
The entry of MNC in less developedcountry
MNCs operate immorally by exploiting the natural
resources of the host country, workers andmaking exorbitant profit
They compete unfairly in the host countries totheir detriment
-
8/2/2019 Chp 4. BE and LPG
4/19
International issues
The search for universal values as a basis forinternational commercial behavior
Comparison of business ethical traditions indifferent countries, from various religiousperspectives
Ethical issues arising out of internationalbusiness transactions like the fair trademovement; transfer pricing
-
8/2/2019 Chp 4. BE and LPG
5/19
Sexual and racial discrimination
Corruption and Bribery
The way in which multinationals take advantageof international differences
-
8/2/2019 Chp 4. BE and LPG
6/19
International traders must abide by followingminimum moral guidelines:
The moral minimum must be obeyed and observed
MNCs activities must do good to the hostcountries which not only limited to selfish leaders
-
8/2/2019 Chp 4. BE and LPG
7/19
Respect human rights and dignity of workers,consumers and people of host countries
The MNCs must show respect to laws, culture andlocal values of host country as civilized guest.
Actively cooperate with host country to set upbackground institution for world trade
-
8/2/2019 Chp 4. BE and LPG
8/19
Ethics in Global Business
The Caux Principles
-
8/2/2019 Chp 4. BE and LPG
9/19
The Cuax Round Table consisted of a group ofinternational executive in Caux, switzerlanddeveloped their principles based in the convictionthat we can all live together and act for thecommon good
-
8/2/2019 Chp 4. BE and LPG
10/19
These are rooted in two basic ethical ideas:
Kyosei Japanese concept
living and working together for common good
Human dignity value of each person asends
-
8/2/2019 Chp 4. BE and LPG
11/19
-
8/2/2019 Chp 4. BE and LPG
12/19
Section 2- General principles
Principle 1: the responsibilities of businesses:beyond shareholders toward stakeholders
Principle 2: The economic and social impact ofbusinesses: towards innovation, justice and worldcommunity
Principle 3: Business behavior: beyond the letter oflaw toward a spirit of trust
-
8/2/2019 Chp 4. BE and LPG
13/19
Principle 4: Respect for rules
Principle 5: support for multilateral trade
Principle 6: Respect for the environment
Principle 7: Avoidance of illicit operations
-
8/2/2019 Chp 4. BE and LPG
14/19
Section 3. Stakeholders Principles
Customers
Employees
Owners/investors
Suppliers
Competitors
Communities
-
8/2/2019 Chp 4. BE and LPG
15/19
Cultural Differences
Cultural differences is the biggest challenge
-
8/2/2019 Chp 4. BE and LPG
16/19
Reducing such issues
Decrease employee turnover
Reduces hiring and training cost
Reputation of product brands and companyenhances
With diverse workforce company enjoysgoodwill and community support
-
8/2/2019 Chp 4. BE and LPG
17/19
Corporate transgression
Transgression is a violation of a law, command or duty
a major socio-political problem
-
8/2/2019 Chp 4. BE and LPG
18/19
Resolving
Laws play major role in regulation
Ingenuity applying ideas to solve problems/ meetchallenges
Corporate courage
-
8/2/2019 Chp 4. BE and LPG
19/19
Examples
Bhopal case
Enron
Boforce etc.