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ch.4: ethics international business

- ethics : the accepted principles of right or wrong- Business Ethics : the accepted principles of right or wrong governing the conduct of business people- Ethical strategy : A strategy, or course of action, that does not violate these accepted principles

*** No clear-cut what is right or wrong, it depends upon ones cultural perspectives

o ethical issues in international business

ethical issues

in international business

1.Employment Practice 2.Human Right3.Environmental

Pollution

tregedy of the commons

4.Corruption

Foreign Corrupt PracticesAct

Convention on

Combating bribery of

Foreign Public Officials inInternational Business

Transactions

5.Moral

Obiligation

Social Responsibility

http://www.google.co.th/imgres?q=ethics&um=1&hl=th&biw=1280&bih=596&tbm=isch&tbnid=qT5tCDLmea6OfM:&imgrefurl=http://blog.lib.umn.edu/huber195/psy1001spring12/2012/02/the-dark-side-of-ethics.html&imgurl=http://blog.lib.umn.edu/huber195/psy1001spring12/ethics.jpg&w=300&h=240&ei=UeZFUMCqM4TjrAem_IDQDg&zoom=1&iact=hc&vpx=972&vpy=143&dur=564&hovh=192&hovw=240&tx=103&ty=87&sig=116254774765178364169&page=1&tbnh=123&tbnw=154&start=0&ndsp=18&ved=1t:429,r:5,s:0,i:84

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1. Employee Practice

o wage, working hours, and working environment2. Human Right

o basic human rights still are not respected in many countrieso Human rights such as freedom of speech, freedom of assembly, freedom of movement, and so ono Those are taken for granted in developed countries , but are not universally accepted

3.Environmental Pollutiono arise when environmental regulations in host nations are far interior to those in the home nationo tragedy of the commons

o it occurs when a resource held in common by everyone, like the ocean or the atmosphereo but owned by no oneo result is degradation

4. Corruption

o Foreign Corrupt Practices Acto outlawed the payments of bribes to foreign government officials to gain businesso But, allow for facilitating payments

It is not payments to receive contracts or to obtain preferential treatment they are payments to ensure receiving the standard treatment

o Convention on Combating bribery of Foreign Public Officials in International Business Transactionso Adopted by the Organization for Economic Cooperation and developmento Obliges member states to make the bribery of foreign public officials a criminal offenseo Exclude facilitating payments made to expedite routine government action are allowed

5. Moral Obligation

o Social responsibilityo ideal that business people should take the social consequences of economic actions into account when making business decisionso Successful business need to know noblesse oblige and give something back to societieso Noblesse oblige : Honorable and benevolent behavior considered the social responsibility of people in high birth

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5 things to do

1. hiring and promotiona. favor hiring and promoting people with a well grounded sense of personal ethicsb. hire people who have a strong sense of personal ethics ex: psychological testc. Should not promote those who have displayed poor ethicd. Prospective employees should find out as much as they can about the ethical climate in an organization

2. Organizationa. business must explicitly articulate values that place a strong emphasis on ethical behavior

i. code of ethicsb. leaders should give life and meeting to the code of ethics

i. by repeatedly emphasize their importance, and act to themc. Business should put in place a system of incentives ex: rewards and Sanction

3. Leadershipa. make sure that leaders within in the business not only articulate the rhetoric of ethical behavior but also act in manner that is consistent with that rhetoric

4. Decision Making Processa. Five steps managers need to ...

i. Identify which stakeholder a decision would affect and in what way1. internal stakeholders (employees, the board of directors, and stockholders)2. external stakeholders (customers, suppliers, lender, government, union)3. **moral Imagination-Stand in the shoes of a stakeholder and ask how a proposed decision might impact that stakeholder

ii. Determine whether a proposed decision would violate the fundamental rights of any kind stakeholdersiii. Establish Moral Intentiv. Company should engage in ethical behaviorv. Audit Decisions

1. ethic officers5.

Develop Moral Courage

a. Employees in an international business may need significant moral courageb. Managers need to be able to walk away from decisions that are profitable, but unethicalc. Employees need to be able to say no no to actions that are unethical