Global Business Environment

Introduction• Ethics are the principles of

humanity, to be fair, law abiding and conscience to do good, to be considerate for give and take.

• Ethics also varies logistically for one place to another.

• Subject matter: its all about personal background, location and organizational culture. There are plenty of grey areas ethical business conduct.

Ethics in International Business Chapter 4

• Prepared for : Professor Datuk Dr. Mohamed Padzil

• Prepared by − Mohamed

Nahar, − Tehereh, − Amar

International ethical issues faced by International businesses

Corruption

Speed MoneyBribery

Conflict of Interest

Commercial Breach of

Trust

Employment practices

Annual auditKey

Performance Index

Child LaborFavoritismEmployee welfare

Human Rights

Discrimination

Racism

Environmental

pollution

Dumping pollution

from developed to developing.

Moral Obligation

Social responsibility

Social contribution

Noblesse oblige

Ethical Philosophies

Straw menFriedman Doctrine -resources are for profit

oriented, not social contribution and obey

the law Cultural Relativism –

ethics are the reflections of culture ‘When in Rome do as

the Romans do’- upbringing – religion – family values – similar

to Righteous MoralistNaive immoralist -

follow others behaviors in host nation, even if it

is wrong

Utilitarian & Kantia

n

-Maximization of good and the minimization of

harm-no

discrimination

Rights Theorie

s

Recognize and protect fundamental

rights of others

Justice theory

Veil of ignorance

Determinants of Unethical Behavior

Root of Unethical Behavior

Personal Ethics

Decision Making Process

LeadershipUnrealistic

performance Goals

Organization Culture

Ethical Dilemma :

social corporations dilemma – ‘Everyone does it, if I don’t do it I will loose, if 1 person does it he will gain all, if everyone does it, everyone will gain their share, don’t feel bad because everyone does it’.

Case StudiesEtch a Sketch Ethics

The Ohio Art company that produce a top selling toys.

Faces ethical dilemma: lay off 100 staff & outsource production to Kin Ki Industrial in China in the year 2000 due to losses from financial crisis & sales drop.

Tremendous cost pressure: unionized worker $1,500/m vs china labor $75/m.

The main cost is the health benefits of US unionized worker.

Bad news : naïve immoralist of long hours of child labor, poor welfare & working conditions, no benefits, discriminations, greedy Kin ki.

Google in China

Mission: Organize the world`s accessible and useful informationChina market:100 million users , Google 30% shareGoogle ethical dilemma: information censorship by government which blocked some sitesSolving problems: establish its own computer servers and a Chinese homepage, self-censorshipHuman rights: access some information which censored by government ,abandon its principles to make greater profit, the only search engine in chain that let users to know if search results had been censored (customer rights)

Conclusion: Managers decision to incorporate ethical consideration for decision making• Ethics is a subjective matter due to plenty of

Grey areas. Critical factors in ethical business conduct : Organization Control & Execution Strategy, Mindset & Organization culture.